How has the fixed salary of managerial profiles adapted to the pandemic era?
Page Executive, a brand owned by PageGroup, a leading consultant for the selection of qualified talents, has launched its 2021 compensation study, which reflects the current salary situation of the main positions that make up company management committees in Spain, both in terms of the turnover of companies, as well as the sector of activity and its trends.
One of the main conclusions of the study reveals that the fixed salary of the management population is stable. However, due to an environment as atypical as the current one due to the Covid-9 pandemic, corporate profits (variables / bonuses) are down 60% compared to the previous year. To compensate for this and gain in attractiveness to candidates, companies have resorted to new formulas adapted to the current way of working, linked in some cases to flexibility to achieve better conciliation. There are also currency protection clauses, such as welcome bonus shields, among others, which help improve overall compensation in what is known as “emotional pay”.
One of the sectors where this incentive focused on the well-being of the people has increased is that of Tax & Legal, which has maintained a constant activity, most of the business decisions having a significant weight in legal and fiscal terms. Regarding the salary policy, we see that while some companies have proceeded to salary freezes, others have opted for salary increases of 10% to pay more efficient and profitable professionals. This is how job offers include advantages such as rapprochement and professional life, health promotion policies among employees to facilitate the practice of sport and the monitoring of a balanced diet, as well as retirement, medical insurance, among others.
Total change in the FMCG sector
Consumers have transformed their habits over the past year and the FMCG industry has adapted to respond to the new reality through purchasing channels and has focused its efforts on the food channel, with the aim of balancing the drop in hospitality. On the other hand, there is an increase in e-commerce channels, which has implied the creation of new positions geared towards the digital world. In terms of remuneration, there is salary stability compared to the previous year.
In contrast, the health sector will continue to be of great importance this year. Diagnostic and health product businesses have grown through the commercialization of products related to the pandemic. However, especially in hospitals, organizations have struggled to find health profiles. In terms of salaries, professionals in this sector are also keeping their fixed salaries stable in 2021.
Talent shortage, growth opportunity
This atypical situation has helped certain sectors to promote the change which was already brewing years ago. This is the case of Retail, which is in a phase of technological redefinition and adaptation to a new era which has enabled it to minimize the impact of the crisis. Regarding salaries, the remuneration of executives has been characterized over the last decade by exceeding the average due to the talent shortage and this year is expected to grow by 7%, especially in specific positions such as E-Commerce or Digital Director .
Another area where growth has been favorable is IT and digital. Companies have strengthened their technological tools to meet the need for digitization that current business models demand to ensure productivity. Faced with this reality, digital and technological profiles have increased their salaries by 5%.
Variable incentives decrease
The finance and insurance sectors are two of the main economic engines. However, they will be marked by a 15-20% pay cut that will have a fundamental impact on variable pay, while positions related to innovation, digital transformation and cybersecurity environments continue with an upward trend of their wages and employment. new professionals.
The other sectors which have been affected by the crisis are those of industry. Although the overall performance was negative, companies and “core interest” suppliers have in some cases experienced a faster pace in their operations. In this sense, the salaries offered for managerial positions maintained favorable expectations and the salaries of new employees continued to be based on the value of the candidate, as well as the valuation of the position. However, the amount of variable compensation for the year 2021 has been affected in most cases, but in terms of salaries, no change is expected.
The media and entertainment sector has also suffered particularly from the effects of the crisis caused by the pandemic. However, there are some niches in the market that have seen positive results due to changes in consumption habits or lifestyle. This is why the use of telematics tools for communication at a distance and for leisure or entertainment at home has grown significantly. In terms of remuneration policy, the fixed salary is also maintained, but bonuses or variables are reduced by 75%.
Empathy, fundamental for the current leader
In an environment of uncertainty, empathy is essential for leaders to form work teams committed to giving the best of themselves in a primarily virtual connected work environment. In this scenario, companies are looking for leaders who can cross digital boundaries and drive digital innovation and strategy for the future of the business.
“Companies with a people-centered strategy, value and corporate culture will be seen as attractive in the job market and, in the long run, will gain a better position compared to their competitors, which will allow them to ‘be an important player in their region. For this reason, companies must pay special attention to fixed and variable salaries and the benefits they offer to candidates and employees in order to form a strong team that will guarantee optimal business results in the future ”, Miguel Portillo, Director senior executive of PageGroup.