Despite the Corona crisis, there is also money for salary increases. This is shown by a recent survey of employers.
Despite Corona
Nadia DI PILLO
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Despite the Corona crisis, there is also money for salary increases. This is shown by a recent survey of employers.
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Because of the Corona crisis, many companies have to save. Nevertheless, there is also money for salary increases, according to a study by the management consultancy Willis Towers Watson indicates.
Compensation experts asked 23,000 companies from 130 countries what salary increases they had planned for the beginning of the year. 96 organizations in Luxembourg have participated. The result of the “Rapport sur la planification du budget salarial” for Luxembourg shows: Luxembourg companies significantly increased their 2022 wage increase budgets in the second half of last year.
According to the study, the current shortage of talent has clearly led to growing wage pressure. The companies therefore have the planned budgets for salary increases of an average of 2.9 percent in July 2021 for 2022 to 3.3 percent in December increased. “This is a strong increase because it is above the wage increases granted in 2021, which averaged 3.1 percent in Luxembourg,” according to the study.
Labor shortages are a concern
The main factor contributing to wage increases is the labor shortage and the increasing competition for talent. Three out of five Luxembourg companies (60%) say they are concerned about a tight labor market this year.