Mercer: Wage increases projected to remain flat in 2019

Valerie Bolden-Barrett | August 21, 2018

Mercer: Wage increases projected to remain flat in 2019
Despite the stiffening competition for talent in a tight labor market, average merit salary increases aren't expected to reach beyond 2.9% in 2019, according to a new compensation report by Mercer. From a poll of more than 1,500 companies, Mercer projected that wages will remain flat, with only a slight 0.1% uptick from 2018's 2.8% rate. In other key results from the report, 4% of organizations plan to redirect windfalls from the Tax Cuts & Jobs Act to salaries. About half of employers have a separate budget for promotional increases, which rings in at an average of 1.2% of payroll, with an average promotion salary increase at 7.8% of base pay. Most employers (88%) use performance as a driver of base salary adjustments. In planning for 2019, organizations reported concerns about retention (78%) and talent attraction (73%). Fewer organizations reported a need to deliver "pay for performance" (52%).  A recent Willis Towers Watson (WTW) study also projected only slight increases in wages for exempt and hourly workers. Although WTW's current and projected figures (3.1% and 3.0%, respectively) were a fraction higher than Mercer's, both reports agree that wages will remain flat, as they have for months, despite pressure from a tight labor market to raise pay to compete for talent and boost retention. After a few companies announced plans to invest some of their tax savings into salary increases, many more companies were expected to do the same. But the Q2 2018 PayScale Index showed that the real beneficiaries of the tax cut have been business owners, C-suite members and shareholders, not workers. In reality, workers' wages, as they relate to inflation, lost ground by 1.8%. Workers earned 1.4% less this year than in 2017 because of a rapidly rising Consumer Price Index (CPI). In fact, wages dropped in 80% of industries.


Other News

Survey: Digital Workplace Key to Engagement for Frontline Teams

YOOBIC | March 18, 2021

NEW YORK, March. 18, 2021 /PRNewswire/ -- Frontline workers aren’t being given the digital tools they need to succeed, leading to disengagement and reduced productivity, according to an international survey of frontline workers published today by digital workplace innovator YOOBIC. A smarter and more connected approach, using mobile devices and enterprise-grade apps, could be the key to achieving operational excellence, refocusing frontline employees on core revenue-driving activities, and attracting and retaining young workers. Mobile and deskless workers now make up 80% of the global workforce, totaling over 2.7 billion people, but the majority of digi...

Read More


ComplianceLine to Attend HCCA Conference 3.29 – 4.1

ComplianceLine | January 05, 2021

The Compliance Institute offers the latest updates and trends in all areas of healthcare compliance and ComplianceLine will showcase the latest products and services to support compliance professionals. ComplianceLine will be located at Booths #424 & #390 Join ComplianceLine and more than 2,500+ peers at the primary educational and networking event for healthcare compliance professionals! The 2020 CI includes 180 educational sessions broken into 15 learning tracks, an exhibit hall with 85+ solution providers, and ample networking opportunities. Attendees have the opportunity to obtain live CEUs. Be recognized for your experience and knowledge i...

Read More



Alexander Daniels | July 04, 2019

This is what life looked like last week for all Alexander Daniels staff. A first-class reward for all AD Divisions: HR, Accountancy and Finance, Legal, Offshore, Energy, Engineering, and Global. The event organisers went above and beyond organising a great trip to Barcelona, Sitges to reward our hard working Consultants and Managers, but also to encourage team bonding. “Team building activities can help you to build both a positive company culture and the types of behaviours that make businesses thrive” Benefits of Team Building Activities: Although we had the luxury of stepping away from the usual work office in Birmingham to sunny 40 degree Barcelona weather, there are many ben...

Read More


Paycom | December 12, 2019

Paycom Software, Inc., (NYSE:PAYC), a leading provider of comprehensive, cloud-based human capital management software, has again been recognized with an Employees’ Choice Award as one of Glassdoor’s 2020 Best Places to Work among large-sized U.S. companies.“This honor is especially significant, considering it is based on the cumulative opinions of those who are and have been a part of the Paycom family,” said Paycom’s founder and CEO, Chad Richison. “Receiving this recognition is a testament to the culture we work hard to develop. We remain committed to fostering a workplace that’s attractive to today’s workforce, so we are continuously ...

Read More