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Salary increase and continuing education: the future of work in Italy

Increase in salaries in 2024

In 2024, average salaries in Italian companies increased by 3.8%, according to Mercer’s Total Remuneration Survey 2024. This increase, although significant, is expected to slow down in 2025, with estimates that indicate a more moderate increase of 3.5%. The compensation policies of the approximately 700 companies analyzed, which employ an average of 1,700 employees, show how the trend of inflation is influencing wage decisions, making this
parameter a key element in business strategies.

Innovative compensation strategies

Despite economic challenges, many companies are trying to improve the wage situation to attract and retain talent. In a competitive labor market, the short-term variable component is increasingly used. In addition, 22% of companies have introduced long-term incentive systems to reward key roles. At the same time, the adoption of flexible benefits is growing, with an increase of 17% compared to 2023, and flexible working methods, which aim to create personalized total reward offers
.

The importance of continuing education

Marco Morelli, CEO of Mercer Italia, points out that the loss of purchasing power has made meritocratic policies less selective, expanding the audience of recipients of pay increases. However, companies are also recognizing the importance of continuing education as an integral part of compensation policies. Almost 50% of companies offer training programs, fully covering costs, often with no obligation to remain for employees. This approach is essential to face the challenges of the labor market, where skills are increasingly in demand.

The gap in participation in training

Despite the importance of training, Italy has a 35.7% participation rate in training activities among adults between the ages of 25 and 64, well below the European average. The causes of this low participation are manifold, including socio-demographic factors such as age and level of education. In particular, participation in formal learning programs decreases dramatically after the age of 35, with only 1.3% of those over 35 participating in formal courses. Even among young people, the participation rate is lower than the European average, highlighting the need for targeted interventions to improve access to training
.

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