Tashkent, Uzbekistan (UzDaily.com) — EY has released its annual "Salary and Compensation Review" for 2024/2025, based on insights from 60 companies across various industries in Uzbekistan. The study highlights key trends in salary structures, HR policies, and workforce challenges.

The findings reveal that Uzbekistan’s labor market is undergoing dynamic changes. Companies recognize the need not only to increase wages but also to create an attractive work environment to retain employees. A successful HR strategy requires a comprehensive approach that includes both financial and non-financial incentives. This underscores the importance of strategic workforce planning and adapting HR policies to emerging challenges.

According to the report, 66% of companies plan to expand their workforce in the near future. However, despite this intention, the labor market faces challenges, with the overall employee turnover rate increasing by 7% compared to the previous year. The primary reason for voluntary turnover remains dissatisfaction with salary levels. To address this, 70% of companies conduct annual salary reviews, while 12% do so twice a year.

Other factors contributing to employee turnover include relocation, lack of career growth opportunities, dissatisfaction with workplace relationships, and the absence of remote work options. To mitigate turnover, companies focus on enhancing corporate culture, communication, and feedback systems.

Over the past year, 64% of surveyed companies increased employee salaries, with an average wage growth of 13%. The most significant salary increases were observed in the FMCG and HoReCa sectors (15%) and the education sector (14%), reflecting an effort to stay competitive. Looking ahead, the hospitality and restaurant industry is expected to lead salary growth in 2025, with a projected increase of 18%, exceeding the market average by 5%.

Beyond salaries, employers in Uzbekistan recognize the importance of additional incentives. Corporate meal programs are available in 66% of companies, primarily for production and support staff. Corporate mobile communication and company cars are typically provided to executives. Interest in well-being programs has surged by 46% compared to last year, and the use of non-financial motivation tools has grown by 12%.

These trends indicate that companies are increasingly prioritizing employee well-being and engagement. The findings of EY’s Salary and Compensation Review 2024/2025 offer valuable insights for HR professionals and business leaders, helping them develop effective workforce strategies to retain top talent in Uzbekistan’s evolving labor market.