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This year, the monthly base salary in Lithuania has increased by 70% this year. According to the Baltic Labor Market Survey conducted by the research company Baltic Salary Survey. It is true that growth was almost half that of last year and did not reach the 5 percent threshold predicted by experts.
Wages grew, but less than last year
Although in the context of the Baltic states, wages in Lithuania did not increase faster this year, but here the organizations are more optimistic: 9 out of 10 companies plan to increase wages by an average of 4.1 percent next year.
“The growth of the real basic salary this year is around 4.4 percent, and the annual salary with bonuses, 3.9 percent. Thus, the growth of these salaries is 3 and 6 percentage points slower this year than in 2019, respectively. The situation is similar in other Baltic countries: in Latvia the basic monthly salary increased by 4.2 per cent, in Estonia by 6.3 per cent “, says Povilas Blusius, consultant of the company research.
The best indicators of salary growth, which were around 5%, were maintained by the information technology, sales and financial sectors, while the services sector was the worst, with an average salary drop of 3.2 %.
“There are hotels, catering establishments and other service companies in the service sector. For companies engaged in these types of activities, the quarantine introduced at the beginning of the year was a difficult challenge. Therefore, the drop in wages is understandable here: employers simply sought to survive the pandemic that deprived them of their main source of income, ”says P. Blusius.
Base salary fell as much as 2 percent this year. workers, reduced it by 10% during quarantine. Business. Although the percentage seems low, last year it was only 0.2 percent, so now it is even 10 times higher.
“18 percent. Annual full salary with bonuses decreased. This change was due to unpaid bonuses or” truncated “value added due to pandemic companies. Base salary reduction is always used only in the extra case, as it is a blow much stronger emotional for the employees, since the income considered stable is diminishing ”, says P. Blusius.
According to him, in some financial technologies, the managers of the producing companies showed solidarity with the employees and reduced their salaries to the monthly minimum wage. One of the most popular solutions was not to reduce the salary, but to freeze its increase in anticipation of a more favorable period, ”says P. Blusius.
“We also calculate the living wage. This amounts to 1,344 euros in Vilnius and 1,177 euros in Lithuania in general. And the average wage in Vilnius and in all of Lithuania is 1,437 euros. One should imagine that this average wage is in the middle and below and above their lowest and highest salary. It is likely that many people do not receive that calculated living salary, “said the specialist.
There were more layoffs, leaders were missing
This year, volunteer staff turnover has been reduced by 2 percent. and currently stands at 14.2 percent. And here the number of layoffs increased by 0.4 percent. and now it’s 5 percent.
“It seems that voluntary change has decreased due to the increase in the value of the workplace; in times of pandemics full of uncertainty, the population feels insecure about their future, so they change jobs less frequently. Due to the virus that struck the country and the introduction of quarantine, the number of layoffs has also increased, companies made that decision, most likely to optimize costs and personnel, “says P. Blusius.
According to the study, 17 percent. Organizations laid off part of their staff and 7% I took the opportunity to optimize the number of employees.
“17 percent. Reduced the number of employees in companies by an average of 22 percent and 35 percent. All or part of the employees were declared inactive. While this confirms the trend that during the quarantine companies tried to optimize their teams and save costs to survive, the majority (even 59%) of the companies did not reduce the number of employees in the least, ”says P. Blusius.
To reduce staff shortages, companies continue to allocate resources to training and retraining as usual, reallocating responsibilities.
“Improving leadership skills remains a major challenge in HR. This challenge has dominated the survey results for many years, regardless of industry. Therefore, we can safely say that we have had a leadership deficit. very large in the labor market for many years. It becomes even more pronounced in the face of a pandemic. When a crisis occurs, not all managers can handle it, “says P. Blusius.
In addition, according to the specialist, 17 percent. companies and new hires. It was a great opportunity for these companies to attract good professionals.
And the big change when workers were laid off and then reinstated took place in the service sector, like hotels.
Saved by giving up additional benefits
31 percent of companies rejected additional benefits during the quarantine: snacks in the workplace, events. Some companies have given up all the added benefits.
“Perks like snacks or team celebrations moved into employee homes before the summer. There continues to be a growing concern for the psychological well-being of workers and protective measures. After the quarantine has slowed down, most companies have decided to go back to their offices and organize pre-planned vacations, but as the number of illnesses increases, they plan to return to teleworking, ”says P. Blusius.
10 percent Companies expanded the range of additional benefits and offered employees psychological help, free coronavirus tests and insurance. It also provided training for the whole family and, of course, increased telecommuting opportunities.
The most popular additional benefits this year remain the same: coverage of mobile devices and communications accounts, entertainment events, professional events, courses and seminars.
“Due to the circumstances caused by the pandemic, the popularity of some additional benefits has changed. Company cars are provided 6% less frequently, 5% less. The number of events and trips organized by employers is less frequent. Naturally, the possibilities of remote work (23%) and flexible hours (12%) grew ”, – P. Blusius.
Lithuanians are not lacking in optimism
Although wages grew less and were cut more frequently, Lithuanians are optimistic about the future. Up to 91% plan to increase the compensation of their employees next year. employers in Lithuania.
“In our country, future forecasts are much more optimistic than in Latvia or Estonia, despite the fact that the level of concern about the COVID-19 situation is higher. In Lithuania, in August, the company estimated the level of concern at 3.4 points out of 5, while in Latvia it was only 2.8 points. But in Lithuania next year he still plans to increase the basic salary by 91 percent. companies, while in Estonia – 86 percent, in Latvia – only 75 percent ”, says P. Blusius.
It is expected that next year the variation of the basic salary will be even lower than this year and will reach 4.1 percent.
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