Employers in Ireland are planning to give their staff an annual average salary increase of 3% in 2022, according to the latest Salary Budget Planning research undertaken by Willis Towers Watson.
The last round of Salary Budget Planning research conducted mid-way through 2021 had predicted a salary increase of 2.8% in Ireland in 2022 however the latest research undertaken at the end of 2021 has shown an increase in this pay rise figure to 3% this year.
As we move in to 2022, almost half (46%) of employers in Ireland are now projecting a higher salary budget for this year when compared to 2021 and 28% stated that that they have had to revise their original projected budget for 2022, increasing the amount allocated to salary.
The latest research found that concerns over a tighter labour market (69%) and cost management concerns such as inflation and rising supply costs (40%) are the two single biggest salary issues expressed by businesses in Ireland heading in to 2022. These issues are factors that have influenced businesses to change their original projected salary budget for the year.
Sarah McDonough, Country Lead for Talent and Reward in Ireland commented: “This latest round of Salary Budget Planning research is very insightful for businesses across Ireland. While all sectors face a period of adjustment, there is a broad expectation of strong economic performance. Indeed, the research found that 37% of businesses are anticipating stronger financial results in 2022, which has influenced them to change their original projected salary budget.
“Over the past twelve months, concerns have been well reported regarding ‘the great resignation’ and the research does indicate an expected level of change for businesses. Of particular interest is that the highest level of staff turnover in Ireland will be at middle management and professional level (12%), showing that experienced hires are in demand and will be an important demographic for Irish employers.
“Globally the Salary Budget Planning research shows an anticipated salary rise of 5% generally, and while salary is important, employers should also take a holistic view of talent and rewards across all of the drivers of Employee Experience, not just salary alone. This is a very important for employers in Ireland when we consider that they compete for talent globally, and employee needs have evolved significantly in the past two years”.
