The first half of the year, with political uncertainties, economic ups and downs and the war in Ukraine, is coming to an end, albeit with some support. labor market remaining strong and generally positive. With this scenario,Spanish managers and directors plan to recruit in 2023?, whatWhat new profiles will be included??, whatWhat salary policies do managers plan to implement throughout 2023??, one year since the last labor reform went into effect, how do managers balance it?
Clearing these and other doubts is the raison d’être of the book’s first installment. “IV LHH Executive Barometer on Management Leadership in Spain”. A collection of responses from more than 500 executives and executives to understand the challenges business leaders face today. Along with him, the LHH Manager, signature Adecco Group Specializing in the selection, consultancy and evaluation of directors and managers, He wishes to continue his analysis of the keys to managerial leadership in our country.
In this first section, the barometer focuses on two key aspects of the current environment: Recruitment forecasts of surveyed executives for the coming months And analysis of current issues such as labor reform or wages.
On the balance of labor reform that went into effect last year, Rémi Diennet, Managing Director of LHH Executive Spain “One year has passed since the enactment of Business Reform and it is inevitable to assess its effects. The main objective of this reform was the imperative need to reduce temporary contracts in favor of permanent contracts. And we say absolutely imperative because the high rate of temporary employment is classified as a pathology from which the Spanish labor market suffers, and its reduction is seen as a fundamental condition imposed from Brussels”. “High inflation, war in Ukraine, energy crisis and political and economic uncertainty continue in 2023. That’s why leaders value other organizational aspects in this barometer: what will impact their company’s operations, challenges and strategic priorities for this year, hiring forecast, workforce or business model realignments, potential layoffs, salary increases, job growth forecasts, billing or the main measures requested by public institutions”, concludes Rémi Diennet, Managing Director of LHH Executive Spain.
Job Opportunities and Salaries
On the business side, 8 out of 10 Spanish managers (81%) they see job opportunities for their company this year. 40% sure they exist optimistic forecasts that business and turnover will grow. The remaining 41% of those consulted believe there will be opportunities, but this will require realignments of the company or business model. On the contrary, 19% the remainder shows This year’s forecasts are negative.
In addition, almost half of those surveyed (46%) believes that there will be no increase in service/product demand or sales this year, either because they have the same demand as last year (34%) or because demand has dropped significantly (11%). On the contrary, 54% of senior executives thinks about it yes there will be an increase in demand and sales will increase reached 15% (33%) or more than 20% (20%) of its products or services this year.
On the workers side and with regard to wages, more than half of those surveyed say: does not plan to increase their salaries this year (55%), compared to 45% of those planning to increase.
On the other hand, the main measures they will demand from public institutions to continue creating wealth and jobs in Spain are: reduce corporate taxes and tax fees (49%) and a framework that establishes a framework of political and regulatory stability. favorable investment climate (45%). 38% request support measures for the establishment of companies, 37% request flexibility measures according to contract models, and 34% request assistance for training on business digitization and new technologies. To a lesser extent, they will demand more and better access to public investment from public institutions (29%).
The balance of labor reform
When asking business leaders for their assessment of the latest workforce reform and new hiring models, 4 out of 10 Managers, managers or mid-level executives can use the current Business Reform and the new contracting models it brings. They help reduce excessive temporary employment (40%) and encourage permanent contracts (39%).
Those who consider Business Reform with 10 points less helps create employment (31%), however, a similar percentage over-regulation and little flexibility (29%) for companies.
Challenges and strategic priorities
among the main strategic priorities In 2023, managers and directives will come to the fore with more than 40% of the votes. measures to reduce inflation and cost increases (44%), increase in sales (43%) and talent attraction and retention (43%). It is driven by digital transformation (36%) and sustainability (32%).
when it comes to the mother difficulties Proportion of executives this year, employee productivity and performance (43%), This is followed by digital transformation with 39%, increasing demands of employees on work-life balance and flexibility with 36%, and sustainability with 34%.
Behind these are challenges such as a possible drop in sales (27%), equity and inclusion (24%), or the mental health of their workforce (23%).
what to focus on aspects will have a greater impact on their company, HE 43% proportion of those who think they will inflation, rising costs and volatility or rising prices. This is followed, to a much lesser extent, by political uncertainty and the current economic situation (19%), the rise in interest rates (17%), the energy crisis (13%) and finally the consequences of the war in Ukraine (7%).
to and from work
When asked about plans to expand or shrink staff in the coming years, Spanish executives and directives are cautious.
On the one hand, regarding the inclusion of more people in their team, 6 out of 10 (61%) plan to hire someone this year, the rate of those who do not want is 20% and the rate of those who are not sure is 18%. Of those planning to hire in 2023, 20% will hire one-time only or 1% to 5% more (19%) than the previous year, while 14% will hire 5% to 10% more than the previous year . 8% will hire more than 10% compared to 2022.
It is worth noting that those who are working are the participants. Companies with more than 50 employees planning to recruit staff this year, to a greater extent than others.
On the other hand, as to whether or not respondents plan to employ staff in the coming years, 32% indicate that they do, of which 21% will do so in 2024 and 11% in 2025. percent (47%) state that it will depend on the economic situation, while 20% say that they will not hire anyone.
Among the business decision makers who participated in the survey, who plan to hire new employees in the future, 48% will hire middle managers and 47% technicians. To a lesser extent, 28% are base personnel or staff, 23% to managers and 7% to directors. Compared to July 2022, the percentage of technicians to be hired has decreased substantially (53%; -6 pp), while the proportion of managers (22%) has increased by about 1 pp.
If we focus on the layoffs forecasts, Half (51%) of respondents confirm that they do not plan to lay off staff this year, however, in practice the other half (49%) plan to do so, even if temporary layoffs (16%) or 1% to 5% more than the previous year (17%).
The main reasons that stand out among the managers and senior managers who participated in the survey who stated that they plan to lay off personnel this year or in the coming years; inflation and rising costs (31%), falling sales or low demand for service (31%), and decreased productivity and performance (28%).
Here are the profiles or roles they would typically do without: basic staff or staff (would he Four five%), followed by middle managers (34%), technicians (27%), managers (27%), and directors (10%).
As for layoff projections for the coming years, 21% admit they plan to lay off staff. However, almost half believe it will depend on the current economic situation (44%), and 35% guarantee that there will be no layoffs in the coming years.