BL Premium reports that SA employers are planning to increase their staff budgets to enable pay increases of 6.1% on average in 2023 as they battle to attract and retain staff in the present inflationary cycle.
That is according to international risk adviser and HR consultant Willis Towers Watson (WTW), which surveyed 423 local businesses as part of its annual global pay survey. WTW’s latest Salary Budget Planning Report found that the pay increases planned for 2023 compared with an average 5.9% pay rise in 2022. Melanie Trollip of WTW SA commented: “The pressure of inflation and a competitive labour market are forcing many to increase their pay budgets so that they can both retain and attract the best staff. Employers are facing tough choices as they try to control costs during a testing business climate, but also strive to keep their pay levels attractive. Those organisations that succeed will have a clear reward strategy and an understanding of what employees are looking for.” WTW’s report shows employers are increasing pay budgets for three main reasons: concerns about inflation (78%), a challenging labour market (37%), and staff retention (30%). Despite considerable economic challenges, many SA firms are hiring on signs of an improving business outlook. Meantime, according to Investec economist Annabel Bishop, inflation is likely to average about 5.2% in 2023, down from an estimated 6.9% for 2022.
- Read the full original of the report in the above regard by Garth Theunissen at BusinessLive (subscriber access only)
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