2018 COMPENSATION

PLANNING
IN EUROPE

FORECASTS AND TRENDS

TO PREPARE FOR
THE FUTURE OF WORK

WEBCAST
OCTOBER 30, 2018

Luca Baroldi
European Rewards Practice Leader

Monika Todor
European Consumer Goods and Retail Industry Leader

© MERCER 2018 0
T O D AY ’ S S P E A K E R S

L U C A B AR O L D I MONIKA TODOR
European Consumer Goods and Retail
Workforce Rewards Leader Industry European Leader
luca.baroldi@mercer.com monika.todor@mercer.com

© MERCER 2018 1
AGENDA

1 G L O B AL TAL E N T T R E N D S
M A C R O T R E N D S I M PA C T I N G T H E
FUTURE OF WORK

2 2 0 1 9 C O M P E N S AT I O N F O R E C A S T S
FINDINGS FROM MERCER SURVEY
RESEARCH

3 HO W CO MPANI E S ARE
RESPONDING
REWARDS MARKET TRENDS AND
P R A C T I C E S T O W AT C H

4 AC T I O N S YO U C AN TAK E
S T R AT E G I C A R E A S Y O U C A N F O C U S O N
IN 2019 AS YOU BUILD FOR THE FUTURE

© MERCER 2018 2
GLOBAL TALENT
TRENDS

UNLOCKING GROWTH
IN THE HUMAN AGE

© MERCER 2018 3
P R E PA R I N G F O R T H E F U T U R E O F W O R K

We cannot wait until there are massive dislocations

in our society to prepare for the Fourth Industrial Revolution.

Robert J. Shiller | 2013 Nobel laureate in economics | Yale University professor

© MERCER 2018 4
THESE CHANGES ARE RAISING CRITICAL
QUESTIONS

BUSINESS LEADERS
How can we build for an
unknown future?

HR
How can we attract and retain
tomorrow’s workforce?

EMPLOYEE
What does career success
mean in today’s world?

© MERCER 2018 5
MERCER 2018 STUDY FINDINGS
TOP 5 TRENDS

CHANGE WORKING WITH PERMANENT PLATFORM DIGITAL FROM

@SPEED PURPOSE FLEXIBILITY FOR TALENT THE INSIDE OUT

© MERCER 2018 6
 CHANGE @ SPEED
NEED FOR MORE AGILE WORK PRACTICES

TOP CHANGES BEING PLANNED

BY THE C-SUITE

96%
1 Moving support functions to shared
services

2 Eliminating certain roles/ functions/

departments
OF
EXECUTIVES 3 Increasing regional control
ARE
PLANNING Building internal / external networked
4
STRUCTURAL communities
CHANGES
THIS YEAR 5 Flattening organizational structures

© MERCER 2018 7
 CHANGE @ SPEED
NEED FOR MORE AGILE WORK PRACTICES

TOP CHANGES BEING PLANNED

BY THE C-SUITE

96%
1 Moving support functions to shared
IMPLICATIONS
services
FOR REWARDS
2 Eliminating certain roles/ functions/
Focus on enhancing
departments
AGILITY in reward
OF systems
EXECUTIVES 3 Increasing regional control
ARE
PLANNING Building internal / external networked Assess effectiveness of
4 Rewards FUNCTION
STRUCTURAL communities
CHANGES
THIS YEAR 5 Flattening organizational structures

© MERCER 2018 8
 WORKING WITH PURPOSE
C R I T I C A L T O T H E VA L U E P R O P O S I T I O N
KING WIT H PURPOSE
L I S T I C V I E W OF T HE VAL UE PR OPOS I T I ON
THRIVING ONLY
EMPLOYEES ARE
13
3x 13%
%
AFFINITY
MORE LIKELY TO PRIDE OF COMPANIES
WORK FOR A PURPOSE HAVE AN EVP
COMPANY WITH DIFFERENTIATED
A STRONG BY A PURPOSE
SENSE OF DRIVEN MISSION
PURPOSE

CAREER & WELL-BEING

COMPENSATION & BENEFITS

CULTURAL ALIGNMENT

© MERCER 2018 9
 WORKING WITH PURPOSE
C R I T I C A L T O T H E VA L U E P R O P O S I T I O N
KING WIT H PURPOSE
L I S T I C V I E W OF T HE VAL UE PR OPOS I T I ON
THRIVING ONLY
EMPLOYEES ARE
13
3x 13%
%
AFFINITY
MORE LIKELY TO PRIDE OF COMPANIES
WORK FOR A PURPOSE HAVE AN EVP IMPLICATIONS
COMPANY WITH DIFFERENTIATED FOR REWARDS
A STRONG BY A PURPOSE
SENSE OF DRIVEN MISSION
PURPOSE Ensure PURPOSE
is cascaded through
CAREER & WELL-BEING employee value
proposition

COMPENSATION & BENEFITS

CULTURAL ALIGNMENT

© MERCER 2018 10
 PERMANENT FLEXIBILITY
THE EMPLOYEE EXPERIENCE

OF ALL EMPLOYEES
51% WANT MORE
FLEXIBILITY

BUT…

HAVE HAD A REQUEST

36% FOR FLEX TIME
TURNED DOWN

WORRY IT WILL
41% IMPACT PROMOTIONAL
PROSPECTS

© MERCER 2018 11
 PERMANENT FLEXIBILITY
THE EMPLOYEE EXPERIENCE

OF ALL EMPLOYEES
51% WANT MORE
FLEXIBILITY

IMPLICATIONS
BUT… FOR REWARDS

Integrate FLEXIBILITY
HAVE HAD A REQUEST as a core part of value
36% FOR FLEX TIME
TURNED DOWN
proposition

ASSESS jobs for

ability to be done
flexibly
WORRY IT WILL
41% IMPACT PROMOTIONAL
PROSPECTS

© MERCER 2018 12
 P L AT F O R M F O R TA L E N T
L E V E R A G I N G T H E TA L E N T E C O S Y S T E M

PARTNERSHIP 2 OF 5
TALENT ORGANIZATIONS ARE
© MERCER 2018 – USA DECK
PLANNING TO
FREELANCE
“BORROW” MORE
TALENT
TALENT IN THE NEXT
INTERNAL
TALENT 12 MONTHS
CROWD SOURCED
TALENT

CO-OPETITION

© MERCER 2018 13
 P L AT F O R M F O R TA L E N T
L E V E R A G I N G T H E TA L E N T E C O S Y S T E M

PARTNERSHIP 2 OF 5
TALENT ORGANIZATIONS ARE
© MERCER 2018 – USA DECK
PLANNING TO IMPLICATIONS
FREELANCE
“BORROW” MORE FOR REWARDS
TALENT
TALENT IN THE NEXT
INTERNAL
TALENT 12 MONTHS Expand your EVP
CROWD SOURCED to appeal to
TALENT
NON-TRADITIONAL
talent models

CO-OPETITION
EXPERIMENT
with alternative reward
models to compete for
talent

© MERCER 2018 14
 D I G I TA L F R O M T H E I N S I D E O U T
I M P O R TA N C E O F A D I G I TA L C U LT U R E

66%
OF EMPLOYEES SAY THAT
HAVING ACCESS TO STATE-OF-
THE-ART DIGITAL TOOLS IS
IMPORTANT TO THEM

© MERCER 2018 15
 D I G I TA L F R O M T H E I N S I D E O U T
I M P O R TA N C E O F A D I G I TA L C U LT U R E

66%
OF EMPLOYEES SAY THAT
HAVING ACCESS TO STATE-OF-
THE-ART DIGITAL TOOLS IS IMPLICATIONS
IMPORTANT TO THEM FOR REWARDS

Deliver best-in-class
rewards experiences
through DIGITAL
PLATFORMS that
enable employees to take
quick action

© MERCER 2018 16
COMPENSATION
FORECASTS

INSIGHTS FROM
MERCER SURVEY
RESEARCH

© MERCER 2018 17
WORLD ECONOMIC OUTLOOK

3.8% 2018 2019

Global
8.1% 3.2% 3,0% ▼
Europe
8.2% 7.9% ▼

Asia 4.8% 4,7% ▼

3.6% 3.6% =

2.9% 2,7% ▼
US
3.9% 3.5% ▼

Africa 4.8% 4,6% ▼

9.4% 9.4% =

ME 2.2% 4,4% ▲
5.8% 5.7% ▼
GDP

Unemployment

Source: Mercer’s Global Compensation Planning Report, July 2018

© MERCER 2018 18
 2 0 1 8 E C O N O M I C I N D I C AT O R S
European perspective

10,7% 10,8%
12%
9,2%
10% 8,9%
8,2%
7,7%
8%
6,3%
5,5%
6% 3,5% 2,4% 4,4% 4,5%
3,9% 4,0% 3,8% 4,1%
3,6% 3,7%
4%

2%

0%

Romania

Turkey
Sweden
China

Hungary

Denmark

France
Poland

Italy
India

Czech Republic

UK

Ukraine
Latvia
Germany

Netherlands

Portugal
United States

Inflation GDP Unemployment

Source: Mercer’s Global Compensation Planning Report, July 2018

© MERCER 2018 19
T U R N O V E R R AT E S ( V O L U N TA R Y A N D T O TA L )
A DIVERSE PICTURE
25%

20%

15%

10%

5%

0%
PT ES IT DE FR NL DK PL CZ UA UK RO
General Market - Voluntary High-Tech Voluntary

25%

20%

15%

10%

5%

0%
PT IT ES DE FR NL PL CZ DK UK RO UA

General Market - Total High-Tech Total

Source: Mercer 2018 Total Remuneration Surveys,
2018 Mercer | Comptryx Survey, August Edition

© MERCER
© MERCER
2018
2018 20
ANNUAL SALARY INCREASE PROCESS
SOME CHANGES BUT NOTING RADICAL…

CHANGES BEING RESPONSE FACTORS DETERMINING

%
CONSIDERED %YES ORGANIZATION’S SALARY
ORGS
INCREASE BUDGET
Increasing transparency of rewards 52%
Market Practices 76%
Increasing pay-for-performance
43%
differentiation Organization’s Financial
76%
Increasing focus on pay equity/fairness 40% Performance
Increasing the frequency of
39% Inflation Rates 53%
communications about rewards
Revising process or ratings 33% Affordability 49%
Changing frequency of performance
23%
reviews Overall Economic Health 48%
Removing the link between
14%
performance ratings and pay
Organization’s Strategic Plan 35%
Eliminating performance ratings 13%

Eliminating process altogether 7% Other 4%

*Source: Mercer Select Intelligence 2017 Rewards Decision-Making and Communications Survey
© MERCER
© MERCER
2018
2018 21
EUROPE SALARY INCREASES 201 8-2019

+2.0
Increased since 2018 No change since 2018
+0.5

12,0%

10,0%
2018 2019

8,0%

6,0%
+0.1 +0.2 +0.1 +0.1 +0.1 +0.2 +0.1

4,0%

2,0%

0,0%
TR UA HU PL DE NL IT ES FR RO CZ UK DK PT

Source: Mercer's Salary Movement Snapshot, Sept 2018

© MERCER 2018 22
SALARY INCREASES
N O M I N A L V S . R E A L C U M U L AT I V E S A L A RY I N C R E A S E S

NOMINAL CUMULATIVE REAL CUMULATIVE SALARY

SALARY INCREASE 2009-2018 INCREASE 2009-2018
(2009=0%) (2009=0%)
RUSSIA 90% RUSSIA 15%
ROMANIA 46% POLAND 13%
POLAND 33% ROMANIA 8%
CZECH REPUBLIC 26% GERMANY 8%
UNITED KINGDOM 25% CZECH REPUBLIC 8%
GERMANY 23% FRANCE 7%
FRANCE 20% DENMARK 5%
DENMARK 20% UNITED KINGDOM 1%

© MERCER 2018 23
I M PA C T O F M A R K E T C O N D I T I O N S O N PAY D E C I S I O N S

TURKEY ROMANIA
Increased inflation Changes in taxation

2018 median salary increase % Increased salaries

15% 60%

Prevalence of additional mid-

Salary increase %
20% year increase 20%

Considering pay in hard

Temporary fixed allowance
6% currency 38%
Source: September 2018 spot polls, Turkey and Romania

© MERCER 2018 24
EUROPE TRS SURVEYS OVERVIEW

NUMBER OF MERCER JOB LIBRARY

# OF ORGANIZATIONS CODES USED
highest – lowest
United Kingdom (2213) – Moldova (38)

10,028 LARGEST MARKETS BY INCUMBENT

1. Germany 32% 319,914 in 655 Orgs (498 in 2015)
2. United Kingdom 2 0 % 267,943 in 608 Orgs (508 in 2015)
34 % Change 3. Poland 30% 200,718 in 501 Orgs (386 in 2015)
since 2015 4. Russia 14% 176,665 in 342 Orgs (299 in 2015)
5. Italy 53% 142,960 in 528 Orgs (346 in 2015)

Source: 2018 TRS Surveys (based on 27 published surveys)

© MERCER 2018 25
R E M U N E R AT I O N M I X
EXECUTIVE LEVEL

EXECUTIVES EXECUTIVES
WESTERN EUROPE EASTERN EUROPE

DE 61,0% 0,2% 23,1% 6,5% 9,2% RU 67,5% 0,4% 13,9% 7,3% 10,9%

UK 63,9% 0,2%13,1% 12,0% 10,8% RO 68,8% 5,4%12,3% 3,6% 9,9%

FR 66,5% 0,4%16,0% 4,6%12,5% HU 71,0% 0,4% 11,8%4,4%12,4%

NL 68,8% 0,7%10,6% 9,0% 10,9% CZ 72,9% 0,4% 14,1% 7,4%5,2%

IT 69,0% 0,9% 13,6% 6,2%10,3% PL 73,3% 0,2% 15,4% 5,0%

6,1%

DK 72,1% 1,2% 9,7% 6,4%10,6% LV 82,9% 0,9%10,5%

0,9%
4,8%

Base Salary Guaranteed Allowances

Variable Bonus and Commission Long-term Incentives
Benefits

Source: Mercer 2018 Total Remuneration Surveys

© MERCER 2018 26
R E M U N E R AT I O N M I X
PROFESSIONALS

PROFESSIONALS PROFESSIONALS
WESTERN EUROPE EASTERN EUROPE

FR 79,2% 1,7% 9,1% 9,8% RO 73,6% 11,2% 6,4%8,7%

NL 80,9% 2,1%
3,8% 12,0% RU 81,0% 1,2% 7,8% 10,0%

UK 84,2% 0,5%4,8%10,2% HU 82,5% 2,0%4,4%11,1%

DK 87,2% 1,4% 3,4%

7,9% LV 85,0% 2,6% 7,8%4,3%

IT 87,9% 2,5% 4,0%

5,5% PL 86,2% 0,6% 7,6%5,6%

DE 91,0% 1,0% 4,8%

3,1% CZ 86,8% 1,2%6,8%5,2%

Base Salary Guaranteed Allowances

Variable Bonus and Commission Long-term Incentives
Benefits

Source: Mercer 2018 Total Remuneration Surveys

© MERCER 2018 27
 STI as a Percentage of STI as a Percentage of
Base Salary % Base Salary %

© MERCER 2018
10%
15%
25%
30%

20%

0%
5%

40%
30%
20%
10%
0%
19,1% 17,5%

DK
17,5% 16,7%

15,8% 15,0%

LV
Decreased since 2017

15,4% 14,0%

31,1% 30,0%

DE
44,1% 30,0%

22,6% 25,0%

UK
24,2% 25,0%

21,3% 25,0%
RU

25,0% 25,0%

20,4% 20,0%
FR

19,8% 20,0%
SHORT–TERM INCENTIVES

Target

Actual
18,1% 20,0%
No change since 2017

HU

19,3% 20,0%

22,6% 24,4%
IT

24,6% 25,0%

21,8% 20,0%
PL

23,4% 25,0%

20,2% 22,5%
Increased since 2017

NL

30,0% 25,0%

21,7% 20,0%
RO

22,9% 25,0%
TA R G E T A N D A C T U A L – E X E C U T I V E L E V E L

21,4% 20,0%
CZ

25,2% 22,0%
2018

2017

28
Source: 2017 & 2018 Mercer Total Remuneration Surveys
LONG-TERM INCENTIVES
P R E VA L E N C E 2 0 1 5 - 2 0 1 8

43% ( 0 %)
STOCK/SHARE OPTIONS

SHARE APPRECI ATION RIGHTS

5% ( - 4 %) (SARS)

RESTRICTED SHARES/SHARE
56 ( + 1 1 %) UNITS

PERFORM ANCE SHARES/SHARE

35% ( - 6 %) UNITS

6% ( + 2 %)
PERFORM ANCE CASH UNITS

21% ( + 2 %)
LONG-TERM CASH

Source: 2015 & 2018 Mercer Total Remuneration Surveys

© MERCER 2018 29
BENEFITS
CHOICE AND FLEXIBILITY ARE CRITICAL

58%

of employees agree that they would like to

reduce the value of some benefits they
receive and increase the value of others.

YOUNGER EMPLOYEES OVERWHELMINGLY

LOOKING FOR MORE BENEFITS FLEXIBILITY

59% 48% 38%

70%

18–34 yrs. 35–49 yrs. 50–64 yrs. 65+ yrs.

© MERCER 2018 30
PERSONAS
EMPLOYEE SEGMENTS WITH UNIQUE NEEDS AND DESIRES

Provides multiple Builds relevance Foundation for a

dynamic lenses to into all programs to personalized
evaluate programs target investments experience

Employee Location Communication

Needs Interests Behaviours
demographics demographics preferences

Sample Personas
LONG-TERM URBAN MANAGERI AL CONTINGENT
STARTERS STRIVERS
LOYALS AMBITIONS CORE WORKERS

© MERCER 2018
2017 31
THE POWER OF BENEFITS
I M PA C T O F B E N E F I T S O N E N G A G E M E N T

Employees who say: “my benefits meet my Impacts on how employee feels
needs” are twice as likely to agree to these about their employer – in priority order
statements

1 Salary

"I would recommend my employer to a 2 Professional development

friend"
3 Nature of your role

4 Pensions and benefits

"I have a positive experience at work"
5 The colleagues you work with

Career opportunities
"I am proud to work for my company"
Convenience of getting to work

Company culture

Thomsons Online Benefits: Expectations vs reality: the widening gap in global benefits
© MERCER 2017 32
 HOW ARE
COMPANIES
RESPONDING?

2018 REWARDS
TRENDS

© MERCER 2018 33
H O W A R E C O M PA N I E S R E S P O N D I N G ?
2 0 1 8 R E WA R D S T R E N D S

W I T H S TA N D I N G I N N O VAT I N G I N P R E PA R I N G F O R
SCRUTINY R E WAR D S THE FUTURE
• Pay Equity & • Expanding Experiential • Focusing on the Rewards
Transparency Offerings Function

© MERCER 2018 34
 PAY E Q U I T Y A N D T R A N S PA R E N C Y
S O C I A L & E N V I R O N M E N TA L P R E S S U R E S
DRIVING ADDITIONAL SCRUTINY

EUROPEAN
CEO PAY SHAREHOLDER GENDER PAY
RATIO RIGHTS REPORTING AND
DIRECTIVE BOARD/MANAGEM
ENT DIVERSITY

?
?
?

MEDIA SOCIAL EMPLOYEES

COVERAGE DATA WANT TO
KNOW MORE

© MERCER 2018 35
 I N N O VAT I N G I N R E WA R D S
E X PA N D I N G E X P E R I E N T I A L R E WA R D S

Organizations are modernizing their award programs and taking a “whole person” approach
to deliver meaningful experiences both INSIDE and OUTSIDE of work.

FINANCIAL
RECOGNITION
Helping employees solve
Rewarding employees with financial challenges, by
memorable, personal and providing support like short-
shareable experiences term loans and student loan
assistance or refinancing

CAREERS FAMILY
Addressing needs of
Digital career pathing
working parents and the
driven by AI
“sandwich” generation

© MERCER 2018 36
 P R E PA R I N G F O R T H E F U T U R E
DISRUPTION IN THE ENVIRONMENT DRIVING
T R A N S F O R M AT I O N O F T H E R E WA R D S F U N C T I O N

RESHAPING DIGITALIZATION EMPLOYEES GLOCAL-

ORGANIZATION AND AI AS IZATION
STRUCTURES CONSUMERS

I M P AC T T O R E W AR D S F U N C T I O N S
Demanding Changing Creating more Ensuring
AGILITY CAP ABILITY FLEXIBLE & GOVERNANCE
in reward systems needs from rewards PERSONALIZED in rewards decision
professionals reward solutions making

© MERCER 2018 37
ACTIONS YOU CAN
TAKE

AREAS OF FOCUS
FOR 2019

© MERCER 2018 38
A C T I O N S Y O U C A N TA K E
FOUR CRITICAL AREAS FOR FOCUS IN 2019

FOCUS ON THE FIX THE ANNUAL GIVE NEW LIFE BUILD FOR
FOUNDATION INCREASE TO YOUR EVP THE FUTURE
PROCESS

• Ensure foundational • Budget strategically • Rethink your EVP • Redefine the

architecture is in place • Redefine pay for to focus beyond the Rewards function to
to effectively assess performance contractual rewards align with business
pay equity concerns changes

© MERCER 2018 39
F O C U S O N T H E F O U N D AT I O N
A PAT H T O E Q U I T Y A N D T R A N S PA R E N C Y

U N D E R S T AN D M E AS U R E AN D
JOBS AD D R E S S P AY E Q U I T Y

O R G AN I Z E J O B S
THROUGH ENHANCE PAY
J O B AR C H I T E C T U R E TRANSPARENCY

© MERCER 2018 40
FIX THE ANNUAL INCREASE PROCESS
B U D G E T S T R AT E G I C A L LY

WHAT’S Setting budgets based on

HAPPENING overall market movement
TODAY

W H A T Strategic planning process for long-

S H O U L D B E term multi-million dollar investment
HAPPENING

© MERCER 2018 41
FIX THE ANNUAL INCREASE PROCESS
R E D E F I N E PAY F O R P E R F O R M A N C E

AN N U AL P AY P AY F O R
I N C R E AS E P E R F O R M AN C E

M AR K E T
C AR E E R G R O W T H
COMPETITIVENESS

P AY E Q U I T Y I N C E N T I V E P AY

RECOGNITION

© MERCER 2018 42
 GIVE NEW LIFE TO YOUR EVP
T R A N S F O R M T H E R E WA R D S J O U R N E Y TO
DELIVER BETTER EXPERIENCES

EMPLOYMENT ONBOARDING / PERFORMANCE CAREER

OFFER ENROLLMENT MANAGEMENT MANAGEMENT

“Mom, I got “Everything is in “I understand my “I’m doing really

the job!” one place and easy goals and how I meaningful work
to understand!” contribute to our and excited to
success” advance my
career!”

© MERCER 2018 43
BUILD FOR THE FUTURE
R E D E S I G N R E WA R D S F U N C T I O N TO A L I G N W I T H
BUSINESS NEEDS

GOVERNANCE
How will we distribute decision making responsibility and manage risks through authority and accountability checks?

PROGRAMS
STRUCTURE PEOPLE TECHNOLOGY
& POLICY

SERVICE DELIVERY
What activities are done in the Rewards function, versus through technology, partnership with other functions, or automation?

© MERCER 2018 44
Q & A A N D C O N TA C T D E TA I L S

We will do our best to answer as many

questions as we have time for.

Please type your questions in the Q&A

section of the toolbar. To submit a
question while in full screen mode, use
the Q&A button on the floating panel, at
the top of your screen.

L U C A B AR O L D I MONIKA TODOR
European Consumer Goods and Retail Industry
Workforce Rewards Leader European Leader
luca.baroldi@mercer.com monika.todor@mercer.com

YOUR FEEDBACK IS VALUED

At the end of the session, a feedback form will pop up in a
new window. Please fill it out so we can continue to improve.

© MERCER 2018 45
APPENDIX

© MERCER 2018 46
SALARY INCREASES - 2018 ACTUAL

Financial Consumer Energy High Tech Life Services (Non- Transportation

Services Goods Sciences Financial) Equipment

Denmark 2.5% 2.5% 2.7% 2.4% 2.5% 2.6%* 2.3%*

France 2.0% 2.2% 2.0% 2.3% 2.4% 2.3% 2.3%
Germany 2.6% 2.6% 2.6% 2.9% 2.8% 2.8% 2.8%
Italy 2.3% 1.6% 2.1% 2.1% 2.5% 2.3%* 2.3%
Netherlands 2.5% 2.5% 2.6% 2.7% 2.6% 2.3%* 2.5%
Spain 1.9% 2.0% 2.0% 2.2% 2.4% 2.1%* 1.8%
Sweden 2.2% 2.5% 2.0% 2.6% 2.6% - 2.7%*
Switzerland 1.9% 1.6% 1.0% 1.9% 1.9% - 1.6%*
UK 2.2% 2.8% 2.9% 2.9% 2.9% 2.8% 2.9%
Czech Rep 2.9%* 3.0% 2.6% 3.1% 3.0% - 3.0%
Hungary - 3.5% 5.2%* 3.5% 3.4% - 3.5%
Poland 3.1% 3.3% 3.2% 3.5% 3.2% 4.5%* 5.6%*
Romania 4.5%* 4.1% 6.0%* 4.8% 4.6% - -
Russia 5.8%* 6.3 6.0% 7.6% 7.4% 7.5% 6.5%
Turkey 9.1% 10.1 12.0% 8.8% 10.0% 12.0% 12.0%

Table presents Median values. Averages are marked with an asterix

© MERCER 2018 47
SALARY INCREASES – 2019 FORECAST

Financial Consumer Energy High Tech Life Services (Non- Transportation

Services Goods Sciences Financial) Equipment

Denmark 2.5% 2.5% 2.5% 2.8% 2.5% - 2.2%*

France 2.3% 2.3% 2.0% 2.5% 2.5% 2.5% 2.0%
Germany 2.7% 2.8% 2.5% 3.0% 2.8% 2.9% 2.5%
Italy 2.3% 2.5% 2.7% 2.5% 2.5% - 2.3%
Netherlands 2.5% 2.5% 2.6% 3.0% 2.7% - 2.4%*
Spain 2.1% 2.2% 2.3% 2.5% 2.5% - 1.8%
Sweden 2.4% 2.5% 2.0% 2.7% 2.6% - 2.5%*
Switzerland 1.9% 1.7% 1.0% 2.0% 1.9% - 1.8%
UK 2.5% 2.8% 2.7% 3.0% 2.9% 3.0 2.7%
Czech Rep 3.4% 3.0% - 3.2% 3.0% - 3.0%
Hungary - 3.8% - 3.7% 3.5% - -
Poland 3.6%* 3.4% 3.1% 3.5% 3.2% 4.5%* 4.0%
Romania 3.5%* 4.5% 4.7%* 4.8% 4.5% - -
Russia 6.0%* 6.0% 7.0% 8.0% 7.2% 7.8% 6.1%
Turkey 10.3% 12.0% 12.0% 9.5% 11.5% 11.0%* 13.0%

Table presents Median values. Averages are marked with an asterix

© MERCER 2018 48
© MERCER 2018 49