Almost two thirds (64%) of professionals believe their current salary does not reflect their skills, qualifications, and level of experience according to new research from hiring platform IrishJobs.
The IrishJobs Salary and Benefits Survey 2024 gathered insights from 1,224 professionals across businesses in Ireland to identify shifting attitudes and actions on salary and benefits. The findings offer valuable insights for employers seeking to attract and retain talent in a tight labour market.
Salary Concerns
Despite the importance of salary, over half (53%) of all employees rank work-life balance as extremely important when assessing job opportunities. The focus on work-life balance comes as employers assess how to best implement the recently published Government code of practice on the right to request flexible and remote working options.
Results also show that the majority of employees (63%) do not have an opportunity to negotiate salary increases with their employer regularly. Increased engagement with employees and implementing regular forums for dialogue is an area employers could consider to ensure they continue to meet the needs of their workforce in a competitive labour market.
While 44% of employees reported receiving a pay rise in the past year, figures show the scale of these increases is relatively modest. More than 3 in 4 professionals (77%) who reported receiving a pay increase stated that it was in the range of 1-5% with 62% indicating that the increase did not meet their expectations.
Flexible Working Structure
Flexible working structures remain a highly popular aspect of the employment offering for employees. Flexible working arrangements (44%) (choosing working structure based on individual circumstances) is the most highly valued working structure among staff. Hybrid working (27%) is the second most popular working structure, followed by fully remote (15%). Only 14% of workers prefer a fully office-based working model.
Employee Benefits
The research showed salary is the most important criteria for professionals when considering employment packages closely followed by a number of employee benefits. Healthcare plans, followed by pension schemes, the number of annual leave days, flexible working arrangements, and bonuses/financial incentives, make up the top five most popular employee benefits.
Base Salary & Bonuses
The survey reveals clear preferences for base salaries rather than performance-related compensation. 87% of respondents would prefer a higher base salary and fewer performance-based bonuses compared to an alternative that offers more performance-based incentives. Findings show that performance-based financial incentives are not offered by most businesses in Ireland. 54% told IrishJobs they do not receive any additional bonus or financial compensation on top of base salary, while only 33% report receiving a performance bonus.
Additional Employment Perks
Perks, typically not included in the formal terms of a job contract, are also valued by employees as part of employment packages. Commuter benefits such as free and subsidised parking were ranked as the most highly valued perks among employees, followed by employee discounts and free food.
Sam Dooley, Country Director of The Stepstone Group Ireland with responsibility for IrishJobs, said:
“Published today, the IrishJobs Salary and Benefits Survey provides some interesting insight into the impact of an evolving economic and labour environment on employee attitudes around job offerings. While the rate of inflation is moderating, wage growth continues to lag behind the level of increased costs. However, this landscape is expected to shift positively for workers, with the latest quarterly economic bulletin from the Central Bank predicting that compensation in real terms will grow over the next three years.
“Our data shows that 64% of professionals feel that their current salary does not reflect the value they contribute to their organisation. Salary benchmarking systems can be an important tool for employers and employees when navigating salary discussions ensuring the balanced assessment of talent cross-industry. By making sure these systems use reliable and up-to-date data, employers can enable a fair approach to compensation and remain competitive.
“With many businesses struggling to keep pace with demand for higher wages, expanding benefits and perks can be an important means of creating a more attractive proposition for workers without breaking budgetary constraints. Our research shows that commuter perks such as free and subsidised parking that can offset costs are highly popular among employees.
“Flexible working structures continue to be a highly popular aspect of the employment offering. With the Government recently issuing guidelines on the right to request remote and flexible working, it will be important for employers to consider how they can be embed flexible and remote working within their employment structures to meet the evolving needs of potential talent.
“With a tight labour market expected to continue through 2024, the insights released today will be a useful tool in helping employers to adapt their employment offerings to effectively compete for talent over the coming months.”
If you would like to discuss how to optimise your hiring with IrishJobs, our Customer Support team will be happy to help.