This is how companies can prepare for the adjustment of the minimum wage

The discussion between employers, the government and union organizations on the salary increase came to an end and taking into account various factors such as inflation rates, the National government made the decision to go up the minimum wage for 2023 by 16%, which in real terms would be 3.36%.

(How were the overtime, night and holidays with a minimum of 2023).

This means that it will go from $1,000,000 to $1,160,000, to which is added the transportation aid that will increase by 20%, that is, $140,606, which ultimately would leave an average of 3.5 million Colombians earning a total of $1,300,606.

It should be noted that this decision was made after the last report on the annual variation of the prices of the family basket in the country, was located in November at 12.53%, one of the highest levels since 1999, of according to Dane.

While, according to the World Bank report, Colombia’s economic growth will slow down to 2.1% by 2023 and 2.8% by 2024 as a result of the global crisis.

The decision on this increase worries most experts, since it may increase labor informality rates and, being a growth well above inflation, it could generate a new inflationary cycle during the first half of next year. . In addition, for CEOs and managers the question remains: how much would the salary increase for positions that exceed the minimum wage?

(Raise in the minimum only directly benefits 15% of workers).

Taking this macroeconomic context into account and as a support for millions of SMEs and large companies in the country, for some years Legis Gestión Humana, in alliance with Human Factor Consulting, decided to launch a digital tool that dynamically presents key information on salary in 26 sectors of the economy and with an analysis by position, sector and size, in the different payment scenarios (basic, variable, benefits).

This tool is highly relevant, since it allows leaders of different areas and company managers to do financial planning and determine a competitive salary policy according to the sector and market changes.

In addition, it is ideal for making other types of correct decisions for 2023 and that may correspond to human management strategies, taking into account that it will be a key factor for the mood of employees, improve productivity rates and have a greater talent retention.

This digital product is the result of the Total Compensation Study 2022-2023, which is a salary study in which more than 635 companies from all over the country were surveyed and more than 1,100 positions were analyzed in order to find interesting figures on the subject within the most important sectors of the economy. Like, for example, that in 2021 the SMLMV increased by 3.50% and the inflation results at the end of 2020 were 1.61%.

Secondly, while at the end of 2021 inflation reached 5.62%, the salary increase for the beginning of 2022 was 10.07%.

(If you earn more than the minimum, what raise could you expect in 2023?).

Miguel Nieto, CEO of Human Factor Consulting, pointed out that it must be taken into account that it is not only about the SMLMV, but that most companies have a workforce that is above two, three or four minimum wages, and in that In this sense, the increase that is projected is not the same for these cases. In addition, taking into account situations or factors that are occurring in the workplace such as: The Great Resignation; Silent Dismissal or Silent Resignation; the strategies that contribute to the well-being of the employee and that represent an emotional salary, they will be protagonists for companies next year, because it helps employees have a greater connection with the organization and decide to stay in the company in the face of better salary offers.

“More and more companies incorporate new Fixed and Variable remuneration schemes and Benefit programs that seek to create a balance between work and personal life. The combination of the different payment scenarios in accordance with an adequate comprehensive compensation strategy that involves digital tools and the monitoring of remuneration in the market, for the design or redesign of competitive salary schemes in the different payment scenarios, will allow make better decisions for the well-being of the company and its collaborators”highlighted Nieto.

In this way, the users of the tool can find out key salary information in different scenarios and know the market average, the lowest and the highest quartile at the time of payment.

Some of the results reflected by the study of Total Compensation 2022-2023, revealed that, in the year 2022, the increases reported by the companies were influenced by the inflation figure and the increase in the legal monthly minimum wage in force, this fact, added to certain political intentions led to operating positions being the ones with the highest growth, since the figure rose to 8.9% and reached the sum of $1,000,000.

While administrative charges remained at the national average of 5.6% and commercial charges at 5.2%. In addition, it is evident that during the year once again one of the sectors that led the salary increase was technology, with an average salary increase of 9.20%, a fact that is due to the fact that in recent times it has become one one of the most important sectors for the growth of any company and, currently, several studies indicate that there is a shortage of workforce.

What is interesting is that the current needs that people in the world go through are also reflected in the salary increase for each item, and in this case the pharmaceutical chemical sector increased its salary by 7.90%; followed by mass consumption (7.10%), hydrocarbons, mining and gas (6.88%), and telecommunications (6.51%).

(How much will a working day be worth in 2023, after the rise in the minimum).

On the other hand, the region that reported the greatest increase was Bogotá and Cundinamarca, with an increase of 6.55%, exceeding the average of the national increase by almost one point. Then he introduces himself Antioquia and Eje Cafetero with 5.89%, Valle del Cauca with 5.89%; Coast with 5.39% and other cities with 5.15%.

José Antonio Currea Díaz, General Manager of Legis, recalled that within the framework of trends in human resources, now there is talk of retention meters, as a bet beyond monetary compensation. “In the end, the new generations leave for the salary, but they stay in their jobs for the added values ​​that the company offers, among which, apart from the salary, flexibility, career progress and well-being towards the future stand out. physical and mental health”.

“In this sense, this study allows the company to generate strategies to make its salary adjustments and be competitive in it, but it is also a tool that allows us to understand how to apply emotional salary trends to retain the best employees in the organization. ”, highlighted Currea.

Faced with this scenario, digital tools will allow companies to manage salary increases, face inflation and promote human management strategies that help them reduce costs and help employees feel more comfortable with the activities they carry out.

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