Companies want to increase wages in 2023. And there’s a benchmark (but it’s not good)

The scenario of uncertainty, with the escalation of inflation, makes companies more cautious about team reinforcements. For those who are already working there, an average increase of 2.8% is under consideration. But inflation will be a key factor in determining how much wages will rise.

The companies intend to increase wages, on average, by 2.8% over the next year. The figure is revealed by the “Total Compensation” study by Mercer, which analyzed 527 companies in the Portuguese market.

The 2.8% increase is higher than the 2.3% forecast for 2022. However, this is still insufficient to keep up with the rise in inflation, which is approaching 9%, according to the latest available data.

Companies are therefore eager to understand how the economic context will evolve. According to the survey, almost half consider inflation as an indicator to define salary increases. “Inflation is a factor considered in this context by 49% of companies,” he says.

The study concludes that, from 2021 to 2022, there has been an average growth of 5% in wages, multiplied by the increase in the minimum wage in operational functions. Performance, positioning on the salary scale and company results are the most relevant factors when evaluating the award of a salary increase.

If for 2022, 3% of companies intended to freeze employee wages, next year the forecast rises to 9%.

Strengthen the teams? Companies are cautious

But the watchword remains “caution”: if 43% of companies have admitted their intention to increase the number of employees in 2022, this percentage drops to 31% next year.

As for the loyalty of professionals, more than half (53%) admit to having difficulties. According to the study, the most critical areas are engineering, information technology, sales and marketing.

Thus, to attract employees, other types of support and benefits are increasingly relevant. According to the Mercer study, training support is a reality in 57% of companies. The sponsorship bonus, to indicate a name for a vacant position, is part of the practices of 35% of companies.

More than seven in 10 companies also have medical plans, a car policy (provision of a car or a subsidy for that cost) and life insurance as benefits.

For Tiago Borges, spokesperson for Mercer Portugal, “despite an increase [salarial para 2023]this is insufficient to cope with the escalation of inflation, which can result in a loss of purchasing power for employees”.

“In the scenario of consolidation of inflation rates at high levels, the question of wage increases and their ability to respond to this context will certainly be a challenge for companies in Portugal to face in the short term,” he adds. .

Add Comment