The Payroll Blog
News, tips, and advice for small business owners
As an employee, there are not many things more exciting than a pay raise. With 2016 on its way, many workers are looking forward to the next 12 months.
According to a forecast by Korn Ferry and its Hay Group division, workers around the world are expected to see "real" (inflation-adjusted) wage increases of 2.5 percent in 2016.
This prediction is based on data provided by Hay Group's database, as compared to predictions leading into 2015.
In the United States, for example, the labor market is expected to get a shot in the arm. With a low inflation rate (0.3), salaries are set to increase an average of three percent with a real income growth of 2.7 percent.
Philip Spriet, global managing director for productized services at Hay Group, discussed how 2016 will compare to past years:
"This year's global salary forecast shows that, for the majority of countries, real wage increases in 2016 are set to be the highest in three years."
It's not just workers in the United States who are in position to earn more money in 2016. For example, Canadian workers will experience real wage growth of 1.3 percent. There is more of the same in Europe, with an expected real wage increase of 2.3 percent.
Does this mean that every worker for every company will enjoy a pay raise? Of course not. Some companies will be on point with this study, others will provide a larger increase in pay, and some will stand still for another year.
As always, the new year is sure to bring a variety of changes. From taxes to payroll, employers and employees alike need to roll with the punches.