Employee attraction and retention plague organizations around the globe
Organizations are struggling to fill key roles at every level
| Voluntary attrition rate | |
|---|---|
| Mexico | 11% |
| United Kingdom | 14% |
| United States | 13% |
Key roles for which employers will be recruiting in the next 12 months
| Information Technology | |
|---|---|
| Mexico | 100% |
| United Kingdom | 27% |
| United States | 69% |
| Engineering | |
|---|---|
| United Kingdom | 16% |
| United States | 63% |
| Sales | |
|---|---|
| United Kingdom | 49% |
| United States | 50% |
2022 saw the highest salary budget increases in nearly 20 years
Given the fundamental role salary plays in an organization’s ability to attract and retain talent, employers plan to carry this adjustment through to 2023 – yet remain cautious about how and when they allocate the overall budget.
| 2022 Overall Actual Salary Increases (Median) | 2023 Overall Forecasted Salary Increases (Median) | |
|---|---|---|
| Mexico | 6% | 6% |
| Taiwan | 4% | 4% |
| United Kingdom | 5% | 5% |
| United States | 5% | 5% |
Additionally, organizations leveraged bonus payouts in 2022 and, again, are on track to the same in 2023
17%: Average 2022 projected variable payout for middle managers and professionals
| Mexico | 22% |
|---|---|
| United Kingdom | 25% |
| United States | 14% |
Organizations around the world have taken or are considering taking the same three actions
| Compensation review of specific employee populations | 51% |
|---|---|
| Targeted increases for specific employee populations | 45% |
| One-off cash payments (e.g., retention bonus, lump-sum payment or allowance) | 44% |
Top 3 highest-paid functions in the industry at Professional Level 3 (P3)
| Brazil | China | United Kingdom | United States | |
|---|---|---|---|---|
| TCT Technology / Systems Consulting | AIC Information Technology | ALG Legal | TPM Technology Product Management | |
| AID IT Development | Retail Banking Product Development | TCT Technology / Systems Consulting | AIC Information Technology | |
| AEM Data Science | ALC Compliance | AID IT Development | APM Project / Program Management |
Median pay mix for Manager level 3 (M3) in the Data Scientist function
| Brazil | China (Shanghai) | United Kingdom | United States | |
|---|---|---|---|---|
| Base (%) | 56% | 69% | 69% | 73% |
| Bonus (%) | 20% | 18% | 13% | 15% |
| LTI (%) | 24% | 13% | 18% | – |
There are a handful of roles that will receive the highest pay premiums across regions
| Role | Pay premium (Median, in % of base salary) | |
|---|---|---|
| APAC | AI/machine learning frameworks | 15% |
| EMEA | AI/machine learning frameworks | 20% |
| LATAM | Cryptography, distributed ledger development, smart contract programming | 15% |
| NA | Cryptography, distributed ledger development, smart contract programming | 15% |
6% increase in the number of unique organizations participating in WTW’s 2022 Fintech survey and a 10% overall increase in data submissions
Trends that will drive 2023 rewards decisions
- Most Fintech organizations are enhancing their rewards by reinvigorating the employee value proposition, increasing workplace flexibility and offering more competitive compensation, such as spot bonuses and equity awards.
- Economic volatility and uncertainty could lead to lower investment levels and economic growth, which will force organizations to review their workforces and be more cautious about increasing salaries (among many other things).
- Organizations will look beyond pay and take a holistic view of total rewards to create employee experiences that attract and retain the talent needed to drive business objectives.
- To effectively compete against industry peers, compensation and HR professionals will seek a more sophisticated understanding and application of data in their strategic total rewards practices and policies.
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