INTERNATIONAL REWARD
2005 worldwide pay survey
Globally, salaries are predicted to rise by an average of 1.9 percentage points above inflation next year, according to a study by Mercer Human Resource Consulting.
Pay in the European Union is likely to rise by 2.1 percentage points over inflation. In almost two-thirds (62%) of the countries surveyed, including the UK and US, pay is forecast to rise between one and three percentage points above inflation. However, a handful of countries can be found at the extremes. In Lithuania, India and Bulgaria, for example, salaries are expected to outpace inflation by 7.7%, 7.2% and 5.6% respectively.
Mark Sullivan, European Partner at Mercer, said: "As economies strengthen and unemployment rates fall, it is surprising that companies are resisting wage inflation. Next year’ s pay increases are likely to be the same or lower than this year’ s. The question is, how long can corporations keep the lid on pay rises when the job market is becoming increasingly buoyant."
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Title: Global Compensation Planning Report 2005, Mercer Human Resource Consulting.
Methodology: The report examines employment, economic and pay trends in some 70 countries worldwide. Data on projected pay is taken from a survey of multinational companies and inflation data is primarily taken from the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development. Data covers five levels of employees: operations staff, clerical staff, technical staff, managers and senior executives.
To read the press release online visit www.mercerhr.com/pressrelease/details.jhtml/dynamic/idContent/1163970
Mercer Human Resource Consulting is one of the world’ s leading consulting organisations. It helps employers "create measurable business results through their people". The company has more than 13,000 employees serving clients from some 150 cities in 40 countries worldwide. To find out more visit www.mercerhr.com
Posted 20 December 2004