Survey shows sentiment rising among employers

Confidence has improved among employers in Ireland with 41% projecting a salary increase for all staff in 2011, according to details of a new survey published today.

According to the survey carried out by Mercer Consulting some 36% of employers are planning salary increases for some staff, while 22% plan to exercise wage restraint by implementing a salary freeze next year.

Only 1% of the employers surveyed plan to reduce salaries in 2011, according to the survey of 116 companies across a range of sectors.

The survey contains mainly larger Irish organisations and multinational subsidiaries. Few Irish companies (17%) are forecasting an increase for all staff, while a higher proportion of multinational subsidiaries are projecting increases across the board (56%). This may be due to improving sentiment in a number of international economies.

Meanwhile some 49% of organisations reported a decrease in total staff numbers between 2009 and 2010, and 27% of organisations surveyed plan to reduce employee numbers in 2011.

This contrasts with 40% who plan some increase in staff numbers in 2011 and 33% who plan to keep numbers static.

"While there is still a lot of uncertainty in the marketplace, we believe that sentiment has improved among employers," said Patrick Robertson of Mercer Consulting.

"Many have taken action to manage remuneration costs and headcount within their organisation and they are now more confident about 2011 and beyond.”