Overview of the Compensation and Benefits Survey Results
Ernst & Young has issued a report on Georgia General Industry Compensation and Benefits Survey 2012. Ernst & Young’s Performance and Reward team details remuneration data for 180 cross-industry jobs as well as the trends in HR policies and practices in Georgia. This year 29 Georgian and international companies in various industries participated in the survey. Most of the participants are large enterprises and key players on the Georgian Market.
Based on the results of the survey, in this article we provide a brief overview of the main tendencies existing on the Georgian labor market.
The most positive fact about the results of the survey is that more than 50% of the companies participating in the survey plan salary increases of 10% on average for 2013. The planned increase demonstrates optimistic expectations of employers for 2013.
Positive trends in the area of compensation and benefits influenced the variable part of employees’ compensation as well: 93% of companies use variable pay. The majority of employers pay performance-based bonuses.
The majority of companies participating in the survey are not planning to change the number of personnel in 2013. However, the positive fact is that 38% of the companies intend to increase the number of staff and only 3% of the companies plan to reduce the number of employees.
The survey has shown that the majority of surveyed companies use market indicators as a basis for salary changes. The most popular market indicator used is the actual level of salaries on the market, followed by the inflation rate.
As for the HR management priorities indicated by the participating companies, the most important for the companies this year are performance management, compensation & benefits, and training and development.
83% of the companies provide some form of training to their employees with 5% of annual remuneration fund being spent on trainings. Manual workers spent on average 8 days per annum on trainings.
90% of the surveyed companies provide medical insurance to their employees. 87% of senior management and 75% of manual workers were eligible for medical insurance in 2012. 59% of the companies also provide additional insurance services to employees such as life and disability/accident insurance.
55% of the companies have used outside recruitment agencies in the recruiting process. 24% engage in personnel leasing. 41% have some form of internship programs and half of the internship programs are unpaid.
Summarizing the above, we can say that there are some positive trends on the Georgian labor market that hopefully will turn into a larger scale.