Salaries: Can you expect them to increase this year?

Salaries: Can you expect them to increase this year?

This year, employees should not be too stingy. A survey by Alixio, exclusively revealed by BFM Business on January 23, 2024, shows that companies plan to increase their workforce by an average of 3.6%, compared to 4.5% last year. Executives are not spared from this reduction. Rodolphe Delacroix, compensation expert at Alixio, explains this to BFM Business“After resurrecting this old practice, abandoned for 20 years to compensate for inflation, we are returning to merit-based pay”. This year, their executive salaries will increase slightly. Alixio expects an increase of 1.9% compared to 2.3% in the previous year. In fact, employees with special skills, especially in technology, could well see very positive developments in their pay.

At the same time, we should also see a sharp decline in the value sharing premium. Previously called the Macron bonus, only 12% of companies will pay it to be sure. 41% of bosses are still hesitant to pay it, and 47% have already decided not to give it to their employees. Similarly, the amount provided to employees will be 785 euros on average compared to 1,135 euros last year. And the bosses, for good reason, will find that the interest in providing such a bonus has lost its essence. For companies with more than fifty employees, it is either blocked for five years or taxed. Rodolphe Delacroix estimates from BFM business that “The value-sharing agreement undermined the whole point of this bonus, which was mainly used as an anti-inflation bonus”.


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Less tension in recruitment

Inflation should actually slow in 2024. Bercy estimates it will be 2.6% in 2024, compared to 4.9% in 2023. At the same time, we are seeing a slowdown in activity. Companies therefore plan to employ less this year. So there is less tension when we talk about recruitment. Only 23% of the companies surveyed by Alixio encounter difficulties in recruitment. Three months ago, more than half (56%) found themselves in this situation.

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