Barcelona and Lisbon Entry-Level Job Market Salary Benchmark for Language Jobs (2022)

Outsourcing became everything for business in the global market. As the demand for multilingual Customer Service, Sales and Back Office profiles continues to grow and European metropolitan cities such as Barcelona and Lisbon became the main bases for multinational Business Process Outsourcing and Shared Service Centre companies considering their attractiveness and proximity to in-demand talents.??

While the BPO revenues are finally on the rise again after the impacts of the global pandemic and the annual contract values in 2021 hit nearly 7 billion euros (not surprisingly, a third of the global market share belongs to Europe/EMEA) and SSCs continue covering great amounts of business processes for multinational companies job boards are full of vacancies for entry-level language speakers. In particular, the volume of demand for German, Dutch, French and Nordic-speaking entry-level professionals has been observed to be increasing in the European market due to the success of start-ups and the growing market in Europe.

Consequently, the entry-level talent acquisition trends in Barcelona and Lisbon have been evolving recently due to changed expectations in the candidate-driven market. To be followed by further studies on other job functions and seniorities, we are glad to share this brief salary guideline to shed light on the current market pay rate for the sectors that have the most volume of entry-level openings for foreign language speakers in Barcelona and Lisbon: Customer Service, Sales and Back Office.

Update: 2022 Q3 Observations and 2023 Salary Predictions

Annual Salaries are Increasing in Spain and Portugal Due to Inflation and Talent Shortage?

According to the European Commission, the annual wages in the EU in the Q2 of 2022 have increased by 4.4% compared to the same period last year. While in Spain it’s recorded that the increase was close to 3%, in Portugal the change was higher than in the EU average with an increase higher than 5.5%. In line with our focus study on Business Process Outsourcing and Shared Service Centre company job functions, statistics show one of the highest increases in the wages observed in Administrative and Support Service Activities with an increase of 6.6%. In 2021 the biggest jump in the total labour cost within this function happened in Q3 and Q4, with our current observations in the market, it is safe to predict the annual gross salaries will continue increasing more than the current values.?

Since June, after we published our salary study, companies have already revised some of their salaries. Both in Portugal and Spain, it has been observed that offering signing bonuses (which can be up to 25% of the annual salary) became a recurrent practice rather than an exceptional benefit offered in the seasonal peaks. In addition to that, many companies have either already updated their compensation packages or reviewing their budget for 2023, particularly for the market for German, Dutch, French and Nordic languages. Current and expected increases in our job portfolio are between 6% to 9.5% which shows that the salaries are trying to catch up with the inflation rates in Spain (7.3%) and Portugal (10.6%).

Mass tech layoffs transformed the labour market in the EU as well as in other markets by filling the pools with fresh talents, however, we don’t expect any significant changes in the salaries for the job functions and locations we limit the focus of this study with. On the other hand, with the expectation of a ‘recession’ some international companies announced a hiring freeze for the last quarter of this year, however, at the moment the business outsourcing industry doesn’t seem to be affected by it in Europe. There is also good news for the Spanish labour market for 2023 which can help to stabilise the economic growth at a time of potential crisis. With the latest news on the Startup and Digital Nomad law approved by the Spanish Parliament, Spain is getting ready to be the EU centre of Startups from January 1st of 2023 and it is expected that this will impact the overall international labour market and create more tension on the salaries.

What can you find in our benchmarking study on entry-level labour trends in Barcelona and Lisbon?

In our salary study, as an international recruitment company specialising in the entry-level multilingual job market, we considered a wide range of entry-level positions for specific language speakers from over 20 small to large size companies operating in Barcelona and Lisbon including BPOs, Shared Service Centers, and Start-Ups.?

Seniority-Levels and Skills for Language Jobs

By entry-level seniority, we considered all positions that don't require any previous experience (approx. 85% of the roles included) and also roles that require from only 6 months to a maximum of 2 years of relevant experience (15%). For most of these entry-level language jobs in Customer Service, Sales and Back Office, companies are looking for native language speakers with soft skills only while a few exceptions require previous experience in the sector or related fields or a certain education level. companies are looking for native language speakers with soft skills only while a few exceptions require previous experience in the sector or related fields or a certain education level.

Language Criteria for BPO Jobs

The language classification includes German, Dutch and Flemish, French, Nordic and other languages. By Nordic, we categorised Swedish, Finnish, Danish and Norwegian aligning with the classification of the job market. In Other languages, as our portfolio of different languages with a lower volume of positions suggests, we consider 15 languages including English, Italian, Turkish, Arabic, Hebrew, Polish, Czech, Slovak, Norwegian, and Russian. For non-native level language requirements, the levels are determined according to the Common European Framework of Reference for Languages (CEFR).

Main Job Functions in International BPO Industry

For the job functions, we named 3 main categories that the companies continuously are in need of entry-level employees. The Customer Service job category consists of all "customer/client-facing" support roles including positions that originally fall under the Technical Support category but were combined here due to similarities in demand and salaries. For the Sales category, we have included different titles such as Sales Representative, Business Developer or Account Executive. Back Office, on the other hand, combines all support and administrative positions that are not client-facing.

Salary Packages for Language Jobs in BPO Industry

Regarding the given salary benchmarks, the gap between minimum and maximum salaries might be larger in some cities and languages due to differences between company packages and market demands. Minimum salaries represent the base salary including the language bonuses but not the performance bonuses. For uncapped bonus packages, the maximum salaries have been calculated according to average team achievements.

1- Barcelona Entry-Level Salary Benchmark

Companies in Barcelona are in continuous need of international talents with native language skills to stay competitive in this growing business hub.

Table 1 below includes the salary trends for different entry-level job functions. While salary packages between Customer Service and Back Office demonstrate a similar trend, the Sales function comes with a higher salary end due to the competitive salary and bonus trends within the market. Due to differences in native languages, the salaries vary according to the demand of the market for those language skills as well as bonus packages for different regional markets.

While requirements vary according to the job categories and companies, mostly certain soft skills make the candidates stand out and desirable for international companies. For these roles, holding a Bachelor's or Master's degree is seen as an important factor only for some of the Sales and Back Office positions, either as a mandatory requirement or a reason for a higher salary package while the majority of the Customer Service roles don't have the preference. English proficiency, on the other hand, is a mandatory requirement for almost all positions included in this study with a few exceptions. While a B2 level of English* is acceptable for some positions, most language jobs require a C1 level to ensure fluent internal company communication and native-level language skills as listed.

Due to the high expat population and competitive candidate market in Barcelona, the relocation package is not observed as a common benefit for the entry-level job market, however, most companies offer help with paperwork as well as including a relocation package of up to €5000 for talents abroad.

2- Lisbon Entry-Level Salary Benchmark

Hosting many top BPO companies, Lisbon became an attraction for expats with language skills by providing a vast amount of career opportunities.

Table 2 below includes the salary trends for different entry-level job functions. Salary packages in Lisbon show similar rates between job functions only with a slight difference in the higher end for the roles that are client-facing such as Customer Service and Sales. The salaries for different native languages vary according to the demand of the market for language speakers and bonus packages for different regional markets.

For the majority of the BPO roles, holding a Bachelor's or Master's degree is not a significant criterion for employment or higher compensation with few exceptions only. On the other hand, a proficient English level is a requirement for most of the projects the companies hire for and a C1 level of English might stand as a criterion for a higher salary. Regarding the native languages, while for some positions a B2 or C1 level is acceptable most of the positions require native-level proficiency.

Some companies either include relocation support in their salary package or provide it extra. Depending on the start dates and demands for specific language speakers, a signing bonus might be added from €1000 to €5000 on top of the annual salary. While average on-target bonuses are added to salaries, extra bonuses some projects offer might increase the maximum end.

Download the full study here.

Do you have questions about working or hiring in Barcelona and Lisbon?

As Blu Selection, connecting multilingual jobseekers with international companies is what we specialize in and we are more than ready to help you with your next career move. Whether you are seeking a first working experience abroad or trying to catch an offer that will boost your career, we are here to answer your questions regarding the European labour market and mobility, particularly job opportunities in Barcelona and Lisbon for multilingual entry-level professionals.

To learn more about working or hiring in Barcelona and Lisbon, feel free to contact us.