6 December 2018

Employers are planning minimal salary increases in 2019

According to a survey by the recruitment company Antal Russia, over a half of employers are planning to increase salaries in their company in 2019 but the increment will be as low as 1-6%.

A quarter of the employers surveyed intend to raise salaries as a reward for some of their employees only, while 61% will revise salaries across the whole company. However, the planned increment will be much less generous compared to last year: 9% of companies are going to raise salaries by as low as 1-3%, while the majority of employers (53%) are budgeting for a salary increase of 4-6%.

Only 9% of the HR managers surveyed confirm that their companies aren't planning to increase salaries in 2019. Last year, an almost double share of companies planned to leave their employees without a pay rise: as of early 2018, at least 16% of employers weren't budgeting for salary increases.

Most companies aren't going to delay the planned revision of salaries: 48% of employers mean to increase salaries as early as in the first quarter of 2019, and 32% will do this in the second quarter.

Employers are planning little or no staff cuts

Only 3% of employers are planning to reduce their staff in 2019. Looking back, in 2015 nearly every second company intended to optimize their staff – 45% of employers mentioned downsizing.

Hiring will be done slightly less actively next year compared to early 2018. An increasing number of companies are freezing their hiring processes or planning to seek replacements for vacated positions only.

Still, 36% of employers intend to expand their staff. They will mainly search for sales personnel and marketing and IT professionals.

*The survey was conducted in November 2018 by means of an online questionnaire. It covered 261 Russian and international companies from 16 industry sectors.