In 2022, wages will rise more slowly than inflation
With inflation reaching 6.1% in France at the end of July, and even more so with recruitment difficulties, will companies let go of the wage ballast? According to the WTW Group (Willis Towers Watson, formerly Gras Savoye), which conducted its traditional global survey on compensation, pay increases granted by French companies in 2022 are likely to be significantly lower than the price increase, averaging 3.1%, but the in comparison to the tendency of the last few years remains in a clear progress. From 2010 to 2019, the average increases were no more than 2.5% per year, in 2020, the year of Covid-19, the figure even dropped to 2%.
According to the survey, companies could agree on average increases of 3.3% in 2023. “That number could even be revised upwards given inflation expectations earlier in the school year, reaching 3.5%, which would be unprecedented since 1985.”emphasizes Khalil Ait-Moouloud, Head of Compensation Survey at WTW.
The average of 3.1% for this year obviously covers differences by occupation, trade and employment level. As a result, salaries for digital, data and cybersecurity professionals are increasing at a much faster rate. The financial sector, new technologies (particularly semiconductor activities) and fintech are also placed “upper area” in terms of salary generosity.
When companies make an effort, it is not only to maintain the purchasing power of their employees, but also to recruit successfully
Conversely, retail banking, the food industry, tourism and the lodging and catering industry were more stingy. When it comes to job types, managers and executives fare best with salary increases of 3.1% to 3.2%, manual workers and supervisors are content with 2.9% to 3%. It should be noted that French workers are doing less well than their European neighbors, where expected wage increases are higher: for 2023 they are 4% in the UK, 3.8% in Germany and 3.6% in Spain. It is true that inflation is much higher there. In July, year-on-year price increases reached 9.4% in the UK, 8.5% in Germany and 10.6% in Spain.
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