Seventy-six per cent of companies plan to raise wages this year, with the highest rate of adjustment in these sectors…

2022-04-28 0 By

Xinmin Evening News (reporter Lu Zhe) 76% of enterprises plan to raise salaries in 2022, and the overall salary adjustment rate is 6.6%.According to a survey released by CiIC consulting, 28 percent of enterprises have increased their salary budgets for 2022 from last year, 33 percent have the same salary budget as last year, and 15 percent have lower salary budgets than last year.But choose to freeze wages, pay cut enterprises accounted for only 7%.According to the situation of enterprises in Shanghai, 83% of enterprises will have a salary adjustment plan in 2022, among which the salary adjustment budget increased by 28% compared with last year, and nearly half of enterprises (48%) have the same salary adjustment budget as last year. Only 7% of enterprises have the salary adjustment budget lower than last year, which is better than the whole country.According to this research analysis, the overall market salary adjustment rate has shown a fluctuating downward trend in the past decade, decreasing from the peak of 9.1% to the range of 6%-7%. The actual/expected salary adjustment rate in 2022 is 6.6%, slightly down 0.1 percentage points compared with last year.The average wage adjustment rate of enterprises in Shanghai will be 6.2 percent in 2022, slightly higher than that of 2021.By industry, the salary adjustment rate of high-tech industry and pharmaceutical industry was 7.8% and 7.6% respectively, ranking the highest among all industries.The salary adjustment rate for 2022 will be lower than that for 2021 in most sectors, with a slight increase in high-tech and sales trade/consumer goods sectors.High-tech industries led the way in salary adjustment rates (7.8 percent) in 2022, followed by healthcare and Internet industries.The salary adjustment rate of real estate industry is the lowest (5.6%), and has been declining in the past three years. According to the surveyors, this is related to the strengthening of cost control by real estate enterprises under the influence of policy regulation.The survey results show that between 2020 and 2022, in the enterprises with salary adjustment plan, the proportion of enterprises adjusting salary according to the difference of performance results rose from 50% to 76%, while the enterprises choosing to carry out universal salary adjustment decreased from 45% to 29%.From the point of view of Shanghai enterprise salary adjustment method, the proportion of enterprises that adjust salary according to the difference of performance results and tilt the core backbone salary adjustment is close to the market as a whole, but the proportion of enterprises that adjust salary for all employees (40%) is higher than the market (29%). The surveyors analysis, this is related to the distribution of more foreign enterprises in Shanghai, more inclined to adjust salary for all employees.According to the survey, the salary adjustment rate of promoted personnel and core/excellent personnel in 2022 is 2.2 times and 2.1 times higher than the general salary adjustment rate of the whole staff, and enterprises tend to tilt the salary incentive resources toward core/excellent and key talents.Under the background of the normalization of the epidemic in 2022 and cost control and efficiency improvement, enterprises are paying more attention to core and excellent talents who can help business operation and transformation and development, and effectively attracting and retaining such talents with precise incentives will help improve their market competitiveness.