GLOBAL REWARDS PULSE SURVEY - kornferry.com

1 GLOBAL REWARDS . PULSE SURVEY . Compensation practices and salary increase projections for 2022. The data shows four key trends impacting pay in the coming year: 1. Most organizations globally are reporting an uptick in their median total salary increase budgets for 2022. vs what they had planned in 2021. A majority of organizations are granting a significant 2. percentage of their employees a salary increase this year ( , at least 90% of employees will receive an increase). Organizations are generally split between those who include vs. exclude promotions, internal equity adjustments, market adjustments, key contributor increases and other off-cycle increases in these 3. projections. As a result, forecasted increases are likely understated to actual total increase practices by as much as 25-33% of the overall budget. 4. There's an increased use of select cash compensation programs in the new war for talent' and increased utilization of select non-financial reward programs.

2 We've combined annual compensation SURVEY data and recent REWARDS and benefits PULSE surveys to provide anticipated salary increases for 2022. As expected, this year, the majority of organizations are planning to provide salary increases in 2022. We have provided the data excluding those organizations that are not providing an increase. All country salary values are the median increases presented at headline values, unless otherwise stated. PERCENTAGE OF EMPLOYEES. LIKELY TO RECEIVE SALARY. INCREASES GLOBALLY. 100% Up to 44% of SURVEY 100%%. participants said that 90% 100% of employees will 90%. be eligible for increases 80% 80%. 70% 70%. Only 10% of SURVEY participants are planning 60% 60%. to skip increases altogether All employees while the rest of participating organizations are planning 44%. 50% 50%. to give increases to some 40% employee categories. 40%. 30% 30%. 20%. 19% 20%. 10% 8%. 10%. 5% 4% 6% 10%. 2% 2%. 0% 0%. 0% 25% 50% 75% 80% 85% 90% 95% 100%.

3 % of all employees likely to receive increase REGIONAL SALARY. INCREASE DATA. NORTH AMERICA. EASTERN EUROPE. WESTERN EUROPE. DEVELOPED' ASIA. MEXICO &. CENTRAL AMERICA MIDDLE EAST. EMERGING' ASIA. SOUTH AMERICA. AFRICA. PACIFIC. market . HIGHLIGHTS. Forecasted salary increases across various employee categories MIDDLE MANAGEMENT. EXECUTIVE / SENIOR SUPERVISORY / JUNIOR CLERICAL /. COUNTRY / SEASONED. MANAGEMENT PROFESSIONAL OPERATIONS. PROFESSIONAL. Australia Brazil Canada China France Germany Italy Japan Netherlands Russian Federation Saudi Arabia Spain United Arab Emirates United Kingdom United States of America COUNTRY SALARY. INCREASE DATA. Median salary forecasts for all employee categories by country. UZBEKISTAN. RU. INA. SS. UKRAIN. ARGENT. BOLIVIA. IAN. SLO. DDFDF. TURK. A. IL. SLO. MBI. R. BRAZ. FE. VEN. OR. DO. E. VAK. CHIL. DE. O. EY 3. SER. AD. VA. E LOREM. COL. IA. RA. IC. AL. RO. U. IA. BI A. BL. EC. TIO. S. MA. AY. PU. RU. PO. EL. CA. N. GU. %.

4 NI. RE. M. PE. LA. RI. +. %. OL. A. RU. N. %. A. LI. ND. A. DO. %. ST. %. U. T. IC. HU. LA. %. CO. %. VA. N. KA 10. I. A. A. M. %. 5. %. EM. N. ZA.. DO. S. LA. 3%. IA. 21. RA. 6%. AT. KH. TV. 9..9. U. U. ST. 3. %. D. IA. 4. G. 0%. A N. 9%. IS N O O. 7. RA H. 8 IC. 3. 1%. X A. 5%. HU 8. EL GU. 4. 0% % E. NG 7 M A. AR 4. 4. R. ES Y 0% 7. % I CA. 1 N. CZ T ON 5. MA. EC % N A. HR IA 6 0. EP. % 4. PA IN. UB. LIC. 0% HRA. % . 5 3 BA. CR 4. OA .0% % T. TIA EG. YP. BU 4 0%. LGA. RIA % 10. Q. IRA. 3 %. BEL. ARU. % DAN. S JOR. AZ E R 2 BAIJ AIT. AN KUW. 2 . 8%. TAIWA 1. N, CHI ON. NA LEBAN. SINGAPOR OMAN. E KOREA QATAR. JAPAN SAUDI ARABIA. UNITED AR. G, CHIN A AB EMIRAT. HONG KON ES. CANAD. AM A. VIETN. 1 UNIT. LAND ED S. THAI TATE. S OF. 2. AUS AME. RICA. N E S TRA. IPPI 2 .9 L IA. PHIL %. 3. %. NEW. A N ZEA. IST % %. PAK 4 AU. LAN. D. SIA ST. AY % % RIA. L MA 5 2. 6 BE. SIA % % LG. O NE 2. IUM. D 6% C YP. IN DI. A 9% 6 RU. IN 5. 2. S. % 3% DE. A .9 NM. H IN 12 7 2. AR.

5 C 5% FI. A 5% NL K. BI 6. A. M FR ND. 3. 1%. ZA 8. 0. IA A. 4. %. IS N. 2..1%. N CE. 2%. TU. G. 4. 9. 2. IA. %. ER. 9%. N..6. M. ZA. %. G. 12. A. A. RE..0. IC. N. N. %..9%. 10. 6. TA. Y. IR. FR. EC. A. %. %. EL. RI. A. E. 3. ITA. UE. GE. %. AN. H. +. UT. 2. 5 %. LU. NI. IQ. LY. O. D. 2. 5%. 4 .2 %. SO. CC. %. MB. X. N. US. NA EM. ET. RO. NO. ZA. A. ITI. A 1. NY. HE. POR. B. NA. MO. MO. RW. OU. UR. SPA. RL. KE. SWED. IRE. IOPI. G HA. SWITZE. UNITED KINGD. ANGOLA. MA. ALGERIA. RG. T. AY. AN. IN. UGA. D'IVO. BOTSWA. ETH. DS. EN. L. R. C TE. LAND. M O. Trends from the 2022 GLOBAL salary As a result, forecasted increases are likely understated to actual total increase practices by as much as 25-33% of the overall budget. increase SURVEY . Organizations should use this and other salary increase projection We continue to stand at a crossroads in the world of work. information directionally and engage leaders in a discussion As a result of the last two years of adapting and evolving, focused on internal needs and objectives vs.

6 Over-indexing on organizations globally have charted new business and talent external market data. strategies, and this has had a significant impact on the direction of reward programs. A majority of organizations are granting a significant percentage of their employees a salary increase this year ( , at least 90% of This is the sixth in a series of GLOBAL PULSE surveys from Korn Ferry employees will receive an increase). designed to gather insights into how organizations are adapting their reward programs in response to a rapidly changing world, This high rate of employees receiving increases results in the and to assess how their plans for future REWARDS programs are typical organization not being able to significantly differentiate evolving. For this SURVEY , there is a particular focus on salary increases between competent and outstanding performers. increase projections for 2022. The typical practice is a difference in increase percentages between these performers ( , an outstanding performer receives We were prompted to initiate this SURVEY when it became a increase vs.)

7 A competent performer receiving ). increasingly clear from our clients toward the latter part of 2021. that early compensation increase projections for 2022 may no While a majority of organizations are reporting little change in longer be relevant. Given the continued impact of the pandemic their base salary administration processes vs. pre-pandemic, on business conditions, accelerating inflation, and labor supply there is a higher percentage of organizations utilizing: and demand imbalances, organizations felt compelled to adjust their compensation increase budgets in the latter part of 2021 More centralized review, calibration, and control processes of and early 2022. base salary increases Greater differentiation in increases between outstanding and This SURVEY ran from December 2021 to January 2022 and it competent performers reflects responses from 5,042 participants in 116 countries. SURVEY respondents are typically HR professionals, and their organizations Increased use of select cash compensation programs in the new cover a broad range of of size, geography, and ownership structure.

8 War for talent'. These include: The SURVEY findings indicate that organizations globally are in Sign-on bonuses the process of making, or are considering, significant changes in Retention bonuses their salary increase budgets for 2022. There are several findings Special incentive / bonus programs that are worth noting from our SURVEY of GLOBAL practices. The use of sustainability, ESG and DEI metrics in incentive plans Most organizations globally are reporting an uptick in their Increased utilization of select non-financial reward programs. median total salary increase budgets for 2022 vs what they The most increased focus is in the following areas: had planned in 2021. Connecting the work the organization does to its mission, For example, the US median increases have risen from vision, and values (during the middle of 2021) to (as of now). Clarifying and communicating employee growth and career development opportunities The UK has gone from to (from the middle of 2021 Engaging with employees in organization change priorities to now), Australia from to , Brazil from to , Building manager and leader effectiveness to build connections Turkey from 18% to 30%, Ukraine from to , and Russia and inclusivity within their teams from 5% to Organizations should take care in interpreting this forecast data as there is a significant variance in company practices regarding the types of pay increases that are included in these projections.

9 Organizations are generally split between those who include vs. exclude promotions, internal equity adjustments, market adjustments, key contributor increases and other off-cycle increases in these projections. NON-CASH REWARDS . MATTER MORE THAN EVER. The results of this SURVEY show that as salary increases stall, employers will need to get creative about non-cash REWARDS to retain and engage employees. To find out what creative approaches you can be taking, contact us here. CONTACT US. Korn Ferry 2022 All rights reserved.