The unstable economic situation, lack of financial reserves, rising living costs and unmet wage expectations have increased concern and insecurity among employees in Estonia, with many employees also concerned about the preservation of their jobs as companies face difficulties and possible redundancies.
A labor market monitoring survey by the job classifieds portal CV.ee revealed that as many as 77 percent of employees are concerned about future wage changes.
“It is clear that employees’ financial security is under threat,” said Andra Rand, a recruitment specialist at CV.ee. “Although the number of candidates on the job market has significantly increased, it is becoming increasingly difficult to find suitable employees because people’s salary expectations are often too high compared to what employers can offer.”
The survey reveals that 75 percent of employees are not satisfied with their current pay and plan to ask their employer for a raise in the near future, expecting an increase of up to 20 percent.
Most employers do not plan to make changes to salaries in the coming months. Those who are planning a raise offer an increase of only up to six percent, which highlights a significant gap between employees’ salary expectations and employers’ capabilities.
Compared to last year, the results have changed little. Then, too, most employers did not plan to raise wages, although employees’ expectations of wage increases were high. This shows that, despite the persistent dissatisfaction of employees, the resources and opportunities of employers in terms of wage growth are still limited.
One in eight employees is ready to immediately change jobs if they are offered a higher salary. The high readiness of employees to change jobs shows that wage issues have become a critical factor in maintaining job satisfaction and loyalty. For companies, this means a need to thoroughly review their pay policies and make strategic decisions to keep their employees motivated and satisfied, CV.ee said.
Source: BNS
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