January 19, 2022 Executive Compensation ESG & Human Capital Management Reports

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Volume 1 | Published January 19, 2022
ESG & Human Capital Management

Merit Budget & Employee Retention Survey FY22 merit budgets

Volume 1 | Published January 19, 2022

Semler Brossy conducted a pulse survey covering planned FY22 merit budgets and ongoing employee retention challenges and actions.

Key Findings

  • 80% of companies reported planned U.S. merit budgets between 3% and 4% for FY22; the sample average is 3.4% and the sample median is 3.0%
  • Two-thirds of companies reported non-U.S. merit budgets: APAC and Latin America are higher than the U.S. at ~6%, Europe is consistent with the U.S. at ~3%, and Canada is slightly higher at ~4%
  • Three-quarters of companies reported current employee retention challenges are above typical; these companies indicated job levels lower in the organization are driving these challenges
  • Companies reported special pay actions across all levels of the organization to address retention concerns; special pay actions for job levels lower in the organization are most prevalent
  • Special pay actions to address retention concerns are split between salary or wage increases and one-time cash or equity payments; non-pay actions typically focus on office/remote work model and mental wellness support
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Contributors

Justin Beck

Justin Beck

Consultant

Justin Beck has more than three years of executive compensation experience working with publicly traded and privately held firms. Justin has helped clients across a broad range of issues, including equity and incentive plan strategy, pay benchmarking, equity dilution management, and Say on Pay support.

Of Interest

Contributes to Say on Pay and Proxy Results report

Industry Experience

  • Retail
  • Financial Services
  • Insurance

Authored Insights

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