Majority of employees expect pay rise in 2016

Almost three-quarters of employees expect a salary increase this year while more than half expect to change jobs, it has emerged.

However, a survey of 4,000 companies and 45,000 employees reveals a gender split — men are more likely than women to expect a salary increase and to change jobs.

The 2016 Abrivia Recruitment Salary and Employment Trends Survey also found that the current rental sector, especially in Dublin, will have a significant impact on salary expectations this year.

Those seeking pay rises because of rent increases may be asked for evidence from their employers.

The new Central Bank mortgage rules are also driving employees to seek a salary increase or change their job to buy a home.

The survey across different industry sectors found that 73% of employees expect a salary increase while 57% plan to change jobs.

One in five employees will be looking to buy a home this year — 68% will look for a salary increase and 56% will look for a new job.

The survey found that 95% of information and communications technology (ICT) companies plan to increase staff and 96% plan to raise salaries.

All the banks and financial service companies said they expected salaries to increased and 90% are planning to employ more staff.

Positions in Cork, Kerry, Galway, Kildare, Kilkenny, and Wexford have all increased, particularly in accountancy and taxation. However, 45% of small and large firms complained that the current market was hindering their ability to hire staff.

Because of competition for staff, 62% of firms in the ICT sector plan to pay bonuses to reward staff.

Economist Daragh McGreal outlined a number of factors that would provide a strong climate in which industry could thrive this year.

He said gross domestic product was expected to grow by around 4%; unemployment was expected to fall below 8% by year end; and the State’s budgetary deficit was expected to fall to 1.2%.

However, he warned that the same factors could lead to demands for salary increases from employees who see a growing economy, less competition for work and a Government more capable of procuring from the private sector.

The survey showed how rent increases had impacted on employees last year with well over half (60%) affected — 22% saw their rent increase by over 10% while for 28% the increase ranged between 5% and 10%.

One in 10 renters experienced increases of less than 5%, and 40% said their rent had not changed.

One in four said they could manage the rent increases on their current salaries, with 38% seeking a pay rise because of the rent changes.

“Some employers may seek evidence of rental increases before granting salary increases,” said Dr McGreal.