KNOW YOUR MARKET HUB
March 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 Mercer's Quality of Living city rankings and just released 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 - 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
March has seen the proportion of below-market (contraction) pay increases rise to 29%, with at-market (stable) pay increases rising to 38% and above-market (expansion) pay increases falling to 33%. To see the breakdown by industry, please click below.
REMUNERATION SENTIMENT INDEX
The remuneration sentiment index score for March is 1.7%. This represents a decrease of almost 2 percentage points compared to last month’s figure. For more information, please click below. For more information, please click below.
NEW HIRE PAY rates
In March 2019, overall new hire pay rates increased on the previous month to -1.9%. This result indicates 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 March is 2.8%. This figure has remained stable against last month. To see the breakdown please click below.
KEY ECONOMIC INDICATORS
(December 2018 – Seasonally adjusted (yearly)
(December 2018 – Weighted average of eight capital cities (yearly)
(December 2018 – Seasonally adjusted)
(February 2019 – Seasonally adjusted)
Unemployment decreased to 4.9% in February 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 December 2018. Gross Domestic Product (GDP) has decreased to 2.3% in the 12 months to December 2018.
Source: ABS catalogues 5206.0, 6401.0, 6202.0, 6345.0
2019 QUALITY OF LIVING RANKINGS
Globally, Vienna tops the ranking for the 10th year running. View below to see where each Australian city ranked.
2019 GLOBAL TALENT TRENDS(NEW)
Mercer's latest Global Talent Trends study reveals this year's top workforce trends.