Saturday 15 December 2018

Two thirds of employees expected to get pay rise as talent war amongst employers rages

Employers believe that they have to go the extra mile
Employers believe that they have to go the extra mile
Louise Kelly

Louise Kelly

The retention of talent is going to prove challenging for employers over the next 12 months - but their staff may benefit financially.

According to a survey carried out by EY and recruiter Sigmar, two out of very three employees will be offered pay increases this year.

Employers believe that they have to go the extra mile to attract and keep skilled workers, with 25pc positions filled in Ireland after the individual was headhunted.

Niamh O’Beirne, partner, People Advisory Services Group, EY said that the talent crisis "uncertainty will bring game-changing threats but also huge opportunity".

"Given the unprecedented pace of change and unpredictability in today’s working world, it is becoming ever more important to hire for mindset and not necessarily skillset. In the future, we are going to have jobs we don’t know yet, using technologies we don’t have yet, solving problems that don’t yet exist."

Some 269 key talent and HR leaders across the country took part in the comprehensive survey, looking at key talent themes and priorities for the year ahead.

Read more: Less than one in two employees view salary as a top financial asset

The retention and attraction of talent was ranked the number one priority for 2018.

"In a strong economy, with the lowest unemployment rates since 2008, this is an unsurprising result," Sigmar Head of HR recruitment, Kate Stewart said.

"However, what has become clear from the results is that companies are preparing themselves for an acceleration in the war for skills and are prepared to pay for that talent. As a result, salaries are set to rise considerably over the next 12 months."

Ms Stewart said that, although it was difficult to put an exact figure on the amount salaries are expected to rise to, "it is likely to be considerably more than the rate of inflation".

"The war amongst employers for talent is set to create a crisis in 2018 to rival the current housing crisis."

Online Editors

Business Newsletter

Read the leading stories from the world of Business.

Also in Business