65% of companies increased pay rates in 2021 – Ibec
65% of companies increased basic pay this year, with an average increase of 2.8%, the latest Ibec HR Update Survey shows.
The figures are higher than had been expected in the business group’s 2020 report, which Ibec said is indicative of the ongoing economic recovery.
The proportion of employers awarding pay increases will be 75% in 2022 with a reported average increase of 2.71%, it predicted.
According to today’s survey, skills shortages combined with upward wage pressure are leading to an increasingly competitive talent market, while hybrid working is increasingly seen as key to securing talent.
But while hybrid working is a second dominant trend in the research, Ibec also said it is clear that employers continue to recognise the importance of other worker supports and benefits, including employee wellbeing, providing the right technology, training and appropriate physical work environments.
Meanwhile, 62% of respondents to the survey said they will implement hybrid working in their organisation, while they also said that hybrid working is recognised as a competitive advantage for organisations, along with other flexible working practices.
The survey also reveals that employers will focus on and will invest in key areas related to employee experience.
Ibec said the key areas of HR investment planned for the next five years include investment in employee wellbeing (58% of respondents), investment in the physical workspace (39% of respondents) and equipping managers to manage dispersed teams (33% of respondents).
Ibec is hosting its annual HR Leadership Summit today, which is taking place virtually.
“Relative to our international peers, as an economy Ireland currently stands to experience significant competitiveness challenges from Brexit, from international tax reforms and our existing laggard status in completing the low carbon transition,” Ibec’s Director of Employer Relations Maeve McElwee said.
“Enacting policies that protect our competitiveness will be the key to weathering an exceptionally volatile external environment and reaping the long-term opportunities economic re-opening can bring. This can only be done by controlling costs where we can and prioritising strategic investments in innovation, digitalisation and skills,” Ms McElwee said.
She said that revitalising the country’s labour market and building for a new world of work, giving companies the support necessary to meet ambitious low-carbon targets and making targeted interventions in housing can help us drive a new economic model which builds back better.