Salaries grew in 2022 in all labor categories, but below inflation (above 8%) and at different speeds. Middle managers, with an increase of 6%, were the most benefited. It was a notably higher rise than that of managers (3.40%) and employees (3.71%). Thus, the loss of purchasing power was widespread, according to the 2007-2022 salary evolution report presented this Monday by the employment consultancy ICSA and EADA Business School.
“There is more demand for middle managers. Restructuring was carried out in 2010 and 2012 that cut this staff and in times of growth they are needed,” explains Ernesto Poveda, president of ICSA Grupo. On average their salaries go to 44,778 euros gross, with increases that serve to retain talent. Small companies do it above all, which raise their salaries by 6.94%. Managers earn 85,531 euros, also with more increases in small businesses, and employees 24,269, at maximums. In his case, the trend changes: wages in large companies rise more, 6.01%, due to the greater push of agreements and unions.
The historic advance in prices last year tarnishes any rise, despite breaking with the wage falls detected in 2021. And since it is an average, there are companies in which the rise has been non-existent and the cuts in wages have even continued. the pandemic, acknowledges Poveda, although this data is not broken down.
Since 2007, with a cumulative inflation of 32.9%, employees see wages rise almost 10 points less, 23.9%, compared to 24.5% among managers and 28.66% among intermediates. The lower purchasing power affects above all the most disadvantaged families and women. “In low wages, the money goes more to basic expenses such as food or energy, the ones that have risen the most, so they are the most affected,” says Jordi Assens, EADA professor. “The image in general is more negative than last year. Salaries are going up, but inflation is going up too, and it can’t keep up,” he says.
The question now is how to regain ground. The authors rule out linear increases linked to inflation and less in a single exercise. They argue the effect of the second round and loss of competitiveness. “You have to be prudent and think about business sustainability. Wages have to be linked to productivity. Do not continue with compensation models from the 20th century, mathematical ones,” says Poveda. The solution, it is pointed out, involves more flexible remuneration models, “that allow adapting to changes and uncertainty”. Based on the fulfillment of objectives, with variants such as payment in shares. “Salaries can move with productivity, profits or the value of the share. It is common among managers, but it makes sense to apply it to other levels,” says Assens. Another alternative is to become more flexible with more teleworking or reconciliation. “If wages cannot be improved, bet on these measures. Not all companies can rise with the CPI,” she says.
For the next few years the situation will be similar. “Productivity increases very slowly and inflation looks like it will continue, this means that companies cannot increase wages. It will hurt next year and perhaps later,” predicts Assens.
In the photo drawn by the study, based on the analysis of 80,000 salary data, the best salaries are in banking and insurance. There its managers earn an average of 92,980 euros, middle managers 53,129 and employees 28,489. Among the ordinary workers, the sorpasso that it gives over the industry stands out, with salaries of 28,489 euros. The lowest payments are repeated another year in commerce and tourism, at all levels. For example, your employees do not reach 17,000 euros.
By autonomies, the best salaries are still in Madrid in all management categories, with an average of 25,747 euros among employees, compared to 24,815 in Catalonia and 24,627 in Navarra. The lowest are in La Rioja (20,751 euros).
