Competition for talent set to drive 2% increase in salaries next year
Of 168 companies surveyed in the latest Salary Forecast Report, from the Irish division of international HR consultancy Mercer, 92% indicated that they are currently planning on increasing staff pay levels during 2015.
The technology sector is likely to see the largest salary increase, at between 2.5% and 3%.
In financial services, companies are forecasting salary increases of around 2%, although this figure rises to 3% when those companies currently implementing salary freezes are excluded from the survey.
Mercer sees its latest report reflecting the positive sentiment and improving performance of the Irish economy.
It notes that salary rises of 2% are also likely in areas such as life sciences — which has been a key foreign direct investment target area for IDA Ireland for some time — manufacturing and consumer goods production.
“Ireland has expanded its position as a hub for hi-tech businesses in recent years. The competition for talent in this high-growth, high-value sector is demonstrated by the above average salary increases forecasted in 2015,” said Noel O’Connor, talent consultant at Mercer.
He added: “In the financial services sector, expected rises of 3% have been reported by organisations that are planning to implement pay increases in 2015.
“This illustrates the increased confidence and activity in the sector, particularly amongst insurance, fund administration and asset management firms.”
The Mercer survey reveals that the forecasted salary increases are likely to be the same across all employee bands — from low-level employee to executives.
Struggling sectors such as retail are also likely to see a 2% salary increase next year, according to the findings, and at 1.5% the non-financial services sector is set to see the lowest level of pay hikes amongst those sectors surveyed.
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