Inflation has changed the role and objectives of variable compensation for employees

2023-09-27 05:00:10

Inflation and tensions on the job market are forcing many employers to re-examine the relevance of bonuses in the remuneration structure. Average increases reached 4.5% this year. They could be 3.5% or more in 2024, according to a first estimate from the recruitment and temp firm PageGroup before the opening of mandatory annual negotiations (NAO). This, without counting the collective bonuses distributed for value sharing (participation, profit-sharing, so-called Macron bonus).

“Is an additional level of remuneration, linked to the achievement of particularly individual objectives, always necessary, particularly for non-commercial or managerial positions? »asks Virgile Raingeard, founder of Figures.hr, a compensation management platform with 1,200 client companies in Europe. “More and more employers, particularly start-ups, are integrating part of this variable on objectives into fixed remuneration to meet the need for employee security”he notes.

Variable remuneration is less adapted to the current situation, according to Samuel Tual, co-president of Medef and president of Actual Leader Group, a player in temporary employment and recruitment in France: “Before 2021, it could be relevant to reward the best, with a view to building loyaltyhe analyzes. Now, with a tense job market and high inflation, it is especially urgent to attract candidates. Most branches have revised their conventional salary scale, and company negotiations have led to significant increases. As a result, variable remuneration was reassessed, in particular to readjust fixed salaries upwards. It is the level of the latter that is attractive. » At Actual, the share of bonuses has thus been halved in the remuneration package in favor of fixed income.

A “resignation of management”

In certain professions, the variable remains an advantage, “but it no longer compensates for a low fixed income, even for salespeople”, believes Hymane Ben Aoun Fleury. The president of the recruitment advisory commission of Syntec, the professional union in the sector, explains: “Inflation and the need for housing, particularly for young workers, leads them to first look for a good fixed salary. The 50-50 fixed-variable ratio common a few years ago for key account salespeople has increased to 70-30. And there are other instruments that are highly regarded by the most sought-after candidates: business creator share subscription warrants (BSPCE), the opening of capital to employees, profit-sharing, etc. which allow you to be “incentivized ” [motivés, stimulés] on the company’s results. »

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