North America lagging in salary increases, korn ferry forecast finds

Adjusted for inflation, workers around the world are expected to see real wage increases of 2.3%, down slightly from last year’s prediction of 2.7%, according to the Korn Ferry Hay Group 2017 Salary Forecast released today.

“Although not as high as last year when we saw a three-year high, there are still positive real wage gains across the globe,” said Benjamin Frost, Korn Ferry Hay Group global manager — pay. “In addition to predicted salary increases, inflation is relatively low in most countries, which has a positive impact on real wages.”

North America is predicted to see slower salary increases than other regions, with only a 2.8% projected increase — the same as last year. Adjusted for inflation, the real wage increase is 1.4%. In the US, a 3% salary increase is predicted. Adjusted for the 1.1% inflation rate, the real wage increase is 1.9%. Canadian workers will see salaries increase by 2.5% and with inflation at 1.6%, will experience real wage growth of 0.9%.

The forecast found the highest real-wage growth in Asia, where real wages are expected to rise by 4.3% and salaries are forecast to increase by 6.1%, down 0.3% from last year and 0.7% from the year prior.

Data for the forecast was drawn from Hay Group PayNet which contains data for more than 20 million job holders in 25,000 organizations across more than 110 countries.