Three-quarters (76%) of employers view employee retention as one of the biggest drivers of pay policy, according to our research published in conjunction with Industrial Relations News (IRN). The data collected in Aug/Sept 2022 focuses on conditions in the private sector.

Overall, the survey illustrates the pay pressure confronting businesses as Ireland faces a cost of living crisis, partly driven by soaring energy costs:

• 72% implemented a pay rise in the past 12 months
• 39% paid higher than expected pay rises in 2022
• 50% of employers said they had used retention payments or increases to counter a new job offer received by their employees
• 51% are planning a pay rise in the next 12 months

It’s clear that employers know they need to look after employees and they are making great efforts to keep staff, particularly in light of the figure that almost 80% see recruitment as one of the big issues for the next year. As employers review their cost base to deal with inflationary pressures, for over two in five (44%) future pay increases will be dependent on performance and profitability.

Just 9% of respondents to the survey are paying the Remote Working Allowance, which allows employers to pay up to €3.20 per day tax free to employees. Despite the low take-up, Mary Connaughton says the allowance is often worth considering: “This might not seem like a significant benefit for workers but if someone is at home three days a week, it contributes almost forty euro a month to the cost of running the home. It can also feed into a culture where employees feel they are being supported, even when they aren’t on-site.

Over half of employers (56%) have offered tax-free vouchers. This allowance was doubled in the government’s Budget 2023, enabling employers to make a further payment in the current tax year and a benefit of up to €1,000 in future years.

The research also highlights the proportion of organisations that are currently offering what are termed ‘progressive benefits’:

• 49% offer paid paternity leave
• 22% have a policy in place to support those who have suffered a miscarriage
• Just 6% have a policy on support for victims of domestic violence

CIPD Ireland Director Mary Connaughton expects the figure on domestic violence policies to increase:

“We welcome government proposals to put provisions for paid leave for domestic violence victims in its new Work Life Balance Bill. Likewise, the figures around policies regarding infertility and menopause, currently below 10%, will grow in the future as awareness grows about how these can be supported in the workplace”.