The increase in real wages will be less than 1%, according to companies

The increase in real wages will be less than 1%, according to companies

The companies of Uruguay They anticipate that during this year they can grant salary increases to its employees of about 8.7%in two or three salary updates, according to a survey carried out by a Human Resources consultant.

There is less and less to go until the negotiations for the tenth round of the Salary Tipsand the consultant mercer asked different companies what expectations of increases they had for this 2023. In this sense, seven out of ten companies consulted said they planned to carry out two to three magnificationswhile the average salary increase was 8.7%.

This result responds, in part, to the last survey of business expectations carried out by the National Statistics Institute (INE) in April, where the median of expected inflation for 2023 was 8%. In this way, the wages of the private business sector would nominally outperform the expected price increase; but the increase in real wages would be below one percentage point (0.7%).

The criteria for increases

The survey also asked companies what the criteria to be used to define the increase. The majority answered that they will be governed by the Salary Councils (74%). Then they placed merit (60%), inflation (32%) and other concepts with 6%.

Regarding the periodicity of the adjustments, 40% responded that they will grant two updates, 32% will grant three, 24% will grant one and 3% will grant four.

Likewise, Mercer highlighted that 69% of the companies consulted provide merit increase and the usual payment month to pay it is April, at the close of the performance evaluation of the previous year; so this increase would have already occurred in most cases.

The report stated that within a context of business transformation, 9% of the companies that participated in the survey made significant changes in the management of compensation in the last 24 months and 28% are evaluating implementing changes in the management of the compensation, such as new forms of variable pay.

Regarding the actions carried out by organizations to retain their talents, those consulted highlighted development plans (64%), rethinking benefits (58%), out-of-cycle salary adjustments (47%), redefining the scope of the position (27% ) and out-of-cycle promotion (27%), among others.

“Benefits are a central axis of work in organizations. On the one hand, trying to incorporate a look at well-being in a broad sense (physical, emotional, financial and social) and, on the other, beginning to incorporate concepts and practices that are frequent in other disciplines that are not being used in the strategy of benefits”, explained Ivana Thornton, Mercer Career Director for Argentina, Uruguay and Paraguayan.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts