Guatemala: More Work and Less Pay

When vacancies arise companies fill them paying the new employee less than before, and give them even more demanding requirements.

Tuesday, August 27, 2013

A Manpower study outlined in an article in Prensalibre.com notes that in Guatemala "requirements are increased when new staff are hired, however the wages offered are not in line with the international market.

For example, one company had a manager with a profile matching a salary of up to $3,138, this person resigned and his place was taken by a underling who had a salary of $1,255 and who, after the change in position, was offered $1,632. This person got a better opportunity and resigned, shortly after which the company attempted to hire a new manager with the requirements of the first but with the salary of the second.

"Wages in the profiles are outdated because they are not paying for the work they are asking for. One factor is that we as consumers are increasingly asking for lower prices and companies are reducing costs," said the regional director of Manpower Group, Erick Quesada.

"The problem is that given the needs of the unemployed, in many cases, they decide to accept any payment and this prevents the market from putting wages up," Quesada said, adding that the constant turnover of employees at the time of hiring also prevents specialization.

In the view of Juan Carlos Quan, public relations manager at TRANSDOC, the problem in reducing wages comes from the tendency of companies to reduce costs and maximize resources. "... Decision makers within organizations cease to be human and become very cold, and the job becomes a number, which must be profitable," he added.

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