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why companies plan for 3.5%

why companies plan for 3.5%
why companies plan for 3.5%

In , the debate on remuneration continues to fuel discussions. According to experts, French companies envisage an average salary increase of 3.5% in 2025.

But what does this increase mean for employees? Marie, an executive in a technology company, hopes that these forecast 2025 will result in recognition of his efforts. This development reflects a trend ofsalary increases outpacing inflation, bringing a note of optimism.

2024 review: salary adjustments in the face of economic uncertainty

The year 2024 saw a median salary increase in France of 3.8%, slightly lower than the 4.3% of the previous year. Businesses have had to adapt to the challenges imposed by a uncertain economic climate. Despite an inflation forecast of 2%, this increase demonstrates an effort to preserve the purchasing power of employees.

Many organizations have carried out salary adjustments to respond to economic fluctuations. THE salaries 2024 thus reflect a desire to balance internal financial imperatives and the need to remain attractive on the labor market. This cautious approach highlights the importance of strategic human resource management in times of uncertainty.

Forecasts for 2025: a slight decline in a global context

For 2025, French companies anticipate a median salary increase of 3.5%, showing a moderate decline compared to 2024. This trend is part of the forecast 2025 observed internationally, where several countries are also forecasting similar increases.

The global trend indicates that economies like Germany and Canada are looking at increases of 3.7% and 3.6%, respectively. On the other hand, countries like Brazil and China forecast more significant increases, with 5.9% and 4.6%. These international comparisons highlight regional disparities linked to specific economic contexts.

Measures to attract and retain talent in 2025

The job market in France remains competitive, pushing companies to adopt new strategies to attract talent necessary. In 2024, 37% of organizations reported recruitment difficulties, leading them to review their traditional methods.

Among the business initiativeswe observe the strengthening of training programs and the development of policies focused on well-being at work. These efforts contribute to the employee loyaltyby creating an environment conducive to the professional and personal development of employees.

Slowdown in the growth of salary expenditure

Despite a general increase in salary budgets in 2024, with 78% of companies having revised their envelopes upwards, we see a slowed progress compared to previous years. The average increase in salary expenses stood at 4.3%, compared to 7.1% in 2023 and 6.4% in 2022.

This situation pushes organizations to rethink their remuneration policy for a better cost management. Companies seek to maintain their attractiveness while ensuring financial viability, thereby balancing employee expectations and current economic realities.

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