Mercer’s Remuneration Sentiment Index measures human resources (HR) professionals’ outlook for Australian remuneration and the jobs market.
The remuneration sentiment index score for June is 10.7%. This represents a decline of 12.5 percentage points compared to May 2022. This figure indicates that sentiment about remuneration budgets remains optimistic, however this is the lowest monthly sentiment score since September last year.
The majority of the elements surveyed with our client panel remained steady throughout June. The largest shift in sentiment was regarding organisations internal view of their current budget and hiring intentions; with the majority of respondents seeing current conditions the same as the last six months. Of note, the proportion of respondents reporting internal conditions worse than the last six months remained steady in June.
Similar trends were observed in the current sentiment about the overall remuneration and jobs market. Two in five respondents report that remuneration movements and hiring conditions in the market are the same as the past six months, while a further 21% believe it has improved. Just over a third reported that current sentiment about the market is worse than 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, the same or worse than in the last six months. The results remained unchanged in June, with half of the client panel expecting stable conditions in the next six months. A further 43% of respondents expect better conditions, while the remaining 7% of respondents expect conditions to be worse.
Mercer clients were polled in June 2022 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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