Salaries will grow, but decidedly slower. “Inflation is no longer an argument to raise wages”.
Entrepreneurs in 2024 are willing to raise wages for their employees, but these are rather symbolic increases – so say labor market experts, and this situation is confirmed in its financial report by Hays. Statistics show that over 80% of employers are planning on raises, but a majority only by a maximum of 10%. Only one in every hundred wants to raise salaries by more than 20%. – The cascading wage increases are behind us. This is a herald of two trends: there is less stability in the labor market, so employers are less worried about workers leaving them when the wage adjustments are not high. The other issue is the fact that in recent years, wages have often risen faster than the employers’ capabilities – states labor market expert Dorota Siedziniewska – Brzeźniak from Idea HR Group.
Inflation no longer an excuse for raises
Experts have no doubt that an annual wage adjustment will take place in the majority of companies. However, this year the increases are estimated at a maximum of 10%. It’s worth adding that during the peak of inflation, wage negotiations in some sectors even reached… 30%.
– The time for drastic wage increases is temporarily behind us. Companies are starting to feel the specter of recession. This can be seen even in sectors previously completely resistant to economic crises, such as ICT or industry. There are fewer orders, a slightly more workers willing to work, so there is no longer a need for such a fierce struggle for every worker and wage dumping – says Dorota Siedziniewska – Brzeźniak, labor market expert from IDEA HR Group.
Wages are strongly rising in the public sector e.g. teachers, officials will earn more, as well as those whose wage increase is significant due to the minimum wage.
– Apart from those whose wages will be regulated politically, I do not expect that in many companies wage increases will exceed 10%. This is a rational wage growth, taking into account for example the rate of inflation. Now, inflation cannot be an undisputed argument when we talk about the need for raises – states the labor market expert.
According to the observations of Idea HR Group, in 2024 the employees expectations are lower regarding wage adjustments. Many are aware of a tougher economic situation.
– The most frequent ones to ask for pay raises are those employees whose salary has equaled the minimum wage due to changes that took place at the beginning of the year. Appetites of specialists and management staff for raises are for now slightly smaller – explains the expert.
Specialists are still in demand. You’ll earn more in trade, less in IT
Which industries will raise wages, and which will hold their pay this year? Experts admit that it is not justified to generalize this year, as specialists from every sector are still in demand. However, there will definitely be less recruitment in IT, industry or the warehouse-logistics sector.
– These are industries that respond lively to the economic situation. There are still many job offers in these sectors and that’s unlikely to change, but the method of recruiting staff is different, as are the expectations towards them. There is less need for beginners to train, and more experts in specific fields. The industrial sector is still looking for blue-collar workers, while IT, for example, needs specialized experts – says Dorota Siedziniewska – Brzeźniak.
– Wages will definitely continue to rise in trade. Here the staff shortages are still very large, and the trend is such that when one network decides to raise wages, the rest are also forced to do so. There is still a lack of drivers, especially in public transportation – adds Dorota Siedziniewska – Brzeźniak, labor market expert.
The next minimum wage increase will take place in July 2024. Then another evaluation of the wage levels in many sectors of the economy should be expected.
