Constant price increases mean that companies have to constantly modify their budgets and the salaries of non-agreed personnel must be updated more frequently.
Companies adjust salaries of hierarchical personnel (managers) and outside the agreement and a 42% of organizations negotiate increases that they had planned in a context in which inflation continues to change with respect to what they had planned in their original budget. This was reported by the company Wilson Tower Watson (WTW) in the eighth edition of its Flash Salary and Benefits Survey conducted by the Talent Management and Compensation team with data collected from November 3 to 14.
The sample covered 445 companies from different sectors and reflected that, for now, what is approved on average it is 136% increases and what is under negotiation to grant throughout the year it is 154%. “That is to say, there is already more than one 56% of companies that have granted 5 or more adjustments throughout the year“, states the work.
And they explain that, although some groups of employees within agreement They are already receiving monthly salary adjustments, they do not see the same in personnel outside the agreement, since only 2% of companies are doing it with this frequency.
Companies grant salary increases
Likewise, they point out that what continues to appear is the possibility that several companies will grant salary adjustments at the beginning of next year that apply to 2023 to compensate for what remains behind the market and/or inflation. “23% of companies are in this situation and 47% are evaluating it,” reports WTW.
And they add that this scenario also impacts the estimates of salary adjustments for 2024 for personnel outside the agreement, which, at the moment, is estimated to be you will receive a cumulative 130% adjustments.
Around the 32% of companies will be applying a total of four salary adjustments this year and 80% give the increases based on merit and performance. The sector that negotiates the strongest increases is that of banks and financial entities, which have accumulated approved increases of around 180% this year.
Source: Ambito
