DUBLIN, February 12, 2024 – Employers in Ireland are planning to increase overall salary budgets on average by 4.5% in 2024, according to the latest Salary Budget Planning Report from WTW, a leading global advisory, broking and solutions company.
The survey, which received over 500 responses in Ireland also shows that just over half (50.6%) of employers in Ireland are budgeting a higher amount for salary increases in 2024 when compared to 2023.
“Our Salary Budget research for 2024 is very informative in terms of telling us what businesses in Ireland are thinking with regard to talent, and also their perceptions of the broader economic and competitive environment.”
April McDonnell | Director of Rewards Data Intelligence at WTW Ireland
The research showed a range of factors influencing the salary budget planning process for companies in Ireland. The most prevalent being expected inflationary pressures on businesses (66.7%) followed by concerns over a tighter labour market and desire to retain existing talent (47.2%). Also noted were concerns over the economy or a weakening of financial performance among businesses (27.7%) as well as concerns related to the rising cost of business and management (22%).
The research also shows that in 2023, the highest proportion of staff turnover among Irish employers occurred at middle management level at 21.9% when voluntary and involuntary redundancies are accounted for. Looking to 2024, the highest proportion of employers (20%) are also looking to recruit at this level.
Commenting on the research, April McDonnell, Director of Rewards Data Intelligence at WTW Ireland stated, “Our Salary Budget research for 2024 is very informative in terms of telling us what businesses in Ireland are thinking with regard to talent, and also their perceptions of the broader economic and competitive environment.
“When we look at the research, we must take in to account that the labour market in Ireland is still very tight, with a relatively high level of supply and demand against a backdrop of low levels of unemployment overall.
“Overall, when considering salary budget, its important for organisations in Ireland to consider the total value of their rewards package holistically, beyond simply the salary offering but with an increased emphasis on the wider employee experience.”
April McDonnell | Director of Rewards Data Intelligence at WTW Ireland
Therefore, employers need to consider the distribution of salary budget in the context of their organisational strategy and talent agenda. For example, several questions should be considered, such as should high performers be prioritized, are there concerns about the potential loss of key skills, and should higher levels of budget be allocated to those impacted most by cost-of-living conditions?
“It is also important to be aware of broader issues such as pay equity across the entirety of an organisation, and taking account of external economic conditions and inflation, which have broader impacts then just salary. Overall, when considering salary budget, its important for organisations in Ireland to consider the total value of their rewards package holistically, beyond simply the salary offering but with an increased emphasis on the wider employee experience.”
The Salary Budget Planning Report is compiled by WTW’s Reward Data Intelligence practice. The survey was conducted in December 2023. Approximately 34,000 responses were received from companies across 168 countries worldwide. In Ireland 540 organisations responded.
