In this October 2015 edition of Planning Global Compensation Budgets, we wish to provide ERI readers with insight into updated compensation analytics based on recent predictions for the world economy and the effect on 2016 salary increase budgeting.
The United States and Canada are projected to implement 3.0% in salary increases in 2016.
Unemployment in the United States is predicted to decrease from 5.3% to 4.9% from 2015 to 2016.
As the economy and inflation gain strength in Western Europe, this will also have an effect of slightly stronger salary increases across key economies for 2016, along with a small reduction in unemployment.
These latest projections indicate a continuation of salary increase budgets throughout a majority of the world between 2.5% and 5.0%.
High inflationary countries, such as Argentina, Venezuela, and the Ukraine, require close observation and action, if needed, to ensure up-to-date compensation programs.
The ongoing trend of modest to moderate salary increase budgets indicate multinational companies currently have the ability to attract and retain key employees within these budgets.
