Saturday, September 23, 2023

What are companies doing to prevent inflation from affecting their employees’ salaries?


Companies are thinking “Outside the Box” – as consultants like to say – looking for ideas to ensure that their employees’ salaries do not become out of balance with inflation and those of rival companies.

This is particularly noticeable with employees outside of the agreement, such as: B. Supervisors, supervisors, managers and directors.

The traditional strategy is Change budgets, increase them for the year: in just one month they rose from 120 to 132%, This is according to the latest survey conducted by WTW, a human resources consulting firm, between August 23 and September 1 among 454 companies from various industries.

In addition, 50% of companies have already expected to make another change before the end of 2023 due to the changed estimates of annual inflation and the devaluation of August 14th.

The companies add that this is not enough to cover the loss of purchasing power Alternatives on salary increases:

Higher frequency of increases

85% of companies said they give out raises four or more times per year: 41% give out four raises; 21% give five; 11% already give six; 4% give seven; 2%, 8 and 6% of companies, respectively, spread the adjustments more than eight times throughout the year.

There is even a group of companies that want to donate something monthly increases. And 15% guarantee Salary adjustments according to inflation.

Provide “catch-up” in 2024 for the 2023 loss

13% of companies have already decided and another 36% are analyzing this in 2024 an additional salary adjustment as “catch up” of what was lost in 2023 against inflation. According to the median response, this increase would be 20% and would be granted mainly in the month of January.

Advance bonuses, increases or already promised bonuses

23% of companies surveyed by WTW said they want to minimize the impact of inflation and devaluation Bringing forward the dates of planned salary adjustments for the next months.

8% said they would advance the bonus End of the year and a similar percentage will do the same with that Performance bonus.

11% of companies decided in this direction Let them know in advance future adjustments of their employees, a way to calm “anxiety” about the loss of purchasing power.

Provide new benefits or adjust their value

15% of companies are considering providing new benefits and 11% are considering updating financial benefit amounts more frequently than before.

Salary advances and bi-weekly payment

The general idea that dominates companies is “anticipate” payments, bearing in mind that inflation is in full swing and the sooner you have the money in hand, the more you can buy. 6% of companies say they give their employees salary advances outside of the agreement and 3% pay every 15 days instead of every 30 days.

Remuneration and allowances

There are companies that give “compensation” instead of salary increases, for example 6% grant additional amounts to the salary through payment platforms (Mercado Pago, PedidosYa); another 6% give away “gift cards”; 5%, supermarket vouchers and 2% petrol vouchers.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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