SMIC: TOWARDS AN INCREASE OF AROUND 1.7% ON JANUARY 1, 2024, ACCORDING TO A GROUP OF EXPERTS

smic 2024

As we say goodbye to the financial ebbs and flows of the past year, many professionals are eagerly turning their gaze toward the horizon of 2024, anticipating changes in their earnings. With the global economy facing transformation from technological advancements, shifts in trade policies, and the ongoing adaptations post-pandemic, industries across the board are revising their salary structures to stay competitive and retain talent. In this comprehensive blog post, we delve into the projected salary increases for various sectors, shedding light on the anticipated financial trends and what they mean for the workforce. From the buzz in tech circles to the steady hum of manufacturing floors, join us as we unravel the expected changes in compensation and examine how these adjustments may affect professionals' pockets in 2024.

Salary: here are the increases planned for 2024, sector by sector

The human resources consulting firm LHH has just revealed initial forecasts for salary increases expected in 2024 in the main sectors of activity.

With inflation falling, companies should somewhat reduce their efforts to increase salaries in 2024. According to a survey conducted in October among around a hundred companies (nearly 1 million employees covered) by the firm of human resources consulting LHH and the results of which were presented this Thursday, November 30 during a webinar aimed mainly at recruiters, the budget allocated to revaluations should come to 3.5% (median rate) next year. This is significantly less than the record rate of 4.75% reached for this year's increases, but much more than the nearly 3% granted in 2022 and 1.5% in 2021.

In detail, it is the industrial products and capital goods sector which should, as of this year, release the highest budget to increase the remuneration of its employees, with a median rate of 4% (compared to 5% for 2023). It must be said that the industrial sector has been experiencing tensions in technical and technological professions for many years, Noted Delphine Anderson, director of social performance, remuneration and classification projects at LHH, during the webinar. A trend taken into account by companies in the sector in their salary increase forecasts.

A 3% budget for increases in banking and the agri-food industry

These recruitment difficulties observed in the industry have since spread to other areas of activity. And these also have an impact on the remuneration practiced in other sectors. As proof, not far behind products and capital goods, we find the insurance and mutuality sector, with a budget dedicated to increases which should amount to 3.50% in 2024. Then comes the bank and the agri-food industry, with a rate of 3% for each of these two sectors. In other areas (logistics, IT, etc.), employers are planning 2.75% increases for next year. A set of data that LHH intends to confirm by carrying out a new survey of companies during December 2023 and January 2024.

But with a real war for talent in the background?, as Delphine Anderson points out, fixed salary is not everything. ? Given the tensions observed in all sectors, companies have a triple challenge: attract, retain and motivate, insists the expert. In this context, the elements of variable remuneration and the granting of social benefits such as financial participation in meals, gift and vacation vouchers, or even the provision of a company crèche, are closely scrutinized by the candidates. Beyond financial issues, employers' commitments to CSR (corporate social responsibility) and the quest for a better balance between professional and personal life also weigh more and more in the balance for talent.