latvia country report_graph_demo

The Salary Survey of

Latvian Employers and Employees

Demo version

Spring 2013

The Salary Information Agency

OÜ Tark Tööandja


specialises in:

• Salaries offered by employers by

occupation

• Employees’ salary expectations by

occupation

• Reward and benefit packages by job

group

• Comparison of remuneration systems

• Salary adjustments and forecasts, and

their causes

• Application of smart work arrangements


organises:

• Employers’ and Employees’ Salary

Surveys

• Interpretation and analysis of salary

statistics

• Round tables, seminars and

conferences

• Advice to employers and employees on

matters of salary and work organisation

• Publications: salary survey reports,

compilations of articles

Unique Evolving and engaging Representative Reliable Quick and immediate

Sound methods Participant-friendly Smart investment

The Agency's mission is to generate useful information for employers to help

them create competitive remuneration packages and for employees to

develop adequate salary expectations.

Activities of the Agency

Publications available from the Salary Information Agency

Report name Description Date of

publication

Price (EUR

+ VAT)

Price for

participants

(EUR + VAT)

The Salary Survey Report

for the Baltic States

The Salary Survey Report for the Baltic States contains the conclusions of

employers’ and employees’ salary surveys from all three countries.

1.08.2013 790 590

Employers’ and Employees’

Salary Survey Country

Report (Estonia, Latvia,

Lithuania separately)

The report contains comparative conclusions of Employers’ Salary Survey and

Employees' and Job Seekers Salary Survey for each country: basic salary

adjustments and employers’ forecasts for adjustments, reasons behind

adjustments, employees’ gross salary adjustments, changes in labour demand

and how organisations react to these changes, work organisation and working

conditions in organisations, employers’ and employees’ views on work

organisation and working conditions, forms of employee representation and

employees’ participation in these representations, salaries in April 2013

(statistical average, median, 1st and 3rd quartiles, 10th and 90th percentiles),

including salary components and employees’ salary expectations, in 30 job

sectors.

22.07.2013 390 195

The Employers’ Salary

Survey Report

The report contains the conclusions of the Employers' Salary Survey in each

country: basic salary adjustments, forecasts and reasons for adjustments,

changes in labour demand and how organisations react to these changes, work

organisation and working conditions in organisations, forms of employee

representation, salaries in April (statistical average, median, 1st and 3rd

quartiles, 10th and 90th percentiles), including salary components, in 30 job

sectors.

22.07.2013 250 150/0*

Participant Report for

Employer

Similarly to the Employers’ Salary Survey Report this report contains summaries

of basic salary adjustments, work organisation and other related topics, as well

as average salaries (statistical average, median, 1st and 3rd quartile, 10th and

90th percentile) by occupation in April 2013 in those sectors that the particular

participant submitted salary data about. If the participant submitted data for more

than two job sectors, the Employers’ Salary Survey Report will be free of charge

for them.

22.07.2013 not

available

0

Sector report on

employers’ and employees’

salary survey outcomes

The report contains a short summary of the main conclusions of the salary

surveys, and April 2013 salaries in one sector (eg manufacturing, transport,

trade etc.) of the relevant country, incl. salary components and employees’

salary expectations.

22.07.2013 150 75

PROFILE OF SURVEY

RESPONDENTS

The Employers’ Salary Survey

Number of respondents

283

243

179

0

50

100

150

200

250

300

Estonia Latvia Lithuania

Employers

9227

7488

3163

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Estonia Latvia Lithuania

Employees

5

Need for relevant salary information

23%

47%

25%

0%

5%

0% 10% 20% 30% 40% 50%

Very rarely – once a year

Rarely – once a quarter

Regularly – once a month

Often - once a week

Very often – daily

Need for salary information

44%

21%

13%

5%

3%

15%

0% 50%

Official statistics

The Salary InformationAgency

Fontes’ salary survey

Hay Group’s salary survey

Mercer’s salary survey

Other

Using salary market information

0% 5% 10% 15% 20% 25% 30%

Agriculture, forestry and fishing

Mining and quarrying

Manufacturing

Electricity, gas, steam and air conditioning…

Water collection, treatment and supply

Construction

Wholesale and retail trade

Transportation and storage

Accommodation and food service activities

Information and communication

Financial and insurance activities

Real estate activities

Professional, scientific and technical activities

Administrative and support service activities

Public administration and defence,…

Education

Human health and social work activities

Arts, entertainment and recreation

Other service activities

Other

Responding organisations by economic activity

0% 5% 10% 15% 20% 25% 30%

1-9 employees

10-19 employees

20-49 employees

50-99 employees

100-249 employees

250-499 employees

more than 500 employees

Responding organisations by employee ranges

86%

42%

39%

37%

32%

34%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Rīga reģions

Pierīga reģions

Vidzeme reģions

Kurzeme reģions

Zemgale reģions

Latgale reģions

Respondents’ region of activity

PROFILE OF SURVEY

RESPONDENTS

The Employees’ Salary Survey

0% 5% 10% 15% 20%

Construction and real estate

Energy, electricity and electronics

Representative organisations and other…

Finance and accounting

Education and training

Humanities and the creative sector

Information and telecommunication…

Information workers

Personal services

Management and business services

Mining

Environmental protection and waste…

Clerical and administrative work

Protective and emergency services

Earth and engineering sciences

Accommodation and food service

Sales and marketing

Banking and insurance

Human resources and employment

Cleaning works


Advertising and PR

State and public administration

Social work and welfare

Sports, culture and leisure

Health care and medicine

Transportation, storage and logistics

Industry and manufacturing

Law

Area of work

0% 2% 4% 6% 8% 10% 12%

Construction and real estate

Energy, electricity and electronics

Representative organisations and other…

Finance and accounting

Education and training

Humanities and the creative sector

Information and telecommunication…

Information workers

Personal services

Management and business services

Mining

Environmental protection and waste…

Clerical and administrative work

Protective and emergency services

Earth and engineering sciences

Accommodation and food service

Sales and marketing

Banking and insurance

Human resources and employment

Cleaning works


Advertising and PR

State and public administration

Social work and welfare

Sports, culture and leisure

Health care and medicine

Transportation, storage and logistics

Industry and manufacturing

Law

Desired area of work

5%

73%

7%

1%

1%

5%

0%

1%

0%

3%

8%

4%

0% 20% 40% 60% 80%

Entrepreneur

Full-time salaried employee

Part-time salaried employee

Apprentice

Voluntary worker

Studying at school or…

Conscript

Pensioner

On parental leave

Registered unemployed

Do not work or study

Labour status

17%

11%

15%

14%

16%

9%

18%

0% 5% 10% 15% 20%

1-9 employees

10-19 employees

20-49 employees

50-99 employees

100-249 employees

250-499 employees

more than 500 employees

Range of employees – current employer

Labour status and size of company

1%

30%

27%

16%

8%

9%

8%

1%

1%

0%

0% 10% 20% 30% 40%

Doctoral degree

Master’s degree

Bachelor’s degree

Vocational higher education

Post-secondary vocationaleducation

General secondaryeducation

Vocational secondaryeducation

Vocational education afterbasic education

Basic education

Less than basic education

Education

59%

10%

10%

9%

9%

4%

0% 20% 40% 60% 80%

Rīga reģions

Pieriga reģions

Vidzeme reģions

Kurzeme reģions

Zemgale reģions

Latgale reģions

Place of residence

Place of resicence and education

62%

38%

0%

10%

20%

30%

40%

50%

60%

70%

Female Male

Gender of respondents

0%

9%

41%

25%

18%

7%

0% 0% 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

15 oryounger

16-24 25-34 35-44 45-54 55-64 65-74 75 orolder

Age group of respondents

Gender and age of respondents

CHANGES IN BASIC SALARIES


• Share of respondents who had not changed and did not plan to change basic salaries

• Share of respondents who had raised basic salaries and average rises during the

previous 6 months (Nov 2012 – Apr 2013)

• Share of respondents who were planning to raise basic salaries and average planned

rises in the following 6 months (May–Oct 2013)

• Employees impacted by pay adjustments (%)

• Reasons behind salary changes during the previous 6 months (%)

• Reasons behind salary changes scheduled for the following 6 months

Slides in the full version of the Salary Survey Report

NET SALARY CHANGES

The Employees‘ Salary Survey


• Changes in net salary Apr 2012 – Apr 2013, share of respondents (%)

• Average rise in net salary Apr 2012 – Apr 2013

• Net salary changes Apr 2012 – Apr 2013, by occupation group

• Average rise in net salary Apr 2012 – Apr 2013, by occupation group of respondents

• Net salary changes Apr 2012 – Apr 2013, share of respondents by size of employer’s

organisation

• Changes in net salary Apr 2012 – Apr 2013, share of respondents by gender

• Changes in net salary Apr 2012 – Apr 2013, share of respondents by age group

• Changes in net salary Apr 2012 – Apr 2013, share of respondents by level of

education

• Changes in net salary Apr 2012 – Apr 2013, share of respondents by place of

residence

JOB SEEKING


• Job seeking activities

• Job seekers by labour status and area of activity

• Job seekers by occupation group and by years in service

• Job seekers by size of current employer’s organisation

• Job seekers by gender, age group and level of education


CHANGES IN LABOUR DEMAND &

ASSESSMENT OF LABOUR MARKET

SITUATION


• Changes in labour demand – share of respondents who need

additional people

• Changes in labour demand by economic activity

• Changes in labour demand by size of organisation

• Labour demand forecast

• Employers’ assessment of labour market situation

• Dealing with labour shortage


WORK ORGANISATION

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7%

20%

18%

24%

34%

33%

34%

41%

5%

9%

13%

20%

24%

30%

31%

42%

0% 20% 40% 60% 80% 100%

I can greatly influence my pay.

I can influence the criteria used to assessmy work performance.

I can decide where I work and how andwhen I get there.

I can organise my own working hours, fixedhours are not enforced.

I have a say in setting my work andperformance targets and deadlines.

I can plan my own work process and when Ido what.

I can choose myself how to do my work andwhat methods and techniques I use.

Independence in organising my work isimportant to me.

Autonomy in work organisation

4- agree

5- strongly agree

Work organisation – employees’ views

25%

20%

40%

61%

14%

6%

19%

30%

0% 20% 40% 60% 80% 100%

Employees can plan their own work processand when they do what.

Employees can choose how they do theirwork and what methods and techniques they

use.

Employees have a say in setting work andperformance targets and deadlines.

Employees' independence in organising theirwork forms an important part of our

organisation's work culture.

Employees can manage their own workinghours, fixed hours are not enforced.

Employees can decide when they need tocome in and how and when they get there.

Employees can influence the criteria used toassess their work performance.

Employees can greatly influence their pay.

Employees’ autonomy in work organisation

5 – true for most employees

4 – true only in case of managers and top professionals

3 – true for office workers depending on the nature of their job

Work organisation – employers’ views

Work organisation – employers’ responses

33%

18%

49%

0%

10%

20%

30%

40%

50%

60%

No, the nature of our organisation’s work doesn’t

allow that

No, even if the nature of somejobs would allow that

Yes, if the nature of the joballows that

Teleworking possibilities in organisation

0%

10%

20%

30%

40%

50%

60%

70%

No, the nature of myjob doesn't allow that

No, even though thenature of my job would

allow that

Yes, I can workelsewhere if I wish

Teleworking possibilities and satisfaction with work organisation

All employees

Satisfied with their work organisation

Not satisfied with their workorganisation

Work organisation – employees’ responses

30%

32%

36%

34%

31%

45%

40%

15%

16%

13%

17%

21%

35%

48%

0% 20% 40% 60% 80% 100%

Our organisation and/or department is wellmanaged.

Work organisation in my current job suitswell with my personal lifestyle.

I am satisfied with my work organisation.

My work environment fully supportsachieving the best performance.

My job offers me professional development.

I feel that I am trusted at work.

I have good relations with my colleagues.

Working conditions and environment

4- agree

5- strongly agree


41%

39%

45%

54%

40%

52%

51%

11%

19%

28%

20%

36%

30%

33%

0% 20% 40% 60% 80% 100%

Our organisation has the best possible workorganisation.

Work organisation takes into account employees’ personal lifestyles (studies,

family etc.).

Our work environment is fully supportive ofachieving the best performance.

Our organisation and/or department is wellmanaged.

Our employees have opportunities todevelop professionally.

The relations between our employees aregood.

We trust our employees.

Working conditions and environment

4 - agree

5 - strongly agree


25%

30%

36%

31%

37%

38%

42%

36%

43%

6%

16%

21%

27%

22%

23%

24%

32%

30%

0% 20% 40% 60% 80% 100%

Allowing teleworking damages team workand causes tension due to unfairness.

Teleworking at home presents various risks for the employee – responsibility for their work equipment and covering the costs …

Many employees lack sufficient self-discipline and sense of responsibility to work

independently.

If the nature of the work does not requirefixed hours in the office then it is pointless to

enforce it.

Flexible working makes it more difficult tokeep work and private life apart.

Organisations that offer flexible working,including teleworking, are more attractive as

employers.

Employees are better motivated and moreefficient when they have more say in their

work organisation.

Managers should spend more time onassessing performance rather than

enforcing fixed working hours.

In order for flexible working to be successfulit would have to be a natural part of the

organisation's work culture and not just an…

Pros and cons of flexible work organisation

4- agree

5- strongly agree


23%

30%

28%

32%

37%

38%

42%

35%

48%

4%

8%

10%

8%

13%

15%

18%

47%

33%

0% 20% 40% 60% 80% 100%

The majority of employees cannot be trusted withmanaging their own work organisation as they lacksufficient self-discipline and sense of responsibility.

Offering flexible working, including teleworking, improves the employer’s reputation, which in turn

helps to recruit better candidates.

Allowing teleworking presents various risks for theemployer, such as security risk, health and safety risk

and loss of assets risk.

Allowing teleworking damages team work and causestension due to a sense of unfairness.

Allowing flexible work organisation makes people andwork process management significantly more

complex.

Giving employees more autonomy allows managersmore time to deal with organisational matters instead

of checking adherence to fixed working hours.

Giving employees more freedom and responsibility toorganise their own work improves their motivation

and performance.

With non-manual employees it is more important toassess their performance rather than enforce fixed

working hours.

In order for flexible work organisation to be successfulit would have to be a natural part of the organisation's

work culture and not just an individually agreed…

Pros and cons of flexible work organisation

4 - agree

5 - strongly agree


GROSS WAGES AND SALARIES



• Average gross wages for 175 occupations

• Comprehensive pay reports for 38 individual occupations

• Gross monthly salary ranges (quartiles 25, 75; percentiles 10, 90;

median)

• Internal pay differences in organisations

• Basic pay and variable pay

550

830

500

750

Gross monthly salary range

Lowest 70%

Average 100%

Highest 140%

Internal pay differences

80%

20%

Share of base pay and variable pay in salary

Variable pay

Base pay

EMPLOYEE MOVEMENT AND

SALARY EXPECTATIONS


• Existing job and desired job – movement of employees

• Existing net pay and desired pay for 284 occupations

• Desired pay by gender, age, educational level, etc. (on

request)


800

600 600

1600 1500 1500

650

500 500

1450

1200

1000

latvia country report_graph_demo

Lifestyle

insurance human resources

eur vat

real estate energy

emergency services earth

food service sales

engineering sciences accommodation

leisure health care

electronics representative organisations