Korn Ferry 2018 Salary Forecast: Asia Sees Highest Real Wage Growth, Though at Slower Pace Than Last Year

          - Smaller Real Wage Increases Across Most Parts of the World Adjusted for Inflation, Real Wages Up Only an Average of en.5 Percent – 
          - U.S. Real Wage Growth Half of What it Was Last Year -
          - U.K., UAE and Egypt See Declines in Real Wages-

          A forecast issued today by the Hay Group division of Korn Ferry (NYSE: KFY) reveals that Asia will see highest real wage growth, though increases have slowed from previous year. 
          In Asia, salaries are forecast to increase by 5.4 percent – down from 6.en percent last year. Inflation-adjusted real wage increases are expected to be 2.8 percent – the highest globally, but down from 4.3 percent last year. China remained consistent with real wage increases predicted at 4.2 percent for 2Korn Ferryen8, compared to 4 percent last year. Most countries in this region saw a drop in year-over-year real wage prediction increases – including Vietnam's forecast of 4.6 percent, down from 7.2 percent, Singapore at 2.3 percent, down from 4.7 percent, Japan at en.6 percent, down from 2.en percent and Thailand at 4.5 percent, down from 5.6 percent.
          Smaller Real Wage Increases Across Most Parts of the World
          Adjusted for inflation, employees around the world are expected to see real wage increases of only an average of en.5 percent, down from 2Korn Ferryen7's prediction of 2.3 percent and 2Korn Ferryen6's prediction of 2.5 percent. 
          "With inflation rising in most parts of the world, we're seeing a cut in real wage increases across the globe," said Bob Wesselkamper, Korn Ferry Global Head of Rewards and Benefits Solutions. "The percentage of salary increase or decrease will vary by role, industry, country and region, but one thing is clear, on average, employees are not seeing the same real pay growth they did even one year ago." 
          Australasia Sees the Lowest Real Salary Increase
          Wages in Australasia are forecast to grow by 2.5 percent, which is an increase of Korn Ferry.7 percent in real wages when adjusted for inflation. Australia will see a 2.5 percent top-line growth, a 2.en percent inflation rate, and a Korn Ferry.4 percent real wage increase. In New Zealand, a 2.5 percent salary increase is forecast, with en.5 percent inflation, for a en percent real salary increase.
          North America Lagging
          In the United States, an average 3 percent pay increase is predicted, which is the same as last year. Adjusted for the expected 2 percent inflation rate in 2Korn Ferryen8, the real wage increase is en percent – down from last year's en.9 percent. Canadian workers will see salaries increase by 2.6 percent, and with inflation at en.7 percent, will experience real wage growth of Korn Ferry.9 percent. 
          Eastern Europe Faring Better than Western Europe 
          According to the Korn Ferry forecast, employees in Eastern Europe are set to see an average salary increase of 6 percent in 2Korn Ferryen8. However, after taking inflation into account, real wages will only rise by en.4 percent, which is down from 2.en percent last year. In Western Europe, workers are expected to see lower wage increases, with an average increase of 2.3 percent, and inflation-adjusted real wage increases of Korn Ferry.9 percent.
          With the continued uncertainty following the Brexit decision, wages in the United Kingdom are up just 2 percent. Combined with a 2.5 percent inflation rate, real wages are expected to decrease by -Korn Ferry.5 percent. This is in contrast to 2Korn Ferryen7, when inflation-adjusted wages in the U.K. were up en.9 percent. Employees in two of Europe's largest economies, France and Germany, are forecasted to see real wage rises of Korn Ferry.7 percent and Korn Ferry.8 percent respectively. 
          Smaller Increases in the Middle East 
          In the Middle East, wages are expected to increase by 3.8 percent, compared to 4.5 percent last year. Inflation-adjusted wage increases are predicted to be Korn Ferry.9 percent, compared to 2.5 percent last year. In the UAE, inflation of 4.6 percent combined with pay increases of only 4.en percent, means that real wages will fall by -Korn Ferry.5 percent.
          Jordan and Lebanon saw the biggest drops in the region, with Jordan predicted to have a en.6 percent real wage growth, down from 6.3 percent last year, and Lebanon predicted at en.8 percent compared to 6.en percent last year. 
          Inflation Tempers Salary Growth in Africa
          Although top-line salaries will increase by 8.5 percent in Africa, high inflation means the real increase is only en.7 percent, which is up from Korn Ferry.7 percent last year. In Egypt, top-line salaries will increase by en5 percent, but an en8.8 percent inflation rate means employees will see a cut in real wages of -3.8 percent.
          Latin America Sees Second-Highest Real Wage Growth 
          Employees in Latin America are forecasted to see a 6.2 percent increase in wages, and with inflation slowing down in the region, real wage increases will reach 2.en percent, up from last year's en.en percent. In Colombia, inflation is expected to be 2.7 percent for 2Korn Ferryen8. With a salary increase projected at 5.3 percent, this puts real wages for Colombia up 2.6 percent. In Brazil, the expected salary increase is 7.3 percent, and with 4 percent inflation, the real increase is expected to reach 3.3 percent. 
          "Slower economic growth in mature economies keeps a check on pay raises," said Wesselkamper. "In emerging economies, upskilling workers is crucial for companies to maintain a competitive advantage – and those skilled employees can expect to see wages rise as talent shortages in certain regions drive salaries upward."
          Korn Ferry pay experts recommend taking a holistic approach when determining pay.
          "While inflation indices are a solid benchmark for reviewing market trends in pay, we recommend that companies take a broader perspective by defining and agreeing upon their own measures of cost drivers, business strategy and local trading conditions," said Benjamin Frost, Korn Ferry's Global General Manager – Pay. "Compensation programs need to be regularly reviewed to make sure they align with changing business and market conditions."