According to a survey conducted by Undelucram.ro, approximately 53% of employees expect their salaries to increase this year, and 40% plan to look for another job if this does not happen amid rising inflation.

A third of the workers would need a 20-30% salary increase.

About 27% of workers say they need a 20-30% pay raise to keep up with costs, 20% say they need a 10-15% raise, and about 19% need a 15-20% raise. On the other hand, about 7% of respondents said they would like a salary increase of more than 50% to make ends meet. Meanwhile, 6.5 percent of employees said they would manage their expenses even if they didn’t get a raise this year.

If they do not receive a raise, 41% of employees will look for another job, 19% will try to renegotiate with their direct manager, 13% will look for additional cooperation or a second job, and 9% will be grateful if they were offered other benefits. About 19% do not plan that they will not receive a higher salary this year.

About 35% of employees say they get a raise every year, 28% only after a review, 19% of employees have a higher salary based on performance, and 12% say their company only raises pay for certain positions each year. Almost 2% of respondents said they have a higher salary every quarter, and 5% every two years.

8% say they will perform very well even if they don’t get a raise

If they don’t get a higher salary this year, 29% of workers say they’ll manage, but will make small adjustments – take fewer vacations and buy cheaper products. About 23% believe that they will manage, but only if they make very serious adjustments – they will refuse to buy new clothes, they will choose products of their own brands as often as possible, they will pay close attention to the costs of utility services (energy, water). ).

About 17% believe that they will have a very hard time, because tariffs and other large expenses already significantly reduce their monthly income. About 13% said that it would be difficult for them even if they did not have installments, because their salary is quite low and they have no prospects for growth. 10% say that it will be difficult for them because the contributions make up a large percentage of the family’s monthly income, but they are still helped by their parents. On the other hand, 8% say they will manage quite well and will not cut their spending.

62% of employers plan to increase salaries

About 62% of employers plan to raise salaries of employees this year, 21% – only in certain positions, and 17% will not increase.

About 36% of HR specialists say that salaries will increase by 5-10% in the companies they represent, about 22% say that the increase will be 5%, and in 17% of companies the increase will be 10-15%. % About 2.5% of HR experts noted an increase of 30-40% in the companies they work for.

In addition, 52% of employers say that the salary increase they want to make is part of an annual plan to keep their employees motivated, 28% want to do it because of the economic context, 17% as a result of labor market dynamics, and 2, 5% due to the company’s results above expectations. About 5% want to raise staff salaries for other reasons.

Those who will not raise wages decided so because they want to reward their employees in other ways – 39%. About 28% will not raise salaries because the company’s financial situation at the end of 2022 does not allow for a salary increase, 17% because of the entire macroeconomic context and another 17% because the companies they work for raise salaries only after negotiations with employees. – the employer.

HR specialists believe that salaries should be increased based on performance

When asked what employers should do in the current economic climate, half of HR professionals believe that pay increases should be based on performance. 17% believe that employers should create other methods to increase the engagement, well-being and productivity of employees, even if salaries are not increased (for example, offer different vouchers for different types of services, courses and trainings).

On the other hand, about 11.5% believe that companies should raise wages for all employees in direct proportion to inflation. Additionally, 11% believe that everyone should be given a raise in accordance with the company’s annual policy, and the same number believe that employers should fire underperforming employees and raise the pay of those who do.

“We observe in this survey appropriate expectations of employees to receive higher salaries this year, given the economic context and at the same time proportional intentions of companies. We also observe how closely HR monitors salary increases so that they are proportionate to the macroeconomic situation as well as employee performance. It is worth noting that employers are thinking of different methods to motivate their employees, even if they cannot afford a salary increase,” says Costin Tudor, founder and CEO of Undelucram.ro.

The survey was conducted in December 2022, and 3,834 employees and 446 employers (personnel personnel of companies) took part in it. Respondents come from IT, retail, finance and banking, BPO and services, telecommunications, consumer goods manufacturing, healthcare services, industrial manufacturing, HoReCa, hydrocarbon production/energy transport, scientific/technical services, construction/real estate, Mass media and culture.

(Photo source: Tund | Dreamstime.com)