In Russia, 77% of small and medium-sized businesses have started paying their employees more

In Russia, in 77% of small and medium-sized businesses, employee compensation expenses have increased since the beginning of 2024, according to the results of a study by the Russian School of Management (RSM) and the financial accounting service 'PlanFact,' which were reviewed by Izvestia.

The study involved 1,045 company representatives from various industries and different regions of Russia.

It is noted that the increase in compensation expenses was influenced by salary increases for existing employees, salary increases for new employees, staff expansion, and higher bonuses.

11% of respondents reported a decrease in expenses. The main reasons cited were staff reductions, reduced bonuses, and lower salaries for new employees. In 12% of companies, compensation expenses remained at the same level.

Since the beginning of 2024, in most small and medium-sized businesses, incomes increased for line specialists (81%). In addition, salaries and bonuses grew for department heads (47%) and top management (23%).

11% of respondents stated that they do not have employees whose earnings have increased. Incomes mainly grew for specialists in such sectors as production, sales and trade, administrative staff, IT, marketing, advertising, PR, finance, accounting, logistics and supply, personnel, and HR.

At the same time, 70% of companies reported that they do not have employees whose incomes decreased since the beginning of 2024.

Meanwhile, some respondents noted that in their companies, earnings of line specialists (11%), department heads (8%), and top management (21%) have decreased.