A recent report from Mercer aimed to understand the state of salary budget increases for 2019 as well as projections for 2020. A comparison with the same report from previous years showed similar findings: low to moderate wage growth. I recently spoke with Mary Ann Sardone, U.S. Talent Solutions Leader at Mercer, to explain the results.
You can read the full report here.
Very low unemployment rates have continued for several years now, which have led to a shortage of talent for organizations in general. Historically, similar job climates have resulted in considerable wage growth to increase competition. However, this survey found merit-based wage growth stayed steady at or near 2.9% over the last few years. Sardone characterized the situation by saying, “When we say merit increase budgets are remaining flat, it means employees are still getting raises like they were last year at the same rate.”