History has stated, with the highest salaries reaps the highest rewards with the best talent.
According to our latest Cpl Employment Monitor (Q1 2018), the boom is back, with 75% of employers planning to increase their peoples' salaries over 2018! This finding is in line with an all-Ireland survey carried out in October 2017 by the Performance Reward Consulting, with an overall message indicating employers are fearful of losing talent to the highest salaries. Therefore, the average pay rise in store for Irish employees in 2018 is 2.5%.
Is employee turnover on the rise?
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.'
The survey found that over 46% of the 76 organisations employing over 110,000 employees are taking procedures to increase employee retention for 2018. This retention may come in various paths ranging from new innovative pay structures and career routes to lucrative employee recognition schemes. For those lucky employees or employee groups most valued, they might find themselves achieving a staggering pay rise; as some employers are recording possible pay rises exceeding 8%!
From those surveyed, 36% from both Northern Ireland and the Republic of Ireland stated that their employee turnover had increased in 2017, and 27% feared and anticipated an added increase in employee turnover in 2018.
Brexit fears
The looming Brexit also seems to be a topic at the pinnacle of employers' minds, with 51% of those surveyed stating they have growing concerns that Brexit will have a drastic impact on employee retention and hiring. According to a Bank of England survey in 2017 across the pond, out of 400 companies surveyed 70% had increased their salary for existing employees and in fear had altered their employee retention strategy.
To conclude the future looks bright for talented Irish employees with a pay rise looming, however with expensive obstacles ahead for employers such as GDPR and Brexit. These salary rises may yet be in the balance as uncertainty grows regarding GDPR, as over 62% of Irish employers are unsure on how the new legislation will impact business with only 60% stating they are 'quite prepared'.