NorthgateArinso’ s 2012 Global Pay Optimism Index exposes business need for additional benefits to offset sustained salary freezes

Almost half of workers think a real-terms pay cut is on the cards with ‘no chance’ of above inflation rises this year

02 juil 2012

The 2012 Global Pay Optimism Index found that some of the lowest expectations for wage increases are to be found in the Eurozone [54.5%] while the UK employees – in spite of being outside this economic region – are even less upbeat with 70% not anticipating an above inflation rise.

If this expectation is met, it will mean that the majority of people actually lose money on their salary in 2012. With almost a third [28.5%] of respondents stating that the recession has caused them to stay in their job longer than they might have liked, generating staff loyalty must be a key priority for those wanting to retain top talent.

Globally however, there are marks of confidence. Workers in Asia Pacific are leading the pay outlook with over a third [36.5%] considering that there a positive signs of above inflation increases. This is compared to 21% of those in Europe and just 8.1% of those in the UK.

“For 2012, pay optimism is centred around Asia Pacific with the ‘realists’ in the UK as well as the wider Eurozone having low expectations. With many businesses across the world still stretched to provide pay rises, business leaders should be asking about other ways to make sure that their talent feels valued. After pay, relatively low cost initiatives such as flexible working are hugely prized by employees and these are changes that companies can easily make to show how they value workers.”

Beyond Pay: Opportunities
Although pay is the greatest motivator across all levels of business respondent, the majority are also interested in other benefits. However, over two-thirds [69%] of respondents said that in the economic downturn, their business is not adapting by increasing non-pay related benefits and, disappointingly 15.7% said that their business has said it would provide more flexible benefits but they are yet to see it happen.

The most popular non-pay related benefit that companies could introduce is flexi-working followed by employee benefits such as massages/yoga classes or personal trainers in the office.

The Pay Democracy
Unifying the global employee landscape was a sense of equality with regards to the impact of the recession on pay. Over two thirds of respondents [67%] felt that people at all levels had had their pay affected in some way and, if forced to choose, the most affected were judged to be those in junior roles such as executives, graduates and apprentices.

Interestingly, across all geographies C-Suite business leaders are most positive about future salary rises while consultants – those on one level about the entry level positions – are the most down beat with just 14.8% thinking they would be getting a ‘real world’ uplift this year.

*Research included over 1,300 respondents across United States, Canada, United Kingdom, France, Germany, Italy, Spain, Portugal, Denmark, Belgium, Finland, Norway, Sweden, Switzerland, Netherlands, China, India, Malaysia, Singapore, Australia and New Zealand in May 2012.

About NorthgateArinso
NorthgateArinso is a leading global Human Resources software and services provider offering innovative HR business solutions to employers of all sizes, including global Fortune 500 companies and many public sector organizations.

NorthgateArinso helps HR executives optimize their HR service delivery through smarter processes and more efficient technology, supporting key HR areas like workforce administration, payroll, benefits, recruitment, learning, and talent management.

NorthgateArinso’s 8,500 employees in 35 countries are dedicated to delivering HR excellence through HR consulting, HR outsourcing and HR technology.