This is the sixth in a series of global pulse surveys from Korn Ferry designed to gather insights into how organizations are adapting their reward programs in response to a rapidly changing world, and to assess how their plans for future rewards programs are evolving. For this survey, there is a particular focus on salary increase projections for 2022.
We were prompted to initiate this survey when it became increasingly clear from our clients toward the latter part of 2021 that early compensation increase projections for 2022 may no longer be relevant. Given the continued impact of the pandemic on business conditions, accelerating inflation, and labor supply and demand imbalances, organizations felt compelled to adjust their compensation increase budgets in the latter part of 2021 and early 2022.
This survey ran from December 2021 to January 2022 and it reflects responses from 5,042 participants in 116 countries. Survey respondents are typically HR professionals, and their organizations cover a broad range of size, geography, and ownership structure.
Market practices will continue to evolve and Korn Ferry will continue to monitor and report on future trends. If you have additional questions on this information, please contact us here: KornFerryPayServices@kornferry.com
Our perspective on global results
The survey findings indicate that organizations globally are in the process of making, or are considering, significant changes in their salary increase budgets for 2022. There are several findings that are worth noting from our survey of global practices.
- Most organizations globally are reporting an uptick in their median total salary increase budgets for 2022 vs what they had planned in 2021.
- Organizations should take care in interpreting this forecast data as there is a significant variance in company practices regarding the types of pay increases that are included in these projections.
- A majority of organizations are granting a significant percentage of their employees a salary increase this year (i.e., at least 90% of employees will receive an increase).
- While a majority of organizations are reporting little change in their base salary administration processes vs. pre-pandemic, there is a higher percentage of organizations utilizing.
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