The end of 2022 is approaching and companies are looking forced to budget wage increases for next year. Just as estimated inflation is a mystery that economists place between 80 and 130%, expected increases start from a value, but you never know what the reality will be when they become effective, as has happened in recent years.
This year, companies have granted their employees outside the collective agreement -which are those who are not reached by equal peers, such as bosses, supervisors, managers or directors- an average increase of 88.68%, according to the Spot survey by HR consultancy firm mercer among 422 companies in November.
It’s another year behind the prices. “According to private sources, the inflation forecast for 2022 will be 97.1%. That way, the hikes would be lower than inflation when you look at the overall market,” said Ivana Thornton, director of careers at Mercer.
In this race against the raises, the industries that fared best (ie managed to exceed the average increases) are Energy (96.20%); Energy-Oil & Gas (95.89%); Engineering and Construction (94.76%); Banks (94.10%); Financial Services (93.75%); High technology (93.20%); Life Sciences-Medical Devices & Equipment (91.18%); Production (92.41%); Chemistry (90.35%); Retail (90.13%); Agriculture (89.70%) and Logistics (88.87%).
Conversely, the most backward in 2022 ended up being Machinery (81.50%); Fintechs (82.43%); Automotive/auto parts (84.02%); Life Sciences-Biotechnology (84.37%) and Media & Entertainment (87.46%).
To shovel out inflation, companies are giving more raises this year: 37% of companies will have given four raises this year; 32% will award five or more; 25% will give three raises and 6% two.
April, July and October were the most chosen months to give raises, but September, November and December also rose.
As for the projections for 2023, the companies are budgeting an 80% increase for non-contracted personnel, taking it as a reference an inflation of 84%.
Will companies offer vacation rentals?
Mercer asked the companies if they would allow some days between the Christmas and New Year holidays as non-working days. However, most businesses will operate normally.
Of those consulted, 52% said they would not allow days off, while 17% responded that some selected days will be non-working days (mostly the 23rd, 30th and 26th).
Meanwhile, only 15% indicated they would not work in the week between holidays; 6% said they have not defined it yet; 5% will have minimal on-call duty during the holiday week and 5% have chosen other options (half day work 24th and 31st; half day work 23rd and 30th; home office all week; days off of your choice, among others).
NEITHER
Source: Clarin
