KNOW YOUR MARKET HUB
November 2018 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: modern learning for the digtal era. 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.
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The Market Insights team
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QUARTERLY REMUNERATION MOVEMENTS AND FORECASTS - Q3 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 remained steady at 2.5% in the third quarter of 2018.
In Q3 2018, the projection for salary increases for the calendar year is 2.6%.
QUARTERLY MEDIAN SAME-INCUMBENT MOVEMENTS - BY INDUSTRY FOR Q3 2018
Market Overview - Q3 2018
The median fixed salary movement for the third quarter of 2018 was again 2.5%, and remains higher than the inflation rate of 2.1% recorded by the Australian Bureau of Statistics (ABS) in the year to June 2018.
The official unemployment rate has fallen to 5.0% and has reached the Reserve Bank of Australia definition of 'full employment'. 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
November has seen the proportion of below-market (contraction) pay increases rise to 33%. At-market (stable) pay increases have fallen to 34%, while above-market (expansion) pay increases are 33%. To see the breakdown by industry, please click below.
REMUNERATION SENTIMENT INDEX
The remuneration sentiment index score this month is 17.6%. This represents an increase of some 11 percentage points compared to last month’s figure. For more information, please click below.
NEW HIRE PAY rates
In November overall new hire pay rates have remained flat at zero. This result indicates that the market is hiring at salaries similar to those already in the role. To see the breakdown please click below.
Gender Pay Index
The gender pay index this month is 2.8%, which is an increase on the October figure and represents the highest recorded figure since April. Despite the increased figure the gender pay index has largely oscillated between 2.5% and 2.9% over the past year. 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)
(October 2018 – Seasonally adjusted)
Unemployment remained at 5.0% in October, 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
MODERN LEARNING FOR THE DIGITAL ERA
Read this article to learn how organisations need to take a more agile, proactive and creative approach to upskilling their workforce for the future.
GLOBAL TALENT TRENDS
Mercer's latest Global Talent Trends study reveals this year's top workforce trends.