Embed Size (px)
Citation preview
®
G L O B A L C O M P E N S AT I O NP L A N N I N G R E P O R T
2 0 1 7
2 0 Y E A R L O O K B A C KS A M P L E
HEALTH WEALTH CAREER
SAMPLE
Condition of SaleCopyright © 2017. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or be transmitted in any form or by any means, electronic or mechanical, photocopying, recording or otherwise, without the prior written permission of the publishers. No responsibility for loss occurring to any person acting or refraining from acting as a result of the material in this publication can be accepted by the authors or the publishers.
For information about your order or other Mercer products, contact your nearest Mercer office:
ASIA, MIDDLE EAST, AND AFRICASingaporeTel: +65 6398 [email protected]
ORDER ONLINE
Learn more about our extensive range of publications atwww.imercer.com/global.
WE WANT TO HEAR FROM YOU!
We love getting feedback from our clients on how we can improve our publications. We also make every effort to promptly answer any questions you may have about our data or analysis.
Share your thoughts with us or contact us directly with any questions.
AUSTRALIASydneyTel: +61 2 8864 [email protected]
CANADATorontoTel: +1 800 333 [email protected]
EUROPEPolandTel: +48 22 436 68 [email protected]
LATIN AMERICAArgentina: +54 11 4000 0954Brazil: +55 11 3048 [email protected]
UNITED STATESLouisvilleTel: +1 800 333 [email protected]
PUBLISHED BY:MERCER1166 Avenue of the Americas, New York, New York 10036, United States
PUBLICATIONS DIRECTORSAMANTHA POLOVINA
CREATIVE DIRECTORSTEFANI BALDWIN
PRODUCT MANAGERCHRISY WILSON
PRODUCTION MANAGERSUMIT BAJAJ
PROJECT MANAGERRAHI SARDANA
DESIGN MANAGERBHUPESH PERIWAL
ANALYSTS
DEEPAK GAUR DIVYA M
RISHI KUMAR
WRITER AUSTIN LOTZ
COPYEDITORSANKITA RAWAT
DIVYA PRAKASH
DESIGNERVISHAL KAPOOR
CONTENT TECHNICIANNIYATI RASTOGISAMPLE
TABL
E O
F C
ON
TEN
TS
4 MERCER'S GLOBAL PUBLICATIONS
5 INTRODUCTION
6 REPORT STRUCTURE
7 READING THIS REPORT
12 SUMMARY OF KEY FINDINGS
53 AMERICAS
55 Argentina
58 Brazil
61 Canada
64 Chile
67 Colombia
70 Costa Rica
73 Ecuador
76 El Salvador
79 Guatemala
82 Honduras
85 Mexico
88 Nicaragua
91 Panama
94 Peru
97 Puerto Rico
100 United States
103 Venezuela
152 EUROPE, MIDDLE EAST, AND AFRICA
153 Bulgaria
156 Czech Republic
159 Estonia
162 Hungary
165 Israel
168 Latvia
171 Lithuania
174 Poland
177 Romania
180 Russia
183 Slovakia
186 Slovenia
189 South Africa
192 Turkey
195 Ukraine
106 ASIA PACIFIC 107 Australia
110 China–Beijing
113 China–Shanghai
116 Hong Kong
119 India
122 Indonesia
125 Japan
128 Malaysia
131 New Zealand
134 Philippines
137 Singapore
140 South Korea
143 Taiwan
146 Thailand
149 Vietnam
198 WESTERN EUROPE
199 Austria
202 Belgium
205 Denmark
208 Finland
211 France
214 Germany
217 Greece
220 Ireland
223 Italy
226 Netherlands
229 Norway
232 Portugal
235 Spain
238 Sweden
241 Switzerland
244 United Kingdom
247 ABOUT THIS REPORT248 Methodology
252 Glossary
260 About Mercer
SAMPLE
GLO
BAL
PUBL
ICAT
ION
S
Car Benefit Policies Around the World
F U L L A C C E S S T O A L L G L O B A L P U B L I C AT I O N SSubscribe to our Talent All Access® Portal for exclusive online access to our entire suite of publications and tools.
In today’s competitive race to attract and retain highly skilled global talent, organisations require current, in-depth information on everything from local statutory benefits, to salary trends, to managing a diverse workforce. Through Mercer’s own extensive global presence, we collect and analyse data and insights that help companies take the actions necessary to support their human capital strategies. You can order any of the publications below by clicking on the title links or by visiting www.imercer.com/global.
H E A LT H & B E N E F I T S
W O R K F O R C E & C A R E E R S
H A N D B O O K S & G U I D E S
Global Parental Leave Severance Policies — Asia Pacific
Global Compensation Planning Report
Short-Term Incentives Around the World
HR Guide to Doing Business
HR Atlas Asia Pacific
Worldwide Benefit & Employment Guidelines
Global Pay Summary International Geographic Salary Differentials
Total Employment Costs Around the World
Workforce Turnover Around the World
Compensation Handbook Global Mobility Handbook HR Management Terms
SAMPLE
© 2017 MERCER LLC. 5GCPR — 20 YEAR LOOK BACK — SAMPLE
I N T R O D U C T I O NRegardless of whether history repeats itself, there are important lessons to learn from the recent past. Between the historic shocks caused by the global financial crisis and the natural undulations of boom-and-bust cycles, the last twenty years have seen a wide variety of market conditions. These fluctuations in GDP and inflation rate are more than just a historical log; they portray the relationship between macroeconomic forces and private industry behaviour. By comparing key metrics, twenty years of economic data can lead companies to better decision making and forecasting in business-critical areas, keeping them one step ahead. Indeed, there is much to learn from the past.
HIGHS AND LOWSIn any economic analysis of the early 21st century, the global financial crisis looms large. What began as a bubble in the American mortgage market quickly transformed into a global phenomenon, drying-up capital markets and freezing global growth. However, because this comprehensive study reaches around the world and across the last two decades, readers have access to data on less studied and analysed market events. For instance, consider the 1997 East Asian currency crisis or the Argentine debt default in 2001. How were the ripple effects
of these events borne out locally and around the world, and how did companies alter their salary practices in response to dwindling GDP impact and rising inflation? The answers to these questions are contained herein, and allow you to predict and prepare for similar crises in the future.
EVERYDAY BUSINESSAlthough the last twenty years saw dramatic economic highs and lows, companies and decisions-makers living through this roller-coaster ride had no choice but to proceed as if it were business as usual. With that in mind, a twenty-year retrospect becomes a playbook for managers in need of historical guidance and precedence. Otherwise stressful salary negotiations become routine when HR professionals know how to navigate turbulent market conditions, and budget forecasts become clearer when executive leadership understands how to balance salary budget increases and inflation growth. The latter is also exceedingly important to talent retention and engagement; if employers don’t meet skyrocketing inflation with corresponding salary increases, employees experience an unintended decrease in their real salary. Using Mercer’s industry-leading data in this unique presentation, employers can study and anticipate the market, thereby avoiding the costs of uncertainty and inaction.
SAMPLE
© 2017 MERCER LLC. 6GCPR — 20 YEAR LOOK BACK — SAMPLE
REPORT STRUCTUREMercer’s Global Compensation Planning Report — 20 Year Lookback report is a unique offering for HR and business managers around the world interested in learning how historical trends in the economic market impact private industry salary decisions. By contextualising salary increase data around the world during one of the most turbulent economic periods since the Great Depression, the report offers important lessons and observations in how the world of work is affected by the world around us. Mercer’s GCPR — 20 Year Lookback includes data from 63 countries around the world, and features salary increase trends for six career levels commonly found in most organisations.
The report includes the following sections:
► The Summary of Key Findings section serves as an executive summary for those looking for Mercer’s insights and observations. This section is optimal for anyone looking for notable outliers in over the last twenty years, analysis of prevailing trends, and further information on the interaction of salary increases and economic forces. The analysis in this section addresses the following questions:
► How did the global recession impact emerging markets?
► How did the global recession impact regions around the world?
► How did the global recession change salary increases?
► What was the impact on the "real" salary increases?
► Which countries experienced the biggest economic swings over the last 20 years?
► The regional sections provide critical data to those looking to learn more about specific countries or markets. The regional sections are presented in geographical groupings, each of which contains country-specific information. Country data includes economic timelines, salary increase trends, and the impact of the global recession. For the benefit of the reader, the data is broken into three distinct periods over the last twenty years: pre-recession, during recession, and post-recession. The report divides the covered countries into the following regions:
► Americas
► Asia Pacific
► Eastern Europe, Middle East, and Africa
► Western Europe
► The About this Report section delineates the methods of data-gathering and cleaning used for the report and lists key definitions.
SAMPLE
© 2017 MERCER LLC. 7GCPR — 20 YEAR LOOK BACK — SAMPLE
CIVETS MINT N11 MIST EAGLEs TIMP BRIC E7
PRE-RECESSION (1995-2007)
17.1 25.4 15.9 21.2 14.1 21.7 10.0 16.6
DURING RECESSION (2008-2009)
10.1 8.7 9.9 7.0 8.4 7.4 9.6 8.7
POST-RECESSION (2010-2015)
8.4 8.1 9.0 6.7 7.7 7.0 9.0 8.2
PRE-RECESSION VS RECESSION
-41% -66% -38% -67% -41% -66% -4% -48%
PRE-RECESSION VS POST-RECESSION
-51% -68% -44% -69% -46% -68% -10% -50%
RECESSION VS POST-RECESSION
-17% -7% -9% -5% -9% -5% -7% -5%
I N T R O D U C T I O N
READING THIS REPORTThe following pages provide tips and guidelines to help navigate the report content.
C H A N G E S I N E M E R G I N G M A R K E T SAV E R A G E S A L A R Y I N C R E A S E
This arrow indicates whether the pre-recession figure is higher (green, up arrow) or lower (red, down arrow) than the during-recession number.
This row has a "flat" arrow as the pre- and post-recession amounts are being compared to this row of data.
This arrow indicates whether the post-recession figure is higher (green, up arrow) or lower (red, down arrow) than the during-recession number.
There are three types of analysis in the bottom half of the page. The middle row looks at the change from pre- to post-recession.
The bottom half of the page looks at the percentage change by comparing different combinations of the figures in the top half of the page. For example, the pre-recession figure for TIMP is 21.7% and the recession figure is 7.4%. This is a change of -66%.
In the bottom half of the page, the arrows indicate a positive or negative change for each type of analysis.
SAMPLE
© 2017 MERCER LLC. 8GCPR — 20 YEAR LOOK BACK — SAMPLE
I N T R O D U C T I O N
WESTERN EUROPE
COUNTRY NAME CHANGE
1 COUNTRY -7.3
2 COUNTRY -6.7
3 COUNTRY -4.2
4 COUNTRY -2.9
5 COUNTRY 2.5
EASTERN EUROPE, MIDDLE EAST AND AFRICA
COUNTRY NAME CHANGE
1 COUNTRY -88.2
2 COUNTRY -60.0
3 COUNTRY -44.3
4 COUNTRY -31.9
5 COUNTRY -28.7
ASIA PACIFIC
COUNTRY NAME CHANGE
1 COUNTRY -14.2
2 COUNTRY -14.0
3 COUNTRY -10.8
4 COUNTRY -9.4
5 COUNTRY -8.1
T O P 5 C O U N T R I E S W I T H T H E B I G G E S T C H A N G E I N S A L A R Y I N C R E A S E S
AMERICAS
COUNTRY NAME CHANGE
1 COUNTRY 75.3
2 COUNTRY -60.5
3 COUNTRY 30.8
4 COUNTRY -22.6
5 COUNTRY -22.2
A list of the top 5 countries for each data type (salary increase, GDP, inflation, unemployment) is provided for each geographic region. Each page is shaded based on the data point: salary increases are shaded purple.
The change amount indicates the difference between the highest and lowest figures over the 20 year period. The lowest salary increase in country over the last 20 years was 13.6% in 2001. The highest figure (88.9%) was reported in 2015. This represents a change of 75.3% over time.
The highest salary increase in country over the last 20 years was 9.3% in 2001. The lowest figure (2.0%) was reported in 2015. This represents a change of -7.3% over time.
SAMPLE
© 2017 MERCER LLC. 9GCPR — 20 YEAR LOOK BACK — SAMPLE
I N T R O D U C T I O N
These numbers are the salary increase percentages for each year.
The content on this and the next two pages are provided for each of the 63 countries included in this report.
The pink line represents the inflation trend over the last 20 years. The green line represents the
unemployment trend over the last 20 years.
AV E R A G E S A L A R Y I N C R E A S E S V S . Y E A R - O V E R - Y E A R E C O N O M I C C H A N G E S
C O U N T R Y
SALARY INCREASES GROSS DOMESTIC PRODUCT INFLATION UNEMPLOYMENT
Note: The zero figures for 1995 are not available; the graph reflects missing data for these years, not zero amounts.
FINLAND
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
SALARY INCREASE GDP INFLATION UNEMPLOYMENT
3.9
2.3 3.2 3.1
4.2 4.4 3.6 3.7 3.4 3.3 3.1 3.2 3.3 3.1
2.3 2.5 2.8 2.7 2.5 2.2 2.0
S A L A R Y I N C R E A S E A N D E C O N O M I C T R E N D S
The shaded area represents the salary increase trend over the last 20 years.
The yellow line represents the GDP trend over the last 20 years.
There are some instances where data points are missing. This is noted below the graph.SAMPLE
© 2017 MERCER LLC. 10GCPR — 20 YEAR LOOK BACK — SAMPLE
I N T R O D U C T I O NC O U N T R YS A L A R Y I N C R E A S E A N D E C O N O M I C T R E N D S : P R E A N D P O S T - R E C E S S I O NAV E R A G E S A L A R Y I N C R E A S E G R O S S D O M E S T I C P R O D U C T
PRE-RECESSION(1996-2007)
DURING RECESSION(2008-2009)
POST-RECESSION(2010-2015)
PRE-RECESSION(1996-2007)
DURING RECESSION(2008-2009)
POST-RECESSION(2010-2015)
3.4 3.2 2.5 3.6 -3.5 0.6
9.9 7.4 8.3
I N F L AT I O N U N E M P L O Y M E N T
1.5 2.9 1.9
PRE-RECESSION(1996-2007)
DURING RECESSION(2008-2009)
POST-RECESSION(2010-2015)
PRE-RECESSION(1996-2007)
DURING RECESSION(2008-2009)
POST-RECESSION(2010-2015)
Note: Data are not available for some years; refer to the label under each graphic for the range of years reported.
There are some instances where data points are missing. This is noted with the ranges of years reported for each time period. This country has missing data for 1995.
This page provides a high level comparison across four types of data for three distinct time periods: pre-, during, and post-recession.
Throughout the report, each data type is colour coded. Salary increases are purple, GDP is yellow, inflation is pink, and unemployment is green.
These figures represent the salary increase for each time period. Average increases from each year are used to calculate this amount.
This figure represents the average percent change in GDP for these two years. GDP change in 2008 was 1.2%, while 2009 was -8.2%.
SAMPLE
© 2017 MERCER LLC. 11GCPR — 20 YEAR LOOK BACK — SAMPLE
I N T R O D U C T I O NC O U N T R Y
C O M PA R I S O N O F AV E R A G E S A L A R Y I N C R E A S E W I T H R E C E S S I O N P E R I O D
I M PA C T O F R E C E S S I O N
E X E C U T I V E
P R O F E S S I O N A L — N O N S A L E S
M A N A G E M E N T
PA R A - P R O F E S S I O N A L W H I T E C O L L A R
P R O F E S S I O N A L — S A L E S
PA R A - P R O F E S S I O N A L B L U E C O L L A R
S A L A R Y I N C R E A S E T R E N D B Y E M P L O Y E E C AT E G O R Y
Pre-Recession During Recession Post-Recession
3.8 3.3 2.6
Pre-Recession During Recession Post-Recession
3.4 3.0 2.5
Pre-Recession During Recession Post-Recession
3.7 3.3 2.5
Pre-Recession During Recession Post-Recession
3.2 3.0 2.5
Pre-Recession During Recession Post-Recession
3.4 3.2 2.5
Pre-Recession During Recession Post-Recession
3.1 3.5 2.5
E X E C U T I V E
P R O F E S S I O N A L — N O N S A L E S
M A N A G E M E N T
PA R A - P R O F E S S I O N A L W H I T E C O L L A R
P R O F E S S I O N A L — S A L E S
PA R A - P R O F E S S I O N A L B L U E C O L L A R
Recession vs Post-Recession -17.2%
Pre-Recession vsRecession -11.3%
Recession vs Post-Recession -23.7%
Pre-Recession vsRecession -10.0%
Recession vs Post-Recession -21.5%
Pre-Recession vsRecession -13.7%
Recession vs Post-Recession -18.3%
Pre-Recession vsRecession -6.2%
Recession vs Post-Recession -20.6%
Pre-Recession vsRecession -7.6%
Pre-Recession vs Recession 11.6%
Recession vs Post-Recession -30.0%
The during recession number is used as the benchmark in this analysis, therefore no upward or downward change is indicated.
Each of these numbers represents the salary increase for the time period. Average increases from each year are used to calculate this amount.
This arrow indicates the post-recession salary increase was lower than the during-recession amount. For this group, salary
increase went up during the recession and then down in the post-recession period.
This arrow indicates the pre-recession salary increase was higher than the during-recession amount.
These figures indicate the percentage change from the pre-recession increase to the during-recession increase. The percentage change from 3.8% to 3.3% is -13.7%.
These figures indicate the percentage change from the during recession increase to the post-recession increase. The percentage change from 3.3% to 2.6% is -21.5%.SAMPLE
CO
UNTR
Y
C O U N T R Y
SAMPLE
C O U N T R Y
HONDURAS
SALARY INCREASE TREND
AVERAGE SALARY INCREASE
16.0
12.7 13.2 13.0
11.4 10.6
9.8
8.6 9.0
6.7 7.4 7.5
6.3 7.0
6.3 6.3 5.8 5.4 5.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
SALARY INCREASE GDP INFLATION UNEMPLOYMENT-5.0
0.0
5.0
10.0
15.0
20.0
25.0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
SALARY INCREASE GDP INFLATION UNEMPLOYMENT
Note: The zero figures for 1995, 1996 and 1997 are not available; the graph reflects missing data for these years, not zero amounts.
SALARY INCREASES GROSS DOMESTIC PRODUCT INFLATION UNEMPLOYMENT
AV E R A G E S A L A R Y I N C R E A S E S V S . Y E A R - O V E R - Y E A R E C O N O M I C C H A N G E S
S A L A R Y I N C R E A S E A N D E C O N O M I C T R E N D S
© 2017 MERCER LLC. 13GCPR — 20 YEAR LOOK BACK — SAMPLESAMPLE
AV E R A G E S A L A R Y I N C R E A S E G R O S S D O M E S T I C P R O D U C T
PRE-RECESSION(1998-2007)
DURING RECESSION(2008-2009)
POST-RECESSION(2010-2015)
PRE-RECESSION(1998-2007)
DURING RECESSION(2008-2009)
POST-RECESSION(2010-2015)
11.1 7.5 6.2 3.5 1.0 3.3
14.0 4.5 4.4
I N F L AT I O N U N E M P L O Y M E N T
9.0 10.1 5.1
PRE-RECESSION(1998-2007)
DURING RECESSION(2008-2009)
POST-RECESSION(2010-2015)
PRE-RECESSION(1998-2007)
DURING RECESSION(2008-2009)
POST-RECESSION(2010-2015)
S A L A R Y I N C R E A S E A N D E C O N O M I C T R E N D S : P R E A N D P O S T - R E C E S S I O N
Note: Data are not available for some years; refer to the label under each graphic for the range of years reported.
C O U N T R Y
© 2017 MERCER LLC. 14GCPR — 20 YEAR LOOK BACK — SAMPLESAMPLE
C O U N T R Y
C O M PA R I S O N O F AV E R A G E S A L A R Y I N C R E A S E W I T H R E C E S S I O N P E R I O D
I M PA C T O F R E C E S S I O N
E X E C U T I V E
P R O F E S S I O N A L — N O N S A L E S
M A N A G E M E N T
PA R A - P R O F E S S I O N A L W H I T E C O L L A R
P R O F E S S I O N A L — S A L E S
PA R A - P R O F E S S I O N A L B L U E C O L L A R
S A L A R Y I N C R E A S E T R E N D B Y E M P L O Y E E C AT E G O R Y
E X E C U T I V E
P R O F E S S I O N A L — N O N S A L E S
M A N A G E M E N T
PA R A - P R O F E S S I O N A L W H I T E C O L L A R
P R O F E S S I O N A L — S A L E S
PA R A - P R O F E S S I O N A L B L U E C O L L A R
Pre-Recession vsRecession
Recession vs Post-Recession
-31.7%
-20.4%
Pre-Recession vsRecession
Recession vs Post-Recession
-31.4%
-20.4%
Pre-Recession vsRecession
Recession vs Post-Recession
-36.6%
-11.3%
Pre-Recession vsRecession
Recession vs Post-Recession
-36.6%
-11.3%
Pre-Recession vsRecession
Recession vs Post-Recession
-29.7%
-19.9%
Pre-Recession vsRecession
Recession vs Post-Recession
-30.4%
-18.2%
Pre-Recession During Recession Post-Recession
11.4 7.8 6.2
Pre-Recession During Recession Post-Recession
11.0 7.0 6.2
Pre-Recession During Recession Post-Recession
11.3 7.8 6.2
Pre-Recession During Recession Post-Recession
11.0 7.7 6.2
Pre-Recession During Recession Post-Recession
11.0 7.0 6.2
Pre-Recession During Recession Post-Recession
11.1 7.7 6.3
© 2017 MERCER LLC. 15GCPR — 20 YEAR LOOK BACK — SAMPLESAMPLE
ABO
UT T
HIS
REP
ORT
A B O U T T H I S R E P O R T
SAMPLE
MET
HO
DO
LOG
Y
© 2017 MERCER LLC. 17GCPR — 20 YEAR LOOK BACK — SAMPLE
METHODOLOGYS TAT I S T I C SThe following statistics are presented in this publication:
► Median: The data point that is higher than 50% of all other data in the sample when ranked from low to high. Also known as the 50th percentile.
► Average: The sum of all data reported divided by the number of data observations in the sample. Also known as the mean.
► N: The number of companies that reported data for the statistic.
► Endash or “–”: The sample is too small to provide the statistic.
D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercer’s surveys, statistics have been “masked” by displaying an endash or “–” when minimum sample sizes are not met.
► A minimum of three data points are required to report the average.
► A minimum of four data points are require to report the median.
D ATA A N A LY S I SThis publication uses data from Mercer’s Global Compensation Planning Online tool. Unless otherwise noted, salary increases are excluding zeroes; refer to the Exceptions and Notes for a list of countries and years with data that includes zeroes.
A B O U T T H I S R E P O R TThis section provides information on the methods of collecting, collating, and analysing data for this publication. Below are notes on exceptions and exclusions in the data and a list of data sources, relevant equations, and currency conversions rates. Readers will also find a glossary of key terms.
SAMPLE
MET
HO
DO
LOG
Y
© 2017 MERCER LLC. 18GCPR — 20 YEAR LOOK BACK — SAMPLE
EXCEPTIONS AND NOTESData are not available for some years; the graphs within each set of country pages reflect missing data for these years, not zero amounts. This is noted on applicable country pages and includes the following countries:
Americas Asia Pacific Eastern Europe, Middle East, and Africa Western Europe ► Colombia ► China–Beijing ► Estonia ► Finland ► Costa Rica ► China–Shanghai ► Israel ► Norway ► Ecuador ► Hong Kong ► Latvia ► Spain ► El Salvador ► India ► Lithuania ► Guatemala ► Vietnam ► Poland ► Honduras ► Russia ► Nicaragua ► Slovakia ► Panama ► Slovenia ► Peru ► South Africa ► Puerto Rico ► Ukraine ► Venezuela
GROUP NAME COUNTRIES
BRIC Brazil, Russia, India, China
CIVETS Colombia, Indonesia, Vietnam, Egypt, Turkey, South Africa
E7 (Emerging 7) Brazil, China, India, Indonesia, Mexico, Russia, Turkey
EAGLEs (Emerging and Growth-Leading Economies) Brazil, China, Egypt, India, Indonesia, South Korea, Mexico, Russia, Taiwan, Turkey
MINT Mexico, Indonesia, Nigeria, Turkey
MIST Mexico, Indonesia, South Korea, Turkey
N11 (NEXT 11) Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, Turkey, South Korea, Vietnam
TIMP Turkey, Indonesia, Mexico, Philippines
E M E R G I N G M A R K E T SC O U N T R Y D E F I N I T I O N O F E M E R G I N G M A R K E T S
The emerging markets included in the summary of key findings are defined based on the list below.
SAMPLE
MET
HO
DO
LOG
Y
© 2017 MERCER LLC. 19GCPR — 20 YEAR LOOK BACK — SAMPLE
S A L A R Y I N C R E A S E S
► Bangladesh - Data are not available from 1995-2006.
► Egypt - Data are not available from 1995-2002 and for 2009.
► Iran - Data are not available from 1995-2015.
► Nigeria - Data are not available from 1995-2008.
► Pakistan - Data are not available from 1995-2006.
I N F L AT I O N
► Bangladesh - Data are not available from 1995-2006.
► Egypt - Data are not available from 1995-2002.
► Iran - Data are not available from 1995-2014.
► Nigeria - Data are not available from 1995-2008.
► Pakistan - Data are not available from 1995-2006.
G R O S S D O M E S T I C P R O D U C T
► Bangladesh - Data are not available from 1995-2006.
► Egypt - Data are not available from 1995-2002.
► Iran - Data are not available from 1995-2014.
► Nigeria - Data are not available from 1995-2008.
► Pakistan - Data are not available from 1995-2006.
U N E M P L O Y M E N T
► Bangladesh - Data are not available from 1995-2006 and from 2009-2012.
► Egypt - Data are not available from 1995-2002.
► Iran - Data are not available from 1995-2014.
► Nigeria - Data are not available from 1995-2008 and for 2012.
► Pakistan - Data are not available from 1995-2003.
A M E R I C A S ► None.
A S I A PA C I F I C ► Due to unavailability of 2012 excluding-zero data, 2012 including-zero data are used for salary increases in India.
Some countries in the emerging markets analysis did not have a full set of 20 years of data. A summary of missing data follows.
SAMPLE
MET
HO
DO
LOG
Y
© 2017 MERCER LLC. 20GCPR — 20 YEAR LOOK BACK — SAMPLE
E A S T E R N E U R O P E , M I D D L E E A S T, A N D A F R I C A
► Due to unavailability of 2008 excluding-zero data, 2008 including-zero data are used for salary increases in Lithuania.
► Due to unavailability of 2008 excluding-zero data, 2008 including-zero data are used for salary increases in Russia.
► Due to unavailability of 2008–2009 excluding-zero data, 2008–2009 including-zero data are used for salary increases in South Africa.
W E S T E R N E U R O P E ► None.
SAMPLE
GLO
SSAR
Y
© 2016 Mercer LLC. 2121GCPR — 20 YEAR LOOK BACK — SAMPLE© 2017 MERCER LLC.
A B O U T T H I S R E P O R T
EMPLOYEE CATEGORIESE X E C U T I V E These senior-most employees in the organisation generally include top executives and directors within the organisation, or employees with managerial responsibilities at the top level of a business unit or organisation. Executives focus on providing strategic vision and/or tactical/strategic direction across multiple functions or sub-functions. May also be referred to as Senior Executive or Function Head, or in the case of a sales executive Head of Sales/Marketing.
M A N A G E M E N T
These employees with important supervisory and managerial responsibilities are usually the higher levels within a business unit or organisation. Management-level employees focus on managing people and implementing policies and strategies to meet the organisation’s objectives. They typically report to senior managers and (other than sales) functional managers including finance, human resources, information technology.
P R O F E S S I O N A L Typically refers to jobs requiring a professional or technical qualification. They are individual contributors without supervisory responsibility, but may provide coaching/mentoring to less-experienced staff. They typically hold a university degree or full-trade equivalent.
P R O F E S S I O N A L — S A L E S
Individual contributor in a technical function or professional sales role.
P R O F E S S I O N A L — N O N S A L E S Individual contributor in a technical function or, typically, a nonsales professional role.
PA R A - P R O F E S S I O N A L Typically includes roles that are semi-skilled or unskilled with no supervisory or management responsibility. They do not require a university degree, but may require formal professional training and certification, and may be paid on an hourly or a salaried basis.
PA R A - P R O F E S S I O N A L W H I T E C O L L A R This category refers to salaried employees typically in a business support, analyst, administrative, or technical role.
PA R A - P R O F E S S I O N A L B L U E C O L L A R Para-professional blue collar refers to production workers generally in the manufacturing sector. Collective agreements may or may not cover operations employees.
SAMPLE
GLO
SSAR
Y
© 2016 Mercer LLC. 2222GCPR — 20 YEAR LOOK BACK — SAMPLE© 2017 MERCER LLC.
A B O U T T H I S R E P O R T
G R O S S D O M E S T I C P R O D U C T ( G D P ) The output of goods and services produced by labour and property. GDP has five main components: private consumption expenditure, fixed capital formation, increase in stocks, government consumption expenditure, and the net of exports of goods and services less imports of goods and services. The GDP data in this report refers to percentage change over the previous year’s GDP, at a constant price.
I N F L AT I O NA term that refers to increases in prices for a constant market basket of goods. It is the average annual change in the consumer price index, which may differ from end-of-year figures. The cause of inflation is a general increase in the money supply, without a corresponding increase in the amount of goods and services available.
ECONOMIC MARKETU N E M P L O Y M E N T R AT E The percentage of economically active persons wholly unemployed or temporarily laid off. Unemployment generally comprises all persons above a specified age who, during the reference period, were without work, currently available for work, and seeking work. National definitions of employment and unemployment differ from country to country.
SAMPLE
GLO
SSAR
Y
© 2016 Mercer LLC. 2323GCPR — 20 YEAR LOOK BACK — SAMPLE© 2017 MERCER LLC.
A B O U T T H I S R E P O R T
COMPENSATION TERMSA N N U A L B A S E S A L A R Y ( A B S )Monthly base salary multiplied by the number of months per yearthat salary is paid (according to company policy).
A N N U A L G U A R A N T E E D C A S H ( A G C )Annual base salary plus guaranteed allowances, which includemeal allowance, vehicle allowance, and so on.
A N N U A L T O TA L C A S HC O M P E N S AT I O N ( AT C )Annual base salary (ABS) plus annual guaranteed cash (AGC) andshort- term incentives, which include bonus (for example, bonus,sales commission, profit sharing) but exclude share options. Thefigures reported include the actual award amounts receivedover last 12 months.
A N N U A L T O TA L R E M U N E R AT I O N ( AT R )Annual total cash (ATC) plus long-term incentives. Also known asAnnual Total Direct Compensation.
A N N U A L T O TA L E M P L O Y M E N T C O S T ( T E C )The total fixed cost of an employee’s package to the employer,including base salary, allowances, motor vehicles (benefitvehicles only), car allowances (benefit allowances only),company superannuation associated with fixed cost, carparking, leave loading, and all other benefits and associatedfringe benefit tax. It excludes STIs and long-term incentives,staff on-costs such as workers’ compensation and payroll tax,bonuses, and/or commissions, and superannuation associatedwith variable cost.
A L L O WA N C E SSalary supplements paid to employees to cover jobrequirements, with reimbursement usually based on actualcosts. Typical allowances, depending on country or companyculture, might include allowances for maternity, festival,transition, meal, car, childcare, family, vacation, sickness,housing, and others. They can be either paid out in cash, asan addition to the base salary or in the form of vouchers orcoupons and may vary significantly from country to country.
SAMPLE
GLO
SSAR
Y
© 2016 Mercer LLC. 2424GCPR — 20 YEAR LOOK BACK — SAMPLE© 2017 MERCER LLC.
A B O U T T H I S R E P O R T
C O M P E N S AT I O N M A N A G E M E N TThe process of engaging with line managers regarding theirrecommendations for individual pay increases and bonuses. Itrelies on managers being guided towards fair and consistentawards with robust market data and being enabled usingtechnology. Approaches vary from directional (limited managerdiscretion) to discretionary.
C O M P E N S AT I O N P L A N N I N GThe process of modelling company and market data to buildinsights into how budgets should be distributed within thecompany for compensation review. It may be a top-downprocess linked to affordability and market movement, or abottom-up process linked to competitive position and individualperformance, or both. Also see Salary Increase.
C O M P E N S AT I O N S T R AT E G Y/P H I L O S O P H Y/ P O L I C YThe principles that guide the design, implementation andadministration of an organisation’s compensation programme.The strategy ensures that a compensation programme,consisting of both pay and benefits, supports an organisation’smission, goals, and business objectives. It may also specify whatprogrammes will be used and how they will be administered.The philosophy ensures that a compensation programmesupports an organisation’s culture. The policy ensures thata compensation programme carries out the compensationstrategy while supporting the compensation philosophy.
C O M P E T I T I V E PAY P O L I C YThe strategic decision an organisation makes about whichlabour markets to use as comparison groups and how to set paylevels for those groups. After choosing the comparison group,the organisation decides its market position with respect to thegroup.
E Q U I T YE X T E R N A L E Q U I T Y
A measure of an organisation’s pay levels, bands, or “goingmarket rates” compared to that of its competitors. As a fairnesscriterion, external equity implies that the employer payswages that correspond to prevailing external market rates, asdetermined by market pricing.
I N T E R N A L E Q U I T Y
A fairness criterion that directs an employer to establishwage rates that correspond to each job’s relative value to theorganisation.
E X T E R N A L C O M P E T I T I V E N E S SA comparison of the organisation’s pay structure with itscompetitors.
F I X E D A L L O WA N C ESee Allowances.SAMPLE
GLO
SSAR
Y
© 2016 Mercer LLC. 2525GCPR — 20 YEAR LOOK BACK — SAMPLE© 2017 MERCER LLC.
A B O U T T H I S R E P O R T
M A R K E T P R I C I N GThe technique of creating a job-worth hierarchy based on the “going rate” for benchmark jobs in the labour market(s) relevant to the organisation. After a preliminary hierarchy is established based on market pay levels for benchmark jobs, this method considers job content to ensure internal equity. The process then “slots” all other jobs into the hierarchy based on whole job comparison.
N E T PAYThe cash-in-hand of an employee, after tax and other deductions. Also see Gross Pay.
S A L A R Y I N C R E A S EThe total increase to salary that may include cost-of-living/ inflation and merit increases in the financial year and exclude promotion and/or market adjustment.
S A L A R Y I N C R E A S E S E X C L U D I N G Z E R O E S
Excluding zeroes represents salary increases of companies that provide an increase in pay (excluding pay freezes).
S A L A R Y I N C R E A S E S I N C L U D I N G Z E R O E S
Including zeroes represents salary increases of all companies, including those with pay freezes.
R E A L S A L A R Y I N C R E A S E
An increase in salary after factoring in the effects of inflation onpurchasing power.
S A L A R Y R A N G EThe established annual range for a position (minimum, control point, maximum) reported only for those organisations that have a formal salary structure. See pay range.
S A L A R Y R A N G E M I N I M U M
The established minimum (lowest) rate of the salary range for the position.
S A L A R Y R A N G E M A X I M U M
The established maximum (highest) rate of the salary range for the position.
S A L A R Y S T R U C T U R EThe hierarchy of job grades and pay ranges established within an organisation that may be expressed in terms of job grades, job evaluation points, or policy lines.
S A L A R Y S T R U C T U R E A D J U S T M E N T
An adjustment in the salary structure expressed as the percentage by which the sum of all midpoints of the new structure exceed (or lag) the corresponding sum of the midpoints of the old structure.
SAMPLE
26GCPR — 20 YEAR LOOK BACK — SAMPLE© 2017 MERCER LLC.
A B O U T M E R C E R At Mercer, we make a difference in the lives of more than 110 million people every day by advancing their health, wealth, and careers. We’re in the business of creating more secure and rewarding futures for our clients and their employees — whether we’re designing affordable health plans, assuring income for retirement, or aligning workers with workforce needs. Using analysis and insights as catalysts for change, we anticipate and understand the individual impact of business decisions, now and in the future. We see people’s current and future needs through a lens of innovation, and our holistic view, specialized expertise, and deep analytical rigor underpin each and every idea and solution we offer. For more than 70 years, we’ve turned our insights into actions, enabling people around the globe to live, work, and retire well. At Mercer, we say we Make Tomorrow, Today.
Mercer LLC and its separately incorporated operating entities around the world are part of Marsh & McLennan Companies, a publicly held company (ticker symbol: MMC) listed on the New York, Chicago, and London stock exchanges.
SAMPLE
Copyright 2017 Mercer LLC. All rights reserved.
For further information, please contact your local Mercer office or visit our website at www.imercer.com
17-GCPR-20YEAR-SAMPLE
SAMPLE
