A recent survey conducted by Performance Reward Consulting found that most Irish businesses face a continued challenge to retain their key staff.
In the all-Ireland survey which included 76 organisations employing 110,616 employees across Ireland, 36% of respondents reported that their employee turnover had increased in 2017, while 27% of respondents forecast their employee turnover to increase in 2018.
The survey of HR Directors, CEOs and business leaders found that employee turnover was on average 8.3% for organisations operating in the Republic of Ireland and 13.1% for those in the North. However, some Irish employers were reporting employee turnover levels of up to 30% causing significant issues for the business.
Patrick Robertson, Managing Director of Performance Reward Consulting said, “As the economy on both sides of the border has improved, Irish employers now face a real challenge to retain staff, particularly their high performing and high potential employees who are often the first to move.”
For 2018, the survey found that just under 94% of employers on both sides of the border are planning a pay increase. While the average 2018 pay increases within the survey are forecast at 2.5% in the Republic of Ireland and 3.0% in Northern Ireland, some employers are reporting pay increases above 8% for specific employees or employee groups.
Mr Robertson said “From our survey it is clear employee retention is one of the most critical issues Irish businesses are facing for 2018. Almost half (46%) of responding organisations reported that they are taking steps to increase their employee retention for 2018. In many cases they are implementing new pay structures & career paths, employee recognition schemes and focusing on their incentives and benefits to try to retain staff.”
