1.6%—projected 2021 negotiated wage increase for unionized employees. Those include management; exempt, non-management; and non-exempt salaried and hourly employees. The RSC team is comprised of long-time senior advisors and technical specialists who work with clients across the United States and internationally. Our findings indicate that actual increases for 2020 fell well shy of original projections due to COVID and other associated economic issues. We believe that our public (non-profit) clients will budget between 2% and 3% for 2021 pay increases and our private for-profit clients are planning for closer to 3%. Further, one must be pragmatic and contextualize the proposed salary increase for 2021 within the Covid 19 economic environment. More specifically, WorldatWork reports an average projected total salary increase of 2.9% across employee types. Salary increases across industries in 2020, projections for 2021. RSC reviewed several sources of 2021 pay planning information and compiled the summary statistics we believe are most relevant and helpful. According to the survey, all employee groups other than executives are projected to receive salary increases of 2.6% in 2021. Would you like to speak with one of our consultants? The median projected percentage change for total salary budgets from 2020 to 2021 is an increase of 3.0%, according to XpertHR’s 2021 Salary Budget Survey of 460 US employers. Ask an Expert. As expected, the data varies. Projections for 2021 are more consistent with actual results from 2020 than projections for that same year. Access the research . Based on annual pay increase studies released by WorldatWork, Willis Towers Watson and Salary.com earlier this year, the average salary increase budgets will range between 2.8% and 3.0%. Indonesia leads the charge for 2021 salary increases in a top 10 dominated by eight Asia Pacific countries.. The survey says that close to 26.7 per cent of companies are projected to offer a higher salary increase in 2021, with another 39.8 per cent planning to offer the same hike as done in 2020. The median projected percentage change for total salary budgets from 2020 to 2021 is an increase of 3.0%, according to XpertHR's 2021 Salary Budget … We employ a client-centric approach to help clients in several compensation areas: Would you like to discuss how RSC can help you and your organization? More specifically, WorldatWork reports an average projected total salary increase of 2.9% across employee types. The projected salary increase in 2021 is 7.3% as compared to the actual 6.1% increment in 2020 Hi-Tech/ IT, Pharma & Life Sciences, and ITeS are projected to receive increments at a higher rate Hospitality, Real Estate, and Engineering Services are the sectors which will experience the lowest increase Increment trends 2021 Across the industries surveyed, increments for the high tech, consumer goods, life sciences and chemical industries remained relatively stable, the survey revealed. Many organizations in Singapore are continuing to take a cautious approach to salary increments as they navigate the impacts of COVID-19. In addition, the results of NACE’s Winter 2021 Salary Survey point to the relative inequality in the labor market. Overall, ERI is expecting lower compensation growth through 2020 and early 2021. BETHLEHEM, PA—Early projections show that the average starting salaries for Class of 2021 graduates earning bachelor’s degrees are expected to increase, according to a new research report from the National Association of Colleges and Employers (NACE).. Learn more by visiting www.johansongroup.net or www.dbsquared.com or request a free consultation by visiting https://www.dbsquared.com/consultation-request-2/. The highest projected average salary increases in 2021 in Canada, excluding freezes, are expected to be in the Administrative and Support, Waste Management and Remediation Services at 3.0% and in the Professional, Scientific and Technical Services at 2.8%. The mean actual increases are also below original projections and there is more variance by market sector than in past years. On the other hand, the report shows a decreasing salary budget in the energy and natural resources, as well as the leisure and hospitality industries. Outside the U.S., research suggests that 2021 increase projections will be higher than actual increases in 2020 among major labor markets. The Southeast Asian nation is forecast to see real wage growth of 3.8% in 2021… With salary freezes and promotional adjustments excluded, employers are projecting salaries to increase by 2.5 per cent in 2021 – down from the actual 2.6 per cent in 2020, excluding freezes. 2021 Pay Projections (Compensation Forecast) * 3 Do you know or have a best guess of what 2021 pay increase/adjustment will be for the "average" or "typical" employee? The salary trend forecast for 2021 in Malaysia remains stable across job families as well. For those that reported a proposed merit increase budget, the average for all employees, including zeros (e.g., freezes) is 2.5%. 14% of respondents plan to freeze salaries for 2021. The UIF actuaries have recently modelled four scenarios, two where unemployment peaks at 41.4% and two where the zenith is 53.7%. For 2021, employers expect base salary increases of 1.9 per cent, up from 1.6 per cent for 2020, according to Morneau Shepell. This has kept the sector’s salary increases ahead in most markets, with an actual salary increase of 5.6% in 2020 and a projected increase of 5.6% for 2021. The Willis Towers Watson survey indicated that approximately three quarters of the companies plan to distribute performance bonuses in 2021. 14%—organizations planning a 2021 salary freeze across all employee groups. Companies are showing a steady hand in salary planning in the midst of the global pandemic, according to Salary.com's annual National Salary Budget Survey with the 2021 median salary increase budgets expected to remain flat at 3.0% for the 10th year. Companies are projecting an average salary increase of 2.8% for exempt, non-management and management employees in 2021, a survey by Willis Towers Watson Data Services found. average salary increase for 2020 was 2.7%, compared to an actual salary increase of 2.6%, however this number drops to 1.6% including salary freezes. At the same time, the biggest dip in salary increases was reported in the retail, manufacturing and logistics industry. Salaries rose by 3.7% in 2020, marking the first time in 10 years that increases have dipped below 5%. This survey projects bonuses to average 11% of salary for exempt employees and 6.8% to 5.6% for non-exempt employees. As you can see from 2019 data, actual increases are much closer to projections projections for the same period. As presented in the table below, there is significant variance in projections by country particularly in Asia. 2.1%—non-unionized employees’ projected 2021 salary increase. RSC Advisory Group, LLC is a management advisory and consulting firm specializing in pay and performance. When excluding zeros, that number increases to 2.8%. An analysis of projections of 2021 salary trends across 71 countries was conducted to support businesses in next year’s salary increase budgeting. An unemployment rate of 50% is concomitantly not outside the realm of possibility. They caution that 40% of survey respondents are still undecided. General management jobs are … The highest projected average salary increases in 2021 in Canada, excluding freezes, are expected to be in the Administrative and Support, Researchers other than WorldatWork reported an expected 2.6% to 3.2% salary increase budget for 2019 across U.S. market sectors. The top two job families with the highest projected salary increase are healthcare and pharmacy services (5.2%) and production and skilled trades (5.2%). An earlier survey conducted by Willis Towers Watson Data Services from May to July showed that companies projected salary increases of 2.8% for all employees next year. Dive Brief: Merit increases will rise to an average 2.6% in 2021, U.S. employers responding to a recent Salary.com survey predicted. Nonexempt salaried and hourly employees are in line to receive a slightly smaller increase, 2.7%, according to the firm's 2020 General Industry Salary Budget Survey . Contributing to those slight declines was an increase in the number of organizations reporting zero or no salary budget increase. Salary increases (i.e., merit, promotion, and other adjustments) from 2015-2019 were steady at, or above, 3% per year. The Role of Variable Pay in Mission Success, Pay-For-Performance: There Ain’t No We in Team, Lessons in Effective Compensation Technology and Software. It should be noted that in 2020, 36% of organizations froze their salaries compared to a forecast of 2.0%. Executives are projected … Researchers other than WorldatWork reported an expected 2.6% to 3.2% salary increase budget for 2019 across U.S. market sectors. Do you have a technical question about compensation, rewards or performance management? Mercer’s annual Total Remuneration Survey (TRS) for 2020 has revealed that the overall salary increase projected in 2021 for Singapore will soften only slightly to 3.5 percent compared to 3.6 percent in 2020. Projections for 2021 are more consistent with actual results from 2020 than projections for that same year. We saw a softening of employee pay adjustments (COLA, General, and Merit) during this year due to the pandemic for our client organizations and businesses. While companies initially projected a 5% overall increase in salaries for 2021 in the first half of this year, further surveys reflect a moderation at around 3%. Preview of Americas In the Americas, inflation is expected to decrease in 2020 on average about 0.5%, but this ranges from no change in Colombia to a drop of 1.3% in Canada. Projected Employee Salary Increases for 2021 December 9, 2020 / in salary / by Blair Johanson Based on annual pay increase studies released by WorldatWork, Willis Towers Watson and Salary.com earlier this year, the average salary increase budgets will range between 2.8% and 3.0%. Actual increases for 2020 were at 2.9% for all employees, based on the World at Work 2020-2021 Salary Budget Survey, which is the first time in 12 years that salary increases … The actual 2020 and projected 2021 salary increase budgets showed the same slight 0.1 percentage-point drop since June, from 2.9% to 2.8%. Yes No 4 What is the 2021 projected base pay increase/adjustment (increase/decrease/pay freeze) percentage the "average" or "typical" The survey was completed by Salary.com, the leading SaaS provider of cloud-based compensation solutions, in June of 2020 Stephen Miller, CEBS published and released a SHRM article on September 3, 2020 titled, “Salary Increase Budgets Decline for First Time in 12 Years.”. The annual Morneau Shepell salary projection survey indicates that non-unionized employees are expected to receive on average an annual salary increase of 2.5% in 2021 excluding salary freezes, and 1.9% including salary freezes. Total increase budgets, which include market and other adjustments, were reported to be 3.0%, excluding zeros. This expectation is based on the recent decrease noted in ERI’s 2021 Salary Increase Survey, decreased trend rates in Salary Assessor data, and the increased unemployment rate of 8.4%. Conference Board of Canada (National) – projected average increases of 2.1%. We have been pleased to see the resiliency of our clients during this very challenging year and we look forward to helping them navigate compensation planning in 2021 and beyond. © 2001-2020 DBSquared, LLC All Rights Reserved Terms and Conditions, Projected Employee Salary Increases for 2021, https://www.dbsquared.com/wp-content/uploads/2017/01/DBSquaredSmall-300x135-300x135.png, “Salary Increase Budgets Decline for First Time in 12 Years.”, https://www.dbsquared.com/consultation-request-2/.