Competitiveness warning as 64pc of firms plan wage hikes
Published 27/10/2016 | 02:30
More than six in 10 companies plan to award pay rises next year, a survey for business body Ibec has shown.
The average pay hike is set to be around 2pc, similar to what had been expected over the previous few years, according to the pay survey.
The business organisation said this year, 64pc of companies would award wage hikes, a figure revised downwards from 71pc at the start of the year and 69pc in April.
Ibec director of employer relations Maeve McElwee said most workers would see a boost in their pay packets next year.
But she added that the competitive gains of recent years must not be lost.
"The focus must remain on job creation, especially given the heightened uncertainty that Brexit and currency pressures present," Ms McElwee said.
"Next year 42pc of companies plan to increase staff numbers, but if costs spiral and we lose our competitive edge, we will pay for it in jobs."
The survey found that seven out of 10 of those who responded said they expected basic pay rates in their company to increase next year.
Increases in basic pay and the total pay bill is most likely in companies in the high-tech sector and in larger companies, with 88pc of high-tech manufacturing firms planning to increase basic pay in 2017.
Increases are least likely in SMEs.
Ibec holds its HR Leadership Summit at Croke Park today.