Only 42% of salary increases carried out by companies in Spain are due to rising inflation, since companies also take into account other aspects such as talent retention, productivity, financial stability and their own sector conditions.
This is one of the conclusions of the “2024 Labor Market Guide” from the human resources company HAYS, whose experts believe that slowing inflation is “encouraging news” this could facilitate a “general increase in wages”, even if there is no “direct cause and effect relationship” due to other factors that influence salary increases regardless of changes in the CPI.
The moderation of inflation will favor wage increases in certain sectors to which it was “impossible” to apply them. In this sense, Retail and FMCG companies face greater challenges due to inflationary pressures and financial stress, which limited its ability to raise wages in previous years.
Conversely, other sectors have implemented salary increases regardless of the economic context, guided by other levers such as the need to attract and retain qualified talent. This is the case for companies that operate in the technological and industrial, then 70% of them increased their salary as part of its strategy of integrating technical profiles which improve its competitiveness.
Talent competition
“Due to intense competition for talent, the technology sector, particularly in technical positions within the industry, has led in salary increases this year. This reaffirms that Careers in engineering and technology offer the best salary opportunities in our country. »explains the director of Perm Recruitment at HAYS Spain, Óscar Cebollero.
This has led companies to prioritize training and skills development to remain competitive, a situation that highlights the expectations of Spanish professionals indicated in January, where 78% already anticipate an increase salary before the end of the year, according to the HAYS guide.
In this context, HAYS experts dare to raise salaries which, depending on the sector, will be between 2% and 5%. They therefore emphasize the importance of periodically reviewing collective agreements.
“The reality is that, even with a stable job, There are people who cannot meet their basic needs.s. It is therefore crucial that this review is carried out regularly and led by the unions, to balance the needs of companies with the expectations of workers in terms of competitiveness and pay equity,” concludes Cebollero.
