Although in recent years, salary increases have remained at a plateau, a new survey from Aon Hewitt for 2013 documents the salary increase trend going in a new direction—up. The Global Salary Increase Survey found that employees in multiple regions saw salary increases in the positive range for 2013, mainly due to lower inflation rates. However, projected salary spending for 2014 is expected to vary amid continued global economic and political uncertainty.
Although the salary increases are minimal, they are significant due to the stationary nature of salary increases for the past several years. Aon Hewitt’s survey of more than 12,890 employers in 120 countries shows that when adjusted for inflation, average salary increases rose in all regions except for Africa (see chart below). Next year, however, Aon Hewitt’s survey shows salary increases will vary by region. In 2014, workers in Europe and North America are projected to see salary increases at 2.1 percent and 1.7 percent respectively after factoring in inflation, up from 1.0 percent and 1.1 percent in 2013. Salary increases for workers in Asia Pacific and Latin America are projected to level out year on year, while workers in Africa and the Middle East will see decreases.
Global Average Salary Increases vs. Inflation Adjusted Increases 2012-2014:
*Projected
As companies continue to be conservative with their compensation budgets, Aon Hewitt’s survey shows a growing number of organizations continue to use variable pay programs—or performance-based awards that must be re-earned each year—to attract, engage and reward high performing employees. According to Aon Hewitt, 81 percent of companies around the world offered some form of variable pay program in 2013.
For more information about Aon Hewitt’s 2013 Salary Increase Survey, please visit http://www.globalcompensation.net.
Salary Increases are on the Rise – 10/15
