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2015
GLOBAL COMPENSATION PLANNING REPORTJULY EDITION
H E A LT H W E A LT H C A R E E R
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© 2015 Mercer LLC. 2 Global Compensation Planning Report — July Update
PUBLICATIONS DIRECTORSamantha Polovina
CREATIVE DIRECTORStefani Baldwin
PRODUCT MANAGERChrisy Wilson
PRODUCTION MANAGERSumit Bajaj
PROJECT MANAGERPreetpal Singh
ANALYSTSDeepak Gaur
Devi V
Divya M
Rishi Kumar
Sunil Kaushal
Vinay Pathania
Vishal Singla
WRITERSAashi Choudhary
Virginia McMorrow
COPYEDITORShubham Bhatnagar
DESIGNERSAshish Mathew
Deepika Jain
Vishal Kapoor
Published by: 1166 Avenue of the Americas, New York, New York 10036, United States
Condition of Sale
Copyright © 2015. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or be transmitted in any form or by any means, electronic or mechanical, photocopying, recording or otherwise, without the prior written permission of the publishers. No responsibility for loss occurring to any person acting or refraining from acting as a result of the material in this publication can be accepted by the authors or the publishers.
For information about your order or other Mercer products, contact your nearest Mercer office:
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In today’s competitive race to attract and retain highly skilled global talent, organisations require current, in-depth information on everything from local statutory benefits, to salary trends, to managing a diverse workforce. Learn about our extensive product lineup at www.imercer.com/global.
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ASIA EUROPE
SingaporeTel: +65 6332 [email protected]
Poland Tel: +48 22 434 [email protected]
AUSTRALIA LATIN AMERICA
SydneyTel: +61 2 8864 [email protected]
ArgentinaTel: +54 11 4000 [email protected]
CANADA UNITED STATES
TorontoTel: +1 416 868 [email protected]
LouisvilleTel: +1 800 333 [email protected]
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© 2015 Mercer LLC. 3 Global Compensation Planning Report — July Update
DATA MINING & INSIGHTS
Compensation Handbook
Global Car Policies
Global Compensation Planning Report
Global Diversity and Inclusion Handbook
Global HR Factbook
Global Mobility Handbook
Global Pay Summary
HR Atlas Asia Pacific
HR Management Terms
International Geographic Salary Differentials
M&A HR Issues around the World
Short-Term Incentives around the World
Total Employment Costs around the World
Worldwide Benefit & Employment Guidelines
In today’s competitive race to attract and retain highly skilled global talent, organisations require current, in-depth information on everything from local statutory benefits, to salary trends, to managing a diverse workforce. Through Mercer’s own extensive global presence, we collect and analyse data and insights that help companies take the actions necessary to support their human capital strategies. You can order any of the publications below by clicking on the title links or by visiting www.imercer.com/global.
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TABLE OF CONTENTS
CORRESPONDENCE 2
DATA MINING & INSIGHTS 3
TABLE OF CONTENTS 4
INTRODUCTION 6
METHODOLOGY 8
GLOSSARY 9
STRATEGIC PLANNING FOR OPTIMAL PAY
11
SUMMARY OF KEY FINDINGS 19
ECONOMIC TRENDS 40
PAY INCREASE TRENDS 47
Pay increase trends excluding zeroes
48
Pay increase trends including zeroes
60
AFRICA 72
Algeria 73
Angola 77
Botswana 80
Cameroon 83
Côte d'Ivoire 86
Democratic Republic of Congo 89
Egypt 92
Ethiopia 95
Gabon 98
Ghana 101
Guinea 104
Kenya 107
Libya 110
Malawi 113
Mauritius 116
Morocco 119
Mozambique 122
Namibia 125
Nigeria 128
Rwanda 131
Senegal 134
South Africa 137
Tanzania 140
Tunisia 143
Uganda 146
Zambia 149
Zimbabwe 152
AMERICAS 155
Argentina 156
Bolivia 159
Brazil 162
Canada 165
Chile 169
Colombia 172
Costa Rica 175
Dominican Republic 178
Ecuador 181
El Salvador 184
Guatemala 187
Honduras 190
Mexico 193
Mexico–Bajio 197
Mexico–Monterrey-Saltillo 200
Mexico–Reynosa 203
Nicaragua 206
Panama 209
Paraguay 212
Peru 215
Puerto Rico 218
Trinidad and Tobago 221
United States 224
Uruguay 228
Venezuela 231
ASIA PACIFIC 234
Australia 235
Bangladesh 238
Cambodia 241
China–Beijing 244
China–Changsha 247
China–Changzhou 250
China–Chengdu 253
China–Chongqing 256
China–Dalian 259
China–Guangdong 262
China–Hangzhou–Ningbo 265
China–Hefei/wuhu 268
China–Nanjing 271
China–Qingdao 274
China–Shanghai 277SAMPLE
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TABLE OF CONTENTS
Vietnam 344
CENTRAL AND EASTERN EUROPE
347
Albania 348
Armenia 351
Azerbaijan 354
Belarus 357
Bosnia and Herzegovina 360
Bulgaria 363
Croatia 366
Czech Republic 369
Estonia 372
Georgia 375
Hungary 378
Kazakhstan 381
Latvia 384
Lithuania 387
Macedonia 390
Moldova 393
Montenegro 396
Poland 399
China-Shenyang–Changchun 280
China–Suzhou 283
China–Tianjin 286
China–Wuhan 289
China–Wuxi-Changzhou 292
China–Xiamen-Fuzhou 295
China–Xian 298
Hong Kong 301
India 305
Indonesia 308
Japan 311
Malaysia 314
Myanmar 317
New Zealand 320
Pakistan 323
Philippines 326
Singapore 329
South Korea 332
Sri Lanka 335
Taiwan 338
Thailand 341
Romania 402
Russia 405
Serbia 408
Slovakia 411
Slovenia 414
Turkey 417
Ukraine 420
Uzbekistan 423
MIDDLE EAST 426
Bahrain 427
Iraq 430
Israel 433
Jordan 436
Kuwait 439
Lebanon 442
Oman 445
Qatar 448
Saudi Arabia 451
United Arab Emirates 454
Yemen 457
WESTERN EUROPE 460
Austria 461
Belgium 464
Cyprus 467
Denmark 471
Finland 474
France 477
Germany 480
Greece 483
Ireland 486
Italy 489
Luxembourg 492
Malta 495
Netherlands 498
Norway 501
Portugal 505
Spain 508
Sweden 511
Switzerland 514
United Kingdom 517
ABOUT MERCER 520SAMPLE
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INTRODUCTIONMercer’s 2015 Global Compensation Planning Report – July edition includes analyses of economic trends and salary increase data by local Mercer consultants and experts. The report focuses on pay increases and economic trends, but also includes information on short-term incentives, attracting and retaining employees, headcount changes, and turnover.
To provide a more nuanced view of planned salary increases, the data shows salary increases both with and without companies that freeze salaries (including and excluding zeroes), where a high enough percentage of companies are doing so to make a meaningful difference.
REPORT STRUCTURE
The report has nine main sections:
• The Point of view, “Strategic Planning for Optimal Pay,” provides an overview of planning strategies to achieve internal equity and external competitiveness.
• The Introduction section provides the report structure and a brief note on the topics covered in the report.
• The Methodology section delineates the methods used in the report.
• The Glossary defines terms used in the report.
• The Summary of key findings provides an overview on economic trends, pay increases, short-term incentives, mandatory pay increase schemes, and talent forecasts.
• The Pay increases, economic trends, and short-term incentives section offers a snapshot of these key factors by country. The countries are classified into the following regions: Americas, Asia Pacific, Central and Eastern Europe, Western Europe, the Middle East, and Africa.
• The Economic trends section summarises economic measures, by percentage, for all countries represented in the report.
• The Pay increase trends excluding zeroes section summarises compensation trends, by percentage, for all countries represented in the report.
• The Pay increase trends including zeroes section summarises compensation trends, by percentage, for all countries represented in the report.
The individual country pages provide important insights into the economic climate of each country, as well as actions being taken and considered by employers around the world. SA
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Base pay increases: Mercer collects data on pay increases through detailed surveys of representative companies with operations in the countries analysed in the report. This figure includes merit increases, across-the-board increases, and any mandatory increase granted for inflation (cost-of-living adjustment). This section includes a table showing the percentage of companies reporting zero pay increases, and pay increases for six employee levels (plus “all employees”) excluding zeroes and including zeroes. All pay increase figures represent median values, except the figures denoted with an asterisk that represent average values, in case of small survey samples.
Economic trends: This section shows the gross domestic product annual average change (%), inflation annual average change (%), and unemployment (%) for the three years covered.
Mandatory pay increase schemes: This section describes any mandatory pay increase schemes that might apply in the country.
Short-term incentives: Variable bonus: This section shows variable bonus by employee level.
Attracting and retaining employees: This section lists the employees hardest to attract and the employees hardest to retain.
Headcount changes: This section presents the expected headcount changes, shown as increase, decrease, or no change.
Turnover rates: Turnover rates are for the latest available calendar year, either by employee category or the overall median. This section shows the voluntary staff turnover.
EMPLOYEE LEVELS
GCPR offers most of its compensation information across employee levels. The following are represented in this report:
• All employees.
• Executive.
• Management.
• Professional sales.
• Professional nonsales.
• Para-professional white collar.
• Para-professional blue collar.
INTRODUCTION
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© 2015 Mercer LLC. 8 Global Compensation Planning Report — July Update
METHODOLOGYGCPR’s methodology relies on Mercer data, along with a comprehensive review and update process. It allows HR practitioners to easily find the information necessary to understand the economic climate and market trends in the locations in which they have employees.
DATA SOURCES
Salary figures and forecasts are based on Mercer’s Total Remuneration Surveys (TRS), Salary Movement Snapshot (SMS) surveys, and country compensation databases. Main Mercer regional sources include the Latin America Economic Trends Report, the US and Canada Compensation Planning Surveys, and others. Economic information was drawn from the International Monetary Fund (IMF), World Economic Outlook database, Latin America Economic Trends Report, national central banks, national statistical offices, and government sources.
Reported figures always cover a three-year period.
If no pay increase data for a given employee category is available, the report denotes that fact by an en-dash (“–“).
EXCLUDING VS. INCLUDING ZEROES
Pay increase trends for the different employee levels show median pay increases. Figures appear both excluding and including zeroes:
• Excluding zeroes represents pay increases of companies that actually do increase pay (excluding pay freezes).
• Including zeroes shows the increases of all companies, including those with pay freezes.
UPDATE PROCESS
GCPR combines regional and local pay increase survey data to offer a global planning tool for Mercer’s clients. The basis for pay increase figures includes country survey data (TRS and SMS) and regional sources (such as the Latin America Economic Trends Report), which are locally and/or regionally peer reviewed, then integrated into GCPR. Regular quarterly reviews on GCPR-Online and in-between updates, if applicable, ensure that GCPR is up-to-date and shows the latest trends at all times.
Depending on the survey sources and the release date of the local TRS survey, the update cycle for each section can vary across countries. The sections typically updated for each update are as follows:
• July: Base pay increases and economic trends.
• October: Base pay increases, economic trends, mandatory pay increase schemes, short-term incentives, attracting and retaining employees, headcount, and turnover. SA
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AMERICAS
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PERU
PAY INCREASES, 2014-2016MEDIAN PAY INCREASES EXCLUDING ZEROES MEDIAN PAY INCREASES INCLUDING ZEROES
2014 2015 2016 2014 2015 2016
All employees 5.5% 5.0% 5.0% 5.5% 5.0% 5.0%
Executive 5.5% 5.0% 5.0% 5.5% 5.0% 5.0%
Management nonsales 5.5% 5.0% 5.0% 5.5% 5.0% 5.0%
Professional sales 5.5% 5.0% 5.0% 5.5% 5.0% 5.0%
Professional nonsales 5.5% 5.0% 5.0% 5.5% 5.0% 5.0%
Para-professional white collar 5.5% 5.0% 5.0% 5.5% 5.0% 5.0%
Para-professional blue collar 5.5% 5.0% 5.0% 5.5% 5.0% 5.0%
Source: Economic Trends - Latin America, July 2015
BASE PAY INCREASES COMPANIES REPORTING ZERO PAY INCREASES, 2014-2016
2014 2015 2016
All employees
Executive
Management nonsales
Professional sales
Professional nonsales
Para-professional white collar
Para-professional blue collar
Data for 2014 Actual
Data for 2015 Forecast
Data for 2016 Forecast
No companies reported salary freezes over this period.
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SHORT-TERM INCENTIVES: VARIABLE BONUS
VARIABLE BONUS BY EMPLOYEE LEVEL, 2014EXECUTIVE MANAGEMENT PROFESSIONAL PARA-PROFESSIONAL
NONSALES SALES NONSALES WHITE COLLAR BLUE COLLAR
Respondents with bonus programme 84% 80% 53% 62% 62% 23%
Median target bonus (% of base pay) 24% 16% 13% 10% 10% 9%
Median actual bonus (% of base pay) 20% 12% 12% 9% 9% 15%
Source: Peru Total Remuneration Survey, May 2014
MANDATORY PAY INCREASE SCHEMESPeru has no mandatory pay increase schemes, but, in July and December, companies deliver the amount of an additional base salary to all workers.
ECONOMIC TRENDS
GDP, INFLATION, AND UNEMPLOYMENT, 2014-2016
GDP, annual average change Inflation, annual average change Unemployment
2014: 2.4% 2015: 3.8%
2016: 5.0%
2014: 3.2% 2015: 2.5%
2016: 2.0%
2014: 6.0% 2015: 6.0%
2016: 6.0%
PERU Data for 2014 Actual
Data for 2015 Forecast
Data for 2016 Forecast
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PERU
HEADCOUNT CHANGES
EXPECTED HEADCOUNT CHANGES, 2014-20152014 2015
Headcount will increase 70% –
Headcount will decrease 15% –
No change 15% –
Source: Consultant estimates
TURNOVER RATES
SOURCESSOURCE TOTAL NUMBER OF PARTICIPANTS DATA EFFECTIVE DATE, MONTH, AND YEAR
Peru Total Remuneration Survey, May 2014 190 1 May 2014
Economic Trends - Latin America, July 2015 – July 2015
Workforce Metrics Database 2014 85 31 December 2014
TURNOVER RATES 2014Companies reported a median voluntary staff turnover rate of 11.1%.Source: Workforce Metrics Database 2014
WHICH EMPLOYEES ARE HARDEST TO RETAIN?JOB FAMILY LEVEL
Human resources Para-professional white collar
Information technology Para-professional white collar
Marketing Para-professional white collar
Sales Para-professional white collar, professional sales of the health care industry
ATTRACTING AND RETAINING EMPLOYEES
WHICH EMPLOYEES ARE HARDEST TO ATTRACT?JOB FAMILY LEVEL
Quality Manager, para-professional
Research and development Para-professional
Sales Para-professional
Source: Workforce Metrics Database 2014
Source: Workforce Metrics Database 2014
Data for 2014 Actual
Data for 2015 Forecast
Data for 2016 Forecast
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Mercer is a global consulting leader in talent, health, retirement, and investments. Mercer helps clients around the world advance the health, wealth, and performance of their most vital asset – their people. Mercer’s 20,500+ employees are based in more than 40 countries, and we operate in more than 140 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy, and human capital.
ABOUT MERCER
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For further information, please contact your local Mercer office or visit our website at www.mercer.com
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