Projected salary budget increases for 2013 are highest in India, China and Brazil, and lowest in the United States, Japan and Spain, according to the 39th annual survey.
"Salary increases in growth markets such as India, China and Brazil remain strong again this year," said Adam Sorensen, GRP, global practice leader for WorldatWork. "Although more and more companies are implementing integrated total rewards programs to attract and retain employees, cash remains king among employees. The war for talent — particularly for senior leaders and employees with specialized skills — rages on. Organizations must continue to be competitive in cash compensation even as they expand the range of other rewards in order to attract, motivate and retain their critical talent."
Survey respondents from Singapore, Australia, Canada, Germany, United Kingdom, France and Netherlands reported planned pay increases ranging from 3% to 4.3%. Japan, at 2.6%, had the survey's lowest average 2012 actual total salary budget increase of the countries WorldatWork surveyed, and its 2013 projections are a tenth of a percentage point higher (at 2.7%).
For the first time in 39 years, WorldatWork gathered salary budget increase data for 11 countries in addition to the United States and Canada. Historically, the association has collected, analyzed and reported salary budget increase data for the United States and Canada, and addressed the demand for international data by publishing Strategic Rewards Group’s merit and inflation survey within the WorldatWork salary budget survey.
The 2012-2013 survey collected 4,299 responses in April 2012 from 13 countries representing more than 17 million employees. WorldatWork's salary budget survey is the largest of its kind. Data was collected in April 2012 from WorldatWork members employed in the HR, compensation and benefits departments of mostly large U.S. companies. All data include 0% responses. Top-level findings are now available. The full report will be available in early August.