Tashkent, Uzbekistan (UzDaily.com) -- EY has released a report on the results of the annual salary and compensation review for 2022/2023 in Uzbekistan, which was attended by companies from various sectors of the economy, such as the banking sector, IT and telecommunications, consumer goods, the chemical and pharmaceutical industry and others.

The results of the review showed how global market changes have affected employee remuneration and personnel policies in Uzbekistan.

The study demonstrates detailed information on salary levels by position and region, bonuses and benefits, as well as personnel policies and practices.

Wage level changes

Over the past three years, EY has seen a steady increase in employee compensation levels.

According to the results of the Survey, in 2022, more than 70% of participating companies increased the level of wages. The average percentage of growth in relation to the previous year did not change and amounted to 20%.

However, if we compare the percentage increase in 2021 set by employers (12.5%), we can see that the real growth rate (20%) has almost doubled the one planned for the year. This fact may demonstrate an attempt by employers to timely respond to the challenges of the global economy and global inflation, as well as the desire to provide maximum support to their employees in the face of uncertainty.

It should be noted that according to the forecast for 2023, there is a slight slowdown in the level of wage growth: employers plan to increase the amount of remuneration of employees by 16%. However, given the experience of last year, it can be assumed that the plans described above will most likely be adjusted.

Variable part of remuneration

In addition to the base salary, among the companies participating in the Survey 2022/2023, performance-based bonuses are widely used. According to the survey results, more than 60% of companies pay performance-based bonuses.

The introduction of bonus programs allows  to achieve maximum performance through clear goal setting and monitoring of results, and also plays an important role in increasing the morale and motivation of employees.

Arbitrary bonus programs are gaining popularity - a type of bonus without regulated principles of calculation and without reference to specific goals. This type is commonly used by companies to reward outstanding performance and extra efforts of employees. Compared to last year, the number of companies that pay arbitrary bonuses has doubled.

Last year, the labor market of Uzbekistan has also seen an increase in the interest of employers in non-material remuneration of employees

According to the Survey, about 40% of companies actively use various types of intangible benefits: letters of thanks, diplomas, honor boards and awards for “employees of the month/year”. Special attention should be paid to the branded things of the company or the so-called "merch", as this type will not only help to express gratitude to the employee for his contribution to the work, but can also increase the company’s recognition and influence the employer’s brand in the labor market.

Moreover, at present, there is a fairly rich selection of alternative practices for non-material motivation. These can be special days, like a day of yoga or fruits in the office, a corporate kindergarten, the introduction of the “bring your child to work” program, additional days of rest at the expense of the company, and others.

Fringe benefits

In addition to the classic types of employee benefits, more and more companies are trying to pay special attention to additional benefits. This trend is also confirmed by a significant increase in the share of spending on social programs and benefits in the overall budget for the company’s personnel. If in 2021 this indicator averaged 3%, then according to the results of the new release of the review in 2022, it increased to 7.1%, EY notes.

As before, the most common benefits remain: gifts for children for the New Year (84%), reimbursement of expenses for mobile communications (78% of companies), parking for employees’ cars near the company’s office (52%) and catering for employees (41%).

In 2022, sports as benefit to employees increased in popularity, in which employers provide subscriptions and/or discounts to fitness clubs, organize sports events, and rent sports facilities for their employees. When compared with the last year’s review, the number of companies that offer the organization of sports activities as a benefit has increased almost 3 times: from 10 to 27% of companies.

In general, a well-designed and diversified system of additional benefits can be a source of a number of benefits for a company, from increasing competitive advantage to increasing employee productivity and organizational profits.