One in seven companies (15%) in Northern Ireland haven’t bothered giving their staff a single penny’s pay rise in the last year, new data shows.
And of the 85% firms that did, nearly two in five (37%) hiked wages by 5% or more.
That’s according to findings in the latest Salary & Recruiting Trends guide from recruitment firm Hays, which received 724 responses from employers and professionals in the north.
It says the pay rises given to staff in Northern Ireland last year were primarily driven by the ongoing increase in the cost of living, according to new research by Hays.
The research, which forms part of the Hays Salary & Recruiting Trends guide 2024 received over 14,900 responses from employers and professionals, including 724 responses in Northern Ireland.
Cost of living increases have not only resulted in many employers continuing to increase pay for staff, but have also led employees to weigh up whether they’d be better off moving jobs for a higher wage or staying put for job security.
In total, 41% of employees in Northern Ireland said the the macro economic picture is making them more inclined to move job, mainly due to their current salary being unable to cover their living expenses.
Conversely, 21% of employees locally say the cost of living is making them less likely to want to move job, either because they are worried about leaving a secure position, about job security in a new position, or that they won’t get the same benefits in another role.
The Hays findings also revealed that employers admit there’s room for improvement when it comes to pay transparency.
Although 65% of NI employers (60% in the UK) said they are transparent about pay, the other 35% (40% in UK) said their organisation isn’t consistently open with staff about how pay levels and pay rises are set.
John Moore, managing director of Hays in Northern Ireland, said: “It’s a really challenging time for both employers and staff as the cost of living continues to rise.
“And although a good proportion of firms have continued to offer pay increases, or cost of living support over the past 12 months, it’s clear some workers are seeking higher paid salaries and new jobs in order to cover their living expenses.
“What organisations can do is be as transparent as possible when it comes to pay in order to build an important sense of trust between employers and staff.
“It’s also crucial for organisations to communicate what support might be available for both existing staff and prospective employees, which in turn improves talent attraction and retention.”
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The findings come as Hays has warned over profits and ramped up cost-cutting efforts after a “difficult” December as jobs markets in the UK and worldwide slowed down.
The group cut its workforce by around 600 roles worldwide to reduce costs as it looked to offset a “clear slowdown” across most of its markets last month, with firms and job seekers holding off from making decisions on roles.
It said group consultant employee numbers were 450 lower globally during the final three months of 2023, including about 50 in the UK.
This was down 5% quarter-on-quarter and 12% year-on-year, although consultancy cuts were made largely through natural staff turnover, according to Hays.
