Korn Ferry Salary Movement and Forecast Survey Report
Korn Ferry Salary Movement and Forecast Survey Report
Korn Ferry Salary Movement and Forecast Survey Report
AND FORECAST
SURVEY
October 2020
TABLE OF CONTENTS
PARTICIPANT PROFILE
1 HIGHLIGHTS OF THE SURVEY
N = 250
High Technology 21%
2 SALARY MOVEMENT AND FORECAST
Industrial Goods 18%
Services 16%
3 PERFORMANCE MANAGEMENT
Chemicals 9%
Consumer Goods 7%
5 LABOR MARKET
Construction and Materials 4%
Others 11%
6 BUSINESS OVERVIEW
OTHERS INCLUDE RETAIL, NATURAL RESOURCES, EDUCATION AND TRANSPORTATION
2020 Increment
with zeroes 4% 6.9% 4.8% 4.4% 4.8% 2.5% 5.4% 8.4%
2020 Increment
without zeroes 7.8% 8% 6.5% 6% 7.2% 3.5% 8% 8.7%
2021 Forecast
without zeroes 8% 8.2% 6.8% 6% 7.6% 5% 9% 9%
Executives / Senior Management 2.0% 5.1% Executives / Senior Management 4.8% 7.0%
By PERFORMANCE RATINGS
Does not Somewhat Does not Somewhat
Meets Exceeds Meets Exceeds
Statistics meet meets Statistics meet meets
expectations expectations expectations expectations
expectation expectations expectation expectations
75th Percentile 0.0% 5.0% 8.0% 12.0% 75th Percentile 0.0% 5.0% 8.8% 13.5%
50th Percentile 0.0% 0.7% 5.0% 7.0% 50th Percentile 0.0% 0.0% 7.0% 9.2%
Total headcount that falls under below categories For the performance multiplier ‘Exceeds
with respect to performance ratings in 2020 Expectations’ , companies paid a median
premium of 1.3X while calculating the merit
increment to reward their top performing
26.3% talent (Meets expectations is X here)
Does not meet expectations / Somewhat
meets expectations
57.1%
Meets expectations 1.57 X 75th Percentile
16.6%
Exceeds expectations 1.30 X 50th Percentile
39 % Statistics
Executives /
Senior
Management
Middle
Management /
Supervisory /
Junior
Seasoned Professionals
Professionals
Clerical /
Operational
continuing it
© 2020 Korn Ferry. All rights reserved 9
LABOR MARKET - EMPLOYEE TURNOVER RATE IN THE
LAST ANNUAL CYCLE
Healthcare & Life Science 6.0%
10.0%
OVERALL TURNOVER DETAILS
Transportation 9.1%
10.3%
17%
Retail 10.5%
11.5%
Natural Resources, OG 2.8%
4.1%
12% Construction and Materials 4.0%
10.7%
10% Financial Services 10.0%
10.0%
Consumer Goods 10.0%
19.0%
6% Chemicals 5.0%
7.9%
5%
Consumer Durables 4.0%
7.5%
3%
Services 12.0%
16.0%
20% 14%
Finance &
Production Accounting
Increase in Increase in Maintain or Decrease in Decrease in Decrease in Not Increase in Increase in Maintain or Decrease in Decrease in Decrease in Not
revenue of revenue of increase in revenue of up revenue of revenue of applicable revenue of revenue of increase in revenue of revenue of revenue of applicable
more than more than revenue of up to -5% more than - more than - more than more than revenue of up to -5% more than - more than -
15% 5% to 15% to 5% 5% to -15% 15% 15% 5% to 15% up to 5% 5% to -15% 15%
42% of the organizations said that their revenue 30% of the organizations expect a decrease in their
decreased during 2020 revenues in 2021
18% of the organizations said that their revenue 54% of the organizations foresee an increased
decreased by more than 15% during 2020 growth in revenue in 2021
Only 4% of the organizations saw an increase of more Only 7% of the organizations foresee an increase of
than 15% in revenue in 2020 more than 15% in revenue in 2021
4%
Strategy
Economic
77% 56% transformation &
Slowdown
re-organization
Digital transformation /
inability to keep up
72% Corona Virus 33% with increasingly
digital business
landscape
Despite having fewer resources, organizations have started to adapt rapidly to current economic
1. realities, with initiatives that may have previously taken four to six months, now being given four to
Increased Urgency six weeks. This is being achieved by organizations being emboldened, having seen change
implemented at lightening pace during the pandemic and agile work processes.
Internal considerations for total rewards strategy and design become most relevant during
2. challenging economic times. A well architected total rewards strategy that aligns with your business
Internal Focus strategy, economic reality and culture provides a more differentiated value proposition than a “me-
too” set of rewards programs that are based primarily on what others are doing.
Reward strategy and execution are fully interconnected. While both remain critically important in the
Strategy & current climate, most organizations are experiencing their greatest challenges on the execution front,
3.
Execution particularly within change management..
Loose management processes are likely to tighten, with more structure and framework around
Enhanced spending and allocation decisions, and lower levels of management discretion. We also expect
4.
Control principles and processes to be driven more from the corporate center.
Vasudha Handa
Delivery Leader, Pay and Engagement
Korn Ferry Digital
[email protected]
Ankit Bhaskar
Associate Consultant, Pay and Engagement
Korn Ferry Digital
[email protected]