The Impact Of Hyperinflation On Rewards

Organizations in Hungary, Turkey and Egypt are looking beyond compensation to strategies that drive talent attraction and retention.

The countries in Central and Eastern Europe, the Middle East and Africa (CEEMEA) represent diverse examples of how inflation (or hyperinflation, as the case may be) and expected market growth has impacted organizations as well as the way they approach employee compensation. While organizations are still implementing salary increases, high inflation continues to eclipse wage growth at varying degrees (Figure 1).

Middle Eastern countries are the exception to high inflation beating salary increases. Increases in the region have caught up with inflation, while countries such as Hungary, Turkey and Egypt are experiencing exceptionally high inflation. This has prompted changes to organizations' compensation and benefits strategies to drive talent attraction and retention through a challenging economy.