Next year, salary increases of 6-7% could be recorded, but only in the case of certain industries that work well in this pandemic period, says Alina Popescu, talent information solution leader, SEE Europe within Mercer Marsh Benefits.
“My expectations are that in certain industries that are doing well in this pandemic period, we are talking about percentages slightly higher than 5% for the budget that will be approved, somewhere between 6% and 7%. Even so, owning one is still beyond the reach of the average person. Most likely, when the Government makes a decision to increase the minimum wage by double digits, most of the allocated budget will go to the salary bands, for workers, for technicians, for those who are very close to the minimum wage in the economy, for to maintain a hierarchy of salary bands in the organization “, said Alina Popescu during the video conference ZF HR Conference” How to prepare large employers for 2022 “.
In general, the companies’ next year’s salary increase budgets are conservative, and they are even smaller globally, she says, according to Mediafax.
“According to a study by Mercer, companies’ budgets for salary increases are quite conservative, we publish annually that already famous 5% growth rate. Globally, they are even more conservative, 4.5%, somehow being aligned between Western Europe, Central Europe and what is happening in Eastern Europe “, explained Alina Popescu.
Moreover, we are still talking about a 9 times higher difference of a manager’s salary compared to the incoming salary, the minimum salary in the organization. “This percentage is likely to be maintained in the future, I do not expect it to increase for managers or senior specialists next year, raising the minimum wage will create a rather difficult situation for employers.”
A challenge for employers both in Romania and in Europe is to find young graduates to work in factory jobs, she says.