Trend: Higher salary hikes at bottom (rather than top) end of companies - survey
P-E Corporate Services has released its latest Salary Trends Report and what it shows is that hard-working South Africans saw a lower average salary increase in the last year, compared to the previous 12 months.
The report says the average salary increase in the country over the last year was 6.2% - down on the previous year's 6.4%.
Refilwe Moloto talks to PEC's executive chair Martin Westcott to see what trends or forecasts can be extrapolated from the data.
What causes salary increases of over 6% in an economy where growth is on a downward spiral?
It is a bit of an anomaly in a sense. I think the best way to explain it is to say traditionally over many years, we have had a gap between salary increases and the rate of inflation. Increases have tended to lead inflation by a couple of percentage points.Martin Westcott, Executive chair - P-E Corporate Services
In the past, that was driven by executive increases.
That position has reversed itself over the last 5 to 10 years, and we find the increases at the bottom end of the organisation - particularly with unionised staff - people will receive increases much closer to 7% than the average 6 we are reporting.Martin Westcott, Executive chair - P-E Corporate Services
By comparison, executive and managerial staff are receiving closer to 5% increases.
The real reason is the lack and shortage of key skills in our economy.Martin Westcott, Executive chair - P-E Corporate Services
In particular, shortages in areas such as information technology, engineering, and artisans.
And that is what drives up your pay rates from year to year.Martin Westcott, Executive chair - P-E Corporate Services
Listen to the interview below:
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