Over three-fifths of managers in Ireland want to give their staff a pay rise this year – however many (37%) are struggling with tighter budgets.
This comes as 63% of Irish professionals’ state that they are expecting a pay rise this year.
A further 46% of managers state that year-end bonuses are ‘unlikely’ – however, this may change on improved business performance in the first quarter of 2025.
The findings from global talent solutions provider, Robert Walters’ Salary Survey come on Blue Monday (Jan 20) often referred to as the most ‘depressing’ day of the year.
Suzanne Feeney, Country Manager of Robert Walters Ireland comments: “Managers are caught in a tough spot – they recognize and want to reward their teams’ hard work, but tight budgets are tying their hands.
“Despite a cautious optimism for the year ahead carrying the potential for loosening of budgets, there remains a growing need for businesses to get creative in retaining top talent now – from flexibility, and wellbeing benefits, to more purpose-driven work and formalised career paths.”
Hope in the New Year
Despite 37% of managers are being told by business leaders that they do not have the budget for pay rises. Managers have not ruled out spot bonuses or mid-year pay rises in 2025 – with 46% stating that positive changes to employees’ compensation packages may happen if Q1 is ‘strong’ on the business performance front.
However, with 65% of professionals stating that they are looking for a new job in 2025 – if these pay rises or bonuses come too late, businesses could risk losing key staff.
Suzanne adds: “In addition to increasing non-financial related benefits (where possible), businesses should also revise their timelines on pay reviews so that they don’t leave their employees hanging in the lurch. Where new year and mid-year pay reviews are the norm, businesses should consider quarterly pay or bonus reviews – particularly if they were unable to give the anticipated end of year bonus or pay increase.”
Transparency top of the agenda
Three-fifths of professionals (63%) are expecting a pay rise this year, with a further 43% also under the assumption that they are still on track for a bonus.
When asked what their employer could do better in 2025 when it comes to business and financial updates, more transparency (42%) and involving employees in decision-making (23%) were top of the agenda, followed by speedier communications on important matters (17%).
Suzanne comments: “Following what has no doubt been a year of difficult business decisions, employees will be demanding even greater clarity and transparency in 2025. Employees are very aware of the economic climate, and with a slew of negative stories in the media whether it be cost of living or employers enforcing tighter return-to-office mandates – employees will want to know where they stand. Being honest and involving employees in their career journey will be a vital retention tactic.”
Managers add value elsewhere
Whilst it’s important for managers to futureproof pay rises and consider the impacts of improved business performance. There are ways they can be supporting their employees now.
Indeed, further research from Robert Walters shows that almost half (48%) of Irish professionals would consider staying in a lower-paying position if it offered increased flexibility. While 61% state they’d be more inclined to consider a job offer if it offered better work-from-home subsidies.
Not only that, but other alternative compensation strategies which professionals would consider a job offer for, are personal development funding (52%), free/discounted gym memberships (39%) and employee wellbeing programmes (31%).
Suzanne concludes: “Managers who find themselves struggling to deliver on pay rises or bonuses right now should consider where else they can add value for their teams. Whether that be ramping up flexibility, offering relevant upskilling & training opportunities or supporting their staff’s wellbeing.
“Managers who go above-and-beyond to show support for their staff will be repaid in increased retention and loyalty, whereas those who fail to do so risk losing their top talent to more forward-thinking competitors.”
Gabbie White, President of the Irish Exporters Association and Executive Director Head of Supply Chain & Logistics PTC Therapeutics with Vicki Caplin, Chief Operating Officer Irish Exporters Association.
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