In 2023, 95% of companies will increase their employees
Walters presents the 2023 edition of People compensation research. Amid current inflation and purchasing power concerns, and as the annual appraisal cycle begins, wages promise to have a major impact on the employer-employee relationship.
In addition to unprecedented wage demands, workers are showing a clear lack of confidence in the market, with 70% of them considering leaving their company unless it offers them at least a pay rise in line with inflation.
COMPANIES UNDER PRESSURE FROM DEMANDING AND CREDIBLE CANDIDATES
With year-on-year inflation in France in December at 5.9% (source: Insee), professionals intend to use this argument in annual talks. 68% of them plan to base their request for a salary increase on this figure. 69% even said they were willing to consider switching companies if there was a disagreement over the level of a pay raise.
This ratio worries companies even more, as 64% of professionals doubt that their employers are making efforts against inflation. Moreover, only 30% (a historically low number, -11 points compared to 2022) think it will be increased this year.
Therefore, professionals seem ready to open up new opportunities, especially as their confidence in the market continues to grow. 78% of them say they are confident about the opportunities they can be offered, although 67% of them prioritize salary over job security.
THE NECESSARY RESPONSE OF COMPANIES
Companies facing high expectations from their teams seem ready to react despite the 70% of professionals who think they won’t get anything done. 95% of employers say they will offer their teams a raise in 2023. Three-quarters of them (73%) indicate that this decision stems from the context of inflation.
This employee-friendly phenomenon is fueled by awareness of inflation, as well as a keen eye for team retention. 71% of companies report that they are concerned about their ability to meet the expectations of their employees. A sentiment confirmed by professionals themselves: 94% of them want a salary increase at least equal to inflation, but less than one in two (48%) expect an increase of more than 6% (among the 30% who are considering a raise). ). After that, the changes will be most significant in the sectors and areas of activity where the demand for labor is strongest.
SECTORS AND OCCUPATIONS ARE PREFERRED OVER OTHERS
Companies facing inflation seem more willing than their employees imagine. While some industries will struggle to keep up with inflation, others will offer wage increases of even more than 6% to compensate for labor shortages:
• Legal professions: several legal professions will allow their professionals to earn a salary difference of more than 10% in 2023 compared to 2022. This is due to the combination of two phenomena: high wages for teenagers and especially those who have retired. -more affordable packages with increased training programs and changing parts.
• Real estate occupations: wages will increase by an average of 8% in response to real pressure on positions. This is especially true for property management and property management professionals who are in a position of real power.
• Audit and accounting experience: there is a shortage of several thousand specialists in this market, which has prompted players to increase their salaries (+6% for the Big Four). This phenomenon has been going on for ten years and will be confirmed in 2023 with an increase of sometimes up to 8%.
“More than ever, wages are a harbinger of war. Professionals are aware of inflation rates as well as companies’ hiring challenges, which puts them in a strong position. At the same time, we note that employers are eager to react and know that 2023 is a crucial year: will they put in place the means to keep their teams meeting their expectations? asks Coralie Rachet, managing director of Walters People and Robert Walters France.
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Walters People surveyed more than 900 non-executive professionals in October and November 2022 to find out their attitudes towards the job market over the next 12 months.
About Walters People – www.walterspeople.fr
Walters People is a subsidiary of the Robert Walters group dedicated to temporary and permanent recruitment for support and finance functions for companies in France, Belgium, Chile, Spain and Ireland, the Netherlands and the UK. Temporary work professionals, as well as young graduates to expert executives, sales management and supply chain, ancillary, banking and insurance, real estate, accounting and finance, Life Sciences, legal and human resources professions. Walters People has twice been named a Great Place to Work®.