Companies anticipate significant wage increases

Survey - Companies anticipate significant wage increases

Many employees can expect substantial pay rises in the coming year. The vast majority of HR managers surveyed by the Ifo Institute and the personnel service provider Randstad expect average wage increases of 4.7 percent in their own companies.

For the study, the economic researchers surveyed 686 HR managers from industry, trade and service companies. 82 percent of those surveyed expect wages to rise, 17 percent expect them to remain the same. The industrial companies surveyed plan to increase wages by an average of 4.0 percent. The retail companies are expecting a 4.9 percent increase, while the service providers surveyed are expecting wage increases of 5.2 percent.

Half of the companies surveyed stated that their headcount will remain the same in the coming six months. 19 percent intend to cut jobs, while 32 percent plan to take on more staff. Of the companies looking for staff, half stated that there were too few applicants.

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1. The anticipated wage increase of 4.7% in their companies was reported by the majority of HR managers in the survey conducted by the Ifo Institute and Randstad Holding NV.
2. The ifo Institute for Economic Research and Randstad Holding NV surveyed 686 HR managers from various sectors in Germany, including industry, trade, and services, to gauge expectations on wage developments.
3. HR managers in the retail sector anticipate a more substantial wage increase of 4.9%, while those in the service sector expect an average wage increase of 5.2%.
4. Tariffs and inflation are not major concerns for 61% of the companies surveyed, according to the Ifo Institute and Randstad Holding NV, as they focus on their wage negotiations.
5. In Munich, where the cost of living is high, companies are also planning wage increases, with some industries anticipating average wage increases of up to 5%.
6. In the wake of the survey results, many employees in Germany are keeping a close eye on their finances, as the prospect of higher wages can offer a much-needed boost to their personal money management.
7. The overall positivity surrounding wage increases can positively impact the German economy, as more money in the hands of workers can lead to increased consumer spending in various sectors, such as services and trade.

Source: www.stern.de