No Match Found
As Employers scramble to retain talent and to recruit the best, what will they propose as a salary increase in 2022? Year-on-year inflation worked out to 9.0% in February 2022, compared to 1.2% in February 2021 [source]. With inflation being at an all-time high, is the expectation for salary increases to match this?
PwC conducted a quick survey with key clients to get an idea of what Employers in Mauritius are planning to do during 2022.
It appears that the Financial Service industry is proposing the highest average salary increase of close to 7%, whereas Hospitality is looking at something a bit lower, around 4%.
Less than 20% of Employers that participated in the survey will be proposing a salary increase that is more than 9%.
However, 84% of participants agreed that employees will most likely perceive real inflation to be higher than the official statistics that are published as the general feeling is that official statistics only consider basic goods.
Most Employers seem to be sticking with a traditional budget increase. However, in many organisations employees are leaving in droves because they're being offered significant pay rises. However, once they recruit someone by paying them say 20% more than the previous going rate, that increased spend is locked in.
Recruiting new people at bumped-up salaries while offering smaller increases to existing staff (including high performers) is a recipe for workforce tensions and disillusionment, with employees possibly feeling either undervalued or overly superior depending which side they’re on.
In a world where talent is jumping for a lot more money, the traditional annual salary review is past its use-by date. Employers have to consider new remuneration models to attract and retain talent.
Participants in the survey stretched across 7 industries...
...covering a total employee headcount of 14,000+ employees.
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