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According to a survey by human capital solutions specialist, Mercer, the current salary freeze by French business is predicted to persist.
The survey was conducted between April and July 2012, amongst 140,000 workers employed by 372 companies; mostly French subsidiaries of multinational groups and across all sectors of the economy.
In a press release, Mercer highlighted that the extent of the salary freeze was twice as high as the level indicated in the previous survey conducted last year: as much as 8% of companies have frozen the salaries of executives (cadres dirigeants), 6% of blue collar workers (ouvriers), 5% of managers and professionals (cadres supérieurs).
Furthermore, in the same press release, Mercer indicated that salaries increased by a mere 2.6% (median) between September 2011 and March 2012; a fall from the value of 3% derived last year from employers plan to raise salary. In 2013, the survey indicates that employers do not expect salaries to raise any more than by 2.5%.
Finally, the outlook may be grim, but the survey data holds glimmers of hope. According to Bruno Rocquemont, in charge of salary surveys at Mercer, “the proportion of companies planning to shed staff is falling from 12% (to 7% (2012 survey for 2013). But those that are planning to hire are also decreasing from 30% (2011 survey for 2012) to 22% in (2012 survey for 2013).”
To read the full press release in French, click here