Salary and benefits trends 2025: The tide is turning in favour of employers

Host: Andrew Lafontaine, Partner, Workforce Solutions, Mercer Pacific

Guests:

Nithya Abraham, General Market Leader, Digital & Insights, Mercer Pacific

Don Barrera, Client Engagement Manager, Digital & Insights, Mercer Pacific

Description:

Drawing insights from the latest releases of Mercer’s Total Remuneration Survey (TRS) and Australian Benefits Review (ABR), this episode highlights a shift in the job market dynamics, where salary budgets are stabilising and employers are regaining power as hiring slows and turnover rates decline.

Tune in to hear more about:

• Shifting power dynamics: Why employers are regaining control in the job market and what they are doing to keep their people engaged and motivated.
• Salary budget forecasts: Employers plan a 3.6% allocation for merit raises in 2025, down from 3.8% in 2024.
• Employee benefits: Flexibility is key, with 89% of organisations offering flexible work arrangements. Some are now being creative in their approach to flexibility.
• Incentives for retention: Organisations are focusing on comprehensive compensation packages, including performance-based bonuses.
• Upskilling and development: 60% of organisations are now offering learning and development for the entire company. Learn what training topics are trending.

Visit our website to access the reports:

https://www.mercer.com/en-au/insights/talent-and-transformation/podcast-making-work-work/