United States, Spain, Japan are bottom of the list for salary budget increases, according to annual WorldatWork Salary Budget Survey
Projected salary increases for 2013 are lowest in the United States, Spain and Japan and highest in India, China and Brazil, according to the 39th annual WorldatWork 2012-2013 Salary Budget Survey. This is the largest survey of its kind with 4,299 responses from 13 countries representing more than 17 million employees.
- India: Actual 2012 —11.2%; Projected 2013 — 10.7%
- China: Actual 2012 — 9.1%; Projected 2013 — 8.8%
- Brazil: Actual 2012 — 7.7%; Projected 2013 — 7.2%
- United States: Actual 2012 — 2.8%; Projected 2013 — 3.0%
- Spain: Actual 2012 — 2.8%; Projected 2013 — 2.9%
- Japan: Actual 2012 — 2.6%; Projected 2013 — 2.7%
“Salary increases in growth markets such as India, China and Brazil remain strong again this year,” said Adam Sorensen, GRP, global practice leader for WorldatWork. “Although more and more companies are implementing integrated total rewards programs to attract and retain employees, cash remains king among employees. The war for talent — particularly for senior leaders and employees with specialized skills — rages on. Organizations must continue to be competitive in cash compensation even as they expand the range of other rewards in order to attract, motivate and retain their critical talent.”
Survey respondents from Singapore, Australia, Canada, Germany, U.K., France and Netherlands reported planned pay increases ranging from 3.0 percent to 4.3 percent.
Japan, at 2.6 percent, had the survey’s lowest average 2012 actual total salary budget increase of the countries WorldatWork surveyed, and its 2013 projections are a tenth of a percentage point higher (at 2.7 percent).
“Salary budget increases in the United States and Canada, while on the low end of the global scale, have not declined despite continued mixed economic signals,” said Kerry Chou, CCP, compensation practice leader, WorldatWork. “However, it is apparent that employers still view the near term with uncertainty, and as such are not making significant changes to their salary budgets.”
Source: WorldatWork; www.worldatwork.org.