The salaries of Argentines have been greatly affected as a result of an explosive combo between devaluation, their transfer to inflation and salaries that evolved well below both variables. Measured in dollars, they clearly lost prominence against others in the region.
On the one hand, this situation benefits several companies in the knowledge industry, since they carry out work abroad and charge them in "hard currency". But, on the other, inflationary escalation puts a lot of pressure on its costs. Is that, in this particular area, labor demand far exceeds supply and this makes professionals quote high.
In other words, fearing that they will be captured by the competition or make more foreign commitments, they are forced to pay what they want, without having too much room to negotiate.
"The rise of the dollar ignited alarms in companies. A high exchange rate has as a counterpart low wages in that currency. In addition, it brings the increase in prices, purchasing power is reduced, consumption falls and imports fall" , highlights iProUP Miguel Terlizzi, president of Hucap.
The devaluation, like any other alteration of some of the key variables of the economy, causes some branches of activity to be damaged and others to benefit. The first group, perhaps the most numerous, encompasses retail, concessionaires and outbound tourism. The second, to agribusiness, mining, export of services and technology and software companies.
From the Computer Union, one of the main unions that groups employees in the sector, they assure iProUP that it has already agreed to an increase of 10% between January and March and 15% or more by mid-year. However, they clarify that these numbers could be higher depending on the post-election context.
"Many SMEs are suffering the impact of the cuts in their customers or low services, but the blow of inflation in the pocket is undeniable. For this and other issues we have already begun the round of meetings to review the situation and recompose wages, as we agreed in the closing of the first stretch of joint, "they add.
Scissor effect: internal and external competition
Professionals linked to the knowledge industry can work freelance from Argentina to the outside and collect in dollars. Even, receive larger amounts and enjoy more flexible schedules regarding the conditions that Argentine companies can offer them.
"The requirements coming from abroad continue to be sustained. Also, there is a high unsatisfied demand in the local market, since there is a lack of professionals to supply the orders of the companies," Terlizzi remarks.
Fernando Waisman, co-founder of Nahual IT, tells iProUP that "a higher dollar benefits firms that export their products and the added value of their knowledge." However, this improvement is offset by the higher wage pressure, since this type of labor (qualified and highly demanded) receives offers in hard currency.
"This scenario contributes to the fact that there is little room for negotiation to agree on variable salaries and bonuses, because what prevails is the retention of talents and prevent them from going to another company or turning to a freelance scheme," he remarks.
Regarding salary levels, the latest annual survey of the Permanent Observatory of the Software and Computer Services Industry of Argentina (OPSSI) and the Chamber of the Argentine Software Industry (CESSI) realizes that a junior professional perceives close of $ 40,000 in hand, while a senior does not fall from the net $ 80,000 per month. Compared with the 2018 data, an increase of the order of 50% is observed.
In the case of developers and programmers, the annual increase was somewhat greater. This is because these profiles are highly required and difficult to obtain. For now, seven out of ten companies went out to look for professionals linked to the digital sector in the first half and more than 80% found it difficult to find them.
For Adrián Anacleto, CEO and founder of Epidata, Knowledge companies have always had to face fierce global competition to attract talent. "Despite the crisis of 2008-2009 and the devaluations of 2014, 2015 and 2018, the sales of the sector measured in dollars increased 3% cumulative annually since 2008," he tells iProUP.
From CESSI they emphasize that employment in the sector increased by about 50% in recent years, at a cumulative annual rate of 4.4%. "Everything indicates that the wage gap between qualified and unskilled employees will be further expanded, also increasing the social gap," Anacleto completes.
"To achieve sustainable development, the country must have predictability and clear economic variables to develop sustainable strategic plans over time. The knowledge industry, unlike others, has no protectionist barriers. In general, it has programs and benefits so that companies can settle in different regions, which makes the demand for talent even greater, "he says.
Ricardo Hernández, CEO and co-founder of Edison, says: "Salaries are increasing to face international competition, which was always high and is increasingly accessible thanks to the possibilities offered by remote work." And he adds that "the problem is not the price of the dollar but the weakening and instability of the peso."
Monica Bobrowski, director of Human Capital at Practia, tells iProUP that Argentine talent is well known in the region and in the world: "Proof of this is the significant volume of software and services exports."
"In recent years, with the evolution of technology, the possibility of working for foreign firms maintaining local residence has greatly increased. Professionals in this industry can choose the best proposal based on their expectations, which does not happen in others items, "he says.
Given this scenario, according to the expert, "local companies have to compete, in terms of comprehensive compensation package, with international companies that have other possibilities."
The difficult task of retaining talent
According to Bobrowski, companies do not necessarily hire in Argentina always find it cheaper. "In these situations, the values ââtend to accommodate and, if we add the labor cost, it can be quickly matched," remarks the executive.
While it is true that this country has world-class professionals, Brobowski remarks that "the knowledge industry is almost the only branch of activity that has full employment provided that the lack of professionals is a problem not only local but also global. "
"For companies, being attractive so that good profiles want to join is presented as a great challenge. Retaining them is a concern that must always be in the minds of their managers and managers, beyond the origin of the competition," recommended.
Along the same lines, Hernández, from Edison, says: "You have to accompany employees with benefits tailored to each need. Thus, retention and support are encouraged beyond the economic."
For Waisman, of Nahual IT, there is also no doubt that companies should have an eye on their key human resources. "It is difficult to retain talents and that is why they should provide them with the best possible working conditions and climate," he says.
Thus, companies face a dilemma. While the rise in the dollar benefits them as exporters, it pushes upwards the salaries of those who are linked to the "digital economy." It is that in this case the competition comes not only from the internal level, but also from foreign firms interested in capturing Argentine talent.
