Irish businesses confident of outlook and planning 2.8% staff pay increases in 2022

DUBLIN, August 29, 2021: Employers in Ireland are planning to give their staff an average annual pay rise of 2.8% in 2022, according to Salary Budget Planning research undertaken by Willis Towers Watson.

The projected increase in 2022 points to a sense of optimism among many businesses across Ireland. Close to half (48%) of Irish businesses report that their current performance in 2021 is in line with expectations for this year, and 46% are currently ahead of where they expected to be.

Added to this, close to one third (29%) of Irish businesses are planning to recruit and 64% will at the very least maintain their current headcount in the next twelve months.

Only 4% of employers in Ireland reported recruiting fewer people then planned so far this year and of those employers who have had to reduce their overall headcount, 59% reported that this was due to ‘Business Impact’ which can be presumed to be because of the COVID-19 pandemic.

Close to half of respondents (48%) in Ireland who said they’re going to recruit are looking to do so in IT in the next twelve months, 43% in engineering, 42% in sales, 35% in skilled technical trades, 13% in marketing, 10% in finance and 4% in human resources.

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It is encouraging to see Irish employers focusing on the retention of talent via competitive pay this year and into 2022.”

Sarah McDonough | Talent and Rewards Country Lead at Willis Towers Watson Ireland

Commenting on the research findings, Sarah McDonough, Country Lead for Talent & Reward for Willis Towers Watson Ireland, stated, “In what has been a period of unprecedented challenges, it is encouraging to see Irish employers focusing on the retention of talent via competitive pay this year and into 2022. This suggests that while the economy is recovering, employers in Ireland are focused on both growth and resilience for any future challenges.

McDonough also noted that, “Competitive pay, a strong reward offering, and employee support programmes are important mechanisms in retaining and recruiting talent as they are core drivers of the overall Employee Experience. With the economy showing signs of recovery both here in Ireland and internationally, we would expect an increase in businesses recruiting in sales and product creation roles, effectively looking to drive their recovery and growth. Support roles such as HR and finance are less active however as the economy stabilizes this may change in line with a more normalized and sustainable business climate. Overall, businesses are preparing now, and there is a clear opportunity for employers to strategically plan for future opportunities.”