The majority, or 71%, of employers in Ireland expect salaries among their staff to increase again in the year ahead, according to research from Hays Ireland. This was down from 74% of employers who increased salaries in the last year.

Hays’ survey of 2,700 employers and employees found that overall salaries increased by 1.8% in the past 12 months. However, approximately 40% of workers said they were not satisfied with their salary.

Further survey data from Hays found that 78% of employers expect to recruit staff in the next year, with 61% planning on recruiting permanent staff and 35% temporary staff. A shortage of suitable candidates (64%) and competition from other employers (54%) are cited as the biggest challenges when recruiting in the year ahead.

Meanwhile, the majority, or 78% of employees say it is important for their organisation to be transparent about how pay levels are set.

Hays Ireland Managing Director Mike McDonagh commented, “Pay growth, combined with pockets of double-digit salary increases, demonstrates that the competition for talent remains high. This year however, greater transparency about salaries is an issue that many employers must address.”

“Transparency around pay is an important issue for professionals,” McDonagh said. “Many also perceive there to be gender pay gaps, which is negatively impacting on the attraction and retention of staff.”

Hays’ data showed that 18% of employers suggest they are aware of a gender pay gap in their organisation. Of that number, 67% say it negatively affects candidate attraction and 76% claim it negatively impacts staff retention.

Hays’ data also found that challenges in finding the right candidates persist, as 92% of employers experienced skills shortages in the last year.