Companies struggle to meet rising salary expectations when inflation bites

Around 60 percent of companies are struggling to meet increased salary expectations as the rising cost of living impacts wage demands.

As inflation has skyrocketed in recent months, Irish companies have seen calls for higher wages rise as they struggle to attract and retain talent, according to a recent survey conducted by Grant Thornton.

The professional services company also pointed to a growing number of companies updating their benefits packages to entice employees to join or stay with the organization, such as: B. charging electric vehicles or working from home.

While this was a significant pressure point for businesses in 2022, Grant Thornton doesn’t expect this to continue next year as employees identify challenges arising from the macro environment.

“People are feeling that job security could be more important than maybe pushing for a double-digit raise,” said Patrick Gallen, head of People and Change, pointing to the technology sector.

“People are thinking about things in this broader tech and digital sector because there’s pretty high-profile redundancies in terms of Twitter and meta.”

Grant Thornton’s chief economist Andrew Webb said the introduction of government supports to the budget this year has also eased consumer jitters and led to this slight slowdown in demand for an immediate pay raise.

“It gets people thinking, ‘Okay, I might have asked for a 10 percent raise, but maybe I don’t need to be so aggressive now and take job security for now,'” he said.

Another factor influencing the move toward job security, according to jobs site Indeed, is the drop in job openings in recent months.

Grant Thornton’s Irish Business Voice report, which included insights from 78 companies across a range of key Irish industries, focused on the key issues affecting ongoing businesses.

The professional services company noted a decrease in the number of respondents from last year, although the results were not representative of the business community at large due to the small sample size used in the report.

According to Grant Thornton, another “key issue” cited by survey respondents was the inevitable inflationary pressures, with 21pc introducing price increases this year to mitigate the impact.

However, business has been business as usual for some organizations, with more than half yet to take any action to ease the burden.

https://www.independent.ie/business/irish/firms-struggling-to-meet-rising-pay-expectations-as-inflation-bites-42182111.html Companies struggle to meet rising salary expectations when inflation bites

Fry Electronics Team

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