U.S. Near Bottom of List of Projected Salary Budget Increases
The annual WorldatWork 2012-2013 Salary Budget Survey, released by global HR and benefits non-profit WorldatWork projects that salary increases in 2013 will be lowest in many developed countries, such as the United States (3 percent), Spain (2.9 percent), and Japan (2.7 percent) and will be highest in India (10.7 percent), China (8.8 percent), and Brazil (7.2 percent). Countries with mid-line projected increases include Singapore, Australia, Canada, Germany, the U.K., France, and Netherlands, all reporting projected increases of 3 to 4.3 percent.
“Salary increases in growth markets such as India, China and Brazil remain strong again this year,” said Adam Sorensen, GRP, global practice leader for WorldatWork. “Although more and more companies are implementing integrated total rewards programs to attract and retain employees, cash remains king among employees. The war for talent — particularly for senior leaders and employees with specialized skills — rages on. Organizations must continue to be competitive in cash compensation even as they expand the range of other rewards in order to attract, motivate and retain their critical talent.”
The same three countries also showed the lowest actual employee salary increases in 2012 with the U.S. at 2.8 percent, Spain at 2.8 percent, and Japan at 2.6 percent.
“Salary budget increases in the United States and Canada, while on the low end of the global scale, have not declined despite continued mixed economic signals,” said Kerry Chou, CCP, compensation practice leader, WorldatWork. “However, it is apparent that employers still view the near term with uncertainty, and as such are not making significant changes to their salary budgets.”