Salary rises across the world are set to decline in 2014
Salary rises across the world are set to decline in 2014, according to the latest salary forecast data from global management consultancy, Hay Group
Globally pay will increase by 5.2% on average – largely driven by robust growth forecasts in emerging markets – representing a 0.3% decline compared to last year’s forecasts.
Employees in Europe are expected to see an average pay rise of 3.1% next year – one of the lowest figures anywhere in the world and 0.2% down on last year’s forecast.
Even in this subdued environment, UK employees will experience pay increases (2.5%) significantly below the global and European average – a drop of 0.5% since 2013. And with inflation set to reach 2.7% next year, workers face a squeeze on real pay.
However, there is slightly better news for Ireland. Following three years of 0% rises, salary increases are set to grow to 0.8% in 2014 – in line with recent reports that the country is emerging from recession.
David Smith, consultant at Hay Group, comments: “Although it’s pleasing to see the recent economic growth figures, it’s clear that businesses are remaining cautious when it comes to setting pay. Although the gap is closing within some industry sectors, salaries have now not kept pace with the cost of living for several years.”
Hay Group’s research is based on the salary expectations of more than 22,000 organisations in more than 100 countries worldwide, representing 15 million employees.