Ayçe Tarcan Aksakal from Capital Magazine According to the news of , 2022 went down in history as an extraordinary year in terms of prices, and all predictions and assumptions were turned upside down. Due to the rapid rise in inflation and changes in purchasing power, many companies have implemented practices that support their employees and medium increases before the planned increase period arrives. As a result, it was seen that companies in all segments made price adjustments 2, 3 or even 4 times a year.
In 2023, the base price was determined as 8 thousand 506 TL, an increase of 100 percent compared to the previous year. The increase in civil servants and retirees was 30 percent for this year.
How the new base price will affect the prices of white-collar workers this year is one of the most curious issues. Because the increase in the base price cannot be reflected to other levels at the same rate. Increase rates decrease as you go from floor to ceiling.
However, this year, despite everything, the expectation for an increase in the special section is high. Despite this, there are widespread concerns that the rate of increase will remain lower than the base price increase rate and the inflation level.
Turkey’s top 500 companies The 2023 price survey covering the last 2 years points to valuable changes. On the one hand, there is an uncertainty about the increase even in the largest companies, on the other hand, the increase in the increase rates compared to 2022 draws attention.
In 2022, the total price increase in the special section, together with the medium increases, was in the band of 40-65 percent on average. However, there were also those who made a salary increase of more than 100 percent in the fields of e-commerce and technology. This year, the increase rates are below the inflation rate. According to Mercer 2023 Price and Benefits Survey, in which 489 companies participated, the total price increase expected by companies to their employees in 2023 is 61 percent.
Saying that inflation increased the expectation of price increases on the employee’s side, Mercer Turkey CEO Dinçer Güley says, “While high inflation and increases in minimum prices move the price level of new graduates upwards, we see that there are no similar increases in senior roles in the organization.”
Scissors are shrinking
According to the news, the increase in the minimum price cannot be reflected to other levels at a real rate. Blue-collar and entry-level price increases are far higher than executives’ rates. This situation causes the price gap between the new graduate and the general manager to narrow. Mercer’s research also shows that the price gap between new graduates and general managers has narrowed in Turkey. While there was a 16-fold difference in the middle of the general manager and the new graduate in 2021, the price difference in the middle has decreased to 14 times today.
RECORD IN AUTOMOTIVE
According to Mercer 2023 Price and Benefits Survey, the highest price increase this year is expected to be in the automotive segment with 70.5 percent. Power, manufacturing, automotive supply industry, mining and metals, logistics and financial services are the branches that will have the highest increase rates after the automotive industry. In all of these branches, increase rates are expected above 65 percent. Stating that price increases will be higher in informatics, artificial intelligence, telecommunications, fast-moving consumption, banking, automotive, power, food, medicine and production branches.Ayşen Arıduru, Founder of Fortune Consulting, says, “Price increases will be lower in tourism, insurance, health, construction, education, connection and service branches.”
TRANSITION TO WARRANTY IN FOREIGN EXCHANGE
The number of companies that pay salaries to candidates in critical positions such as IT, technology, administration, company valuation, crypto and fintech is increasing. Those who do not provide foreign currency index their salaries to Euro or dollar exchange rates.
EYT WILL BE DEFINITIVE
Doğan Holding Deputy HR Leader Şebnem Bezmen states that with the EYT’s coming to the agenda this year, different applications will be introduced for employees with high potential and performance, especially those working in critical roles. Bezmen says that “EYT may cause different fringe benefits and price management processes” and states that paying higher prices or managing health plans in a different way may be the subject of words so that these employees do not retire. Stating that the competitive labor market and high inflation made it necessary for the bosses to rethink the price and fringe benefits in order not only to attract talents to their own schemes, but also to keep them at the same time, Bezmen said, “With the pandemic, the fringe benefits provided to employees began to be built on the emotional, social and financial health of the employee, and We think this approach will continue.”
INCREASE RATIOS STARTED TO CLOSE AT BANKS
On the other hand, while employees are waiting for the increase rates to be reflected in their January salaries, new salaries have been announced in some banks.
İşbank administration increased its employees by an average of 51.28 percent for 2023. In addition, 2000 TL Maxi Points given to employees monthly were increased to 3285 TL. Thus, the increase rate reached 67 percent.
While the bank increased the price of food to 128 liras per day, it increased the salary of its lowest employee to 18 thousand liras with side payments.
Öz Finans-İş Union General Leader Ahmet Eroğlu also stated that the prices of employees in Ziraat, Halk and Ziraat Participation banks were increased by 55 percent.
The salaries and increment assumptions by industry are as follows:
PRICES VS. LOCATIONS IN 500 BIG COMPANIES
| (500 big companies, monthly net, TL) | ||
| Position | 2023 | |
| top management | Minimum | Maximum |
| chairman of the board of directors | 115,000 | 435,000 |
| Management council member | 45,000 | 250,000 |
| General manager | 76,000 | 350,000 |
| Deputy general manager | 58,500 | 170,000 |
| Human Resources | ||
| Human Resources Senior Manager | 50,000 | 140,000 |
| Director of human resources | 32,500 | 75,000 |
| talent development manager | 24,500 | 45,000 |
| Human resources specialist | 14,000 | 27,500 |
| Quality manager | 15,000 | 37,000 |
| payroll specialist | 12,500 | 25,500 |
| information process | ||
| information technology director | 57,000 | 200,000 |
| Information process manager | 35,500 | 110,000 |
| Senior system programmer | 32,500 | 75,000 |
| analyst programmer | 23,000 | 60,000 |
| systems analyst | 19,500 | 57,500 |
| network engineer | 19,000 | 48,500 |
| PC boost manager | 15,000 | 35,000 |
| system operator | 14,500 | 30,000 |
| technical support operator | 13,000 | 27,000 |
| Sales | ||
| Sales director | 45,000 | 190,000 |
| Sales Manager | 27,500 | 122,500 |
| Regional sales manager | 24,500 | 74,500 |
| Sales representative/manager | 14,500 | 44,000 |
| telesales operator | 10,000 | 22,500 |
| Marketing | ||
| marketing director | 54,000 | 145,000 |
| product cluster manager | 33,000 | 90,000 |
| Product manager | 21,000 | 65,000 |
| public relations manager | 21,000 | 52,500 |
| customer relations manager | 20,000 | 48,000 |
| Marketing research specialist | 14,250 | 34,500 |
| public relations specialist | 14,250 | 29,500 |
| Legal & Administrative Affairs | ||
| Legal advisers | 35,150 | 160,000 |
| senior lawyer | 24,000 | 65,000 |
| Lawyer | 16,500 | 24,500 |
| Administrative affairs manager | 21,000 | 37,500 |
| administrative affairs manager | 18,000 | 27,500 |
| Administrative affairs specialist | 11,500 | 18,500 |
| building manager | 12,500 | 19,000 |
| building management specialist | 10,500 | 16,000 |
| finance | ||
| Financial Director | 45,000 | 160,000 |
| Finance director | 35,000 | 75,000 |
| Accounting Manager | 32,500 | 55,000 |
| Budget control manager | 22,500 | 44,500 |
| budget specialist | 17,500 | 27,500 |
| financial analyst | 22,500 | 35,000 |
| chief accountant | 20,000 | 32,500 |
| accounting specialist | 13,000 | 25,000 |
| accounting staff | 10,000 | 15,000 |
| Purchasing and logistics | ||
| Purchasing and logistics director | 37,500 | 120,000 |
| Purchasing manager | 18,500 | 48,500 |
| purchasing officer | 14,500 | 32,500 |
| logistics officer | 12,500 | 27,500 |
| import specialist | 12,500 | 22,500 |
| Production | ||
| production director | 43,500 | 110,000 |
| Factory manager | 38,000 | 97,500 |
| Production manager | 25,500 | 67,500 |
| Quality manager | 18,500 | 45,000 |
| production chief | 14,500 | 35,000 |
| Industrial engineer | 12,500 | 27,500 |
| production planning specialist | 12,500 | 25,000 |
Source:It was created to reflect the prices of Turkey’s largest 500 companies, taking into account the data of HR companies and Capital’s research.
WHAT DO NEW EMPLOYERS EXPECT?
| What awaits new recruits? (Monthly net salary, TL) | ||
| By education | Minimum (%) | Maximum (%) |
| University | 11,500 | 17,000 |
| Degree | 14,500 | 24,500 |
| Doctorate | 16,000 | 27,500 |
Note:Fees are calculated considering Turkey’s 500 largest companies
PRICES AGAINST SECTORS:
| Prices by sector (monthly net, TL) | ||
| Textile -Export | 2023 minimum | 2023 maximum |
| General manager | 48,000 | 192,000 |
| Deputy general manager | 37,500 | 72,000 |
| Manager | 18,000 | 45,000 |
| Expert | 10,000 | 21,000 |
| Banking | ||
| General manager | 150,000 | 387,500 |
| Deputy general manager | 97,500 | 167,500 |
| Manager | 31,500 | 85,000 |
| Branch manager | 24,750 | 55,000 |
| Expert | 11.250 | 22.000 |
| Advert | ||
| General manager | 57,000 | 135,000 |
| creative director | 42,000 | 102,000 |
| art director | 35,000 | 91,000 |
| Customer relations director | 33,000 | 68,000 |
| Medicine | ||
| General manager | 107,000 | 330,000 |
| Deputy general manager | 78,000 | 165,000 |
| Manager | 32,000 | 85,000 |
| Expert | 15,500 | 35,000 |
| Sales Representative | 12,500 | 21,000 |
| Retail | ||
| General manager | 63,000 | 185,000 |
| Deputy general manager | 37,500 | 102,500 |
| Manager | 19,500 | 45,500 |
| store manager | 18,000 | 31,500 |
| Expert | 10,000 | 17,500 |
| Tourism | ||
| General manager | 40,500 | 135,000 |
| Deputy general manager | 33,000 | 87,500 |
| Manager | 18,750 | 44,500 |
| Expert | 12,000 | 23,500 |
| Fast consuming | ||
| General manager | 64,500 | 210,000 |
| Deputy general manager | 39,000 | 92,000 |
| Manager | 20,250 | 56,000 |
| Expert | 11,000 | 26,500 |
| Energy | ||
| General manager | 82,500 | 280,000 |
| Deputy general manager | 38,250 | 201,250 |
| Manager | 24,000 | 119,000 |
| Expert | 12,000 | 41.125 |
| IT/Telecom | ||
| General manager | 81,000 | 297,500 |
| Deputy general manager | 47,250 | 145,000 |
| Manager | 30,000 | 95,000 |
| Expert | 12,000 | 42,000 |
| Automotive | ||
| General manager | 87,000 | 253,750 |
| Deputy general manager | 62,250 | 152,250 |
| Manager | 27,000 | 82,000 |
| Engineer | 16,500 | 35,000 |
| Expert | 12,500 | 33,250 |
| construction/housing | ||
| General manager | 47,250 | 202,500 |
| Deputy general manager | 37,500 | 97,500 |
| Project Manager | 22,500 | 85,000 |
| Expert | 12,500 | 37,500 |
| private health | ||
| General manager | 61,500 | 237,500 |
| Deputy general manager | 51,750 | 140,000 |
| Manager | 26,250 | 87,500 |
| Specialist | 23,500 | 95,000 |
| Expert | 12,500 | 33,500 |
Note:The wages were calculated by taking into consideration the 500 largest companies in Turkey.
Source:It was created by taking into account the information of HR companies and the research of Capital.
INCREASE RATE ESTIMATIONS FOR 2023 IN 14 SECTIONS:
| Minimum-maximum increment rate forecast in 14 segments for 2023 | ||
| Sector | Minimum (%) | Maximum (%) |
| IT-internet | 32.5 | 67.0 |
| Medicine and health | 29.5 | 59.0 |
| Fast consuming | 33.5 | 66.5 |
| Textile | 17.5 | 44.5 |
| food | 35.0 | 66.5 |
| consultancy | 28.5 | 55.0 |
| Energy | 34.0 | 67.5 |
| Production | 29.0 | 60.5 |
| Logistics | 27.0 | 55.0 |
| Banking | 36.0 | 67.5 |
| Automotive | 25.0 | 57.5 |
| construction-real estate | 17.5 | 51.5 |
| Insurance | 34.0 | 62.5 |
| Tourism | 25.0 | 55.5 |
| Source: Datassist |
EXPECTED AVERAGE PRICE INCREASE by 2023
| SECTOR | EXPECTED AVERAGE PRICE INCREASE by 2023 |
| Automotive Main Industry | 70.5 |
| Energy | 68.6 |
| Production | 67.3 |
| Automotive Supply Industry | 67.1 |
| Mining & Metal | 66.8 |
| Logistics | 66.3 |
| Financial Services | 65.4 |
| Technology | 62.5 |
| Insurance | 61.2 |
| Chemical | 60.3 |
| holdings | 57.8 |
| Consumer Products | 57.2 |
| Retail | 56.8 |
| Source: Mercer |
