In a shift away from traditional remuneration models, a majority of Belgian employers are now favoring skill-based pay over seniority-based compensation, according to a recent study by human resources company Acerta Consult.
The findings, revealed on Tuesday, highlight a significant trend among businesses aiming to align salaries more closely with employees’ competencies and performance.
The survey indicated that while 78% of Belgian companies currently base their pay structures on seniority, only 26% wish to maintain this criterion in the future.
Instead, a substantial portion of employers are advocating for a remuneration model that emphasizes professional skills (34%) and individual performance (40%).
Laura Couchard, a remuneration expert at Acerta Consult, emphasized the growing recognition of skills and performance in determining pay.
“Employers are increasingly valuing professional competencies and performance over the length of service. This shift reflects a broader trend towards a more dynamic and meritocratic work environment,” Couchard said.
Despite this shift, the study highlighted a notable disparity between employer preferences and employee expectations.
A significant 85% of employees expressed a desire for certainty regarding their monthly earnings and future salary progression over the next five to ten years.
This preference for stability underscores the importance of clear and predictable salary structures for the workforce.
“Workers in our country would like to be sure that the same salary is paid into their bank account every month,” Couchard noted.
“As long as the remuneration policy offers this, employees say they are open to other solutions.” This sentiment suggests that while employees may be open to new remuneration models, they prioritize financial security and predictability.
The survey, commissioned by Acerta Consult and conducted by Indiville, collected data from a representative sample of over 2,700 employees and 500 employers between January 16 and February 1, 2024.
The employee data was weighted to accurately represent the country’s demographic factors, including age, language, and sector.
Interestingly, the study also revealed that Belgian employees are generally satisfied with their current wages, with an average satisfaction rating of seven out of ten.
This overall contentment with current compensation levels may influence how employees perceive and adapt to potential changes in remuneration structures.
As Belgian businesses continue to navigate an evolving economic landscape, the move towards skill-based pay reflects broader trends in global labor markets.
Companies are increasingly recognizing the value of a highly skilled workforce and are adjusting their compensation models to attract and retain top talent.
However, the challenge remains for employers to balance innovative remuneration strategies with the need for stability and predictability that employees value.
Striking this balance will be crucial in ensuring a motivated and satisfied workforce while fostering a meritocratic environment that rewards skills and performance.
The results of this study provide valuable insights for policymakers, HR professionals, and business leaders as they consider the future of remuneration in Belgium.
As the labor market continues to evolve, the emphasis on skill-based pay may become a key factor in shaping the country’s economic and employment landscape.
