Almost 75% of businesses plan to pay staff more

Businesses are more confident and are looking to reward their staff with nearly three-quarters of businesses planning to boost employees pay this year.

PwC’s 2014 Reward Trend Snapshot Survey found that on average the companies were planning on awarding just a 2% increase in salaries.

Senior manager with PwC Reward Advisory Services, Jenny Smyth, said that about a third of companies were planning on giving key personal larger sweeteners through bonus schemes.

“As pay increases are at a modest level it is a challenge for organisations to recognise top performers. Our survey indicates that to address this issue companies are enhancing their performance-related pay plans, annual bonus schemes in particular,” she said.

Another key feature is the rise in the number percentage of firms who are benchmarking their salaries. The use of benchmarking is expected to increase to 70% in 2014 from 39% in 2013

PwC human resource services partner, Mary O’Hara, warned that Ireland was in a bind in needing to keep costs under control but at the same time offer salaries that can attract talent to the country.

“As our economy continues to show signs of recovery, it is critical that cost and competitiveness remain high on the agenda. At the same time, our global research continues to indicate that the availability of key skills is a top concern for business growth. In an Irish context we see this concern with attracting and retaining talent demonstrated by the fact that one in seven companies are now setting their pay and benefits based on research into market trends,” she said.