Employers are preparing inflationary rises

Employers are preparing inflationary rises, some already in the second round. Nearly 40% of companies in Europe, including Poland, have announced an increase in spending on salaries and employee benefits in order to decrease the negative impact of inflation on the cost of living of employees, writes “Rzepa”. What’s more, companies do not plan to increase employment and plan to focus on keeping their current teams. Such a declaration was made by 69% of companies.

What I have personally observed in the Polish labor market for a long time, is offering the new employees a salary higher than those received by the previously employed staff. The applied “recruitment incentive” negatively affects the level of retention in the company and at the end of the day leads to new vacancies.

What should an employer does while not being able to afford employee pay raises? Are there any good ways to do this? I recently heard that employers, who find it highly problematic to increase wages, are trying to support their employees by:
🔆 providing transport to work to reduce private fuel costs,
🔆 enabling remote or hybrid work,
🔆 organizing workshops on “how to effectively manage the household budget”,
🔆 inspiring to build a second income.

I am very interested in your feelings regarding the above-mentioned proposals. Is this the right direction?

Monika Ciesielska
President at IMSA Search Global Partners. An experienced consultant in the recruitment of the management staff, including board members, and a leader of the recruiting team in the IT/Tech area. Enthusiast of digital transformation of HR processes. Podcaster at "Skrzydlaty HR" and "Top Leaders Club".
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