In 2018 there will be more companies that will pay bonuses to their executives for the performance of their businesses during the previous year. This is estimated by a survey of the Willis Towers Watson consultancy carried out among more than 400 local firms from different industries and covering some 104,000 employees.
According to projections, 88% of companies will pay bonds in 2018, tied to the results of their business during this year. The percentage of companies that paid this year was a little lower: 86% of the total. When the company reaches the expected results, the bonds are paid at 100% or “entarget”. If the results are better, they are paid over 100% but in the opposite case, the bonus is reduced. But the expectation of most companies is positive.
For next year, 36% of firms already plan to pay bonds between 91% and 100% of the total. While 30% will do it below and 25% above 100%. This year, meanwhile, 27% of companies paid between 91% and 100%.
“The payment of the bonds is having a very similar behavior between 2015, 2016 and 2017. It is quite linked to the economic scenario and also to good budgets, which are increasingly realistic,” said Marcela Angeli, director of Talents and Compensations of Willis Towers Watson.
Among the companies surveyed by the survey, 55% said that at the moment the results of the business are “in plan”, although the agro and consumer companies, especially, expect to improve their results to December, with which 67% would be reaching the expected results. Meanwhile, 12% is above what was planned and 33% below.
However, 89% of companies are already working on the 2018 budget, for which they consider a base inflation of between 16% and 20% and an exchange rate of $ 18.4 to $ 20 per dollar. And salary increases for its executives outside the agreement staff of 20% on average. “As inflation starts to slow down, we will have a somewhat different salary increase scenario, this year it is closing with increases of between 26% and 27% and for the next one we are talking about 20%. in wage increases, but accompanied by an economic reality that is accommodating, “said Angeli.
“But as long as we continue talking about increases of over 15%, almost 70% of the companies will continue giving two increases in the year, where clearly the first increase, in the month of April, will reflect inflation of the last months, and the second, what remains of the budget as long as they continue to accompany inflation, “added the specialist. Most companies (52%) will grant mixed increments, in general and also by merit.
Another change is that the differences in increases between the staff inside and outside the agreement are shortened. “Seven years ago, the personnel that did not participate in the negotiations of the unions could receive between 6 and 9 points less than raise, but then the companies began to accompany in the same way and the differences are small,” said Angeli. In 2010, the gap for example was 9 points (20% for employees outside the agreement and 29% for those who were in agreement). This year, however, will close with a difference of 3% in favor of executive staff that does not participate in the joint (27% versus 24%).