Mercer's Know Your Market Hub

January 2019

   Remuneration Sentiment Index

Mercer’s remuneration sentiment index measures human resources (HR) professionals’ outlook for Australian remuneration and the jobs market.

The remuneration sentiment index score for January is 12.5%. This represents an increase of over 3 percentage points compared to last month’s figure, indicating a more positive sentiment around remuneration this month.

In January, the majority of survey participants, 69%, reported that sentiment about the remuneration and jobs market within their organisations was the same as the last six months, with only 19% reporting it was better and 13% feeling it was worse.

When considering the overall remuneration and jobs market, responses about sentiment showed a similar view of the market with 19% of the participating organisations reporting that sentiment was better than the last six months, 69% felt it was the same as the last six months, and 13% reported that sentiment was worse than in the last six months.

The third question in Mercer’s remuneration sentiment index relates to the outlook for the future, with poll participants being asked whether they expect their organisations’ remuneration budgets, hiring policies and/or overall sentiment about the jobs market to be better than, the same or worse than the last six months. The results showed that 69% of participants expect the situation to be the same in the next six months, 25% anticipate it will be better and 6% believe the situation will be worse.

Remuneration Sentiment Index

Remuneration Sentiment index

Source: Mercer's remuneration sentiment survey

CALCULATION METHOD

Mercer clients were polled in January 2019 using three questions related to how they viewed the remuneration and jobs market for the previous six months, and then how they expect the next six months to be. Responses to these questions were collated and used to calculate the overall remuneration sentiment index.

The questions asked are presented below:

  • Would you say that within your organisation remuneration budgets, hiring and/or overall sentiment about the jobs market is...
    • Better than the last six months?
    • Same as the last six months?
    • Worse than the last six months?
  • Thinking of the overall remuneration and jobs market (so, not just your organisation) would you say remuneration movements, hiring conditions and overall sentiment are...
    • Better than the last six months?
    • Same as the last six months?
    • Worse than the last six months?
  • This time in six months, do you expect your organisation's remuneration budget, hiring policies and/or overall sentiment about the jobs market will be...
    • Better in the next six months?
    • Same as the last six months?
    • Worse than the last six months?



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