An investigation by the recruitment agency Page Group revealed a series of data and phenomena which originated in 2020 by the Covid-19 pandemic with the emergence of the way of working remotely or hybrid work, and has deepened so far in 2022 due to the slowdown of the global economy, had an impact on the Argentine labor market, in turn exacerbated by rising inflation and falling real wages.
In Argentina, according to Page Group, the recruitment processes were driven by the staff turnover (ratio between income and expenditure in the labor market) of the past year, which 46.2%and the qualified talent drainexpressed in a figure that worries business: one in three Argentine private sector workers seek work abroadideally remote and charging in “hard currency”.
In addition, the study found that due to the Argentine inflation situation –78.5% yoy in September– only 28.2% of companies have made salary adjustments as defined by law or unions so far this year.
In turn, 45.2% of companies in the city of Buenos Aires made between two and three salary adjustments for inflation, while in the province of Buenos Aires 41.9% and in the interior 35.7%.
“Consistent with this, when it comes to attracting talent, 44.9% of Argentine professionals say they are willing to change jobs if they are offered a salary increase of more than 35% to minimize the impact of inflation on their salaries,” they explained in the document.
With regard to the reasons leading to a change of job, the Page Group pointed to the following factors: impossibility of professional growth and development (55.1%), hostile work environment (52.7%), uncompetitive non-salaried benefits (44.2%), lack of company interest in comprehensive wellbeing (32.9%), low use of professional skills (32%).
It should be noted that the survey was conducted on the basis of 8,216 responses collected from companies in Argentina and Uruguay, broken down by country, and more than 10,200 interviews with applicants and 3,500 meetings held by consultants from the international company.
Undoubtedly, the Covid-19 pandemic has accelerated the transition to the paradigm of remote work and hybrid work in the productive sector, which, although developed as a result of technological convergence, has grown in scale worldwide after the health emergency. According to the report, trends in the labor market indicate that the hybrid work modality in the private sphere reaches 50%, face-to-face 34% and remote 16%.
In the breakdown of the hybrid work arrangement, which is most commonly used by the Argentine private sector, The modality of three external days and two face-to-face days (26%), at its discretion for productivity (25%) and two external days and three face-to-face days (21%), stand out..
Miguel Carugattiathe company’s general manager for Argentina and Uruguay, stated: “This situation [la pandemia y el contexto macroeconómico argentino] It has led companies to quickly adapt to this reality, accelerate their transformation processes, seek greater proximity to technology and focus on the customer experience to build a long-lasting relationship that overcomes the situation.”.
“Professionals are also reinventing themselves,” says Caruguatti. For this reason, it will be even more common to find hybrid profiles in different areas, offering knowledge of one discipline, but also developing in another discipline to become more versatile in an increasingly aggressive and demanding market.”
In this sense, the most valued factors of a prospective employer by employees are job flexibility (61.7%), the benefits package and competitive compensation (41.5%) and the reputation of the company (33.8%).
“When assessing a job offer, in addition to compensation, professionals prefer an option that allows them to work remotely or in hybrid form, in a corporate environment where they feel respected and valuedThat’s why companies need to keep working on their employer brand in the long term if they want to attract the best talent in the market,” they suggested of the Page Group.
And they added: “The working model has been discussed extensively by the companies over the past year and a half and in some cases it was the main reason for the layoff of qualified personnel, as happened during the first semester with [el fenómeno de] ‘The Great Renunciation’. Today, companies point to a hybrid work schedule of 3 virtual days and 2 face-to-face days, or face-to-face at will, defined by productivity.”
Meanwhile, Carugatti suggested also taking into account the new concern of business, known as “The Silent Resignation”, as a result of seeking a better balance between personal and professional life, with the aim of avoiding burnout and finding purpose in work, especially among the younger generations.
“Digital transformation has led companies to pay attention to the expanded experience of their customers. That’s why, service companies incorporated senior profiles from the product area into their structures and vice versa, to differentiate themselves from their competition”they indicated from the page group.
According to the study, priorities for new employees are technical knowledge and work experience (74.8%), affinity with corporate culture (35.9%), budget for new employees (31.9%) and soft skills (21.4%). The latter are divided into teamwork (57.5%), leadership (42.6%), planning and decision making (39.2%), initiative (34.9%) and effective communication (29.2%).
As for the expectations of Argentine professionals, one in two are thinking of changing jobs next year. “With the rise of centenarians [nacidos entre 1995 y 2005] in the labor market and increasingly millennials [nacidos entre 1980 y 1995] in hierarchical positions we see some changes in the labor market. Today, the first leads the search for vacancies abroad (45.3%), followed by the millennials (36.2%). The main sources of job search are social networks (95%) and job boards or recruitment agencies (66.9%), with LinkedIn being the first option,” the study explains.
Finally, from Page Group, they put emphasis on tackling the “exhaustion” of staff by companies as 31.8% say they don’t have a good work-life balance. One of the main alarm signals is the fact that one in three employees does not respect their work or lunch hours and one in four works more than eight hours a day.
“The rejection of young people towards a life that revolves around work, in turn, is the search for a healthier life in all respects, that is, with enough time to rest the mind, socialize and do physical activity they claim. the study. “In the medium term Taking action on this scenario can help companies improve employee engagement and productivity, reduce attrition and absenteeism, as a work-life imbalance can lead to stress and consequent health problems.”suggest from Page group.
And they conclude: “While the salary aspect weighs heavily in layoffs, the lack of communication, encouragement, challenges, sound leadership and purpose are key to strengthening employee loyalty and well-being. In fact, the work environment is the most important loyalty factor of the professionals surveyed.”