3R Strategy uncovers global salary trends and data insights from organisations across 40+ countries and 20+ industries in a new report
The recently released 4th Global Salary Planning Report by UK-based pay and reward consultancy 3R Strategy uncovered global salary trends and data insights from organisations across over 40 countries in more than 20 industries. It provides a detailed analysis of the salary budgets in 2024 and forecasts for 2025, alongside data on pay transparency, communication, performance-related pay, the use of salary data, and gender pay gap reporting.
According to the latest report from 3R Strategy, over 2024 the median pay increase was 4%, whereas in the logistics sector it was 4.1%. This is in comparison to inflation at 1.7% in September 2024. Furthermore, whilst the median pay budget increase across the UK is set at 3.5% for 2025, the logistics sector is expected to have pay budgets set at 3%. This is in comparison to sectors such as engineering and automotive which demonstrated higher forecasted budgets.
Importantly, in the recent Autumn Budget, the government announced a National Living Wage increase of 6.7% from April 2025, which surpasses the planned pay budget increases for that year. Employers will need to account for this, as a 3.5% budget doesn’t mean that everyone can receive a 3.5% pay increase – entry-level positions that are paid at the National Living Wage will require a 6.7% rise. Additionally, the budget includes an increase in employer National Insurance Contributions (NIC) from 13.8% to 15%. While the impact on pay budgets remains uncertain, some organisations may choose to offset this by adjusting their overall pay budgets.
Global Salary Trends: Pay Communication
According to broader survey data, nearly two-thirds (64%) of organisations surveyed have implemented clear pay principles and processes. However, the emphasis should now be on effectively communicating these to foster trust and understanding among employees. While 57% of companies engage in some form of pay communication, 3R Strategy notes there’s a significant opportunity to improve both the reach and quality of this communication. As many as 35% of respondents don’t communicate this crucial information to their teams at all.
Although 68% of organisations have salary ranges, only 26% make them available to employees in at least some countries. To build trust and engagement, businesses should prioritise carefully communicating this information to bridge the gap in pay transparency internally.
Pay Transparency in Recruitment
There’s a growing awareness of the need for greater pay transparency, as evidenced by a reported 66% of organisations displaying pay ranges on job adverts in at least some countries. This aligns with the EU Pay Transparency Directive, regulations aiming to increase pay transparency and ensure fair and equal pay in the European Union (not directly applying to the UK due to Brexit). However, 29% of respondents still don’t include salary ranges when advertising open positions, potentially missing out on attracting a wider pool of highly talented candidates.
Furthermore, the results reveal that more than half (51%) of organisations still ask for candidates’ current salaries, a practice that can perpetuate pay disparities and hinder diversity efforts.
Gender Pay Gap Reporting
While overall gender pay gap reporting is mandatory in some countries, such as the UK, more detailed reporting by job level or grade is becoming increasingly relevant in other regions due to the EU Pay Transparency Directive. Currently, only 28% of companies are reporting gender pay gaps by job level. Despite requiring careful preparation, this kind of reporting can surface potentially concerning trends that might be hidden in organisation-wide figures.
Commenting on the results, founder and managing director of 3R Strategy Rameez Kaleem said: “Conducting our Global Salary Planning Survey for the fourth year in a row, we were delighted with the level of participation, with responses collected across over 40 countries and more than 20 different sectors. UK inflation has declined significantly over the past year and interest rates have begun to ease, which is an encouraging sign for employees. We hope our report will serve as a valuable resource for 2025 salary planning to help businesses attract and retain talent.”
The full report is now available for free on the 3R Strategy website here
