KNOW YOUR MARKET HUB
June 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 how to close the skill gap - recruit or reskill, Mercer's global performance management survey and Mercer's 2019 global trends study. See below to view both articles. 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 - Q1 2019
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 first quarter of 2019.
In Q1 2019, the projection for salary increases for the financial year is 2.6%.
QUARTERLY MEDIAN SAME-INCUMBENT MOVEMENTS - BY INDUSTRY FOR Q1 2019
Market Overview - Q1 2019
The median fixed salary movement for the first quarter of 2019 was 2.6%, and remains higher than the inflation rate of 1.3% recorded by the Australian Bureau of Statistics (ABS) in the year to March 2019.
The official unemployment rate has remained around 5% in the first 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
June has seen the proportion of below-market (contraction) pay increases increasing to 32%, with at-market (stable) pay increases decreasing to 41% and above-market (expansion) pay increases also falling to 27%. To see the breakdown by industry, please click below.
REMUNERATION SENTIMENT INDEX
The remuneration sentiment index score for June is 20%. This represents an increase of 5.4 percentage points compared to last month’s figure. For more information, please click below.
NEW HIRE PAY rates
In June 2019, overall new hire pay rates increased on the previous month to -0.1%. This result indicates that the market is hiring at salaries just below those already in the role. For further breakdown, please click below.
Gender Pay Index
The gender pay index for June is 2.8%. This figure increased slightly against last month To see the breakdown please click below.
KEY ECONOMIC INDICATORS
(March 2019 – Seasonally adjusted (yearly)
(March 2019 – Weighted average of eight capital cities (yearly)
(March 2019 – Seasonally adjusted)
(May 2019 – Seasonally adjusted)
Unemployment rose slightly to 5.3% in May 2019, 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 March 2019. Gross Domestic Product (GDP) has decreased to 1.8% in the 12 months to March 2019.
Source: ABS catalogues 5206.0, 6401.0, 6202.0, 6345.0
CLOSING THE SKILL GAP - RECRUIT OR RESKILL?
The skills landscape is changing faster than ever. The skill set that was required to excel in any job role five years ago is quite different from what is required today. Therefore, organisations are on the constant lookout for talent that can keep up with the rapidly changing skill demand of job roles today.
MERCER'S 2019 GLOBAL PERFORMANCE MANAGEMENT SURVEY
By analysing the results of the Global Performance Management Survey, Mercer has identified four truths that can enhance performance management in the years ahead.
2019 GLOBAL TALENT TRENDS
Mercer's latest Global Talent Trends study reveals this year's top workforce trends.