Nearly 50% of workers expect a real wage cut this year, with no chance of an increase above inflation.
NorthgateArinso's 2012 Pay Optimism Scale highlights the need for additional benefits to offset the wage freeze.
45.1% of workers* are convinced that their wages will be reduced before the end of the year, and that they have no chance of benefiting from an increase in their pay above inflation. That's according to a study released today by HR experts at NorthgateArinso.
According to the 2012 Pay Optimism Scale, salary increase forecasts are the least optimistic in the Eurozone (54.5%). In the United Kingdom, which is not part of this currency area, workers are even less optimistic, with a proportion of 70%. If these predictions come true, the majority of European workers could see their wages planed down in real terms in 2012. Given that nearly a third (28.5%) of those surveyed say that the recession has made them more likely to remain loyal to their current employer than if circumstances had been different, employee retention must be considered a top priority by companies that want to retain their talent.
At the global level, however, there are signs of confidence. Workers in Asia-Pacific are the most optimistic, with more than a third of those surveyed (36.5%) believing that they will benefit from an increase above inflation before the end of the year. The figure is 21% in Europe and just 8.1% in the UK.
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"For the year 2012, wage optimism reigns in Asia-Pacific, while the least favourable expectations are concentrated in the United Kingdom, and in the Eurozone in general. While many companies around the world are struggling to deliver salary increases, executives at these companies should consider alternative ways to compensate and reward their top talent," said Michael Custers, vice president of global alliances and strategic marketing at NorthgateArinso. "In addition to salary, relatively inexpensive initiatives such as flexible working hours are highly valued by employees. These measures can be easily implemented by companies to demonstrate their commitment to their human capital. »
Beyond salary, opportunities
Although remuneration is the main source of motivation for all respondent profiles, many respondents are also interested in other benefits and advantages. However, more than two-thirds of respondents (69%) say that, in the current economic downturn, their employer has not yet adapted by increasing non-salary benefits. Even more disappointing is the fact that 15.7% say that their employer has promised more flexible benefits and working conditions, but has so far failed to deliver on this promise.
The most frequently mentioned non-wage benefits are flexible working, followed by 'wellness' benefits such as yoga or massage sessions, and the presence of a personal coach in the workplace.
The democracy of the wage
There is a sense of equality in the general population surveyed regarding the impact of the recession on wages. More than two-thirds of those surveyed (67%) believe that employees at all levels have seen their salaries affected by the crisis. When asked in which strata this impact was greatest, they answer 'junior'.
CEOs, CFOs, CSOs and other 'Cs' are the most optimistic about the prospects for salary increases worldwide. The most pessimistic are the consultants close to the entry level on the staff scale, with barely 14.8% of favourable expectations for a salary increase.
*Survey of 1,300 respondents conducted in May 2012 in the following countries: United States, Canada, United Kingdom, France, Germany, Italy, Spain, Portugal, Denmark, Belgium, Finland, Norway, Sweden, Switzerland, the Netherlands, China, India, Malaysia, Singapore, Australia and New Zealand.
NorthgateArinso is a market leader in HR software and services. It offers innovative solutions to companies of all sizes, including Global Fortune 500 companies and government agencies.
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NorthgateArinso's ambition is to become the world's largest provider of global HR solutions and the preferred partner of HR decision-makers. NorthgateArinso supports HR managers in optimizing their services with dual expertise in HR processes and state-of-the-art HRIS technologies, covering key areas such as personnel administration, payroll management, benefits, recruitment, training and talent management.
NorthgateArinso's 8,000 employees are dedicated to HR excellence through HR Consulting, HR Systems Integration, Outsourcing and Software Solutions. As a leader in the HR services market, NorthgateArinso is present in 35 countries on 5 continents and has customers in more than 100 countries.
For more information : http://www.northgatearinso.fr/