KNOW YOUR MARKET HUB
August/September 2017 edition
Remuneration Trends & 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 each month to ensure you have access to the most current and reliable information. In this edition we shine the spotlight on Mercer Select Intelligence, see below for a preview. 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.
We look forward to sharing with you the very latest trends and insights each month!
The Talent Insights team
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REMUNERATION MOVEMENTS AND FORECASTS
The median general market employment cost same-incumbent movement has moved down slightly from figures recorded throughout 2016 and sits at 2.8% as we approach the last third of 2017.
The projection for salary increases in 2017 is sitting at 2.8%.
MEDIAN SAME INCUMBENT MOVEMENTS - BY INDUSTRY TO AUGUST/SEPTEMBER 2017
The market has softened slightly with organisations passing on modest salary increases compared to earlier in the year. The Australian economy has remained stable for the most part, with positive GDP growth and no significant changes to other key economic indices. The median general market employment cost same-incumbent dipped slightly from figures recorded throughout 2016 and sits at 2.8% in August/September, with EC movements for executives (2.9%) again sitting slightly above all other staff categories. The 2017 salary forecast is also sitting at 2.8%. It is unlikely we will experience any significant growth for the remainder of 2017.
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PAY INCREASE BAROMETER
The pay barometer measures the extent to which salaries are passed on ‘at’ (stable), ‘below’ (contraction) or ‘above’ (expansion) market rates in the past six months. Results for the barometer this month show that pay increases over the past six months have fragmented slightly, with a dip in the number of individuals in the sample receiving ‘at’ (stable) market increases.
REMUNERATION SENTIMENT INDEX
The Remuneration Sentiment Index measures the general feeling of the remuneration and jobs market. The remuneration sentiment index again has recorded a positive result this month, recording a score of 24.1% in August/September 2017, another high result.
NEW HIRE PAY rates
Job market conditions have improved over the month with the new hiring pay index climbing and currently sitting at 0.7% in August/September. Overall, the market is currently offering new employees salaries 0.7%, on average, above existing employees.
Gender Pay Index
Job market conditions indicate the gender pay index is currently sitting at 2.7% in August/September. Overall, the market is currently offering female employees salaries 2.7%, on average, below male employees.
KEY ECONOMIC INDICATORS
(June 2017 – Seasonally adjusted)
(June 2017 – Weighted average of eight capital cities (yearly)
(June 2017 – Seasonally adjusted)
(August 2017 – Seasonally adjusted)
Unemployment remained steady to record a figure of 5.6%. GDP growth has remained modest at 1.8%, while WPI remains stubbornly low which is continuing to puzzle economists. CPI has again dipped below 2.0% and is now on parity with WPI, ensuring that real wage increases are not flowing down to many workers.
Source: ABS catalogues 5206.0, 6401.0, 6202.0, 6345.0
Spotlight on Mercer Select Intelligence
Modernising the annual compensation review process. Click here to view the full article.
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