In advance of Ibec’s HR Leadership Summit in Croke Park today, Ibec published its annual HR Update 2018 including the results of a comprehensive new pay and resourcing survey.
The Ibec HR Update 2018 survey found that 80% of companies plan to increase basic pay in 2019, with a projected median pay increase of 2.5%, similar to the findings of last year’s survey. Three out of four said that their total pay bill would increase next year.
The survey also found that just under half of all companies, at 47%, planned to hire more workers next year, with 48% set to maintain current employment levels. This is a modest improvement on last year’s survey (43% planned to hire more in 2018).
As part of Ibec’s new Smarter World, Smarter Work campaign, companies were also surveyed on their attitudes to the future of work. The top investment areas identified were leadership and people management (75%), information technology (55%) and communications skills (42%).
Speaking in advance of the Ibec HR Leadership Summit 2018, Ibec Director of Employer Relations, Maeve McElwee, said: “Plans by employers to increase basic pay in 2019 is a reflection of strong economic growth across the country, with the level of new recruitment forecast to be up slightly year on year.
“With inflation remaining benign and some modest tax cuts kicking in, it amounts to real wage inflation next year. For business, we need to be careful that our cost base does not undermine our competitiveness which is already being undermined elsewhere by other factors, most notably infrastructure shortages.
“Looking further out, it is evident from the survey that companies and senior HR leaders have already started scoping out and planning 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.”
Ibec’s HR Update Survey 2018, now in its 10th year, highlights key employment trends and insights into the changing Irish labour market. The survey had 339 respondent companies, reflecting the views of senior HR leaders across Ireland.
Overview of the Ibec HR Update Survey:
- · 80% of employers expect to increase basic pay in 2019, with 20% keeping level the same
- Ibec HR Update Autumn 2018.pdf - 1,570 Kbytes
· Projected median pay increase of 2.5%
· Pay increases by sector - 91% of high tech, 85% other manufacturing, 79% distribution
· Pay increases by company size – 93% of 500 plus workers, 70% of less than 50 employees
· Total pay bill in 2019 – 74% to rise, 25% to remain the same, 1% to reduce
· 47% of companies to increase employee numbers, 48% to remain the same, 5% to decrease
· Top 6 investment areas in skills – leadership (75%), IT training (55%), communications (42%), team working (37%), project management (36%) and conflict / networking (35%)