2 in 3 companies want to review seniority-based pay
Friday, 06 November 2020
Two out of three companies want to review pay increases based on seniority of the worker, according to an online survey of 576 employers.
The companies that want a reform according to the survey, which was conducted by HR services group Acerta, KU Leuven and HR Square, feel supported by the government agreement.
“In the survey, employers mainly say that they will look differently at the way wages are allocated after the coronavirus crisis,” explains Ellen Roelants of Acerta Consult. “This is an important finding. They see flexibility as an important instrument for compensation.”
Roelants advocated a closer look at people’s attitudes towards seniority. “Does a young and/or smaller company, a start-up for example, look at it differently from a large company? Perhaps so, and Belgium is a country of SMEs,” she said.
“The same goes for young workers, seniority means nothing to them,” she said, adding that older workers would consider cancelling seniority as having something taken away from them.
About half (49%) of the employers surveyed are in favour of a more results-oriented remuneration policy. In fact, one in five employers say they pay their employees on the basis of performance.
More than half of the companies also remain in favour of company cars after the coronavirus crisis. Only 14% of respondents question this advantage.