Ibec Publishes Pay and HR Trends Report at Leadership Summit
- 82% of respondents are planning to increase pay in 2024 with an average increase of 3.8%
- 45% of respondents are planning to increase their headcount in 2024
- 59% of respondents state that AI has the potential to enhance productivity and work conditions but only 29% agree their organisation has the skills to adopt AI
Ibec, the group representing Irish businesses, will release the findings of their HR Update report at their annual HR Leadership Summit today, which captures key pay and HR trends in Irish workplaces. The survey, conducted with over 378 Senior HR Professionals, shows that 82% of businesses are planning to increase pay in 2024, with an average increase of 3.8%. The report also indicates that businesses in Ireland had an average staff turnover rate of 9.7% in 2023 with 45% of companies planning to increase their headcount in 2024. Additionally, employee expectations regarding remote and hybrid working arrangements is cited as having the greatest impact in respondent organisations.
AI in the workplace
59% of respondents believe AI has the potential to enhance productivity and work conditions, but only 29% agree that their organisation has the skills to adopt AI. Additionally, 30% state that AI is already enhancing their organisation’s productivity.
Maeve McElwee, Ibec's Executive Director of Employer Relations, commented:
"As Ireland's labour market reaches full employment, businesses worldwide are adopting transformative technology solutions to meet demand. For Chief Human Resources Officers (CHROs), the next significant challenge is creating conditions that embrace this change. While AI is here to stay, it's crucial for employers to understand its realistic and current capabilities as well as manage associated risks. HR professionals themselves are leveraging new technologies like Talent Intelligence, which uses AI to collect and analyse data for workforce planning and talent development.”
Pay Trends Report
According to the Pay Trends report, 82% of respondents are planning to increase pay in 2024 with an average increase of 3.8%, while 84% of respondents increased basic pay rates in 2023, with an average increase of 4.4%, slightly higher than forecasted in last year’s survey (3.82%).
The hospitality, tourism, and leisure sectors saw the most significant wage increases for 2023, with average raises of 5.9%, closely followed by the retail sector at 5.3%. Looking ahead to 2024, these industries project even further wage growth, with pay increases forecasted at 6.5% and 5.2%, respectively.
Maeve McElwee, Ibec's Executive Director of Employer Relations, commented on the findings, said:
"Today's pay trends report reveals that pay increases are generally in line with inflation. However, some sectors, like hospitality and retail, stand out with notably higher-than-average pay increases, which can be attributed to labour shortages within these industries. These sectors are currently grappling with challenges related to recruitment and retention, as well as adjustments in the national minimum wage.
Looking ahead to 2024, early indicators suggest that employers across various sectors are acutely aware of the rising costs associated with doing business. Furthermore, new and impending legislative changes, such as statutory sick pay, pension auto-enrolment, and enhanced protective leave entitlements, are posing significant additional cost challenges for businesses in the short to medium term.
In response to these challenges, the recent announcement in Budget 2024 of a €250 million SME support package is seen as a much-needed relief for firms facing substantial government-imposed increases in labour costs. Ibec is urging for the swift implementation of this scheme, emphasising the importance of easy accessibility for those businesses that need it most.”
The HR Leadership Summit is supported by our strategic partners Accenture and Irish Life Health.
Download Ibec's 2023 HR Update in full here.