Workers who hoped to see a pay rise this year will likely have to start erasing them. For the next six months, almost 60% of companies have plans lower or freeze wages of all its workers. Before a panorama of great uncertaintyOnly 4% of companies consider that remuneration will be increased at some levels.
No one doubts the strong impact that the Covid-19 pandemic has, and will have, on the economy. And this will end up being transferred to companies and their salary conditions. According to a study carried out by KPMG, and although 19% of companies admit that they do not know what will happen from here to the end of the year, the majority, 24%, think that all remuneration will be reduced, from the members of the Council to the last employee.
There are also somewhat less pessimistic. 17% believe that wages will be frozen at all levels and 14% see that the reduction will most likely affect only some levels of workers. While, only 0.8% expect it to increase at all levels.
On the other hand, given possible liquidity needs and doubts about the recovery in demand, some companies opt for a wage freeze and discretionary adjustments in various remuneration elements. According to the fact that in the coming months will continue to freeze salary increases for the entire workforce 34% is displayed. Up to 18% think that there will be no downward adjustments to compensation for any level of the organization, considering that they have already made them. In contrast, 14% anticipate a reduction in overall total compensation for the entire workforce.
So far, three out of ten companies admit that due to the situation they have been forced, by "prudence", to freeze wages or cancel wage increases to preserve liquidity. In addition, 21% have adjusted remuneration of directors and senior managers by 2020.
It should be noted that, in general, companies say that rely more on their own abilities to overcome the situation that in public aid. For this reason, the majority, 42%, are more concerned with the recovery of economic activity than with its liquidity (11%).
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