A pay rise could soon offer financial relief for cash-strapped employees, with a survey showing that more than three quarters of Irish businesses expect to give pay increases in 2015, up from 64 per cent last year. And pay-cuts, which characterised many businesses in recent years, would appear to be on their way out again, with no company-wide pay cuts are projected for 2015 and 2016.
According to PwC’s 2015 Reward Trend Snapshot Survey, the survey results point to growing optimism on the economy, with typical pay increases expected to be 2 per cent in 2015 and 2.1 per cent in 2016.
But pay increases won’t necessarily be across the board, with individual performance (80%) the top driver of salary increases. External benchmarking has become more prevalent in recent years and is now the second most popular driver of pay increases (74%) followed by company performance (72%).
About a third of the 132 companies surveyed will also offer or enhance bonuses this year, with they typical bonus about 20 per cent of salary for senior management (16% in 2014) and 10 per cent for professionals (10% in 2014).
Louise O’Reilly, manager, PwC Reward Advisory Services, said:
“As companies navigate the objective of retaining and motivating employees while managing rising costs, they need to determine the benefits that have the most impact for employees. There is an increasing trend where analytics are impacting benefit planning. Using analytics, an organisation can establish the value employees assign to various benefits. And once companies understand what their employee’s value, they can tailor their packages appropriately”.
Employees can expect a reduction in health insurance however, with nearly one if five companies saying that they are reviewing the benefit in 2014/2015, and 13 per cent saying they will reduce the offering.
Meanwhile, a survey of over 1,000 employers and jobseekers by Brightwater Recruitment Specialists has found that 54 per cent of Irish professionals have received a counter-offer when considering joining a different company.
Pay rises of up to 50 per cent, new job titles and greater promotional prospects have all been dangled in front of in-demand staff by employers, keen to keep talented employees in their ranks.
Brightwater's MD, David Bloch, believes that the survey's findings are an indicator of a jobs market returning to buoyancy in 2015.
“The fact that companies are now willing to put their money where their mouth is and make substantial counter-offers suggests a returning confidence in economic conditions. It also once again highlights the vital importance and major challenge of attracting and retaining talented staff,” he said.
