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

Merit Budget & Employee Retention Survey FY22 merit budgets

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

Contributors

Justin Beck

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