When it comes to rewards, it pays to look at the bigger picture
While financial rewards are key to attracting talent into organizations, non-financial rewards can be essential differentiators when it comes to retaining talent. They can also enhance the physical, emotional, and financial well-being of employees, which, in turn, leads to a more engaged, productive workforce. That’s why taking a “total rewards” approach is a smart move.
Here are some of the more creative approaches we’re starting to see emerge:
- Overall financial well-being: Pension contributions have always been the focus of financial benefits but the most forward-thinking businesses are now looking at overall financial well-being. Some organizations in the US, for example, are giving younger employees with student loans the option of using their matching funding to pay down their debt rather than going directly to their defined contribution pension account (401k). Other organizations are paying off a part of the loans in lieu of a bonus or helping employees refinance their educational loans at a lower rate.
- Wellness: Gone are the days of a one-size-fits all healthcare plan. Increasingly, organizations are offering healthcare plans with a buffet of choices, designed to meet the needs of the individual. And the focus is proactive—keeping people mentally and physically healthy. Of the organizations we surveyed for our most recent rewards and benefits pulse survey, 27% offer a well-being benefit to take care of employees' mental, physical, and emotional health.
- Work-life balance: Just how dramatically benefits are changing can be seen in the emergence of a variety of gender-spanning, lifestyle-supporting perks designed to help employees better manage their work life balance. For example, caregiving, which began primarily as a benefit for working mothers, has been transformed into a more universal offering designed to help all employees, no matter gender or age, care for any dependent.
Non-cash rewards also go beyond benefits. For technical, professional and managerial employees, having clear career paths and plenty of developmental opportunities are key drivers for satisfaction and retention.
And the good news is that investing in individual development across the business is a win-win. Employees feel valued, and organizations benefit from a strong internal talent pipeline. Developing employees’ cognitive talents (agility, inclusivity, leadership) and technical abilities (sales, project management, people development) can deliver both employee engagement, and help meet strategic business goals.
Is your reward program working hard enough?
Given the transformative effects of the pandemic, organizations should not assume their total rewards philosophy and design are still aligned with what their employees will value the most. Employees are re-evaluating their personal lives, what they want professionally, and what they expect from the rewards their employer is offering.
What's important is that organizations listen and understand how their people have been affected, then weigh up potential changes to their rewards program to support them. This is an opportunity for leadership to think more creatively about reward, performance and talent management strategies.
The Korn Ferry Global Salary Survey
Since March, we have been tracking the impact of the COVID-19 pandemic on reward programs worldwide through a series of pulse surveys. We have combined these findings with our comprehensive Korn Ferry pay data, and our rewards expertise in local markets, to provide our clients with anticipated salary increases for 2021. This is, of course, subject to refinement as an uncertain business recovery takes shape in the months ahead.
So, what impact will the pandemic have on salary increases in 2021? The data shows two key trends:
More businesses are planning no raises for most employees.
The most significant shift in the anticipated salary increases for 2021 is that the percentage of organizations planning no salary increases for most of their employees is significantly higher than in previous years. A third of organizations are planning increases to less than 50% of their general employee population and more than three times as many organizations as last year are planning to skip increases altogether. Only 35% of survey participants said that 100% of employees will be eligible for increases in 2021. With the recent resurgence in COVID-19 cases across the globe resulting in an increase in government-imposed lockdowns, there is a possibility that even fewer employees will receive an increase.
Percentage of employees likely to receive salary increases globally
click to enlarge or download full infographic
After the extreme volatility of the past nine months, organizations are understandably cautious, especially those in the industries that have been hardest hit. Our most recent pulse survey found that 91% of organizations in leisure and hospitality (along with 57% in non-essential retail and 44% in banking) expect a significant to severe annual revenue decline. GDP numbers around the world are down. And, despite encouraging news about vaccine trials, the fog of uncertainty created by COVID-19 is yet to lift.
To make the biggest impact with the limited funds available organizations need to target rewards at critical talent and the highest performers. Organizations we surveyed in our third global pulse survey in May told us that performance management was a top priority for them during the balance of the year and heading into 2021—and with good reason. If businesses are choosing to be more targeted in who they give salary increases to, rather than handing them out across the board, then it is critical that they can objectively identify the key functions and individuals who contribute to their success.
So, who gets a raise and who doesn't? There are two groups of crucial workers that organizations need to prioritize. They are:
- Talent key for today – such as front-line workers and those employees who are key to pulling the organization through the current crisis.
- Talent key for the future – people who are skilled at business transformation or who have the right capabilities to sustain the organization in the future.
Headline increases are lower than in previous years.
For those organizations who are providing salary increases, the headline figures are lower than this time last year. Expected salary increases are 2.5% for North America, 2.1% for Western Europe, and 2.0% for the Pacific, representing a decrease in year-on-year headline increases of 0.3%, 0.4% and 0.5% respectively. Last year, Eastern Europe’s expected salary increase was 6.2%, but this is down to 5.0% in the coming year. Africa has the largest year-on-year decrease, with a headline increase for the coming year of 5.0%, which is 2.9% lower than the previous year.
Regional salary increase data
click to enlarge or download full infographic
However, in countries where inflation is particularly low, employees may see an increase in their real pay—the UK is a good example. The 2021 headline salary increase is 1.9%, significantly lower than last year’s planned increase of 2.5%, but with inflation at only 0.4%, the 2021 ‘real’ increase is at 1.5% compared to 0.4% last year.
Market highlights
Data presented at headline (including inflation) and real (excluding inflation) values, both including and excluding organizations planning zero salary increases.
click to enlarge or download full infographic
Again, it’s important to remember that these are planned and not actual increases. The data is a moving target dependent on recovery. If further COVID-19 waves hit, then actual pay hikes will likely be lower and fewer than anticipated.
Country salary increase data
Data including organizations planning zero increases, at headline median values
click to enlarge or download full infographic
Data excluding organizations planning zero increases, at headline median values
click to enlarge or download full infographic
Using the data to make informed decisions about pay
We are sharing this salary increase data to help you make better, more informed decisions about pay for 2021. But while the report’s data is an excellent place to start, it’s by no means the full story.
You should use the data alongside other efforts, thinking about business strategy, cost structure, and the employee base. And it is critical, given the sector-based impacts of the COVID-19 pandemic, that organizations evaluate decisions within the context of their specific talent markets and benchmark them against regional or country averages.
It’s also important to remember that salary isn’t everything. As we have seen, there are many non-cash-related levers that businesses can pull to make sure all their people feel valued, engaged, and committed.
How Korn Ferry can help
Korn Ferry is a leader in all areas of rewards optimization, from performance management programs to career frameworks and external pay benchmarking to total rewards strategy. Designed around the opportunities and challenges your organization will face over the coming years, our solutions can help you engage and incentivize your workforce, eliminate overspend, and attract and retain the world-class talent your business needs.
Contact us to find out more about optimizing your rewards.
Survey methodology
Ensuring the accuracy of our data in uncertain times
With markets changing fast and the future looking increasingly uncertain, it is more critical than ever to provide organizations with salary trends for the year ahead.
We have refined and enhanced our methodology for the 2021 salary survey, combining the ongoing data we collect from 25,000 clients across 150+ countries with additional data gathered at key points throughout the year. This gives us several sources of information:
- Annual compensation surveys
- Local market pulse surveys
- Global rewards and benefits COVID-19 pulse surveys.
As some organizations have indicated they will not be providing salary increases in the coming year, we have also provided the data in two groups: all organizations (including those planning zero increases), and only those organizations planning for increases (which excludes those planning zero increases). To get a sense of how far the market will move next year, it is better to use figures that include organizations giving zero increases. However, organizations seeking to benchmark potential salary decisions will gain a clearer view of the increases other organizations are planning if they use figures that exclude those giving zero increases.
FAQs
Korn Ferry 2021 Global Salary Survey? ›
Expected salary increases are 2.5% for North America, 2.1% for Western Europe, and 2.0% for the Pacific, representing a decrease in year-on-year headline increases of 0.3%, 0.4% and 0.5% respectively. Last year, Eastern Europe's expected salary increase was 6.2%, but this is down to 5.0% in the coming year.
What is the salary range for Korn Ferry? ›The average Korn Ferry salary ranges from approximately $47,434 per year for Ceo/President to $181,265 per year for Corporate Counsel. Average Korn Ferry hourly pay ranges from approximately $17.44 per hour for Packager to $51.50 per hour for Physical Therapist.
What is Korn Ferry survey? ›Korn Ferry's global pulse surveys gathers insights into how organizations are adapting their reward programs in response to a rapidly changing world, and to assess how their plans for future rewards programs are evolving.
How much do Korn Ferry recruiters make? ›Average Korn Ferry Recruiter yearly pay in Los Angeles is approximately $76,037, which is 42% above the national average.
What is the compensation survey for Korn Ferry India in 2023? ›India Inc may pay 9.8% salary hike in 2023; retailers 9%: Korn Ferry. New Delhi: India Inc is likely to see an average salary increment of 9.8 percent in 2023, slightly higher than a 9.4 percent hike in 2022, and for top talent the increase will be much more, says a survey.
Is it hard to get into Korn Ferry? ›To advance through each stage, you need to play well enough to qualify. At the final stage, the top 45 players, and those tied for 40th, gain status on the Korn Ferry Tour, which means they have top priority in all the tournaments.
Is Korn Ferry prestigious? ›LOS ANGELES--(BUSINESS WIRE)--Korn Ferry (NYSE:KFY) has been recognized by Forbes Magazine as America's best executive recruiting firm. Korn Ferry has received this honor in six of the last seven years, since Forbes and analytics firm Statista began offering the annual rankings.
How to pass Korn Ferry employment assessment? ›- Understand the Purpose of the Test. The different Korn Ferry tests have different purposes. ...
- Practice the Test Online. ...
- Be Honest. ...
- Learn About Your Personality. ...
- Focus and Read the Instructions Carefully. ...
- Prepare Your Environment and Yourself.
The best way to prepare for a Korn Ferry leadership assessment will vary depending on your individual strengths and weaknesses. However, some tips that may help include studying the company's history and values, practicing situational judgment questions, and reviewing common interview questions.
Who is 87% more likely to make better decisions according to Korn Ferry research? ›Korn Ferry research shows that inclusive teams make better decisions 87% of the time.
Who is the highest paid recruiter? ›
The highest-paid recruiter job is a senior technical recruiter. Senior Technical Recruiters earn an average salary of $88,314, which is $ 42.46 hourly. A senior technical recruiter is a professional who is responsible for identifying and hiring top talent candidates to work for a company.
What is the highest salary for recruiter? ›HR Recruiter salary in India ranges between ₹ 1.0 Lakhs to ₹ 4.2 Lakhs with an average annual salary of ₹ 2.1 Lakhs.
What is the best recruiter salary? ›The majority of Recruiting and Selection Consultant salaries across the United States currently range between $101,500 (25th percentile) and $108,000 (75th percentile) annually. Most people working in this role make similar salaries regardless of skill level, location and years of experience.
What is the salary increase for 2023 survey? ›The average increase for 2023 will fall between 4% and 5%. Just 11% of companies (compared to 18% of companies last year) said they'll increase base pay by more than 5%, according to the report.
Will wages increase in 2023? ›Rate Changes Due to the Minimum Wage Increase – January 1, 2023. Due to the enactment of Senate Bill (SB) 3, the California minimum wage increased to $15.50 per hour, effective January 1, 2023, for all employers.
What is a salary survey in compensation? ›A salary survey is a methodology that collects information about employee compensation, including wages and benefits. These are carried out to determine salary levels for specific job categories and are usually carried out by region, sector, or job classification with comparison fines.
How many Korn Ferry players get their card? ›Qualification criteria for 2024 PGA TOUR membership
5-8. The top 30 players on the season-long standings at the conclusion of the 2023 Korn Ferry Tour Championship will earn PGA TOUR membership for the 2024 season.
Jorge Fernández Valdés wins the 2023 UNC Health Championship to earn his first #KornFerryTour title.
How good do you have to be to make Korn Ferry Tour? ›At least 150 players will be eligible to compete in the Finals—the top 75 on the Korn Ferry Tour regular-season money list, plus the players finishing between 126 and 200 on the FedEx Cup points list. Non-members of the PGA Tour are also eligible if they would have earned enough FedEx Cup points to finish 126 to 200.
What are the exit opportunities for Korn Ferry? ›Exit Opportunities
These firms include Deloitte, PwC, Mercer, and Willis Towers Watson. A 3rd and smaller segment leaves for corporate America, ending up at organizations like The Walt Disney Company, Amgen, Amazon, and IBM. As you can see, the exit opportunities at Korn Ferry are many.
What is Korn Ferry best known for? ›
Korn Ferry is best known for being a world-renowned executive search and recruitment expert. The firm is also well placed to offer leadership assessment tests that allow companies to identify future leadership potential.
What are the benefits of working at Korn Ferry? ›Korn Ferry Benefits include Health Insurance, Life Insurance, and Employee Stock Purchase Plan, along with 10 other unique benefits in categories such as Office Perks and Health & Wellness. Employees score their Perks And Benefits an average of 65/100.
Can you fail an assessment and still get hired? ›Yes you can still get the job. If you failed the assessment, You should ask for a lower position , learn all that you can and move your way up. A lot of managers started as janitors or cashiers.
How accurate is Korn Ferry assessment? ›Korn Ferry leadership assessments were found to be 96% more accurate at predicting future job performance than the assessment center average.
What companies use Korn Ferry? ›- Cleveland Clinic. Korn Ferry and Cleveland Clinic are transforming healthcare leadership by providing coaching, training and consulting services to healthcare leaders around the world.
- Duke Corporate Education. ...
- Fortune. ...
- Microsoft Alliance. ...
- Qualtrics. ...
- Salesforce. ...
- Korn Ferry & SAP®
To perform well and pass the Korn Ferry test, preparation is vital. Research the different levels of management and leadership, deciding which type of managerial role you aspire to work in. Think about your strengths and weaknesses, considering how you might overcome your limitations in the future.
How is Korn Ferry graded? ›There is no pass or fail grade for a Korn Ferry assessment. However, your employer may set a benchmark score for specific job roles. Achieving the highest possible score in the Korn Ferry assessment is the best way to maximize your chances for success.
How long does Korn Ferry assessment take? ›The personality assessment normally takes approximately 25 minutes to complete. Following the completion of a personality assessment, you should receive feedback from the recruiter, hiring organization or your employer.
What are the Korn Ferry leadership types? ›- Visionary leaders articulate a shared mission and give long-term direction.
- Participative leaders get consensus to generate new ideas and build commitment.
- Coaching leaders foster personal and career development.
- Affiliative leaders create trust and harmony.
The four different decision-making models—rational, bounded rationality, intuitive, and creative—vary in terms of how experienced or motivated a decision maker is to make a choice.
What is the Korn Ferry assessment personality? ›
The five broad traits comprising this model are: Agreeableness, Conscientiousness, Extraversion, Neuroticism, and Openness to Experience. Korn Ferry's conceptualizations of these are Agreeableness, Striving, Presence, Positivity, and Agility, respectively.
Can I make 100k as a recruiter? ›Yes, you can make $100,000 per year as a recruiter.
While possible, it is unlikely to earn over $100k as a recruiter because even higher-paid positions do not typically earn more than $77,000 per year. The average annual salary for a recruiter is $54,028.
Agency recruiters aren't paid a flat salary, typically. Instead, they earn commissions when they place candidates into jobs. Because of this, the average recruiter salary will vary widely based on the success of the individual but could go upwards of $200,000 for an experienced agency recruiter.
Can recruiters make 7 figures? ›Recruiters in the United States can earn anywhere from $35,000 to $200,000 depending on the job sector, location, and—most important—type of recruiter. Recruiters in the United States can earn anywhere from $35,000 to $200,000 depending on the type of recruiter, job sector, and location.
How many hires should a recruiter make per month? ›On average, recruiter should be able to fill/hire around four positions per month with an average level of difficulty, or around 50 per year. An exceptional recruiter, or one working on mostly entry level positions, should be able to fill 60-80 per year.
Do recruiters want you to get a higher salary? ›Why do candidates negotiate salaries with recruiters? Candidates negotiate salaries with recruiters because recruiters are often their primary point of contact during the hiring process. Nearly everyone should consider negotiating the salary they are offered for a position, based on knowing their worth.
Can a recruiter get you a higher salary? ›A recruiter can help you negotiate your salary in many ways. They have inside info on the employer, they know how to sell you to the hiring manager, they will fight for what you're worth, they have negotiation experience, and they have real-time industry knowledge.
How much do Google recruiters make? ›| Level Name | Total | Base |
|---|---|---|
| L3 Recruiter II | $137K | $109K |
| L4 Recruiter III | $188K | $133K |
| L5 Senior Recruiter | $238K | $157K |
| L6 Staff Recruiter | $329K | $199K |
Head of Talent acquisition
This person may be considered at the top of the talent acquisition department, overseeing the department under them.
| Job Title | Average Salary | Salary Range |
|---|---|---|
| Senior Recruiter | $124,011 | Min: $60K Max: $1115K |
| HR Director | $150,849 | Min: $100K Max: $250K |
| Vice President of Talent Acquisition | $171,647 | Min: $109K Max: $245K |
| Chief People Officer | $173,500 | Min: $120K Max: $225K |
What is the average salary in the US 2023? ›
As of May 29, 2023, the average annual pay for an American in the United States is $58,563 a year. Just in case you need a simple salary calculator, that works out to be approximately $28.16 an hour.
What raise should I ask for 2023? ›The expected COLA for 2023 is 8.7%., meaning if you were going to give an employee an annual salary increase of $10,000, you would adjust that amount to $10,870 to account for inflation.
How much should salary increase with inflation? ›The obvious solution is to ask for a pay raise of 6.5% or so to at least stay even with inflation, but that's not always the best strategy, experts say. Your first order of business should be to research pay rates not only for your specific industry and job, but also average pay raises across all industries.
What is the average bonus in 2023? ›How much does a Bonus make? As of May 24, 2023, the average annual pay for a Bonus in the United States is $53,883 a year.
What is the salary increase for 2023 inflation? ›As U.S. inflation trends downward in 2023, the projected average total salary increase has risen to 4.6%. Given these trends, it is unknown whether salary increases will outpace inflation, be similar, or be lower this year.
Is a 5% raise good? ›A good pay raise ranges from 4.5% to 5%, and anything more than that is considered exceptional. Depending on the reasons you cite for a pay raise and the length of time that has passed since your last raise, you could request a raise in the 10% to 20% range.
What is the most accurate salary survey? ›The best salary research sites are Glassdoor, SalaryExpert, Salary.com, Indeed, and the Bureau of Labor Statistics (BLS).
How often should salary surveys be done? ›If you have reliable survey resources, it can also be a good idea to at least do a quick pulse check annually for most jobs. In addition to looking at data for specific jobs, we also recommend aging salary ranges annually to keep up with the competitive market based on trend data.
What are the weaknesses of salary survey? ›An obvious weakness that all salary surveys share is currency. Gathering information and conducting detailed analyses takes time, especially if the survey contains a substantial collection of data. In a fluctuating economy, by the time the salary survey is disseminated, the information could be irrelevant or outdated.
Is Korn Ferry a good company to work for? ›You should strongly consider before joining KF
Korn Ferry is a reputable organization, known for RPO and Executive Recruiting, talent insights, and talent strategy solutions. They are very proud of their Golf tournament - perhaps they put more emphasis on this tournament than retaining their employees.
Is Korn Ferry a good recruiting firm? ›
Recruiter professionals rate their compensation and benefits at Korn Ferry with 3.6 out of 5 stars based on 596 anonymously submitted employee reviews. This is 8.7% better than the company average rating for salary and benefits. Find out more about Recruiter salaries and benefits at Korn Ferry.
What are the Korn Ferry Consulting levels? ›Korn Ferry offers a consistent tiered structure of Silver, Gold, and Platinum services, with each level providing increasing service across Setup & Support, Training & Education, and Enablement.
How much does a coordinator at Korn Ferry make? ›Minimum salary at Korn Ferry depends on the role you are applying for. For Recruitment Coordinator the minimum salary is ₹4.1 Lakhs per year, for Sourcing Specialist the minimum salary is ₹4.3 Lakhs per year and so on.
Who are the competitors of Korn Ferry? ›- Upland Altify. Compare.
- Phenom TXM. Compare.
- SeekOut. Compare.
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- hireEZ. Compare.
- LinkedIn Talent Solutions. Compare.
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Now in its tenth year, the Korn Ferry Hay Group CEO compensation study examined all forms of pay for CEOs at the 300 largest public companies with revenues of at least $9 billion in fiscal year 2016. Overall, CEO total direct compensation increased 4.2 percent to $12.5 million.
How is it like to work at Korn Ferry? ›Overall culture is supportive and there is a lot of flexibility. Work is interesting and challenging. Need to create your own structure and be assertive to find growth opportunities.
What are the worlds largest recruiting companies? ›For the fourth year in a row, Randstad is the largest staffing firm globally, generating just under $26 billion in revenue. Swiss-based Adecco and US-based Manpower Group follow in second and third. These top three firms have a combined market share of 11.3%, as detailed on page 3.
Why is skill-based pay good? ›A skill-based compensation structure can cultivate a company culture prioritizing personal growth and improvement. By incentivizing employees through rewards for acquiring new skills, a skill-based pay system can increase their motivation to improve their abilities and acquire new knowledge continually.
How many US employees does Korn Ferry have? ›Korn Ferry has 8,198 employees. 59% of Korn Ferry employees are women, while 41% are men.
What does skill-based pay involve? ›What Is Skill-Based Pay? Skill-based pay (SBP) is a compensation system that rewards employees with additional pay in exchange for formal certification of the employee's mastery of skills, knowledge, and/or competencies. Skill is acquired and observable expertise in performing tasks.
What makes Korn Ferry different? ›
Korn Ferry is the only organization consultancy to measure, evaluate and benchmark both skillset and mindset of employees to understand the talent you have and the talent you need to deliver sustainable growth.
How to pass Korn Ferry assessment? ›The best way to prepare for a Korn Ferry leadership assessment will vary depending on your individual strengths and weaknesses. However, some tips that may help include studying the company's history and values, practicing situational judgment questions, and reviewing common interview questions.
Where is Korn Ferry headquarters? ›Korn Ferry is a management consulting firm headquartered in Los Angeles, California.