While France is experiencing high inflation and the purchasing power of the French has been at half mast for several months now, wage increases could take place in 2023. Indeed, all the ingredients are there for companies to start increasing employee compensation, as WTW reports.
Will 2023 be the year of salary increases? This is what WTW seems to think for whom everything suggests that salaries could increase by 3.3%, on average, in 2023. “ The indicators highlight that companies are continuing to return to a more normal salary review process this year compared to the 2020 freezes. Today, they are deciding how to focus their compensation spend to achieve the greatest impact and support the better their employees in the current period of economic uncertainty “, explains Khalil Ait-Moouloud, director of the compensation survey activity at WTW.
Read also: How to negotiate your salary when hiring or ask for a raise
Factors that could affect wage growth in 2023
The first factor that could explain why wages are expected to rise in 2023 is falling unemployment. Indeed, the latter continues. In one year, the number of category A job seekers fell by 15.1%. The number of long-term unemployed also fell by 14.9% over twelve months.
With a declining number of job seekers, the power is on the side of candidates who no longer hesitate to be demanding with companies. Thus, a salary increase can be a means of attracting talents who are hesitating between two job offers. It is also an excellent way to retain employees who are no longer afraid of competition and to take advantage of a job market that is not beneficial to organizations.
In July 2022, another survey by WTW shows that 96% of companies surveyed have raised wages. This increase amounts to 3.1% on average, compared to 2.3% in 2021, a year which closely followed the one which was most marked by the crisis.
Read also: The average salary in France in 2022 by sector
Salary increase: Rethinking the attractiveness of the company
The objective of these 2023 salary increases would be to rethink the attractiveness of companies. This requires an increase in remuneration, but also non-financial benefits: gift certificates, participation in transport, teleworking, flexible working hours, etc. WTW explains that they ” are currently facing difficulties in attracting and retaining, this is particularly the case for digital talents, executives and salespeople. »
For WTW, managers must be trained in order to be aware of the concept of salary increases. ” In such a particular context, companies and compensation professionals can take very concrete actions to improve the attractiveness and retention of talent while coping with both economic and labor market tensions. (…) In addition to reviewing the increase budget allocated in 2022, it is also important that they improve the knowledge and skills of managers on subjects related to remuneration and that they put in place a strategy for listening to preferences of employees in total compensation “says Khalil Ait-Moouloud.
Read also: The average salary of executives in France in 2022
Which jobs will see the biggest pay rises?
In general, the companies surveyed by WTW are more likely to increase the salaries of employees essential to the company and those who stand out for their productivity, to increase the retention of these talents. However, these increases are not the same depending on the sector. The world of finance forecasts increases of 3.7%, FinTechs of 3.6%, the media of 3.5%. As for the hotel industry, which is short of manpower, the salary increase should be around 2.7%.
Of course, the increase depends on seniority in the company, but also on the status of the employee who will see his remuneration increase in 2023. Thus, WTW explains that “ the average 2023 increase forecast for executives is 3.2% (vs 2.8% in 2022), 3.3% for managers and executives (vs 3.1%) and for employees and technicians (vs 3%) and 3% for workers (vs. 2.8%). »
Find the full survey on the WTW website.