Posted on Sep 22, 2021 at 6:00 AM
The revival bodes well for a resumption of employment among young graduates. But will it be more degraded than the others? The share of those under 30 whose wages were increased in 2021 fell by more than 14 points compared to the previous year. In any case, this is what the new study by Apec on executive compensation, conducted in March 2021 and published on September 22, notes.
While it is normally the most increased age group, it becomes the most aggrieved. A gel that will not be without consequences: “The salaries of the youngest executives are lower and their salary prospects are strongly linked to the increases in the first years. The impact of the crisis on increases salary could spill over into the long term “, notes the Apec.
In 2021, their median salary reaches 39,000 Pounds gross annually (fixed + variable). While the remuneration of all executives has remained stable, that of those under 30 is the only one to show a decrease (1,000 Pounds compared to 2021). The same is true for young graduates in employment, whose salary increases from 32,000 Pounds gross per year in 2021 to 31,000 Pounds gross per year in 2021.
Falling increases internally
There are several reasons for these declines: with the difficulties to integrate linked to the health crisis and the increased competition on the labor market, they have been forced to accept a lower salary. But it is above all employment that has deteriorated. “The nature of the job has changed. Fixed-term contracts have increased by 12 points among young graduates, and these are not necessarily the same qualifications as on permanent contracts, nor the same remuneration ”, indicates Pierre Lamblin, director of data and studies at Apec. Partial unemployment, mostly suffered by those under 30 (35% versus 28% for all executives) also reduced their income.
In detail, only 43% of executives under the age of 30 who have not changed jobs within their company received a salary increase (compared to 56% in 2021). For those who have benefited from internal mobility, only 59% have seen their remuneration increase, or 21 points less than the previous year. Of all age categories, this is the largest gap.
Mobility slowed down by the crisis
Those who really stand out are the young executives who changed companies during the crisis. Among them, 8 out of 10 were increased over the year 2021. External mobility remains the main lever for increasing one’s salary. And at the same time, the one most subject to the economic situation. Executives have therefore been wait-and-see during the crisis, but with the recovery, those under the age of 30 are the most likely to want to leave their company in the next twelve months.
For its part, Apec notes “Very encouraging signals”, concerning the remuneration of young executives in the future. “Last June, we found a level of job offers comparable to the pre-crisis”, specifies Pierre Lamblin. In other words, there are so many opportunities to change companies and increase remuneration. There remains one point of vigilance: the variable part in salaries. Generally calculated on the results of the previous year, that of 2021 was little affected. But the year 2021, if it is actually calculated on 2021, could slightly reshuffle the cards.
Gender inequalities in executive compensation
Nothing changes. Apec notes that the gap between men and women has been stable since 2014 between all executives (15%), the same for equal positions and profiles (8%). The increasing number of commitments and measures taken by companies in favor of equality do not yet seem to be translated into figures. “These are policies that take a long time to have an effect. Especially since female executives have experienced less external mobility than male executives ”, explains Pierre Lamblin, director of data and studies at Apec.
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