Mercer on Tuesday announced the results of its annual 2019 Philippines Total Remuneration Survey, a study that identifies key remuneration trends and makes hiring and pay increase predictions for 2020. According to the findings, the 2020 salary increase is forecast to grow 6 percent from 5.5 percent in 2019 while the inflation rate is projected to drop to 3.3 percent from 3.8 percent this year and to 1.1 percent in 2020. The consumer goods, energy and high-tech industries are predicted to have the highest salary increases at 6 percent.

Figures and forecasts are based on the Total Remuneration Surveys — Mercer’s flagship annual compensation and benefits benchmarking study that identifies key remuneration trends and predicts hiring and salary increase, with participation increasing to 433 companies this year in the Philippines across various industries. Mercer also conducts regular pulse surveys throughout the year to keep up with the impact of the rapidly changing business environment and compensation and workforce trends.

The hiring trend in the Philippines in 2020 is expected to drop with 45 percent of organizations planning to add new hires compared to 50 percent in 2019. Given the stabilizing voluntary turnover rate, the focus of most organizations is turning to upskilling and retaining key talent. However, 66 percent of companies in the Philippines don’t have a formal retention policy in place.