Most companies expect to hire staff this year but pay rises will be modest

The majority of companies expect to boost staff levels this year, but any pay increases are likely to be modest.

The latest salary survey from recruitment specialist, Morgan McKinley, states 55% of hiring managers plan to hire permanent staff in 2013; with qualified and experienced professionals set to be most in demand.

Only 9% of employers are worried that emigration will be pose a hurdle to sourcing suitable talent.

While the 55% figure still shows a majority of firms looking to up their staff levels, it is down from a 65% figure in the same survey this time last year.

Morgan McKinley plans, this year, to start re-visiting previous forecasts to see how many of the targets are actually met 12 months down the line.

Its latest survey finds that most hiring companies are anticipating salary levels to remain unchanged this year. However, 32% still foresee an increase in wages, with 63% anticipating no change and 5% expecting a decrease.

The level forecasting an increase is up from 25% at the start of 2012.

Morgan McKinley’s chief operations officer Karen O’Flaherty said it is unsurprising the majority of respondents are predicting no pay increases, but an actual rise in those who do intend to raise wages is “pleasing”.

She said: “Hiring is still at a much lower level than previous years and it’s only recently that employers are starting to have slightly more visibility of the coming months.”

“Employers will be hiring this year across all levels. They are very conscious of the need to be competitive in their approach to attracting new talent and keeping the best people they already have,” she added.

A study from Retail Excellence Ireland shows fewer than 10% of retailers are planning pay rises for employees this year though more than 80% will retain current pay rates.

According to REI chief executive, David Fitzsimons: “The vast majority of retailers who are freezing pay in 2013 are currently struggling with significant operating costs and decreasing consumer demand.”