With the pandemic being a headache to everyone, we must look on the brighter side. What’s even better is that as per the most recent survey, many companies are considering the salaries of their workers to increase next year.
What would the drawbacks be? Are there other things we need to consider? That’s also part of what we’ll be discussing in this post, so stay tuned!
Salaries of Workers to Increase About 5% in 2021
To give you an idea, the Total Remuneration Survey accomplished by Mercer Philippines has shown that businesses and conglomerates in the country are looking at increasing about 5.6% of workers’ salaries.
5% might not be a lot. However, it’s better than the 5.3% increase of the transition of 2019 to 2020.
Moreover, given the fact that we’re living under the harsh environment of the pandemic, it’s something that’s quite “unexpected” in the eyes of employees.
Delays on the Changes and Improvements of Salaries
Floriza Molon, Career Business Leader of Mercer Philippines, said that more than half of the total 416 companies have admitted to have some type of changes or delays on the increment levels of salaries.
What does this mean? – It means nothing but companies and businesses being cautious.
Due to the uncertainty, more than half of the companies have indicated that they will delay the increase of salaries or revise salary increment levels. With sustained pressure on businesses to keep costs down, we see that companies are taking a cautious approach with regards to salary budgets.”
While the salaries of workers to increase is the main thing next year, that’s not just the only thing you need to consider – especially if you’re unemployed.
In case you didn’t know, 69% of all the companies that have taken the survey said that they’ll have a hiring freeze this year. Therefore, this’ll continue on until the year 2021.
It basically means that people might find it difficult to look for a job in 2021. They can experience the same level of challenge and difficulty like how they did this year.
Some of the specific mentions on the study included the Life Sciences and the Consumer industries. As per the findings, the salary increments would increase on a “slight note.”
The Chemical Industry, on the other hand, is expecting to see the biggest increments to be at 5.5% in 2021.
Factors Considered in the Increase of Workers’ Salaries
What do you think are the considerations thought about affecting the climb or the decline of the salaries?
According to Molon, considerations include the following:
- Flight risk
- Job availability in the market
- Criticality of the roles of workers and/or businesses
- Performance and future potential of the employee
While the salary increase budget remains stable in spite of the pandemic, what we are seeing is that companies are increasingly prudent with their compensation policies as well as the allocation of the salary budget. Some of the considerations include how business-critical the roles are, the potential and performance of the employees, flight risk, and availability of jobs in the market.”
We also have to consider the fact that a higher percentage of companies were able to retain their salaries. But, there were some that had changes – they transitioned to lower salaries to cope with losses.
Work From Home (WFH) Arrangement
Ever since the pandemic spurred businesses and companies to be flexible, a lot followed.
As a matter of fact, in their survey, about 67% were able to setup and properly establish arrangements so that their employees will be able to work from home.
Moreover, the survey also made a mention that about 58% of these companies are more likely to continue WFH arrangements even after the pandemic comes to a close.
While all of those are being said; about 14% of companies said that they experienced a huge drawback on the levels of productivity of their teams and departments.
According to Molon, those figures are true. However, it’s not stopping companies and businesses in adapting to the “new normal.”
Government and non-governmental entities are looking hard to put permanent solutions to the problems and the dilemmas both employers and employees are experiencing.
The salaries of workers and employees will see an increase in 2021. What are your thoughts on this? Do you deem this to be a valid reason and a just act? Can this help our countrymen in bringing their statures up in post-pandemic situation?