GLOBAL SALARY SURVEY 2021 - Korn Ferry

[Pages:1]All employees

GLOBAL SALARY SURVEY 2021

How the pandemic has made organizations rethink pay increases.

The data shows four key trends impacting pay in the coming year:

1. The percentage of organizations planning no salary increases for most of their employees is significantly higher than in previous years.

2.

For companies choosing to award salary increases, these will be lower than previous years. And given the uncertain months ahead, actual increases could be lower than planned.

3.

The differentiated impact of COVID-19 has resulted in a greater variation in planned salary increases with those companies and industries that were more negatively impacted opting not to provide annual increases.

4. Organizations planning increases to a portion of their workforce are targeting their limited funds at critical talent and functions.

We've combined annual compensation survey data and recent rewards and benefits pulse surveys to provide anticipated salary increases for 2021.

A number of organizations are not planning to provide salary increases in 2021. We have provided the data both including these `zero increase'

organizations, and excluding them.

All country salary values are the median increases presented at headline values--which include inflation--unless otherwise stated.

PERCENTAGE OF EMPLOYEES LIKELY TO RECEIVE SALARY

INCREASES GLOBALLY

100%

Only 35% of survey

100%%

participants said that

90%

100% of employees will

90%

be eligible for increases.

80%

80%

70%

A third of organizations are planning increases to 50% 60% or fewer of their employees, and more than three times as 50% many organizations as last year are planning to skip 40% increases altogether.

30%

20% 16% 10%

10%

0%

0%

25%

7% 5% 5% 3% 8%

50%

75%

80%

85%

90%

% of all employees likely to receive increase

70%

60%

50%

35% 40%

30%

20%

11%

10%

95%

0%

100%

REGIONAL SALARY INCREASE DATA

Including zero: Headline increases including organizations not planning an increase.

Excluding zero: Headline increases excluding organizations not planning an increase.

NORTH AMERICA

2.5% Including zero: 2.5% Excluding zero:

WESTERN EUROPE

2.1% Including zero: 2.3% Excluding zero:

EASTERN EUROPE

5.0% Including zero: 5.4% Excluding zero:

LATIN AMERICA

4.3% Including zero: 4.4% Excluding zero:

MIDDLE EAST

2.2% Including zero: 3.2% Excluding zero:

ASIA

4.4% Including zero: 4.8% Excluding zero:

AFRICA

5.0% Including zero: 5.5% Excluding zero:

PACIFIC

2.0% Including zero: 2.4% Excluding zero:

MARKET HIGHLIGHTS

Data presented at headline (including inflation) and real (excluding inflation) values, both

including and excluding organizations planning zero salary increases.

COUNTRY

HEADLINE INCREASE DATA

(INCLUDING ZERO)

HEADLINE INCREASE DATA

(EXCLUDING ZERO)

REAL INCREASE DATA (INCLUDING ZERO)

REAL INCREASE DATA (EXCLUDING ZERO)

Australia Brazil China France

Netherlands Singapore

Turkey United Arab Emirates

United Kingdom United States of America

2.0% 4.4% 5.0% 1.3% 2.8% 2.0% 13.3% 2.6% 1.9% 3.0%

2.3% 4.6% 5.0% 1.7% 3.0% 3.0% 13.3% 3.1% 2.3% 3.0%

0.6% 1.5% 2.2% -0.2% 1.5% 1.1% 2.5% 1.6% 1.5% 1.5%

0.9% 1.7% 2.2% 0.2% 1.7% 2.1% 2.5% 2.1% 1.9% 1.5%

COUNTRY SALARY INCREASE DATA

Data including organizations planning zero increases, at headline median values.

DOMINICAN REPUBLIC

2.8%4.5P%4A.N3A4%N.IM5CA3.%AM3RE%AXGIHUCOAOGNUDEUALTRESASAMLAVLAADOR

ECUADOR

3.4% COSTA RICA

4.8% 1.8%

COLOMBIA 4.6%

CHILE 3.9%

BRAZIL 4.4% BOLIVIA 4.9% ARGEUNKTRITNAUAIRNKE3E9Y1.43.%133%.32%.9%

RUSSSLIOANVAFSKEEDIAREBRIAATRIOOM3N.A4N%4IA.3%5.0%

2.9%

+

10

KHAUZNAGKAHRSYTLAALNITTVHIUA7A.N3P%IOA2L.7A%N3D.5%4.3%

CZECH

ESTONIA REPUBLIC

4.8% 3.6% 2.4%

CROATIA 1.6%

BULGARIA 5.0%

9 8 7 6 5 4 3 2 1

PARAGUAY

7.1% 3.6%7.4%PERUURUBGAUHAYRAIN

2.0%

KUWAIT

1.5%

OMAN

3.0%

QATAR

1.2% 3.1% 2.6%

SAUDI ARABIA UNITED ARAB EMIRATES

BELARUS 5.5%

2.0% CANADA

ALBANIA 2.0%

3.0% UNITED STATES OF AMERICA

VIETNAM 7.1%

2.0% AUSTRALIA

THAILAND 4.1%

2.0% NEW ZEALAND

TAIWAN, CHINA SINGAPORE

3.0% 2.0% 5.5%

PHILIPPINES

3.5%

PAPUA

NEW

GUINEA

8.0%

PAKMISATLAANYSKIAORE5AJA.0P%A3N.4%2.0%

3.5%

7.2%

1 2 3 4 5 6 7 8 9

2.5% AUSTRIA

2.6% 3.0%

BELGIUM

2.4%

CYPRUS

1.7% 2.5G%R1.E3E%G1C.EE8R%MFRAANFNYICNDELEANNMDARK

2.0%

5.0% 7.6%

INDIA

INDONESIA

IRELAND

2.8%

10

2.2%

+

ALGERIA 5.2%

BOTSWANA 4.0%

EGYPT 7.8%

MAURITIUS 3.5%

4.0% 2.9%

CHINA

2.0%1.6%2.9%ITALYLUXNEMETBHOEURRLGANDS

MOROCCO

TUNISIA AFRICA

CHINA

1.6%

KONG,

NORWAY

HONG

PORTUGAL

1.0% SPAIN

2.0% SWEDEN

SOUTH

1.5% SWITZERLAND

1.9% UNITED KINGDOM

Data excluding organizations planning zero increases, at headline median values.

CHILE 4.0%

BRAZIL 4.6%

BOLIVIA 5.4%

ARGEUNKTRINAAINE421.35.%193%.3%

TURKEY

SLOVASKEIARBIA

RUSSIAN FEDERATRIOOMNANIA

+

3.7%

3.8% 5.0%

10

KHAUZNAGKAHRSYTLAALNITTVHIUA6A.9NP%IOA3L.7A%N4D.8%4.8%

5.1%

9 8 7 6 5

CZECH

ESTONIA REPUBLIC

5.0% 3.8%

4 3

3.1%

CROATIA 2.4%

2

BULGARIA 5.0%

1

BELARUS 5.5%

ALBANIA 2.4%

VIETNAM 7.2%

THAILAND 4.4%

TAIWAN, CHINA SINGAPORE

3.2% 3.0% 5.8%

1 2 3

PAPUPAHNILEIWPPGINPUAEINKSMIESAATLAANY3S.KI5AO8%R.2E%J5AA.0P%A3N.9%2.0%

5.0% 7.8%

4 5 6 7 8 9

2.6%

5.0% 7.6%

INDONESIA

10

+

COLOMBIA 4.6%

3.4% COSTA RICA

4.8% 2.2% 2.9%

DOMINICAN REPUBLIC ECUADOR

2.8%4.5P%4A.N8A4%N.IM5CA3.%AM8RE%AXGIHUCOAOGNUDEAULTRESAMSALAVLAADOR

2.3%

3.0%

IRELAND

PARAGUAY

7.1% 4.3%7.4%PERUURUBGAUHAYRAIN

3.0%

KUWAIT

3.2%

OMAN

3.0%

QATAR

3.0% 4.0% 3.1%

SAUDI ARABIA UNITED ARAB EMIRATES

2.0% CANADA

3.0% UNITED STATES OF AMERICA

2.3% AUSTRALIA

2.4% NEW ZEALAND

2.5% AUSTRIA

2.6% 3.0%

BELGIUM

2.5%

CYPRUS

2.0%2.5G%1R.E7E%2GC.EE0R%MFRAANFNYICNDELAENNMD ARK

INDIA CHINA

ALGERIA 6.0%

BOTSWANA 4.0%

EGYPT 9.6%

MAURITIUS 3.8%

4.8% 2.9%

2.5%2.1%3.0%ITALYLUXNEMETBHOEURRLGANDS

MOROCCO

TUNISIA AFRICA

CHINA

2.2%

1.5%

KONG,

NORWAY

HON G

PORTUGAL

SPAIN

2.0% SWEDEN

SOUT H

1.5% SWITZERLAND

2.3% UNITED KINGDOM

Trends from the 2021 global salary increase survey.

More businesses are planning no raises for most employees.

The most significant shift in the anticipated salary increases for 2021 is that the percentage of organizations planning no salary increases for most of their employees is significantly higher than in previous years. A third of organizations are planning increases to 50% or fewer of their general employee population and more than three times as many organizations as last year are planning to skip increases altogether. Only 35% of survey participants said that 100% of employees will be eligible for increases in 2021. With the recent resurgence in COVID-19 cases across the globe resulting in an increase in government-imposed lockdowns, there is a possibility that even fewer employees will receive an increase.

To make the biggest impact with the limited funds available organizations need to target rewards at critical talent and the highest performers. Organizations we surveyed in our third global pulse survey in May told us that performance management was a top priority for them during the balance of the year and heading into 2021--and with good reason. If businesses are choosing to be more targeted in who they give salary increases to, rather than handing them out across the board, then it is critical that they can objectively identify the key functions and individuals who contribute to their success.

Headline increases are lower than in previous years.

For those organizations who are providing salary increases the headline figures are lower than this time last year. Expected salary increases are 2.5% for North America, 2.1% for Western Europe, and 2.0% for the Pacific, representing a decrease in year-on-year headline increases of 0.3%, 0.4% and 0.5% respectively. Last year, Eastern Europe's expected salary increase was 6.2%, but this is down to 5.0% in the coming year. Africa has the largest year-onyear decrease, with a headline increase for the coming year of 5.0%, which is 2.9% lower than the previous year.

Making informed decisions about pay.

How to use this data.

We are sharing this salary increase data to help you make better, more informed decisions about pay for 2021. But while the report's data is an excellent place to start, it's by no means the full story.

You should use this data alongside other efforts, thinking about business strategy, cost structure, and the employee base. And it is critical, given the sector-based impacts of the COVID-19 pandemic, that organizations evaluate decisions within the context of their specific talent markets and benchmark them against regional or country averages.

"The COVID-19 pandemic has brought unprecedented levels of uncertainty to all areas of our lives--and salaries are no exception. This year's survey should provide organizations with much-needed clarity and enable them to gauge, in these difficult-to-read times, whether proposed changes to their reward programs are too cautious, too extreme, or just right," says Don Lowman, Korn Ferry Global Leader, Rewards and Benefits.

Editors Notes.

? These are planned and not actual increases. The data is a moving target dependent on recovery.

? Regional averages exclude Argentina due to particularly high inflation.

? Inflation figures from Economist Intelligence Unit, 4 November 2020.

? Figures correct at the time of data collection.

NON-CASH REWARDS MATTER MORE THAN EVER

The results of this survey show that as salary increases stall, employers will need to get

creative about non-cash rewards to retain and engage employees. To find out what creative approaches you can be taking, contact us here.

CONTACT US

? Korn Ferry 2020 All rights reserved.

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download