KNOW YOUR MARKET HUB
January 2019 edition
Remuneration Trends and Insights
Welcome to Mercer’s Know Your Market Hub
Bringing you the most up-to-date trends in remuneration and insights on the current rewards environment, key economic data affecting pay decisions, topical HR issues and much more! The hub is updated on a monthly basis, with the remuneration movements and forecast updated quarterly, ensuring you have access to the most current and reliable information.
In this edition we shine the spotlight on: getting things done with smaller teams. See below to view the full article. If you have any questions, suggestions or have an interest area that you would like us to cover please take a minute to contact us.
Stay informed with our monthly Talent Talk email. We look forward to sharing the very latest trends and insights with you each month!
The Market Insights team
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QUARTERLY REMUNERATION MOVEMENTS AND FORECASTS - Q4 2018
The median employment cost (EC) movement for same incumbents (the same people, in the same role and at the same organisations) in the general market has increased to 2.6% in the fourth quarter of 2018.
In Q4 2018, the projection for salary increases for the financial year is 2.6%.
QUARTERLY MEDIAN SAME-INCUMBENT MOVEMENTS - BY INDUSTRY FOR Q4 2018
Market Overview - Q4 2018
The median fixed salary movement for the fourth quarter of 2018 was 2.6%, and remains higher than the inflation rate of 1.8% recorded by the Australian Bureau of Statistics (ABS) in the year to December 2018.
The official unemployment rate has remained around 5% in the fourth quarter. Despite ongoing low wage price growth (as recorded by the ABS), the market has continued to feel optimistic about the future.
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PAY INCREASE BAROMETER
January has seen the proportion of below-market (contraction) pay increases have risen to 34%, with at-market (stable) pay increases falling to 33% and above-market (expansion) pay increases rising slightly to 33%. To see the breakdown by industry, please click below.
REMUNERATION SENTIMENT INDEX
The remuneration sentiment index score for January is 12.5%. This represents an increase of almost 4 percentage points compared to last month’s figure. For more information, please click below.
NEW HIRE PAY rates
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. For further breakdown, please click below.
Gender Pay Index
The gender pay index for January is 2.8%. This is an overall 0.2 percentage point increase on last month. The increased figure indicates that the gender pay gap grew wider in January. To see the breakdown please click below.
KEY ECONOMIC INDICATORS
(September 2018 – Seasonally adjusted (yearly)
(September 2018 – Weighted average of eight capital cities (yearly)
(September 2018 – Seasonally adjusted)
(December 2018 – Seasonally adjusted)
Unemployment fell to 5% in December, while the Wage Price Index (WPI) and inflation (as measured by the Consumer Price Index (CPI)) remain low, with WPI recording a yearly change of 2.3% in September. Gross Domestic Product (GDP) has decreased to 2.8% in the 12 months to September 2018. Whilst it's the eighth consecutive quarter of positive growth it's lower than many economists expected.
Source: ABS catalogues 5206.0, 6401.0, 6202.0, 6345.0
GET THINGS DONE WITH SMALLER TEAMS
This article provides 10 ways smaller, more agile teams can achieve greater productivity for the organisation.
GLOBAL TALENT TRENDS
Mercer's latest Global Talent Trends study reveals this year's top workforce trends.