In a recent survey conducted by the consulting firm RSM, 47 percent of Czech companies have increased wages this year. However, the increases have generally been minimal. Only 27 percent of these companies implemented a general wage increase, while an additional 16 percent are planning to do so. On the other hand, about one-third of the companies have no intention of raising wages this year.
The survey included 350 businesses and found that the most common wage increase ranged from five to ten percent, occurring in nearly a third of the cases. The increase was between two to five percent in almost a quarter of the cases. The agricultural and food industries were the most generous with wage increases, followed by the retail and machinery sectors. Individual wage increases often exceeded ten percent in the IT and technology sectors, consulting, and finance.
Monika Marečková, managing partner at RSM, pointed out a shift in company strategies. “Although more than a quarter of companies have conducted a general wage increase, we see greater caution in many industries, with wage increases being negotiated individually,” she said. This approach is logical, according to Marečková, as companies want to retain their employees but are running out of available funds. “Therefore, those who haven’t received a raise this year are unlikely to get one unless they speak up,” she added.
Despite the cautious approach to wage increases, mass layoffs are not expected. According to the survey, 82 percent of companies do not plan to lay off employees, and layoffs have occurred in only about seven percent of the cases. Only three percent of the surveyed companies are planning layoffs shortly.
The labor market continues to be tight, forcing companies to negotiate individual wage increases to retain their workforce. This trend highlights businesses’ ongoing challenges in balancing financial constraints with maintaining a satisfied and productive workforce.
In conclusion, while there has been some movement in wage increases among Czech companies, the overall trend is one of caution and individualized negotiations. The focus remains on retaining talent without overextending financial resources.