New Mercer Survey Finds: Employers Not Budging on Budgets, Salary Increases Remain Flat
16 8월 2018 - 10:30PM
Business Wire
Organizations look to alternative ways to invest in their
current and future workforce
Organizations are holding the line on pay raises for US
employees. According to Mercer’s 2018/2019 US Compensation Planning
Survey, salary increase budgets for 2018 are 2.8% – no change from
2017 – and projected to be only 2.9% in 2019, despite noticeable
factors like the tightening labor market and a high rate of workers
voluntarily quitting their jobs. According to Mercer’s 2018 Global
Talent Trends Study, a majority of organizations are expressing
concerns about attraction and retention. Fair and competitive pay
is cited as the number one priority for employees. Even so, this
new study shows organizations are not budging on budgets.
“Unemployment is falling. Job openings are increasing. Employees
are gaining confidence in the labor market. Yet, companies are
still not investing in base salary, even though it’s the reward
employees value the most,” said Mary Ann Sardone, Partner and
Mercer’s North America Rewards Practice Leader. “By continuing to
hold the line on salary increase budgets, they risk losing their
top performers to competitors who are spending more dollars to
attract key talent because it’s easier to justify. It’s an
investment issue that companies should reconsider as they look
toward building their workforce for the future.”
According to Mercer’s recent survey, even the windfall of newly
available investment dollars from December’s Tax Cuts and Jobs Act
(TCJA) is not enhancing the compensation spend for most companies.
Mercer’s survey finds that only 4% of organizations have redirected
some of their anticipated tax savings to their salary increase
budgets. Moreover, just more than half of this small group of
organizations (53%) plans to increase their budget by less than 1%
of payroll.
“While employers initially responded to the tax rate drop with
one-time spot bonus awards and some proactive minimum wage
increases, little of this money is being invested in the annual pay
increase,” said Ms. Sardone. “As the market continues in the same
trajectory, those employers that focus on the budget needed for
their strategic workforce plan rather than just following the pack
will stand out. In today’s labor market where employees have
choices and competitors are offering a premium for new hires,
employers may need to up their game to retain their top
talent.”
Alternative ways to invest in talentWith budgets for base
compensation increases flat, programs beyond contractual rewards
(compensation and benefits) can help enhance the employee
experience. These programs, which arm the organization with a
differentiated and unique value proposition, are becoming another
way to effectively compete for talent in the future of work. By
supporting career development and training as well as assistance
for financial, physical, and emotional wellbeing, organizations can
advance employees’ careers in meaningful ways, offer a greater
sense of purpose, and provide a more compelling work experience
overall.
“Although the full value proposition is on the table for
investments, employers should proceed with caution,” said Ms.
Sardone. “Compensation is still the top priority for employees. If
you get it right, the other programs can be great differentiators.
If you get it wrong, the rest may not matter.”
Mercer’s 2018/2019 US Compensation Planning Survey, which is the
largest survey of its kind and has been conducted annually for more
than 25 years, includes responses from more than 1,500 mid-size and
large employers across the US. The survey results capture seven
employee segments: executive, management, professional (sales),
professional (non-sales), office/clerical/ technical,
trades/production/service, and unionized employees across multiple
industries.
To purchase Mercer’s survey, visit www.imercer.com/cps or call
800 333 3070.
About MercerMercer delivers advice and technology-driven
solutions that help organizations meet the health, wealth and
career needs of a changing workforce. Mercer’s more than 23,000
employees are based in 44 countries and the firm operates in over
130 countries. Mercer is a wholly owned subsidiary of Marsh &
McLennan Companies (NYSE: MMC), the leading global professional
services firm in the areas of risk, strategy and people. With
nearly 65,000 colleagues and annual revenue over $14 billion, Marsh
& McLennan helps clients navigate an increasingly dynamic and
complex environment. Marsh & McLennan Companies is also the
parent company of Marsh,which advises individual and commercial
clients of all sizes on insurance broking and innovative risk
management solutions; Guy Carpenter, which develops advanced risk,
reinsurance and capital strategies that help clients grow
profitably and pursue emerging opportunities; and Oliver Wyman,
which serves as a critical strategic, economic and brand advisor to
private sector and governmental clients. For more information,
visit www.mercer.com. Follow Mercer on Twitter @Mercer.
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MercerStacy Bronstein, +1
215-982-8025Stacy.Bronstein@mercer.com
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