Wages increased by 3.9% over the period 2017 to 2018, compared to the previous year. The increase is the most significant in five years. The figures have come out of a study by Hudson, the HR consultancy, compiled from a sample of 755 companies.
Hudson observes, “This growth is due to higher index-linking than last year, but also to the percentage that the organisations surveyed have awarded their employees over and above wage indexation, specifically an average of 1.7%.” The HR consultancy goes further observing, “Variable collective pay and flexible pay have continued to increase in popularity.”
In the period 2016 to 2017, wage growth overall only reached an average of 2%.
The HR consultancy says the fact that the wage increase has been so high this year is due to both economic growth and the increase in the employment rate. Hudson’s analysis is, “The war of talents which permanently rules, combined with the current positive economic climate, strengthens competition on the employment market.”
Moreover, the consultancy goes on to note that variable pay within the salary package is increasing in significance. The so-called “CCT 90” collective bonus is becoming increasingly popular, to the detriment of traditional individual bonuses.
A further trend observed is the increasing adoption of a flexible pay plan by companies. Hudson states, “With the plan, employees have the option of making up a proportion of their salary package themselves. Our survey both shows that one in five organisations currently have a flexible pay plan, and one in three organisations intend to implement such a plan.”