Inflation has significantly affected the workplace to the point that seven out of ten professionals this willing change jobs if your company does not align salary increases with the rate of inflation.
He Remuneration study of Walters People exposes what will be the main hiring and compensation trends in the year 2023. This report contains salary information, hiring advice, labor market analysis based on hiring by Robert Walters Group’s global search and selection teams, as well as predictions from its innovation department and think tank.
It contains interesting issues for both companies and professionals, listing ideas such as: new technologies, work habits, hiring and remuneration trends, reconciling work and family life, work motivation, work environment, professional career advice, leadership and innovation in the field of talent and HR.
Companies must accommodate demanding and confident professionals
In the current context of inflation and concern about purchasing power, the relationship between organizations and professionals promises to be highly influenced by salaries. When we talk about junior professional profiles, technicians, management and qualified support, we can say that these are the ones that have suffered the most from the direct consequences of the pandemic and the current increase in the price of food, fuel and energy.
beyond some unprecedented levels of demand in terms of their remuneration, professionals show clear confidence in the market, which pushes 71% of them to consider changing jobs if their current company does not match their salary taking inflation into account. This is reflected in the survey on the labor market carried out by Walters People for its 2023 Remuneration Study.
The annual inflation in Spain was 5.7% in December (source: INE), and professionals intend to use this argument in their negotiations, as confirmed by 53% of professionals according to the aforementioned Walters People survey.
The necessary reaction of companies
This proportion is worrisome for organizations, and it is that 34% of professionals believe that their company is not making the effort to offset inflation when evaluating any salary increase or bonus.
However, professionals seem willing to open up to new opportunities, especially as their confidence in the market continues to grow. 78% of them are optimistic and trust the job opportunities offered by the market, although 56% prioritize their job security compared to 44% who give more weight to the salary component.
Given the high expectations of their teams, companies seem willing to react. On the company side, the survey on the labor market carried out by Walters People for its 2023 Remuneration Study, shows that 76% of organizations confirm that they will offer salary increases to their teams in 2023. Among them, three quarters indicate that this decision is motivated by the context of inflation.
How Inflation Affects Wages
Given the rise in the minimum interprofessional wage and the CPI, companies seem to be more voluntary than their employees imagine. While some areas of activity may encounter difficulties in equalizing wages to market demands, others will offer significant salary increases to make up for the shortage of specialized talent, even beyond the 5.7% mark corresponding to inflation.
In the technology sector, where the supply of talent is quite limited, salaries will continue to experience a upline similar to that of previous years.
«Salary is more than ever at the center of negotiations. Professionals are aware of the inflation rate, but also of the recruitment difficulties experienced by companies, which puts them in an advantageous position. However, we continue to observe that organizations want to respond to the demands of their teams and are aware that 2023 is a key year: will they put the necessary means to retain talent by meeting their expectations?asks Alexandra Arranz, director at Walters Peoplerecruitment company and specialized temporary work.
“Unlike previous years, in 2023 the emotional salary has gained more prominence in salary reviews and published job descriptions. Teleworking policies and the flexibility that allow conciliation become key when presenting an offer to the ideal candidate for a vacancy”qualifies Arranz.
