Cash compensation is among the key attraction and retention factors in companies – Executive Summary

Monetary compensation remains one of the key factors in attracting and retaining talent in companies today, although other benefits are appreciated as well.

This is one of the conclusions of the annual survey “Wages and Benefits 2024 – Portugal”, conducted by WTW, which addresses the main trends and concerns of Portuguese companies.

The Digital Transformation 2023 study reveals that in 56% of companies in EMEA, the ambition to make a real impact on the organization’s performance is the most important factor in attracting digital talent, next to cash. Pay, which includes entry bonuses.

Furthermore, 50% expressed interest in diverse and challenging work. This same factor, coupled with the opportunity to grow within the organization and develop as a professional, is the most important factor in employee retention, followed by job security.

“Salary is an important factor in attracting and retaining talent.” “A bonus in itself is not enough to join new teams or stay in existing teams,” highlights Sandra Pinto, Associate Director of WTW Portugal, adding that “it is important to proactively plan compensation, i.e. knowing what information is available on the market, where to get it and how to use it.” Access to current, accurate, quality data is key, but it is also essential to be aware of emerging approaches that are emerging.”

In Portugal, the average salary increase is about 4%. Although it is not the most important factor, it remains one of the main concerns for all Portuguese employees.