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Why French companies are converting to merit-based pay

2024-04-03T18:18:44.671Z

Highlights: 85% of company agreements signed between March 2022 and August 2022 mentioned a general revaluation. Over the same period, 49% referred to increases on a case-by-case basis. The lull in the waltz of labels rhymes with a return to the forefront of merit-based promotions. “ In the declarations of business leaders, we observe a decline in the use of mixed increases, in favor of individual increases exclusively, ” underlines Sophie Lazaro, human capital director at Deloitte.


DECRYPTION - More individual or conditioned on performance, these salary boosts continue to develop.


Towards a return to everyone for themselves in companies? Put under pressure by soaring inflation in 2022 and 2023, employers have increased collective salary increases to compensate for the loss of purchasing power of their employees. According to a study by Sia Partners, published at the end of December, 85% of company agreements signed between March 2022 and August 2022 mentioned a general revaluation. Over the same period, 49% referred to increases on a case-by-case basis. The lull in the waltz of labels therefore rhymes with a return to the forefront of merit-based promotions. The latest figures show an increase in individual increases, which now feature in 55% of company agreements.

In the declarations of business leaders, we observe a decline in the use of mixed increases, in favor of individual increases exclusively ,

underlines Sophie Lazaro, human capital director at Deloitte.

Also readRecruitment: why executives have nothing to worry about in the years to come

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Source: lefigaro

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