Three-quarters of white-collar employers have given pay rises since January, the highest proportion for a decade, as they sought to help staff with cost-of-living increases and boost morale, according to recruiter Robert Walters.
The average pay increase was 4%, significantly short of the current rate of inflation, meaning professionals will be €1,300 worse off if costs continue to increase at present rates.
For a professional earning the average annual salary of €44,202, a 4% bump would equate to an extra €76 per month after tax at a time when consumers have seen nearly €180 on average added to their combined monthly energy and grocery bills.
Over half of employers (51%) have given pay increases for cost-of-living pay purposes, while four in 10 (42%) have increased pay to aid morale and retention (42%), while just under a third (31%) have staff raises for a promotion, time served or meeting targets.
“Historically pay rises have been used as a metric to reward hard work, loyalty, or progression," said Suzanne Feeney, managing director of Robert Walters UK.
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"However, what this survey reveals is how truly unique the market is at the moment - where pay rises are now being awarded out of necessity by employers who are fearful of not appearing as a responsible or ethical employer.”
Some 2,000 white-collar professionals and 1,000 employers were questioned for Robert Walters 2023 Salary Survey Guide.
The survey also found that only 35% of professionals feel confident about opportunities within their sector, and 47% of Irish professionals will seek a new position this year now that January pay review is completed.
It is also expected that employers will expand benefits packages to compensate for shortfalls in pay increases. Three quarters of employers have admitted to being ‘concerned’ about losing primary staff who have received below inflationary pay increases.
“It has been extremely difficult for employers to match salaries with the volatile rate of inflation. As prices continue to soar, it isn’t surprising that professionals are beginning to cast their sights onto new positions – in the hopes that the grass will be greener," Feeney said.
“Whilst it is tempting to jump at the offer of an inflated salary at another company we do advise professionals to approach this decision with caution. What goes up will come down, and employees paid above market rate are often the first to be looked at when cost saving measures come in."
(Pic: Getty Images)
