Pay increases have been forecast across the economy in 2023, prompted by talent shortages and the rising cost of living, according to Matrix Recruitment.

The recruitment firm has said that salary bands are expected to expand by €2,000 to €10,000 in a number of sectors, while demands for flexibility and remote working will remain sought after among candidates, with the number of roles advertised as hybrid or remote working having increased 34% in the past year.

"As the employment landscape continues to evolve, It’s impossible to predict all the changes that will occur as we move into 2023, but it’s clear employers are keen to ensure staff are looked after as the cost-of-living crisis continues," said Kieran McKeown, managing director of Matrix Recruitment.

"From speaking with our clients, those who can increase salary packages will be doing so in the months ahead.

“Companies that are not in a position to increase salaries can help in other ways, particularly when it comes to employee benefits. Remote work, bonuses, free lunches, WFH and fuel allowances, or access to a financial wellbeing expert can make a difference.

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"Happy employees mean less attrition and greater productivity, both of which contribute to the success of a company, so it pays to look after your staff.”

In banking and financial services, it is expected that salaries will vary depending on the talent needs of companies, although the sector is likely to remain buoyant and recruitment will continue in the year ahead."

Salary bands will remain predominantly the same as in 2022, but starting salaries for fund oversight officers are expected to increase by as much as 22% in Dublin.

Regional salaries in this area are predicted to increase by around 25%. Senior/lead fund accountants can expect raises of 21%, particularly in regional areas, but experienced compliance managers may see reductions of up to 11%.

In the supply chain sector, where the talent pool is limited, analyst salaries could increase by up to 43% in the Dublin region, and experienced supply chain managers could see pay bumps of up to 12%.

In manufacturing, workers can expect salary band increases of up to €5,000 across a wide number of roles and across all regions.

Plant managers in Dublin are expected to see salaries increase from €90,000-150,000 in 2022 to €95,000-155,000 in 2023

In the midlands, west and south of the country, product operatives can expect salaries to rise from €21,000-26,000 to €23,000-28,000.

The demand for qualified laboratory, quality scientific, R&D and operations personnel is also predicted to remain high in 2023, but talent is proving to be a scarce commodity, resulting in offers of higher pay and additional incentives.

Microbiology analysts are expected to see salary increases across all regions, with pay bands expanding by up to 20% in Dublin alone.

In the midlands and west, skilled QA/QC supervisors can expect a salary band increase of up to 17%, and a more moderate increase of up to 12.5% is expected in other areas of the country.

Photo: Kieran McKeown.