Average pay rises across Europe will be subdued in 2013, according to research by Hay Group.
Its Hay Group paynet, research, which contains data from more than 20,000 organisations, foumd that average pay rises in the region are estimated to be 3.3% in 2013, compared with 5.5% in 2012..
In Western Europe, many countries will only marginally increase pay in 2013. Of those that do plan to increase pay, nearly two-thirds will fall below the European average.
Greece and Ireland will be particularly hard hit, with zero percent wage growth, while increases in Germany (3%), the UK (3%) and France (2.5%) will be subdued.
In Europe’s emerging countries, pay will climb significantly next year, with fast-growing economies, such as the Ukraine (10%), Russia (9%) and Turkey (8%) bucking the trend with inflated pay increases.
The research also found:
- Average pay rises in Latin American are expected to be 9%.
- Venezuela will enjoy the highest pay increases (29%) globally.
- Argentinian organisations will also implement considerable wage hikes (24.5%), driven largely by rising inflation.
- Pay in North America will climb by just 2.9%, the lowest of any global region.
- In Asia, pay will rise by an average of 7.5% in 2013.
- Organisations in Africa and the Middle East are also planning significant pay rises next year, at an average of 5.2%.
Ben Frost, global product manager at Hay Group, said: “Employees in developed markets face a tough year ahead, with pay rises falling behind, or barely outstripping, inflation.
“In times of slow growth, organisations in these countries are keen to minimise cost and drive productivity. However, they must still ensure that staff are rewarded appropriately and that remuneration budgets are used wisely. Leaders must communicate effectively with staff and be creative with the benefits on offer.”