A look at how shifting priorities and new realities have impacted hiring, salaries and benefit plans in Brazil.
As an important part of our executive search work, Boyden Brazil conducts an annual salary survey aimed at better understanding the compensation and benefit practices related to a number of executive positions in various sectors within the Brazilian market. This 43rd edition of the survey takes salaries from April 2022 as its frame of reference.
Executive mobility in the Brazilian market
In 2021 companies started the year managing residual effects of the COVID-19 pandemic. The first four months were particularly difficult, but at the same time, vaccine coverage was expanding and the executive job market was returning to something close to pre-pandemic norms. By the second half of the year most companies had adjusted their operating models and management teams to the new realities. As the 2020 suspension of layoffs came to an end, the job market as a whole regained more stability.
Generally during 2021 executives were more cautious toward recruitment opportunities, with many rethinking their careers, work habits and overall professional commitment. Increasingly the desire for personal fulfilment, individual purpose and quality of life entered into the equation as executives considered changing jobs, employers or careers. The importance of themes such as DEI and ESG also took on relatively more weight. As to companies, we found them to be more conservative in hiring and internal movement of executives as they sought to optimize existing management resources with lean structures, giving priority to those with experience and proven track records of contributing to business results.
We also observed a significant increase in demand for executives who not only generate short-term results but also deal effectively with interpersonal relationships, fostering healthier work environments. Executives who demonstrate good crisis management skills and an ability to adjust business models and processes were especially valued at this stage of the pandemic, when companies were in an intense phase of adjustment to new market necessities.
During 2021 executive salaries were generally stable, while benefits programs were being continually re-evaluated. Individual employee needs were substantially altered during the pandemic, particularly with regard to health benefits and work conditions. Concern with physical and mental wellbeing, and consequently employers’ medical plans, has been increasingly valued by executives, including younger ones. Discussion of work from home arrangements has also taken on much greater importance. Hybrid work models have proven especially useful in the new context of achieving balance between physical presence in the office, which promotes team integration, and remote work, which can optimize the use of time.
The Brazilian market is now rapidly adapting to recent adverse events, such as component shortages caused by global supply chain issues, worldwide inflation, and the war in Ukraine. Additionally, 2022 is a presidential election year in Brazil, and as such business owners and executives are approaching their most important decisions with caution. Once these global scenarios as well as the local political situation become more clearly defined, the domestic market will likely gain new dynamism.
Brazil is now among the best options for international investment, given that other BRIC countries and various emerging market nations are presenting higher risk. Brazil is likely to gain relative importance among the countries and organizations of the developed world.
Executive compensation survey
Boyden Brazil's 43nd annual Executive Compensation Survey presents data and analyses gleaned from the input of 166 participating companies, using April 2022 as a basis. All survey participants are private companies, and the majority are located in the South and Southeast of Brazil.
Survey participants employ more than 9000 executives. Their information is divided into three groups according to gross annual revenues, as shown in the following table:
We are pleased to share the content of this study with our participants and client companies. For more information please contact Euri Cruz at email@example.com or call +55 11 3382 8300 to speak to any partner at Boyden Brazil.