Mercer’s Remuneration Sentiment Index measures human resources (HR) professionals’ outlook for Australian remuneration and the jobs market.
The remuneration sentiment index score for May is -41.2%. This represents an increase of 16.2 percentage points compared to last month’s figure. This figure indicates that the sentiment around remuneration budgets continues to be pessimistic. In May, the majority of our client panel, 70.6%, reported that sentiment about the remuneration and jobs market (within their organisations) was worse than the last six months, with only 5.9% of clients reporting it was better and 23.5% feeling it was the same.
When considering the overall remuneration and jobs market, responses indicated that 6% of the participating organisations reported that sentiment was better than the last six months, 12% felt it was the same as the last six months, and 82% of respondents reported that sentiment was worse than in the last six months.
The third question in Mercer’s remuneration sentiment index relates to the outlook for the future, with poll participants being asked whether they expect (their organisations’) remuneration budgets, hiring policies and/or overall sentiment about the jobs market to be better than, the same or worse than the last six months. The results showed that 53% of participants expect the situation to be the same in the next six months, 18% anticipate it will be better and 29% of respondents reported that the situation will be worse.
Mercer clients were polled in May 2020 using three questions related to how they viewed the remuneration and jobs market for the previous six months, and then how they expect the next six months to be. Responses to these questions were collated and used to calculate the overall remuneration sentiment index.
The questions asked are presented below:
Disclaimer: While every care has been taken to ensure the accuracy of the information, no warranty is given in respect thereof.
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