Argentina was managed in a scenario of permanent uncertainty, with restrictive and regulatory measures, where they not only told us what had to be done but also when and how, bureaucratic processes, authorizations that were often absurd, passing through desks and offices that did not add value. to the process, indiscriminate and uncontrolled emission, in a context of disorder. This is how we traveled and got here, which is quite a bit behind where we were 50 years ago. Worst impossible.
What we see these days is hopeful because it has the opposite direction to everything before, and this is already positive. The vision of the Executive Branch is global, clear and respectful of the individual and collective freedom of people.
For the first time, we see a president qualified since his formation to manage, administer, manage, lead, even with a style that may be questionable for many: there is a strong break in the profile of skills between him and his predecessors. He clearly identifies the problem, supports his diagnosis with clear and complete explanations, he does not play politics, he has no expectations of his own but for the Argentines, he always speaks for everyone. He talks about country development that enables the development of people or, conversely, develops people’s talent to develop a huge country where one can plan and live in comfort and security. None of his predecessors came close to this vision.
Labor sphere
For at least six years, Argentines have been losing the purchasing power of their salaries and this year that begins will be the seventh, since the minimum conditions will not be met to begin a recovery process regarding the scandalous consumer price indices. that the predecessor governments were able to achieve.
This year, with great fortune, approximately 20% will again be lost compared to the CPI that is recorded, which will surely be a new record in the sad history of our country. The novelty is that during this period online actions will be generated so that the last quarter of 2024 and 2025 can be a year that finds us with a more orderly country, clearer scenarios, reintegration into the developed world, a more stabilized economy and , as a consequence, thriving companies with the beginning of positive results that in turn allow them to be distributed among their staff at all levels and spatialities.In summary:
Employment. Maintaining employment is the 2024 goal and it could grow only in 2025. I do not see indicators for it to turn out differently: the economic and social variables need time and actions to organize themselves from the chaos and confusion in which they find themselves and this will take at least 2024.
Wages. Clearly they will be below Inflation, it is difficult at the moment to say at least, but I assume 20%. In some companies, salary adjustments or updates are carried out differently for personnel who are outside the Collective Bargaining Agreement compared to personnel under the agreement. This leads to failure to meet one of the main objectives promoted by companies with world-class Human Capital practices: guaranteeing internal equity within the organization. Knowing how to manage staff compensation will be the key for companies. Those who know how to do it will maintain teams, those who do not will lose.
Payments in foreign currency. Despite a more stable dollar and a narrower gap, it is a resource only for companies that invoice in dollars. The rest of the companies are not recommended.
Increases. Quarterly or bimonthly adjustments cannot be maintained; monthly adjustments must be implemented, at least in the first quarter of 2024. It will be essential so that people can sustain the situation that will arise in their cost of living.
Rotation. Turnover will decrease due to 2 joint actions: many companies have learned the costs of this phenomenon and are adopting retention measures, especially in the area of benefits, and on the other hand, the demand for personnel will not be increasing but will maintain the current situation. Companies must do their best to take care of all their staff, but with more focus on the key profiles of their business.
Presence. The first surveys indicate that there are companies that are reviewing the remote work policy, not to eliminate it but to reduce its frequency to no more than 2 days a week. It’s a trend.
Talent. It will continue to be scarce: the greater availability of human resources from public employment may be a relief in certain profiles, although in others it will not work.
Labor/Union Relations. Huge challenge for HR specialists. The Government is determined to modernize much of the rigidities present today; great tact will be required to maintain harmonious relations with unions and staff. The entire employment structure will move, at this time initiatives are already being announced via DNU, but beyond this, which in any case will occur externally to the company, we must evaluate the internal impact in each company, this will probably be the challenge of the year for areas specialized in processes employee relations. I do not have doubts.
Carlos Contino is managing partner of CONA RH
by Carlos Contino
