In alignment with our commitment to delivering the right personnel solutions in our local market – particularly in providing accurate total rewards data for management positions – we have successfully completed our third consecutive management benchmark project. As in previous years, this year’s survey focused on the industrial sector in Serbia, specifically targeting factory management positions, including top-level local roles and the level immediately below.

At the close of last year, it became clear that certain changes were underway, especially within the automotive industry. The crisis in the European automotive sector has begun to affect the local market, and this shift is reflected in the results of our survey. A number of companies are planning to reduce their workforce this year. However, the data shows that this impact is not overwhelming – slightly less than 20% of our total sample indicated plans for employee reductions. On a more positive note, approximately 30% of companies are planning to increase their workforce, while the majority – nearly half – intend to maintain their current staffing levels.

Looking ahead to 2025, the projected management salaries are statistically consistent with the trends of previous years. As a result, it is unlikely we will see a reduction in management salary levels; however, significant salary increases are also not expected. One key insight from this year’s research is that fewer companies are projecting annual salary increases, and those that are doing so are anticipating lower increase rates compared to prior years. While about 30% of companies did not offer salary increases in the past two years, this figure has risen to 50% this year. In other words, the number of companies maintaining the same salary levels as the previous year is growing.

When we look at salary increase rates, last year, 60% of companies implemented an annual increase between 6% and 10%. This year, however, the situation has shifted. The majority of companies (69%) are now projecting an increase between 3% and 5%.

Although the number of companies participating in our research is not huge and may not fully represent the entire market, certain trends are clear. The question of whether there will be an annual salary increase, as well as the magnitude of such increases, has become less of a focal point than it was in previous years.