More than three quarters of companies plan to increase basic pay next year, the employers’ group Ibec has said.
It said the companies concerned were projecting a median pay increase of 2.5 per cent, which was similar to the situation this year.
The organisation said 91 per cent of high-tech companies , 80 per cent in other manufacturing and 78 per cent of distribution businesses were forecasting increasing pay for staff .
Ibec said a total of 42 per cent of companies were planning to hire more workers next year. It said this was marginally down on the figure this year 2019 “and is consistent with our forecast of a slowdown in new hires into the end of 2019 and 2020”.
It said 19 per cent intend to top up “parents’ leave”.
Ibec published the pay survey ahead of its HR leadership summit, which takes place in Dublin on Thursday.
Ibec also surveyed companies on the key trends for 2020. It recognised the increasing pace of change and disruption in organisations, finding almost 60 per cent of companies were prioritising organisational and job role redesign, with 43 per cent prioritising increased automation and the introduction of AI.
Ibec director of employer relations Maeve McElwee said: “Plans by employers to increase basic pay in 2020 reflects the fact that the Irish economy is continuing to grow through a period of great uncertainty due to Brexit and international trade tensions. The economy is now close to full employment, with moderate inflation and the strongest increases in real living standards since the early 2000s. For business, we need to be careful that our cost base does not undermine our competitiveness, which is already being impacted elsewhere by other factors, most notably infrastructure shortages.
“Looking further out, it is evident from the survey that companies and senior HR leaders are continuing to scope out and plan for a changing workplace. This is to be welcomed and encouraged, as the future of work will bring about many changes, some of which will be profound.”
