This 51% of companies middlethat is, those who have between 50 and 250 employees, expects to increase its prices throughout the year as a result of the general increase in prices. IPC He said the Spanish economy was suffering. A price increase that is common among European markets but affecting Spain more, has a domino effect on prices as more midsize companies will raise prices in Spain compared to the EU average. However, although the rise in prices will be the dominant trend, not like going up fees: Only one in four midsize companies will improve payroll.
That’s what consulting firm Grant Thorton published on Monday, which is also, current inflationary spiral and due to various international uncertainties, human resources departments will keep their estimates of new hires in a significant number.
Grant Thorton’s research is based on interviews with 10,000 executives from 29 countries, 400 of which are in Spain, and produces an index to measure the health of midsize companies. On a scale of -50 to 50 where 50 would be the ideal scenario and -50 the most catastrophic, the ‘check-up’ of the Spanish business fabric was currently at 0.3, for these same dates but within the past year. 1.3 points. This low growth prospects The work carried out by the majority of research houses through Funcas from the Bank of Spain or the European Commission has been substantiated in the mid-size business executives’ responses to Grant Thorton.
62% of companies surveyed in Spain, increased cost Energy as the main constraint to grow your business over the next year, placing these levels of concern at the highest figures in the past decade. And by contrast, the concern in Spanish territory is significantly higher than the average for European companies (50%) and the global (56%).
Only 26% of companies plan to increase their salaries
Although growth expectations have slowed in recent months, the investment moves of companies do not stop and they are predicting. continue to inject capital to increase their returns. 40% of midsize company executives say they will increase their investment in the next 12 months, with a 37% increase in early 2021 giving the same response. However, the main purpose of these investments will be the acquisition of new companies. facilities, machinery and infrastructure. And businessmen are betting on tangible goods in a context of increased volatility and uncertainties.
However, this effort in physical capital will not be as intense as in human capital. In the context of current inflation – the CPI was marked as 9.8% in March – only 26% of the managers of mid-sized companies Grant Thorton interviewed say they will increase their salaries this year. The overall increase in prices, added to the minimum wage increase to 1,000 euros, has made more companies investing in improving payroll. In the previous period, only 18% of companies expected to increase their salaries in the next 12 months.
Less than raising prices rather than raising wages, this drive will inevitably have an impact on the purchasing power of a large proportion of Spanish workers. Right now and at the expense of how the average CPI for 2022 ends, salaries are rising 2.4% and inflation 9.8% according to the agreement, which is back loss of purchasing power 7.4 points of the working class.
At the labor level, what will be concentrated? higher percentage of investments will be new hires. Right now the war in Ukraine, the shortage of certain supplies and the escalation in energy are not slowing job growth – March closed with 140,231 more jobs than February – and the expectation is that it won’t stop it in the future. months. Almost half (47%) of employers say they plan to increase hiring (7 percentage points more than in the previous period).