+

10

9

8

7

6

5

4

3

2

1

+

10

5

4

3

2

1

6

7

8

9

ALBANIA

BELARUS

VIETNAM

BULGARIA

THAILAND

CROATIA

TAIWAN, CHI

NA

CZECH REPUBLIC

SINGAPOR

E

ESTONIA

PHILIPPI

NES

HUNGARY

PAPUA

NEW GU

INEA

KAZAKHSTAN

PAKIS

TAN

LATVIA

MALA

YSIA

LITHUANIA

KORE

A

POLAND

JAPA

N

ROMANIA

INDO

NESI

A

RUSSIAN FEDERATION

INDI

A

SERBIA

HONG

KO

NG, C

HINA

SLOVA

KIA

CHIN

A

TURKEY

TUN

ISIA

UK

RAIN

E

SOU

TH A

FRIC

A

AR

GEN

TINA

MO

RO

CC

O

BO

LIVIA

MA

UR

ITIU

S

BR

AZ

IL

EGY

PT

CH

ILE

BO

TSW

AN

A

CO

LOM

BIA

ALG

ERIA

CO

STA

RIC

A

UN

ITED K

ING

DO

M

DO

MIN

ICA

N R

EPU

BLI

C

SWITZ

ERLA

ND

ECU

AD

OR

SWED

EN

EL S

ALV

AD

OR

SPAIN

GUA

TEM

ALA

PORTU

GA

L

HON

DURA

S

NO

RWAY

MEX

ICO

NETHERLA

NDS

NICA

RAGU

A

LUXEMBO

URG

PANA

MA

ITALY

PARA

GUAY

IRELAND

PERU

GREECE

URUG

UAY

GERMANY

BAHR

AIN

FRANCE

KUWAIT

FINLAND

OMAN

DENMARK

QATAR

CYPRUS

SAUDI ARAB

IA

BELGIUM

UNITED ARAB EMI

RATES

AUSTRIA

CANADA

NEW ZEALAND

UNITED STATES OF AMERICA

AUSTRALIA

2.0%

5.5%

7.1%

5.0%

4.1%

1.6%

3.0%

2.4%

2.0%

3.6%

5.5%

4.8%

3.5%

7.3%

8.0%

2.7%

5.0%

3.5%

3.4%

4.3%

2.0%

5.0%

3.5%

4.3%

7.2%

3.4%

2.0%

2.9%

5.0%

13.3%

7.6%

13.3%

4.0

%

39.4%

2.9%

4.9%

3.5%

4.4

%

7.8%

3.9%

4.0

%

4.6%

5.2%

3.4

%

1.9%

4.8%

1.5%

1.8%

2.0%

2.9%

1.0%

3.3%

1.6%

4.5%

2.2%

4.3%

2.8%

4.5%

2.9%

2.8%

1.6%

7.1%

2.0%

3.6%

1.7%

7.4%

2.5%

2.0%

1.3%

1.5%

1.8%

3.0%

2.4%

1.2%

3.0%

3.1%

2.6%

2.6%

2.5%

2.0%

2.0%

3.0%

2.0%

+

10

9

8

7

6

5

4

3

2

1

+

10

5

4

3

2

1

6

7

8

9

ALBANIA

BELARUS

VIETNAM

BULGARIA

THAILAND

CROATIA

TAIWAN, CHI

NA

CZECH REPUBLIC

SINGAPOR

E

ESTONIA

PHILIPPI

NES

HUNGARY

PAPUA

NEW GU

INEA

KAZAKHSTAN

PAKIS

TAN

LATVIA

MALA

YSIA

LITHUANIA

KORE

A

POLAND

JAPA

N

ROMANIA

INDO

NESI

A

RUSSIAN FEDERATION

INDI

A

SERBIA

HONG

KO

NG, C

HINA

SLOVA

KIA

CHIN

A

TURKEY

TUN

ISIA

UK

RAIN

E

SOU

TH A

FRIC

A

AR

GEN

TINA

MO

RO

CC

O

BO

LIVIA

MA

UR

ITIU

S

BR

AZ

IL

EGY

PT

CH

ILE

BO

TSW

AN

A

CO

LOM

BIA

ALG

ERIA

CO

STA

RIC

A

UN

ITED K

ING

DO

M

DO

MIN

ICA

N R

EPU

BLI

C

SWITZ

ERLA

ND

ECU

AD

OR

SWED

EN

EL S

ALV

AD

OR

SPAIN

GUA

TEM

ALA

PORTU

GA

L

HON

DURA

S

NO

RWAY

MEX

ICO

NETHERLA

NDS

NICA

RAGU

A

LUXEMBO

URG

PANA

MA

ITALY

PARA

GUAY

IRELAND

PERU

GREECE

URUG

UAY

GERMANY

BAHR

AIN

FRANCE

KUWAIT

FINLAND

OMAN

DENMARK

QATAR

CYPRUS

SAUDI ARAB

IA

BELGIUM

UNITED ARAB EMI

RATES

AUSTRIA

CANADA

NEW ZEALAND

UNITED STATES OF AMERICA

AUSTRALIA

2.4%

5.5%

7.2%

5.0%

4.4%

2.4%

3.2%

3.1%

3.0%

3.8%

5.8%

5.0%

3.5%

6.9%

8.2%

3.7%

5.0%

4.8%

3.9%

4.8%

2.0%

5.1%

5.0%

5.0%

7.8%

3.8%

2.6%

3.7%

5.0%

13.3%

7.6%

13.9%

4.8%

42.5%

2.9%

5.4%

3.8%

4.6%

9.6%

4.0

%

4.0

%

4.6%

6.0

%

3.4

%

2.3%

4.8%

1.5%

2.2%

2.0%

2.9%

1.5%

3.8%

2.2%

4.5%

2.3%

4.8%

3.0%

4.5%

3.0%

2.8%

2.1%

7.1%

2.5%

4.3%

2.0%

7.4%

2.5%

3.0%

1.7%

3.2%

2.0%

3.0%

2.5%

3.0%

3.0%

4.0%

2.6%

3.1%

2.5%

2.0%

2.4%

3.0%

2.3%

10% 10%

20% 20%

30% 30%

40% 40%

50% 50%

60% 60%

70% 70%

80% 80%

90% 90%

100% 100%%

16%

0%

10%

25%

7%

50%

5%

75%

5%

80%

3%85%

8%

90%

11%

95%

35%

100%0% 0%

% of all employees likely to receive increase

All

emp

loye

es

Data including organizations planning zero increases, at headline median values.

Data excluding organizations planning zero increases, at headline median values.

Making informed decisions about pay.How to use this data.

We are sharing this salary increase data to help you make better, more informed decisions about pay for 2021. But while the report’s data is an excellent place to start, it’s by no means the full story.

You should use this data alongside other efforts, thinking about business strategy, cost structure, and the employee base. And it is critical, given the sector-based impacts of the COVID-19 pandemic, that organizations evaluate decisions within the context of their specific talent markets and benchmark them against regional or country averages.

“The COVID-19 pandemic has brought unprecedented levels of uncertainty to all areas of our lives—and salaries are no exception. This year’s survey should provide organizations with much-needed clarity and enable them to gauge, in these difficult-to-read times, whether proposed changes to their reward programs are too cautious, too extreme, or just right,” says Don Lowman, Korn Ferry Global Leader, Rewards and Benefits.

Editors Notes.

• These are planned and not actual increases. The data is a moving target dependent on recovery.

• Regional averages exclude Argentina due to

particularly high inflation.

• Inflation figures from Economist Intelligence Unit, 4 November 2020.

• Figures correct at the time of data collection.

Including zero:

Excluding zero:

The percentage of organizations planning no salary increases for most of their employees is significantly higher than in previous years.

For companies choosing to award salary increases, these will be lower than previous years. And given the uncertain months ahead, actual increases could be lower than planned.

The differentiated impact of COVID-19 has resulted in a greater variation in planned salary increases with those companies and industries that were more negatively impacted opting not to provide annual increases.

Organizations planning increases to a portion of their workforce are targeting their limited funds at critical talent and functions.

Including zero:

Excluding zero:

Including zero:

Excluding zero:

Including zero:

Excluding zero:

Including zero:

Excluding zero:

Including zero:

Excluding zero:

Including zero:

Excluding zero:

Including zero:

Excluding zero:

2.5% 2.5%

1.

2.

3.4.

2.1% 2.3%

5.0% 5.4%

4.4% 4.8%

2.0% 2.4%

5.0% 5.5%

4.3% 4.4%

2.2% 3.2%

MARKET HIGHLIGHTS

COUNTRY SALARY INCREASE DATA

Trends from the 2021 global salary increase survey.More businesses are planning no raises for most employees.

The most significant shift in the anticipated salary increases for 2021 is that the percentage of organizations planning no salary increases for most of their employees is significantly higher than in previous years. A third of organizations are planning increases to 50% or fewer of their general employee population and more than three times as many organizations as last year are planning to skip increases altogether. Only 35% of survey participants said that 100% of employees will be eligible for increases in 2021. With the recent resurgence in COVID-19 cases across the globe resulting in an increase in government-imposed lockdowns, there is a possibility that even fewer employees will receive an increase.

To make the biggest impact with the limited funds available organizations need to target rewards at critical talent and the highest performers. Organizations we surveyed in our third global pulse survey in May told us that performance management was a top priority for them during the balance of the year and heading into 2021—and with good reason. If businesses are choosing to be more targeted in who they give salary increases to, rather than handing them out across the board, then it is critical that they can objectively identify the key functions and individuals who contribute to their success.

Headline increases are lower than in previous years.

For those organizations who are providing salary increases the headline figures are lower than this time last year. Expected salary increases are 2.5% for North America, 2.1% for Western Europe, and 2.0% for the Pacific, representing a decrease in year-on-year headline increases of 0.3%, 0.4% and 0.5% respectively. Last year, Eastern Europe’s expected salary increase was 6.2%, but this is down to 5.0% in the coming year. Africa has the largest year-on-year decrease, with a headline increase for the coming year of 5.0%, which is 2.9% lower than the previous year.

© Korn Ferry 2020 All rights reserved.

NON-CASH REWARDS MATTER MORE THAN EVER

COUNTRYHEADLINE INCREASE

DATA(INCLUDING ZERO)

HEADLINE INCREASE DATA

(EXCLUDING ZERO)

REAL INCREASE DATA (INCLUDING ZERO)

REAL INCREASE DATA (EXCLUDING ZERO)

Australia 2.0% 2.3% 0.6% 0.9%

Brazil 4.4% 4.6% 1.5% 1.7%

China 5.0% 5.0% 2.2% 2.2%

France 1.3% 1.7% -0.2% 0.2%

Netherlands 2.8% 3.0% 1.5% 1.7%

Singapore 2.0% 3.0% 1.1% 2.1%

Turkey 13.3% 13.3% 2.5% 2.5%

United Arab Emirates 2.6% 3.1% 1.6% 2.1%

United Kingdom 1.9% 2.3% 1.5% 1.9%

United Statesof America 3.0% 3.0% 1.5% 1.5%

REGIONAL SALARY INCREASE DATA

PERCENTAGE OF EMPLOYEES LIKELY TO RECEIVE SALARY

INCREASES GLOBALLY

GLOBAL SALARY SURVEY 2021

How the pandemic has made organizationsrethink pay increases.

We’ve combined annual compensation survey data and recent rewards and benefits pulse surveys to provide anticipated salary increases for 2021.

A number of organizations are not planning to provide salary increases in 2021. We have provided the data both including these ‘zero increase’

organizations, and excluding them.

All country salary values are the median increases presented at headline values—which include inflation—unless otherwise stated.

NORTH AMERICA

WESTERN EUROPE

EASTERN EUROPE

ASIA

PACIFIC

AFRICA

LATIN AMERICA

MIDDLE EAST

The results of this survey show that as salary increases stall, employers will need to get

creative about non-cash rewards to retain and engage employees. To find out what creative

approaches you can be taking, contact us here.

The data shows four key trends impacting pay in the coming year:

Data presented at headline (including inflation) and real (excluding inflation) values, both

including and excluding organizations planning zero salary increases.

Including zero:

Excluding zero:

Headline increases including organizations not planning an increase.

Headline increases excluding organizations not planning an increase.

Only 35% of survey participants said that 100% of employees will be eligible for increases.

A third of organizations are planning increases to 50% or fewer of their employees, and more than three times as many organizations as last year are planning to skip increases altogether.

https://www.kornferry.com/contact?utm_source=outreach&utm_medium=nurture&utm_term=link&utm_content=infographic&utm_campaign=20-11-gbl-rewards-optimization

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