Most firms plan pay rises in 2020 despite Brexit uncertainty
Over three-quarters of all firms plan to award wage increases next year despite the continuing uncertainty about the twists that Brexit could yet take, according to employers’ group Ibec. Pay will rise by an average 2.5% in 2020 (the same rate as this year) as a large majority of managers who head human resources departments say their pay bills will rise, according to the survey.
By sector, in-demand hi tech workers will more than likely get pay increases, but a large majority of other manufacturing and distribution firms also plan to offer more pay. Ibec’s survey of HR heads at 420 companies also found that 87% of firms employing more than 500 workers plan pay increases, while 67% of firms employing fewer than 50 staff plan to increase pay.
However, under half of the firms surveyed will hire more staff next year, as recruitment slows in the last months of this year and in 2020 and 9% of firms will cut pay, the survey also found.
Plans by employers to increase basic pay in 2020 reflects the fact that the Irish economy is continuing to grow through a period of great uncertainty due to Brexit and international trade tensions,” said Maeve McElwee, Ibec director of employer relations.
“The economy is now close to full employment, with moderate inflation and the strongest increases in real living standards since the early 2000s. For business, we need to be careful that our cost base does not undermine our competitiveness which is already being impacted elsewhere by other factors, most notably infrastructure shortages,” she said.
Other findings of the survey include that most firms are planning for major changes, including preparing for the introduction of artificial intelligence in many job roles.
“This is to be welcomed and encouraged as the future of work will bring about many changes, some of which will be profound,” said Ms McElwee.
