AMSTERDAM, August 19, 2021 — Employers in the Netherlands plan to give their staff an average annual pay rise of 2.8% in 2022, amidst signs of strength in the labour market following the turmoil of the global pandemic, according to new research from Willis Towers Watson, a leading global advisory, broking, and solutions company. 426 Dutch firms took part in the annual salary study.
“The job market looks optimistic and business outlook is better than many expected.”
Angel Hoover,
Head of Willis Towers Watson Benelux
The rise is an improvement on the 2.4% average increase paid this year and, with inflation forecast at 2.1% in 2022, gives 0.7% real terms rise. It comes as the proportion of businesses expecting to freeze pay altogether is set to fall from 7% this year to almost zero (0.4%) in 2022.
Some industries plan to be more generous than others. Average rises in 2022 are set to be higher in the retail (3.2% rise), high tech (3.1%), and automotive (3.1%) sectors. Workers in energy services and utilities (2.2%), natural resources (2.3%), and insurance (2.4%) are due to fare less well.
Angel Hoover, Head of Willis Towers Watson Benelux, said: “After a serious period of difficulty for employers and employees, our research has confirmed improvements in pay rises in parallel to the economic recovery related to the recession of the Covid threat. Some industries are faring better than others, but overall optimism is strong, and many employers are focusing on a balanced work and reward strategy to manage their business and protect and sustain the wellbeing of employees - almost every company’s greatest asset.”
The study revealed clear signs of optimism and recovery among employers. Over half (53%) of Dutch firms said their business outlook is ‘ahead’ or ‘well ahead’ of where they thought it would be, while just 2.5% said it was below expectations.
And 28% plan to recruit more staff in the coming 12 months, while 8% expect to cut headcount. Over half (55%) of firms said they are trying to fill roles in sales, while technical skilled trades (39%) and engineering (37%) are also hotspots. The least active recruitment areas are in HR (3%), finance (5%), and marketing (15%).
“The job market looks optimistic and business outlook is better than many expected. Businesses are keen to fill roles in sales and product creation. Support roles like HR and finance are less active at this moment, but that is likely to change as the recovery continues,” said Hoover.
The Salary Budget Planning Report is compiled by Willis Towers Watson’s Data Services Practice. The survey was conducted in June 2021. Approximately 23,000 sets of responses were received from companies across 130 countries worldwide. 426 organizations in the Netherlands responded.
The report summarises the findings of Willis Towers Watson’s annual survey on salary movement and reviews practices as a means of helping companies with their compensation planning for 2021 and beyond.
Consumer Price Index (CPI) inflation figures are compiled by the Economist Intelligence Unit (EIU). Figures as at June 2021.
