You are viewing the content for Friday 15 October 2010

Nearly half of Irish-based employers to offer workers a pay hike in 2011

NEARLY half of Irish-based employers are anticipating being in a position to offer their workers a pay rise next year, according to a new survey.

The study — carried out by human resources consultancy, Mercer — found that 41% of employers are projecting salary increases for all of their staff in 2011; 36% are planning increases for part of their workforce and 22% are anticipating a pay freeze. Only 1% of respondents said they foresee pay cuts.

However, most of the positivity comes from larger Irish organisations and multinational companies based here. When smaller fully Irish-owned companies were questioned, only 17%, in comparison, said they expect to be able to issue pay rises to all staff members next year.

According to Patrick Robertson, senior consultant with Mercer’s Human Capital business: "While there is still a lot of uncertainty in the marketplace, we believe that sentiment has improved among employers. Many have taken action to manage remuneration costs and headcount within their organisation and they are now more confident about 2011 and beyond."

"It is safe to say that most employers have reviewed costs in the past two years. We have worked with many employers to help them to manage change and to make cost savings within their employee benefit programmes, while also minimising the impact on employees," he added.

Of the 116 firms surveyed, more than 30% said that they haven’t undertaken any restructuring or redundancy programmes since the downturn kicked in last year, and don’t expect to in the coming 12 months.