Two-thirds of organisations to increase pay next year – survey
Two-thirds of organisations plan to increase salaries in 2025 which is down from the 86% that did so in 2024, according to a new survey.
The latest HR Barometer from employment consultants Adare shows that the average planned salary increase next year is 3.6%, close to the 3.7% actual increase in 2024.
The survey found that more than half of organisations tie salary increases to company profitability, and that 53% of employers will pay bonuses in 2024.
The average gender pay gap from respondent organisations was 10.7%, a 3.3% rise from 2023, with 56% of organisations not recording their gap and 71% lacking initiatives to improve gender balance.
Less than a quarter of organisations said they are ready for pension auto-enrolment, while 43% of employees are expected to be auto-enrolled, leaving one in three companies unprepared.
The survey found that there has been a 4% drop in employees working fully remote, partly due to organisations pushing for a hybrid model, although this shift does not appear to be related to concerns about productivity with 79% of HR professionals believing that hybrid working has benefitted productivity.
According to the research, the average recruitment cost for hiring new staff is over €9,000, rising to €11,000 for larger companies.
The survey found that 68% of organisations have a Diversity & Inclusion policy in place, an increase from 63% in 2023.
“2024 highlights key shifts in working practices back to the office, at least in a hybrid model,” said Sarah Fagan, Managing Director at Adare.
She said: “As HR priorities for 2025 are on employee engagement and talent retention, it is likely to see organisations making a continued attempt to engage employees in a more personalised manner.
“After a number of years when organisations were faced with having to make reactive short term decisions based on external factors, there seems to be a desire and capability for more flexibility, innovation and strategic long-term thinking when it comes to business decisions and how best to engage with employees.”
Adare surveyed senior HR practitioners and business leaders from a broad range of sectors. The HR Barometer Report represents the input of 212 organisations employing over 70,000 employees.
Article Source – Two-thirds of organisations to increase pay next year – survey – RTE
