The “hot” point of any selection process is undoubtedly the salary negotiation. Above all, in a context where many companies talk about difficulties in finding work, which seems to reinforce the power of the candidate to ask for better conditions than those offered by the competition. But in Spain, this “arm wrestling” is limited by a unbeatable ceiling: collective agreements, who are the main salary guide businesses. Even when they dictate salary increases below of those who collect job offers.
The question takes on a particular nuance because companies in our country must begin to adapt to the new legislation imposed by Brussels, which requires improving the transparency of salaries, including the information included during publication. a job offer.
This has sparked fears among many employers and human resources managers, who worry that providing potential workers with this information could greatly complicate a job interview. And, in addition, “strain” relations with already hired staff, who may see their salaries remain lower than those offered to new recruits. And what they can get if they go to another company.
Even if in Spain, there has always been a “trick” to avoid these problems: refer to the sectoral agreement so as not to explain the salary range in which the offer can evolve. Collective agreements above all establish minimum limits (base salaries, overtime and bonuses); A company can improve these levels in its own agreement, as well as by entering into individual contracts. But this last point is mentioned during the closed-door interview.
This was a common formula until the situation began to change in recent years. Competition for labor has skyrocketed after the pandemic, which, added to the inflationary spiral of 2022 and 2023, has forced more and more companies to put all their cards on the table. And it has had an unexpected effect: the salaries offered to fill vacancies in Spain are increasing more than in any major eurozone economy. That’s not all: they also exceed the increases included in collective agreements.
Offers versus collective agreements
According to the latest data published by the Ministry of Labor, collective agreements registered until September provided for an average variation in salaries of 3.04%, compared to 3.87% for those signed this year. The previous month, the general average was 3.02% and 3.96% for new signings. Even if it is necessary to take into account that the agreements are multi-year, the new agreements of 2024 are in the minority and they only affect 13% of workers.
The average increases are in line with the 3% increase recommended for 2024 by the V Collective Agreement signed by employers and unions last year. But job offers clearly break with this trend.
With data as of August 24, the indicator of salary offers prepared by Indeed (the Indeed Wage Tracker), shows an increase of 4.6%, or 1.2 percentage points more than the agreements recorded until August ). Offers, however, are much more volatile than agreements and saw a sharp decline at the start of the year. which led them to fall short of the agreements signed so far.
But since May, they have recorded a strong rebound which can be linked to summer demand for labor, if it were not that they remained in July and August, months when seasonal hiring decreases. In addition, as we have already reported on elEconomista.es, it has followed a trend opposite to that of countries with a high tourist weight, such as France and Italy.
The coming months will determine the persistence of this phenomenon and whether the salaries included in the salary offers are once again lower than the increases reflected in the agreements, cAs happened in early 2022.
What are businesses looking at?
While the causes and extent of this rebound are analyzed, what worries job seekers is how this will translate into their future salaries. Can job offers be extrapolated to what most companies are willing to accept? Here, surely, many candidates will receive a jug of cold water.
And, according to data from Annual labor survey 2023prepared with data from 2022, the first factor that companies take into account when deciding the salary of a new worker. 81.6% consider it the most relevant factor. Concretely, for 32.95% it is “fairly” important and for 53.7% it is “a lot”. Next comes the salary of “similar workers in the same company”, cited by 81% of companies (although only 31.1% consider it very important).
This suggests that many employers prefer to move within the agreement even before ensuring consistency in workforce wages. A more rigid strategy, but also more comfortable even from a legal point of view: a worker would have more difficulty reporting salary discrimination for having earned less than a newcomer as long as the difference remains within the range permitted by the agreement.
However, we cannot say that work difficulties do not weigh on decisions. In 2022, this debate has even entered the political agenda with warnings coming from sectors ranging from hospitality to technology. 54.1% of employers decide salaries for new workers taking into account the “availability” of professionals for the position, compared to 43.9% in 2019. Of course, only 12.8% consider it one of the factors most taken into account.
The last condition is what they pay in other companies, which worries 47.6% of business leaders, although only 11% consider it something very relevant. That is to say, although almost half of the companies pay attention to what the competition pays, they are far behind those who use the agreement. Certainly, in 2019, they barely reached 33.9%..
While waiting to know the data from the 2024 Survey (with data from 2023), which will be published at the end of the year, there is nothing to indicate that the situation has substantially changed to the point that the agreements have ceased to be the main factor during closing. the salary of a new worker. Which means that, for many candidates, the so-called “power” that results from using competition salary offers It will remain a mirage.
