Remuneration Trends & Insights

Bringing you the most up-to-date information on remuneration trends and insights on the current rewards environment, key economic data affecting pay decisions, topical HR issues and more!

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April 2021 Report

In this edition we shine the spotlight on successful industry-education engagement, the when women thrive survey and Mercer's global trends study. See below to view all of the articles. If you have any questions, suggestions or have an interest area that you would like us to cover please take a minute to contact us.

Last Updated: 7th May 2021

Quarterly Remuneration Overview [Q1 2021]

The median fixed salary movement for the first quarter of 2021 was 1.8%, and remains higher than the inflation rate of 1.1% recorded by the Australian Bureau of Statistics (ABS) in the year to March 2021.The official unemployment rate has decreased to 5.6% at the end of the first quarter. While GDP is reporting negative growth, and the Wage Price Index continues to report quite low.

REMUNERATION MOVEMENTS & FORECASTS [Q1 2021]

How industries compare by median remuneration movements by industry.

MOVEMENT

The median employment cost (EC) movement for same incumbents (the same people, in the same role and at the same organisations) in the general market was 1.8% in the first quarter of 2021.

%
FORECAST

Due to the current situation with COVID-19, Mercer Australia has paused remuneration forecasts.

%

Median Same-Incumbent Movements - By Industry [Q4 2020]

How industries compare by median remuneration movements by industry.

Roll-over each industry to learn more.

Agriculture

Agriculture

Proportion of incumbents (%)
100
80
60
40
20
0
5.48%
2.35%
12.79%
47.26%
16.45%
4.96%
10.70%
0%
0-1%
1-2%
2-3%
3-4%
4-5%
>5%
Same Incumbent Movements
%
Chemical

Chemical

Proportion of incumbents (%)
100
80
60
40
20
0
44.77%
3.98%
8.18%
6.93%
10.68%
10.57%
14.89%
0%
0-1%
1-2%
2-3%
3-4%
4-5%
>5%
Same Incumbent Movements
%
Construction/Engineering

Construction/Engineering

Proportion of incumbents (%)
100
80
60
40
20
0
56.25%
4.03%
13.34%
7.40%
3.56%
3.04%
12.37%
0%
0-1%
1-2%
2-3%
3-4%
4-5%
>5%
Same Incumbent Movements
%
Education & Research

Education & Research

Proportion of incumbents (%)
100
80
60
40
20
0
4.61%
4.61%
47.77%
15.63%
3.27%
5.36%
18.75%
0%
0-1%
1-2%
2-3%
3-4%
4-5%
>5%
Same Incumbent Movements
%
Energy, Water & Utilities

Energy, Water & Utilities

Proportion of incumbents (%)
100
80
60
40
20
0
15.17%
12.25%
21.01%
26.54%
5.13%
3.56%
16.34%
0%
0-1%
1-2%
2-3%
3-4%
4-5%
>5%
Same Incumbent Movements
%
Finance and Insurance

Finance and Insurance

Proportion of incumbents (%)
100
80
60
40
20
0
18.61%
2.18%
27.25%
27.43%
7.97%
2.76%
13.80%
0%
0-1%
1-2%
2-3%
3-4%
4-5%
>5%
Same Incumbent Movements
%
FMCG

FMCG

Proportion of incumbents (%)
100
80
60
40
20
0
17.89%
5.59%
23.30%
22.66%
11.19%
4.09%
15.28%
0%
0-1%
1-2%
2-3%
3-4%
4-5%
>5%
Same Incumbent Movements
%
Health Care

Health Care

Proportion of incumbents (%)
100
80
60
40
20
0
10.46%
22.30%
11.38%
32.46%
6.22%
2.90%
14.28%
0%
0-1%
1-2%
2-3%
3-4%
4-5%
>5%
Same Incumbent Movements
%
High-tech

High-tech

Proportion of incumbents (%)
100
80
60
40
20
0
24.72%
6.60%
26.43%
13.08%
7.93%
3.91%
17.33%
0%
0-1%
1-2%
2-3%
3-4%
4-5%
>5%
Same Incumbent Movements
%
Hospitality & Recreation

Hospitality & Recreation

Proportion of incumbents (%)
100
80
60
40
20
0
17.87%
6.55%
30.51%
24.58%
4.62%
3.16%
12.71%
0%
0-1%
1-2%
2-3%
3-4%
4-5%
>5%
Same Incumbent Movements
%
Life Sciences

Life Sciences

Proportion of incumbents (%)
100
80
60
40
20
0
29.54%
2.83%
9.92%
21.04%
11.85%
7.88%
16.95%
0%
0-1%
1-2%
2-3%
3-4%
4-5%
>5%
Same Incumbent Movements
%
Manufacturing

Manufacturing

Proportion of incumbents (%)
100
80
60
40
20
0
50.16%
1.63%
8.74%
15.32%
7.32%
2.85%
13.98%
0%
0-1%
1-2%
2-3%
3-4%
4-5%
>5%
Same Incumbent Movements
%
Mining

Mining

Proportion of incumbents (%)
100
80
60
40
20
0
12.74%
6.07%
19.19%
23.50%
6.84%
3.71%
27.97%
0%
0-1%
1-2%
2-3%
3-4%
4-5%
>5%
Same Incumbent Movements
%
Professional Services

Professional Services

Proportion of incumbents (%)
100
80
60
40
20
0
34.42%
4.98%
7.94%
19.41%
10.32%
5.12%
17.82%
0%
0-1%
1-2%
2-3%
3-4%
4-5%
>5%
Same Incumbent Movements
%
Retail

Retail

Proportion of incumbents (%)
100
80
60
40
20
0
26.84%
13.90%
25.08%
12.75%
3.06%
2.31%
16.06%
0%
0-1%
1-2%
2-3%
3-4%
4-5%
>5%
Same Incumbent Movements
%
Transport/Storage

Transport/Storage

Proportion of incumbents (%)
100
80
60
40
20
0
19.60%
12.53%
23.81%
18.37%
7.45%
1.28%
16.95%
0%
0-1%
1-2%
2-3%
3-4%
4-5%
>5%
Same Incumbent Movements
%
Last Updated: 23rd April 2021

Monthly Remuneration Overview

The median fixed salary movement for the first quarter of 2021 was 1.8%, and remains higher than the inflation rate of 1.1% recorded by the Australian Bureau of Statistics (ABS) in the year to March 2021.The official unemployment rate has decreased to 5.6% at the end of the first quarter. While GDP is reporting negative growth, and the Wage Price Index continues to report quite low.

Pay Increase Barometer

Contraction
26%
Stable
51%
Expansion
23%

April has seen the proportion of at-market (stable) pay increases rise to 51%, with below-market (contraction) pay increases decreasing to 26% and above-market (expansion) pay increases reporting 23%.

Gender Pay Index

%

Mercer’s measure of the gender pay index for April is 2.4%. The positive figure indicates that males are attracting higher salaries than their female counterparts.

Remuneration Sentiment Index

%

The remuneration sentiment index score for April is 52.1%. This represents an increase of 5.8 percentage point compared to March’s figure.

New Hire Pay Rates

%

In April 2021, overall new hire pay rates were -1.7%. This result indicates that the market is hiring at salaries below those already in the role.

Key Economic Indicators

GDP

%

(December 2020 – Seasonally adjusted)

WPI

%

(December 2020 – Seasonally adjusted)

CPI

%

(March 2021 – Weighted average of eight capital cities)

Unemployment

%

(March 2021 – Seasonally adjusted)

Unemployment decreased to 5.6% in March 2021, while the Wage Price Index (WPI) and inflation (as measured by the Consumer Price Index (CPI)) remain low, with WPI recording a yearly change of 1.4% in December 2020. Gross Domestic Product (GDP) increased to -1.1% in the 12 months to December 2020.

Source: ABS catalogues 5206.0, 6401.0, 6202.0, 6345.0
While every care has been taken to ensure the accuracy of the information, no warranty is given in respect thereof
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