Salary increases are expected in most business sectors in the country. The aim of employers is thus to retain current talents in their organisations.
The results of ManpowerGroup Bulgaria’s regular survey “Salaries and additional benefits – trend research” (SATR H1/2022) have been released, which analyses what changes employers from all sectors and regions of the country are planning in terms of monthly salaries and bonuses over the next six months. This year the survey is also part of ManpowerGroup SEE’s larger market analysis – the same research will be published for Serbia, Croatia, Slovenia and Bosnia and Herzegovina by the end of January 2022.
What are the expected changes in the levels of remuneration?
More than 80% of the surveyed representatives from 196 companies from 19 business sectors say they plan to have a pay increase in the first half of 2022. 5% plan the increase to be between 16-20%, and two percent predict a salary increase of more than 20%. Nearly 60% of employers note that the planned changes will affect all employees in organizations.
One of the main reasons for pay increases is employers’ desire to keep current talent in organizations, as one of the main reasons for leaving is being offered higher pay elsewhere. This became clear in the analysis of our previous market study, which came out in December, on staff turnover for 2021. The need to fill vacant positions with new hires is also among the main reasons for the increase in remuneration.
In the Manufacturing sector, over 90% of employers plan to increase their employees’ salaries, 91% in the Automotive sector and 81% in the Trade sector. These are also the three sectors that are experiencing a ‘hunger’ for staff and which have experienced the highest voluntary turnover in 2021. Almost all employers in the Banking, Finance and Insurance, Shared Services and Consultancy sectors indicated that there would be a pay increase. “Consultancy” is also the sector with the highest percentage of respondents indicating a salary increase of over 21%. In the IT sector, no pay cuts are expected, but nearly 17% say no changes are planned. 75% of employers in the Healthcare sector are planning pay increases for their employees.
Will there be changes in the additional benefits?
In terms of additional benefits, the trends differ among employers – nearly 40% say there will be an increase in additional benefits, while 58% say they don’t plan significant changes in this area. The Consultancy and Banking, Finance and Insurance sectors saw the largest increase in additional benefits – over 50%.
The survey “Salaries and additional benefits – trend research” is part of a series of regular surveys by ManpowerGroup Bulgaria and ManpowerGroup SEE on employers’ plans on the matter. These are conducted at the end of each half-year to identify their attitudes for the next half-year.
Watch video with discussion on the analysis and key points from it.