Nearly half of employers expect 5% pay rise, shows survey

Ljubljana – A total of 46% of Slovenian employers intend to raise wages by 5% in the first half of this year, shows Manpower’s survey on salary and employee benefits trends. Employers cite retaining talent in their organisations as the main reason for the increase.

According to Manpower, 25% of the employers expect to raise pay between 6% and 10%, 4% expect a rise of 11-15%, and 1% a rise of more than 21%.

A total of 24% of the employers, on the other hand, do not intend to increase pay.

Although the majority of the employers plan to increase wages, 74% do not see the need to increase other benefits and financial incentives.

In addition, 43% of the country’s employers expect to increase wages for all employees in the company in the first half of 2022, whereas 12% will do so for 50-80% of their employees. 21% of the employers will do this for between 20-50% of their staff, and 24% intend to increase wages for up to 20% of workers.

The main aim of employers seems to be to retain talent in their firms. “When asked whether the planned increase in salaries and/or additional benefits is more related to retaining or attracting new employees, 68% of Slovenian employers said it is a retention measure, while 14% said it is a measure to attract new employees,” Manpower said.

Planning to announce wage increases to retain staff are most companies in manufacturing, IT, consulting services, banking, insurance and finance, telecommunications, science, healthcare and pharmaceuticals, education, transport and logistics, and construction.

Tourism, car industry and outsourcing are the industries where most companies are expecting pay increases to attract new workers.

The survey notes that the results may have been influenced by employers’ behaviour to align the minimum wage with consumer price inflation – but only in industries where the average wage is lower or where a higher share of employees are paid the minimum wage.

The survey for the first six months in 2022 is part of a wider Manpower survey covering four countries in Southern and Eastern Europe, including Slovenia, Croatia, Serbia, Bulgaria and Bosnia-Herzegovina. In Slovenia, companies from all over the country and from different industries were included. Manpower conducts this survey at the end of each half-year period.