In France as in all of Europe, inflation is acting up. It impacts the purchasing power of the majority of us. It is for this reason that companies should soon proceed to a salary increase. Moreover, a survey conducted by WTW announces an average increase of 3.1% for this year. It will rise to 3.3% in 2023.
Companies are reviewing their compensation policies
The situation is worrying. Inflation keeps on going gain momentum since the beginning of this year 2022. As a result, many of our compatriots are forced to tighten their belts. However, good news has just fallen.
Indeed, companies should review their compensation policies. The insurance brokerage WTW conducted a survey about the remuneration policies of these companies. According to this survey, 35% of these companies are considering increasing their annual salary budget.
Only 35% of companies have increased the budget allocated to salary increases:
“The real salary increase for 2022 is 3.1%, it is more than last year, but it is well below inflation”
— BFM Business (@bfmbusiness) August 1, 2022
The survey also reveals that 34% of them want to emphasize the non-financial elements of compensation. And 30 % foresee additional budgets for increases as needed.
An increase for groups of employees
The investigation also revealed other interesting elements. 23% French companies are planning an increase for groups of employees. Among these 23%, some have already made the increase. The increase in question targets employees at high risk of retention.
However, it also targets those with rare or critical skills. 59% of organizations, or 6 out of 10, want to study the case of the lowest paid. 21% of them plan to adjust salary scales. Only 9% of these organizations are considering implementing a second round of salary increases.
A revaluation of 3.1% on average in 2022
Khalil Ait-Moouloud, compensation survey director at WTW, spoke on BFM Business. According to him, it is to compensate decline in purchasing power companies think about “collective increases”.
Anyway, that’s the goal. In effect, inflation can reach 5.5% by the end of 2022. The director also mentioned “other collective measures such as the purchasing power bonus”. That said, it’s aboutan increase of 3.1% on average for this year 2022. Remember that in 2021, it was 2.3% according to WTW.
The latter speaks “a significantly high budget compared to the practice of the past ten years. » A budget that will allow businesses “to remain competitive to attract the best talent”.
#Inflation : What #increases of the #wages in 2022 and 2023? Khalil Ait-Moouloud, Director of the Compensation Surveys Activity @WTWfr was this morning on @bfmbusiness to unveil the results of the 2022 WTW Inflation & Reward Actions study: https://t.co/qye812xgms pic.twitter.com/ZARAc6RGgr
— WTW in France (@WTWfr) August 1, 2022
Significant wage increases in 2023
The revaluations will be even more significant in 2023. Indeed, it will be 3.3% on average. Here is what it will look like:
- For executives and managers: +3.1% in 2022 and +3.3% in 2023
- For technicians and employees: +3% in 2022 and +3.3% in 2023
- For managers: +2.8% in 2022 and +3.2% in 2023
- For manual workers: +2.8% in 2022 and +3% in 2023
This ranking shows that executives and managers will have bigger upgrades. Revaluations differ from one position to another. Thus, technicians and employees are in second place. In third position are the leaders and in fourth position the workers.
Different revaluations from one European country to another
As said above, it is not only France that is facing inflation. Other European countries also have their account. However, in France, this inflation is less significant compared to other developed countries. Therefore, salary increases take place according to the level of inflation.
It is therefore obvious that in France, wage increases differ from those in other countries. In other words, they are less important there than in other European countries. Indeed, in top 15 economies in Europe, companies are considering raising the wages of 4.9% on average. These increases are planned for 2022 and 2023, while in 2021 they were less than 0.9 points apart.
Employees in the United Kingdom should therefore see their wages increase by 4% in 2022. In Germany, wages should be increased by 3.8%. In Spain, on the other hand, the revaluations will be 3.6%. The United States is also planning a wage increase. It will be on average 4% in 2022 and 2023 it will amount to 4.1%.
#Inflation #discover #salary #increases #planned