Mercer's Know Your Market Hub

December 2018

   New hire pay rates

Mercer’s new hire pay rates measures the relativity between salaries offered to hire new staff compared to existing employees within an organisation. A negative value indicates that the market is hiring at salaries below those being paid to existing employees, while a positive figure indicates that new hires are attracting salaries above employees currently in the role.

Mercer’s remuneration database operates on a rolling basis, with organisations providing remuneration data submissions throughout the year. As a result, each month we share the overall new hire pay rate findings in addition to industry-specific results for those sectors for which reportable data is available.

In December 2018, overall new hire pay rates decreased on the previous month to -0.6%. This result indicates that the market is hiring at salaries lower than those already in the role.

When compared to the previous six months, the new hire pay rate suggests that the market is finding it easier to attract people to fill required roles at discounted salaries.

New hire pay rates

Figure 1 Hiring rates

Source: Mercer's remuneration database


December has seen a decrease across all career levels for new hire pay rates. Despite the decrease, the executive, management, and para-professional career levels are still offering premiums to new hires, with the new hire rates sitting at 9.5%, 0.9%, and 0.2% respectively. The professional career level continues to offer discounted salaries with new hire rates falling to -2.9%.

New hire pay rates by career level

Figure 2 New hire pay rates by career level

Source: Mercer's remuneration database


All of the reportable industries except construction and engineering offered discounted salaries to new hires in the month of December. The mining and retail industries continue to offer the biggest discounts at -4% and -3.1% respectively, whilst the construction and engineering industry’s new hire rate remains relatively flat at just below 0%, meaning new hires are receiving similar salaries to those already in the role.

New hire pay rates by industry

 
New hire pay rates by industry - December 2018

 

Source: Mercer's remuneration database

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