Majority of Czech Companies Plan to Increase Salaries This Year

A whopping 84 percent of Czech companies plan to increase their employees’ salaries this year. More often than not, the increase will be up to five percent in over two-fifths of cases and up to ten percent in about the same number of cases. Interestingly, more companies will hire new employees this year than those planning to lay off.

This information is derived from a survey by the personnel company Randstad. According to the study, employees of only one percent of companies will see an increase of more than a fifth. “Companies are demonstrating their willingness to invest in employees, which is key to retaining and developing talents in their teams,” said Martin Jánský, the company’s general director.

The majority of respondents, 64 percent, consider the main challenge in the area of employees to be the retention of the best people and the development of talented leaders. According to them, the best solution is a salary increase, followed by training, and then offering benefits tailored to the employees.

Companies most often offer additional vacations as a lifestyle-oriented benefit. This applies to 77 percent of companies, although there were more last year. Other popular benefits include the option to work from home and flexible working hours, although there has been a slight year-on-year decline.

Regarding financial benefits, meal vouchers or contributions to catering lead the way. This applies to 92 percent of companies, down from 94 percent last year. Three-quarters offer selected employees the use of a mobile phone, and two-thirds contribute to life insurance. A quarter of companies in the Czech Republic plan to hire employees, one of the reasons being an increase in sales.