Wage increases signalled by 70% of employers for 2023

Research shows that starting salaries have shot up by an extra €5,000 per year
Wage increases signalled by 70% of employers for 2023

Research found that over 60% of employees were considering switching jobs in 2023

More than 7 in 10 employers have signalled wage increases for 2023, with salaries seeing rises of up to 11% already this year. That is according to new research published by Excel Recruitment who noted staff shortages and increased expectations as the driving forces behind further pay rises.

The recruitment company also found that starting salaries have shot up by an extra €5,000 per year, yet despite these pay rises, over 60% of workers are contemplating changing jobs in 2023, with just under a third definitely considering it.

The new research has revealed that last year, 65% of employers signalled salary increases, with this rising further to 71% 12 months later as most employers say pay rises are definitely being considered.

Commenting on the research, Chief Executive of Excel Recruitment, Barry Whelan attributed the findings to the 'Great Resignation,' saying it has "massively affected employers, especially when organisations urged workers to return to their respective offices. It led to companies increasingly having open positions, which caused disruptions in their daily operations."

"The remaining employees needed to compensate for the lack of manpower leading to immense workloads and also driving employee burnout which affected their overall performance and productivity."

Mr Whelan also added that in addition to significant salary rises, high employee expectations are forcing more organisations to offer a hybrid working model, warning that remote conditions will make it easier for workers to apply for new roles.

The research detailed salary increases of up to 11% in 2022 particularly in the areas of professional services, commercial, accounting and finance, where pay rises of between 6% and 11% were recorded. Salary increases were also strong in retail, with rises of between 3% and 8% recorded. Wage growth in the industrial sector, such as for forklift drivers and heavy goods vehicle (HGV) drivers, was between 3% and 5%.

Mr Whelan concluded, "We have experienced the impact of the burgeoning job market throughout 2022 and the severe lack of candidates to meet these demands. As a result, we have seen a growth in candidates' power to influence their terms of employment, creating truly a ‘Candidates Market’." 

"This trend will continue to become more granular as applicants' needs are addressed and employers add more bespoke benefits in 2023. Onboarding new staff along with hiring budget constraints will likely be one of the biggest and most critical challenges for companies in 2023”.

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