Pay transparency is one of the most contentious issues emerging between Irish employers and employees going into the new decade, according to the latest Hays Ireland Salary and Recruiting Trends 2020 Guide.
The survey of over 2,700 Irish employers and employees shows that despite over three quarters (78%) of employees claiming that it is important for their organisation to be transparent about how pay levels and pay rises are set, nearly half (49%) of employers do not agree that their organisation is consistently transparent about how salary increases are devised.
Nearly a fifth (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.
Overall, salaries increased by 1.8% in the last 12 months, and 71% of employers expect salaries among their staff to increase again in the year ahead.
Among Irish professionals dissatisfied with their salary (40%), the main reason given is that they do not feel it reflects their individual performance (62%). This is despite most employers (70%) believing that individual performance is the most important factor when considering an employee’s request for a pay-rise, a further indication of a mismatch in how salary increases are awarded and communicated.
Commenting on the guide, Hays Ireland Managing Director, Mike McDonagh said, "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."
He added, "Transparency around pay is an important issue for professionals. Many also perceive there to be gender pay gaps, which is negatively impacting on the attraction and retention of staff."