Against the backdrop of instability born of an economic crisis in full swing and a political landscape undergoing profound change what challenges are facing Argentina’s human resources sector? Digital transitioning, gender parity, training, and social partner dialogue for instance, are all priorities common to many other economies. However one detail dominates in Argentina and that is the fact that since 2018 the country has been in recession and for several years has had to cope with both runaway inflation (55% over the past 12 months) and a plummeting peso. Markets fell sharply including another slide in the currency in response to the presidential primary elections in August that indicate the center-left wing presidential candidate is now favorite to win the presidential vote at the end of October. As a result macro-economic indicators are worsening and the weak currency is getting weaker. This unstable set of circumstances presents a backdrop of challenges facing the HR sector, the main priority of which is to maintain a healthy working environment during periods of turbulence.
The working environment. With ongoing rampant inflation, the first challenge for HR is managing to maintain the value of salary levels. “Apart from some sectors it is impossible to keep up with inflation,” admitted Alejandro Mascó, consultant with the MR Partners advisory firm. Banking sector salaries in particular have been able to keep track with the inflation curve, and in 2018 the oil sector (aceiteros) was even able to negotiate an above-inflation increase in salaries of 75%. Notwithstanding, all salaries, when converted back into USD, are falling on an ongoing basis.
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