Why Compensation Expectations Are Rising Faster Than Most Companies Realize

11/5/2025TALANTY PARTNERS
Why Compensation Expectations Are Rising Faster Than Most Companies Realize

Across Poland, Ukraine, and the Baltics, employers are experiencing a sharp rise in salary expectations — often far above official inflation levels or internal budget planning assumptions. This trend is particularly evident in Finance, Legal, Marketing, and mid-senior Tech roles.

According to Hays Poland 2025, Deloitte Human Capital Trends, and EY CEE Workforce Barometer, compensation expectations across CEE have risen by 8–18% YoY depending on function — significantly faster than the 5–7% increases most organisations budgeted for in 2025.

Executive Summary

  • Salary expectations across CEE outpaced employer budgets by 30–60% in 2025.
  • Finance, Legal, and Marketing roles show the highest upward shifts.
  • Hybrid work and skill mobility gave candidates more negotiating leverage.
  • Cost of living increases only partially explain the rise — skill scarcity is the bigger driver.
  • Companies with slow or rigid grading structures lose top candidates within days.

📈 Why Compensation Expectations Are Rising Faster Than Inflation

The rise in salary expectations is not simply an effect of inflation — it is the result of deeper structural shifts in the CEE labour market.

✔️ Skill scarcity in Finance, Legal & Tech

Hays CEE reports a persistent deficit in Finance BPs, Legal Counsels, Tax/Compliance roles, and senior IC Engineers. Limited supply + high demand → wage pressure.

✔️ Hybrid work expands candidate mobility

Candidates can now compete for roles across Poland, Baltics, or even Western Europe. This raises their compensation benchmarks beyond local norms.

✔️ Internal salary bands lag behind market reality

Many organisations refresh salary bands annually, while the market shifts quarterly. The gap compounds quickly and becomes visible to candidates.

✔️ Candidates compare across borders

According to Deloitte 2025, over 45% of white-collar specialists in CEE benchmark their salary expectations based on Western Europe or remote-first companies, not just local norms.

✔️ Rising cost of “professional life”

Office commuting, childcare, subscription tools, and professional education contribute to higher baseline expectations — especially among mid-senior specialists.

📌 Roles Showing the Fastest Salary Growth (CEE, 2025)

  • Finance: FP&A, Business Partners, Auditors (+10–16% YoY)
  • Legal: In-house Counsel, Regulatory, ESG (+12–18% YoY)
  • Marketing: Digital, Growth, Brand (+8–14% YoY)
  • Tech: Senior IC engineers, DevOps, Data roles (+10–18% YoY)
  • People/HR: HRBPs with change/transformation experience (+10–12% YoY)

⚠️ What This Means for Employers in CEE

Organisations across the region need to adapt quickly. The biggest risks include:

  • Top candidates rejecting offers if bands are outdated by 10%+
  • Slower hiring cycles → losing candidates to faster competitors
  • Higher attrition among mid-level specialists due to market recalibration
  • Salary compression between old & new hires — creating internal tension

Companies with flexible compensation frameworks, transparent salary philosophy, and faster hiring processes will have a meaningful competitive advantage in 2025.

📬 Need a 2025 Salary Benchmark for Your Roles?

At TALANTY PARTNERS, we support organisations across Poland, Ukraine, and the Baltics with market-aligned hiring strategies, salary benchmarking, and executive recruitment in Finance, Legal, Marketing, HR, and Technology.

If your compensation bands or hiring processes need a 2025 update, we’re here to help.

📫 Contact us: contact@talanty.partners


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