In a context of rampant inflation and hiring difficulties, companies are being encouraged to rethink their compensation policies. In France, 35% of them have revised or plan to revise upwards the budget for annual salary increases. Also 34% want to put more emphasis on non-financial elements of compensation and 30% provide additional budget for raises as needed, according to the survey by insurance brokerage firm WTW*.
Furthermore, a quarter of French companies (23%) have or plan to increase the salaries of certain groups of employees, in particular those at high risk of retention (68%), those with rare/critical skills (68%) and the most successful (64%). 6 in 10 organizations (59%) also say they want to focus on the lowest paid. There are also 21% for planning an adjustment of the salary tables and only 9% for considering the implementation of a second cycle of salary increases.
Thus, the salary increase would be 3.1% on average in 2022, after 2.3% in 2021, according to WTW, which points out that it is “a significantly high budget compared to the practice of these last ten years that should allow companies to remain competitive in attracting and retaining the best talent, but also to offset the relative loss of purchasing power of employees. At least in part, with inflation forecast at 5.5% for all of 2022.
For 2023, the revaluations should be even higher: +3.3% on average. In two years, managers and executives will be the most favored (+3.1% in 2022, +3.3% in 2023), ahead of employees and technicians (+3% and +3.3%), managers ( +2.8% and +3.2% ) and workers (+2.8% and +3%).
Greater increases among our neighbors
Since French inflation is lower than in other developed countries, wage increases are more moderate there as well. For 2023, companies in the 15 largest economies forecast an average increase of 4.9% in 2022 as in 2023, or 0.9 points more than in 2021.
In detail, the average increase in real wages in 2022 is expected to reach 4% in the United Kingdom, 3.8% in Germany and 3.6% in Spain. For its part, the United States forecasts an average increase of 4% this year and then 4.1% in 2023.
*Survey conducted in July 2022. 22,400 responses were received from companies in 133 countries. 358 companies responded in France.
Source: BFM TV
