INTERNATIONAL REWARD
Pay growth weakens in face of global slowdown
Salary increases granted by multinational companies in 2002 fell below the amounts that had been budgeted last year, according to the results of an international survey undertaken by Organization Resources Counselors, Inc.
Actual salary increases for 2002 fell short of expectations in many countries while in Argentina, UAE, and Egypt more than 25% of the sample indicated that they had implemented pay freezes.
The year ahead
Looking ahead to 2003, salary increases are expected to outstrip expected inflation rates by 2% in most western European economies, but projected rises vary depending on industry groups. For example, forecast increases in UK manufacturing and engineering average 3% while the comparable figure for pharmaceuticals, healthcare and medical products is 4.4%.
Projected salary increases for 2003
| Executives | Managers and professional | Administrative | ||||
| Actual 2002 | Forecast 2003 | Actual 2002 | Forecast 2003 | Actual 2002 | Forecast 2003 | |
| Canada | 3.5% | 3.7% | 3.5% | 3.8% | 3.5% | 3.7% |
| France | 3.3% | 3.5% | 3.2% | 3.5% | 2.8% | 3.4% |
| Germany | 3.3% | 3.6% | 3.4% | 3.6% | 3.3% | 3.7% |
| Hong Kong | 3.0% | 3.1% | 2.9% | 3.0% | 2.9% | 3.0% |
| Japan | 2.6% | 2.5% | 2.4% | 2.5% | 2.4% | 2.5% |
| Singapore | 3.9% | 3.9% | 3.8% | 3.9% | 3.5% | 3.8% |
| United Kingdom | 3.6% | 3.8% | 3.6% | 3.9% | 3.4% | 3.8% |
| United States | 3.8% | 3.6% | 3.0% | 3.5% | 3.1% | 3.5% |
Source: Organization Resources Counselors, Inc.
Want to know more?
Title: Local-National Salary Increase Survey, Organization Resources Counselors, Inc.
Methodology: The ORC survey compares salary increases granted by multinational companies and gathers data on planned salary budgets for 2003 for three levels of employees across seven industry groups. The survey is conducted twice a year and covers employees who are employed in their country of permanent residence. Increases in salary include merit increases and cost-of-living adjustments and exclude amounts budgeted for incentive pay.
Survey sample: For the autumn 2002 survey, 117 companies provided information for employees in 82 countries.
Availability: For further details about purchasing the autumn survey for £270, or to participate in the spring 2003 edition, contact Claire Giraldo, tel: 0207 591 5600 or email: claire.giraldo@orcinc.co.uk.
Organization Resources Counselors, Inc. is a management consulting firm that offers consulting and data services for expatriate and local-national compensation, linked to overall human resources and organisational strategies, policies, and practices. To find out more visit www.orcinc.co.uk.
Posted 2 January 2003