Mercer Short Duration Fixed Income Fund Class Y-3 · NASDAQ:MSDYX
Mercer Short Duration Fixed Income Fund Class Y-3 — Mercer — Asia-Pacific Rewards Trends and Insights webinar 2022
38 slides from Mercer Short Duration Fixed Income Fund Class Y-3's conference presentation, Jul 27, 2022
Slide 1: Asia-Pacific Rewards Trends and Insights
welcome to brighter Asia-Pacific Rewards Trends and Insights For 2022 and beyond 27th July 2022 A business of Marsh McLennan
Slide 2: Today’s speakers
Today’s speakers Puneet Swani, Senior Partner Kulapalee Tobing, Partner Career Business Leader Regional Industry and Solutions Leader AMEA & Pacific, Mercer Asia Pacific, Mercer 2
Slide 3: Agenda
Agenda 1 Economic outlook & employment landscape 2 Talent and workforce insights 3 Compensation trends 4 Practices around future of compensation • Recording and presentation will be shared post-webinar by 1st August. 5 Conclusion and Q&A • Got questions? Please type your questions in the Q&A box. We
Slide 4: Economic outlook & employment landscape
Economic outlook & employment landscape
Slide 5: Global economic growth is projected to slow down
Global economic growth is projected to slow down War sets back the global recovery GDP real growth % After posting a strong recovery in 2021, the Asia-Pacific region is set for more modest economic 6.2 5.7 5.7 5.4 expansion in 2022 4.0 3.3 3.3 3.3 2.9 Persisting coronavirus pandemic, supply 2.8 2.5
Slide 6: Divergent economic outlook across markets in Asia-Pacific
Divergent economic outlook across markets in Asia-Pacific Headwinds from the Ukraine crisis, a resurgent pandemic, and tightening global financial conditions GDP real growth % 8.3 8.1 7.6 7.2 6.6 6.5 6.3 6.3 6.2 6.1 6.0 6.0 5.8 5.7 5.3 5.2 5.0 5.0 4.8 4.7 4.5 4.4 4.3 4.2 4.0 4.0 3.9 3.7 3.5 3.4 3.3
Slide 7: Inflation rate is forecast to rise across markets in 2022
Inflation rate is forecast to rise across markets in 2022 Slowing growth and rising inflation raise stagflation risk Inflation, CPI year average, % 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Japan China Thailand Hong Indonesia Vietnam Taiwan Singapore Malaysia South Australia New Philippines India
Slide 8: Unemployment rate is trending down to pre-pandemic levels
Unemployment rate is trending down to pre-pandemic levels The uneven recovery is widening the gaps between more and less developed markets Unemployment rate, % 2019 2020 2021 2022f 8.5 2023f 8.0 7.4 7.8 6.5 6.4 7.0 5.7 6.0 6.0 5.6 6.0 5.1 5.6 4.7 5.4 4.5 4.3 5.1 4.0 4.0 3.9 3.7 3.5 4.2 3.6 3.8 3.8 3
Slide 9: Global talent shortages reach a new high
Global talent shortages reach a new high As labor markets strive to rebound from the impacts of the pandemic, a talent shortage of historical scale has catalyzed USA: 74% JP: 74% (32% in 2021) CN: 83% (76% in 2021) (28% in 2021) TW: 88% IN: 83% (64% in 2021) (43% in 2021) HK: 83% (68% in 2021) SG: 8
Slide 10: Hiring intentions
Hiring intentions Companies hiring more in 2022 compared to last year, with some markets exceeding the pre-pandemic levels Hiring intentions for 2019, 2021 and 2022 1% 2% 2% 2% 3% 3% 3% 3% 4% 4% 4% 4% 5% 5% 6% 6% 6% 6% 6% 7% 7% 7% 7% 7% 7% 7% 7% 7% 10% 10% 10% 8% 8% 11% 11% 11% 9% 9% 9% 9% 12% 14% 3
Slide 11: Voluntary attrition rates are mostly on a rise while involuntary attrition rates are trending down
Voluntary attrition rates are mostly on a rise while involuntary attrition rates are trending down Voluntary turnover for 2020 and 2021 14.2% 15.3% 12.2% 12.8% 13.0% 12.1% 12.1% 10.9% 10.2% 10.1% 9.9% 10.3% 8.3% 6.4% 2020 11.4% 11.2% 12.8% 12.2% 10.1% 10.5% 9.7% 9.2% 9.1% 9.7% 2021 8.6% 6.7% 7.9% 6.
Slide 12: The great resignation still continues
The great resignation still continues 7 in 10 companies in Asia Pacific consider labor shortage as moderate to significant issue Top drivers of voluntary attrition / turnover in APAC Job families with maximum companies experiencing higher than typical turnover Dissatisfaction with pay and/or ability
Slide 13: Talent and workforce insights
Talent and workforce insights • Recording and presentation will be shared post-webinar by 1st August. • Got questions? Please type your questions in the Q&A box. We will try to answer your questions during this webinar, if not, after the webinar.
Slide 14: Flexible working
Flexible working Time spent working from home has reshaped what employees want from office in post-pandemic world What makes employees stay globally? What would employees globally forgo a pay raise for this year? 2022 (during pandemic) 2020 (pre-pandemic) Ability to work a fully flexible or compress
Slide 15: Returning to the workplace
Returning to the workplace It’s important to balance the diverse needs of the stakeholders employers in APAC say that they will require all or most 85% employees to be back at worksites (spending at least some time working on-site) by end of 2022 Actions companies globally have implemented to encour
Slide 16: Employees are rethinking their priorities and expect flexible options
Employees are rethinking their priorities and more often expect flexible options to fit around their life Past Focus: Past Focus: Current Focus: Future Focus: Retain Motivate Recover Energize Loyalty contract Engagement contract Thrive contract Lifestyle contract (transactional) (work and workplace
Slide 17: Compensation trends
Compensation trends
Slide 18: 2023 merit salary increase – All industry
2023 merit salary increase – All industry Salary increase percentages for 2022 are higher than prior year across all markets in the region, and even above pre-pandemic levels in many markets 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% New South Australia China Hong Kong India Indonesia Japan Malaysia Philippi
Slide 19: 2023 merit salary increase
2023 merit salary increase Industry comparison 2022 (2023 Forecast) MARKET All Industry Chemical Consumer Goods Life Sciences High Tech AU 3.3% (3.3%) 2.8% (3.1% ▲) 3.2% (3.1% ▼) 3.0% (3.3% ▲) 3.8% (3.5% ▼) CN 6.1% (6.0% ▼) 5.8% (5.9% ▲) 5.8% (5.4% ▼) 6.6% (6.4% ▼) 6.6% (6.7% ▲) HK 4.0% (3.9% ▼) 3.6
Slide 20: Does rising inflation impact compensation strategies?
Does rising inflation impact compensation strategies? Related global headlines As inflation is rising in Asia-Pacific, the real salary increase is forecasted to be negative for many markets in 2022 BNN Bloomberg, May 2022 Estimated real salary increase % 8% 6% Fortune, Jun 2022 4% 2% 0% Financial Ti
Slide 21: How are companies in APAC responding to rising inflation?
How are companies in APAC responding to rising inflation? Half of the organizations in Asia-Pacific are adopting a wait-and-watch approach Measures companies have taken, or planning to Have companies in APAC factored inflation / cost-of- take in 2022 to offset market inflation living in their 2023 s
Slide 22: Examples of some measures observed in the region
Examples of some measures observed in the region Compensation Benefits • Review of salary structure and • Review of flexible benefits restructuring pay-bands to extend more coverage • Higher salary budget • Extra benefits like • Making salary adjustments corporate grabs or actual reimbursements on •
Slide 23: Factors to consider while responding to inflation
Factors to consider while responding to inflation Considerations What we’ve heard from market Cost of labour vs. cost of living Focus of salary increase is driven by Salary increases are sticky and cost of labor rather than cost of living cannot be rolled back when inflation decreases It is the
Slide 24: Promotional salary increase
Promotional salary increase Increased since 2021 No Decreased since 2021 2021 Actual/Budgeted change 2022 Forecast since 2021 16.4% 16.3% 16.2% 16.0% 14.2% 13.7% 12.6% 12.3% 11.6% 11.5% 10.9% 10.4% 10.3% 10.2% 8.7% 8.6% 8.4% 8.3% 8.3% 8.2% 7.9% 7.7% 7.6% 6.7% 5.7% 5.5% 3.4% 2.9% India South Philippi
Slide 25: Fresh graduate salaries
Fresh graduate salaries Bachelors, masters and PhD degree Annual Base Salary (in USD) 60,000 Bachelors Degree Masters Degree 50,000 PhD Degree +10% 40,000 +8% Numbers in % indicate graduate salary increase / decrease for Bachelors 30,000 +9% Degree compared to 2018 +5% -3% i.e. change in last 3 year
Slide 26: Outside talent demands a premium
Outside talent demands a premium It is a talent-demand economy Percent Increment given to Outside Talent 30% 2022 Salary Increase Rate (Actual/Budgeted) Recruiting at the same level as current role 25% Recruiting at the higher level of current role 20% 15% 10% 5% 0% Australia China Hong India Indone
Slide 27: Retention bonus scheme
Retention bonus scheme It’s not only about finding the right talent, it’s also about keeping the talent you have % of Companies providing a Retention Bonus Scheme 60% 2019 2022 50% 40% 30% 20% 10% 0% Australia China Hong India Indonesia Japan Malaysia New Philippines Singapore South Taiwan Thailand
Slide 28: Short-term incentives
Short-term incentives In most cases, actual variable bonus was lower than target Professional - Experienced Target Actual 14.5% 13.5% 12.6% 11.6% 12.3% 11.8% 11.2% 11.0% 10.6% 9.0% 9.6% 7.8% 8.0% 7.7% 9.6% 15.0% 10.0% 9.9% 13.7% 11.2% 12.5% 10.0% 10.0% 13.8% 11.4% 12.5% 15.0% 13.2% AU CN HK IN ID JP
Slide 29: Long-term incentives
Long-term incentives Restricted Share/Share Units (RSUs) are still the most popular but the prevalence is declining, while the prevalence for Performance Share/Share Units (PSUs) has been slightly increasing LTI Plans Prevalence in APAC 2019 - 2021 62% 56% 52% 2019 2020 2021 33% 29% 30% 31% 29% 20%
Slide 30: Pandemic lessons are shaping the modernization of benefits
Pandemic lessons are shaping the modernization of benefits Organizations must make sure their benefit packages are relevant and respond to workforce and business needs Health and well-being strategies to show employers truly care: Support moments that matter Provide varied Invest and valued in menta
Slide 31: Practices around future of compensation
Practices around future of compensation
Slide 32: The shift to skills-based approaches is being accelerated
The shift to skills-based approaches is being accelerated Increasing number of companies in Do companies in APAC assess people against the APAC already have some sort of relevant skill expectation? approach for classifying skills Yes, Other continuously 1% 58% 11% in 2022 46% Yes, annually in 2021 N
Slide 33: More companies in Asia-Pacific are now rewarding skills
More companies in Asia-Pacific are now rewarding skills but many are still not evaluating the market formally Skills for which companies in APAC differentiate Do companies in APAC link rewards to the rewards development of skills? Hard 46% Yes, through salary progression 21% 32% Soft 30% Yes, as a d
Slide 34: Rethink Total Rewards strategies
Rethink Total Rewards strategies
Slide 35: Rethink Total Rewards strategies
Rethink Total Rewards strategies In a hot labor market, employees expect more from Total Rewards; we will need to balance short-term enhancements with longer-term transformations Act in the short-term Plan for the long-term Fast actions Long-term solutions Address supply through the value Address su
Slide 36: Q&A
Q&A Recording and presentation will be shared post-webinar by 1st August Got questions? Please type your questions in the Q&A box. We will try to answer your questions during this webinar, if not, after the webinar. Puneet Swani, Senior Partner Kulapalee Tobing, Partner Career Business Leader Region
Slide 37: Don’t miss:
Don’t miss: We are going live in Singapore! Participate and get free executive summary! Get ahead of the game by joining us at our conference, where leading industry and Mercer experts will give HR Join us on the journey to understand the current state of leaders like you the lowdown on building mor
Slide 38: A business of Marsh McLennan
Mercer (Singapore) Pte Ltd (1978 02499E) A business of Marsh McLennan Copyright © 2022 Mercer (Singapore) Pte. Ltd. All rights reserved.
Mercer — Asia-Pacific Rewards Trends and Insights webinar 2022 on 6ix