Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. Learn more at willistowerswatson.com. End of main navigation menu. Bonuses, which are generally tied to company and employee performance goals, averaged 16.0% of salary for management and professional employees. | Source: Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. Yet, while uncertainty was the word of the year (thankfully nudging out 2020s unprecedented), one thing was clear: Labor market pressures stemming from the pandemic had a significant impact on how organizations finalized their 2022 pay budgets. Finally, consider other payments you may have made during the year, like retention bonuses or recognition awards. Increased budgets are evident across most of the worlds largest economies. Ed Emerman: +1 609 240 2766eemerman@eaglepr.com, Willis Towers Watson Public Limited Company. ARLINGTON, VA, January 13, 2022 - Fueled by tight labor markets, U.S. employers are boosting their original salary increase projections for 2022 as the Great Resignation shows no signs of abating. The Financial Services, Banking, and Technology, Media and Gaming sectors are expected to see the highest salary increase at 10.4%, 10.2% and 10% respectively. U.S. employers expect to pay an average 3.4% raise to their workers in 2022, according to a Willis Towers Watson survey. Long story short, prioritizing and segmenting rewards actions will be vital for an appropriate return on investment. A total of 1,220 companies representing a cross section of . If pay is a mystery in your organization, thats generally not a good thing. While countries where there is centralized union negotiations (e.g., Germany, Spain) or mandatory indexation (e.g. However, Depending on the location and local economic conditions, average salaries may differ considerably. Retail industry companies are projecting average raises of 2.9% next year. Average Willis Towers Watson Salary | PayScale Smart Year-End Move: Manage Your Employee Benefits. Other steps to manage pay structures include: While working through challenges in the year ahead, hiring managers may need extra support in setting pay levels and dealing with a rapidly changing market. In response to a tight labor market, employers are planning to up employee salaries in the biggest projected hike in 15 years, new data from Willis Towers Watson finds. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { "Employers need to up their game because there are not enough people to go around," McMullen said. Sign up for free newsletters and get more CNBC delivered to your inbox. 2022 Trends in employee pay - WTW - Willis Towers Watson Pay trends to expect in 2022 - WTW - Willis Towers Watson Remember that a one-size-fits-all approach wont work. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. For example, in regions where inflation remains relatively low (e.g., Middle East, Asia), salary increases may remain above inflation. In this environment, compensation budgets that just a few months ago Secure and increase the performance of your investments with our team of experts at your side. Greater flexibility, such as remote work and flexible hours (33 percent). Overall, the most cited reasons for organisations reporting higher 2022 actual salary budgets versus projections made last year were: Approximately 42% of companies in India have also projected a positive business revenue outlook for the next 12 months, while only 7.2% have projected a negative outlook. Part of the 'Great Resignation?' It will be interesting to observe whether these nations are, in fact, able to maintain these levels. Willis Towers Watson Public Limited Company, Delayed Nasdaq China is projected to see an increase of 6%, with Hong Kong at 4.0% and Singapore at 4% next year. Last updated 3 April 23. For example, instead of trying to apply a single global plan, group countries based on their economic, labor market conditions, or statutory requirements (e.g., mandatory indexation, collective bargaining). Business road warriors and leisure travelers can use travel rewards credit cards to turn miles logged into other things including more travel. US employers plan to hike pay increases in 2022 | HR Dive For perspective, last year just under 10 percent of organizations planned a higher salary budget increase than the prior year.. [Need real-time, HR-reported compensation reports? $("span.current-site").html("SHRM MENA "); Sources: Social Security (opens in new tab) and Social Security (opens in new tab), Before seeking a raise, Straker said employees should request information about pay ranges up front and should expect transparency from their bosses. U.S. companies plan to give employees larger raises next year as they recover from the economic fallout from the pandemic and face mounting challenges attracting and retaining employees, according to a new survey by Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company. Companies are now budgeting an overall average increase of 3.4% in 2022, compared with the average 3.0% increase they had budgeted in June 2021. Kiplinger is part of Future plc, an international media group and leading digital publisher. According to the WTW report, average salary increases are projected at 3.7% in Singapore for 2022 as close to 50% of companies in Singapore expect their business performance to be . Dont underestimate the importance of this education and communication effort. The group of hyper-inflation countries (e.g., Argentina, Turkey) experiencing hyperinflation of 30% or more are in a different category altogether. Employers need to deliver a sound employee value proposition supported by comprehensive Total Rewards programs. Hatti Johansson This is also above the 5.3% average salary rise projected by companies in the Asia-Paci fi c for 2022, while countries in Western Europe and North America expect salaries to remain fl at. Please log in as a SHRM member. By Kathryn Mayer. As with their responses to the pandemic, employers are looking to be resilient and adaptable in their approach. If you missed out on the opportunity to buy I-bonds at their recent high, dont despair. The 2021 General Industry Salary Budget Survey was conducted by Willis Towers Watson Data Services between April and June 2021. Retirees to Get Big Social Security COLA Boost for 2022. The new. With more job openings than people looking for work and inflation at the highest level in three decades,