Only one in five employers foresee a wage increase in 2021. Three in five expect wages to remain flat, while 17 percent expect even lower wages for newcomers. This is reported by specialized recruitment agency Robert Half when publishing its annual Salary Guide.
Immediately, 2021 promises to be a less good year for many salaried employees than 2020, because this year three out of ten employers gave existing and new employees a higher wage. One in five saw lower wages for newcomers, at 48 percent everything remained stable.
Covid-19 and massive teleworking have resulted in new fringe benefits and compensation for many companies. Seven in ten (71 percent) have already introduced new benefits to their employees since the start of the pandemic, the main ones being mental support (38%), compensation for office equipment at home (36%), extra days of paid time off for family reasons ( 33%), childcare (32%) and wellness programs (27%).
“Pay certainly remains an important consideration for employees. But additional benefits to better control the work-life balance, such as working from home and flexible working, are also becoming absolutely indispensable in the post-corona era. ” says Jeroen Diels of Robert Half. “In the current economic situation, which is likely to continue for some time, even the prospect of a wage freeze in the coming months can be accepted if managers can ensure that non-financial benefits are sufficiently supportive and tailored to employees.”
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