Hays Poland Report: 35% of companies plan pay rises in second half of 2024

According to a recent report by Hays Poland, 35% of companies plan to implement pay raises in the second half of 2024. However, these increases are expected to be selective, targeting specific employees and likely offering inflationary adjustments of around 3-5%.

The report, titled “Labour Market 2024: A Six-Month Overview of Trends,” indicates that the majority of employees—68%—do not anticipate any change in their salaries over the next six months. Meanwhile, 11% expect a salary increase of 10-20%, and another 11% anticipate a raise of less than 10%.

“Companies are being very cautious about salary increases,” the report states. “Cost discipline is making it difficult for professionals and managers to negotiate higher pay with their current or prospective employers.” The report highlights that any pay increases granted this year have typically been modest, often just a few percentage points, or have primarily impacted lower-wage earners as a result of minimum wage adjustments.

Specifically, 29% of companies plan to raise wages by less than 10% in the latter half of the year, while 64% of employers do not plan any increases at all during this period. The report also notes that job offers are fewer now compared to the peak of the recent recruitment boom, leading to increased uncertainty among professionals about their future prospects.

Agnieszka Kolenda, Executive Director at Hays Poland, emphasized that companies are carefully considering whether they can afford pay raises, often tying them to improvements in productivity. “Professionals and managers are aware of the financial constraints facing companies, which impacts the pressure they can exert for salary increases,” Kolenda said. She noted that the challenging economic environment, including unmet financial targets and potential cost-saving measures, makes it difficult for employees to negotiate higher pay.

Kolenda also pointed out that candidates seeking new job opportunities are hesitant to lower their salary expectations. “Candidates are holding firm on their financial demands, even those currently unemployed,” she said. “Convincing an experienced candidate with a job to switch employers often requires offering a salary at least 20-30% higher than what they are currently earning, a challenge many employers find difficult to meet.”

The report is based on a survey conducted between June and July 2024, involving nearly 1,300 companies and 1,000 professionals.

Source: Hays Poland and ISBnews