Mercer's Know Your Market Hub

January 2019

   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 January 2019, overall new hire pay rates decreased on the previous month to -1.6%. 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


January has seen a decrease across all career levels for new hire pay rates, except for the executive level. Despite the decrease, the executive and management career levels are still offering premiums to new hires, with the new hire rates sitting at 19.2% and 0.2% respectively. While the para-professional career level has reported a new hire rate of -0.9%, falling just over a percentage point on last month. The professional career level continues to offer discounted salaries with new hire rates falling to -3.7%.

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 offered discounted salaries to new hires in the month of January. The construction and engineering industry offered the biggest discount at -7.4%. While the mining, retail, utilities, and life sciences industries offered -3.8%, -2.7%, -1.7%, and -1.4% respectively.

New hire pay rates by industry

 
New hire pay rates by industry - January 2019

 

Source: Mercer's remuneration database

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