Signs point to strengthening across world economies throughout 2014, with all regions showing positive growth rates, according to Mercer’s latest Global Compensation Planning Report. In the report, which covers more than 100 countries, companies indicate that they generally plan slightly lower pay increases in 2014 compared to 2013. However, as a result of anticipated lower inflation, most regions will see a comparative uptick in real pay increases.
“Employers will remain cautious with pay raises in 2014, but employees, nevertheless, will benefit from a gradually improving relationship between economic growth and inflation,” says Niklaus Kobel, a Senior Researcher at Mercer. “The question is whether employees will recognize inflation’s diminishing bite out of pay increases or simply see pay increases on face value as smaller. This is an opportunity for employers to not only educate employees on pay and performance, but on pay increases relative to inflation.”
Learn more about the global outlook on compensation.
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For more information, visit www.imercer.com/products/2013/global-comp-planning.aspx.