With accelerating inflation, the prices They are giving a beating to the wages. The one who loses the most is the pocket of the workers, especially in the most relegated sectors. Seeking to cushion the impact on purchasing power, companies plan several salary increases throughout the year.
According to private consultants, inflation in 2023 will exceed 100%. Unless something happens to stabilize the economy, wages will lose out against prices again this year. Companies work with a lower incremental budget.
This week the WTW consultancy launched the second 2023 edition of its Flash Survey on Salaries and Benefits carried out by the Talent Management and Compensation team. The work on more than 400 companies from various sectors reveals that 7 out of 10 companies will give four or more increases this year. The rest evaluate three settings.
“Regarding the year 2023, the adjustment data planned by the companies is already beginning to change (85.0% in the first edition -January- vs. 88.6% in this second edition -March-). And 57% of the companies believe it is highly probable that this budget will change throughout the year according to inflation and the market”indicates the survey.
And he concludes that “it is already a trend for companies to apply 4 annual adjustments and even in some cases, more. Less than 30% of companies plan to do so on fewer occasions.”
How much will wages rise in 2023?
On average, these adjustments would end the year with increases of the order of 87%, although the inflation they project is over 89%. The data, even so, seems optimistic.
The sectors that bite at the tip are educational entities, finance, construction, fintech, and those linked to energy. Insurers, agriculture and health are at the bottom of the table.
“The final number of the 2022 increases granted by companies for personnel outside of the agreement is practically closed. The fact is that the increases they gave were 92%. This is, also taking into account those companies that during the first months of this year gave adjustments to recompose salaries for 2022. Therefore, once again, salaries lagged behind annual inflation,” concludes Marcela Angeli, director of Work & Rewards.
To try to somewhat compensate for the loss of purchasing power of salaries, a good part of Argentine companies are committed to working on other benefits, which they plan to modify along with salaries. Mobility, meals, internet (due to the consolidation of the hybrid model), and childcare are the most common.
Stomp on the hybrid model
Another fact that the surveys show is that the hybrid work model is a fact, only 9% of companies work 100% face-to-face. These are the conclusions:
- 46% of multinational companies have modified corporate policy to local reality, and 6% have it under analysis.
- 55% apply the policy/practice as it is implemented, the rest ends up adjusting it to the needs of each work team.
- 31% of the companies have 3 days of face-to-face work per week, the rest have less and/or leave it to the choice of the employee/work team.
Source: Ambito
