An IBEC pay and resourcing survey finds that 80 per cent of companies plan to increase basic pay in 2019.
The projected median pay increase is 2.5 per cent, similar to the findings of last year’s survey. Three out of four firms said that their total pay bill would increase next year.
The survey also found that just under half of all companies, at 47 per cent, planned to hire more workers next year, with 48 per cent set to maintain current employment levels.
Last year 43 per cent of firms planned to make new hires.
Top investment areas identified in the survey were leadership and people management (75 per cent), information technology (55 per cent) and communications skills (42 per cent).
Maeve McElwee of Ibec said “With inflation remaining benign and some modest tax cuts kicking in, [this] amounts to real wage inflation next year.
“For business, we need to be careful that our cost base does not undermine our competitiveness which is already being undermined elsewhere by other factors, most notably infrastructure shortages.