19 December 2017

Employers aren't planning to raise salaries in 2018

According to a survey by the recruitment company Antal, employers aren't planning any significant salary increases. The greatest part of the participants of our survey are budgeting increase of no more than 4 to 6%. As for 33% of companies, they either haven't decided upon the indexation percentage or aren't planning to increase salaries at all.

Compared to last year, employers now have more modest plans. While in 2016 companies often budgeted a salary increase of 7 to 9%, this year most of them stopped at 4 to 6% as early as on the stage of budget planning.

"Candidates have come to put a little more faith in the Russian economy than they used to do three years ago, and employers are more confident now about hiring, but companies are still very cautious when it comes to growth. By degrees, companies have changed their ways and now operate in the so-called new economic reality. Over the last year, we have seen a certain stabilisation of the labour market, but there is no basis for active growth.

The forecast for next year concerning the level of salaries is less optimistic than it was last year. This may result in a disappointment for employees who are expecting a salary growth, so employers will have to put more effort into retaining staff by means of non-material motivation", comments Michael Germershausen, Managing Director of the recruitment company Antal.

Nevertheless, the following year is going to bring new vacancies on the job market. Early next year, employers are planning to hire new staff into Sales and Marketing, as well as into IT and Finance. Staff reductions are planned for 2018 as well. Over 20% of employers mentioned their plans to optimize staff in Administration, Finance and Accounting, and in Logistics and Procurement.

Methodology

The survey on plans to hire or reduce staff was conducted in September 2017 by means of an online questionnaire. It covered 223 Russian and international companies from 16 industry sectors. The survey on plans concerning salaries was conducted in November 2017 by means of an online questionnaire. It covered 185 Russian and international companies from 16 industry sectors.

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