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Employers worried about rising pay expectations

IBEC says more than a quarter of its member firms plan to take on new staff next year.

EMPLOYERS IN IRELAND continue to worry about rising pay expectations among workers and prospective staff.

According to the latest data released by IBEC, firms remain focused on containing costs, despite hiring plans, and 60 per cent of member companies cited growing salary requests as a concern.

The business representative group described the current operating environment as a “fragile domestic economy”, adding that business owners “simply cannot afford to contemplate any increases [in wages]“.

According to chief executive Danny McCoy, there is also good news to share as more than a quarter of members plan to take on new staff next year.

“Keeping costs under control is essential if we are to create new jobs,” he said ahead of IBEC’s annual HR Leadership Summit in Dublin today.

“At the height of the boom many costs, including wages, spiralled out of control, we can’t allow this to happen again. Many companies remain in survival mode and pay expectations need to reflect economic realities.”

The introduction of statutory sick pay is also weighing on the minds of company owners, as are recruitment costs, training expenses and the cost of health insurance.

In fact, 22 per cent of organisations with medical health insurance benefit were reviewing their scheme, and examining changes such as new providers, setting a defined contribution for employees or downgrading the level of cover.

The lobby group has urged the government not to allow next week’s budget set back the jobs recovery “by taking more money from consumers or increasing employment costs”.

It has also requested the reduced VAT rate for the tourism sector and the lower employer PRSI rate for low-wage workers to be maintained.

The latest HR survey showed that 59 per cent of companies expect to retain the same staff numbers throughout next year.

For those planning to lead a recruitment driver, there is some fear that a skills shortage will impact on hiring for IT, software, engineering and technician positions.

The Autumn 2013 survey data was collected in September 2013 from 432 senior HR contacts in Ibec member organisations.

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32 Comments
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    Mute Brian
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    Apr 28th 2021, 4:02 PM

    Eamon Ryan is a bit of a Nugget himself.

    422
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    Mute Fergus Murphy
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    Apr 28th 2021, 4:48 PM

    @Brian: A nugget short of being a full Happy Meal

    135
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    Mute neuromancer
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    Apr 28th 2021, 4:57 PM

    @Fergus Murphy: 5 nuggets short you mean.

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    Mute Ruth Colbert
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    Apr 28th 2021, 6:21 PM

    @Brian: an insult to nuggets everywhere

    18
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    Mute Daniel Finucane
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    Apr 28th 2021, 10:39 PM

    @Brian: a poo nugget.

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    Mute John Egan
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    Apr 28th 2021, 4:08 PM

    Everything I’m reading or hearing from the government says to me that there will only be outdoor service for the hospitality sector during the summer, at best open by end of June. Which to me doesn’t correlate with the amount they’re planning to have vaccinated by June.

    205
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    Mute Colleen
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    Apr 28th 2021, 4:11 PM

    @John Egan: apparently outdoor hospitality will resume on May 24th.

    30
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    Mute Dara Mac Fhionnain
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    Apr 28th 2021, 4:14 PM

    @Colleen: where did you hear that?

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    Mute Robert Clifford
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    Apr 28th 2021, 4:20 PM

    @John Egan: Nphet and the buffoons in government must be expecting one hell of a summer weather wise. Awnings and heaters aside, I’ve got almost 45 Irish summers under my belt and a good 30 of them have been washouts.

    155
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    Mute aidanshaw
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    Apr 28th 2021, 4:40 PM

    @John Egan:the north, scotland, wales, uk, will have indoor and outdoor up and running in a few weeks.. July or august is a long wait here for indoor especially if weather poor.

    33
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    Mute John Egan
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    Apr 28th 2021, 4:40 PM

    @Robert Clifford: haha, as last years was terrible after April theres a chance this years could be good (never do we get 2 in a row). But just find it annoying/confusion. The vaccinations and level of restrictions are not matching, restrictions look to be 1 or 2 behind.

    21
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    Mute Ron
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    Apr 28th 2021, 5:09 PM

    @Dara Mac Fhionnain: it has to the North is opening the 24th May if not loads heading up the North me included

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    Mute Colleen
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    Apr 28th 2021, 5:44 PM

    @Dara Mac Fhionnain: on the rté news website. Apparently they are discussing it tonight.

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    Mute Dave Hammond
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    Apr 28th 2021, 8:34 PM

    @Dara Mac Fhionnain: they were doing their – ‘we don’t want to create uncertainty’ with ‘kite flying’ ahead of announcements – by erm – kite flying ahead announcements.

    3
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    Mute Ciarán O' Donoghue
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    Apr 28th 2021, 4:11 PM

    If outdoors is safe, and they know everyone is meeting up having cans at this stage, why won’t the open the bloody pubs for outdoor sittings so.

    232
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    Mute Toon Army
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    Apr 28th 2021, 5:37 PM

    @Ciarán O’ Donoghue: Hush now with that kind of talk.

    26
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    Mute Thomas O' Donnell
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    Apr 28th 2021, 7:48 PM

    @Ciarán O’ Donoghue: They’ve said (leaked) that they will. So much ado/anger about nothing then

    5
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    Mute Alex Marquis
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    Apr 28th 2021, 5:22 PM

    How about the féicin hairdressers? I’m starting to look like the love child of Enda Kenny and a 1980’s rock star at this stage.

    79
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    Mute Watchful Axe
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    Apr 28th 2021, 9:53 PM

    @Alex Marquis: Either that or put up a couple of short documentaries explaining how to mind ‘crazy’ hair for lads. I haven’t a clue, not a bull’s notion about hair products or conditioners. Googled it there, first step it said was do something with a comb. Sure I don’t have a comb.

    6
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    Mute Valentine Kane
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    Apr 28th 2021, 4:33 PM

    I would rather catch the virus than eat the chicken nuggets in some pubs,

    74
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    Mute The Kev in Kevlar
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    Apr 28th 2021, 4:04 PM

    More of a tenders guy myself

    52
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    Mute The Firestarter
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    Apr 28th 2021, 5:59 PM

    How does outdoor dining work with hotels, do you eat and drink in your car, honestly we are governed by Muppets.

    48
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    Mute Eoin Fitzgerald
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    Apr 28th 2021, 4:47 PM

    Took them long enough to realise

    44
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    Mute Thomas O' Donnell
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    Apr 28th 2021, 7:49 PM

    @Eoin Fitzgerald: Realise what? You think they should have recommended outdoor dining in winter?

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    Mute Eoin Fitzgerald
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    Apr 28th 2021, 10:40 PM

    @Thomas O’ Donnell: they should have let pubs serve from last June/July outdoors

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    Mute Seán
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    Apr 28th 2021, 4:49 PM

    The content of the article kind of contradicts the headline. If ministers are pushing for “outdoor dining” that means they’ll have to enforce the 9 euro substantial meal carry on again because that implies that “outdoor dining” will be allowed while “outdoor drinking” won’t be and so that demands there be a distinction between gastro pubs and “wet pubs”.

    14
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    Mute Thomas O' Donnell
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    Apr 28th 2021, 7:50 PM

    @Seán: Outdoor drinking will be , so no problem.

    2
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    Mute Cat Reid
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    Apr 28th 2021, 5:02 PM

    You

    6
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    Mute The world outside the M50
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    Apr 28th 2021, 9:39 PM

    What part of the Chicken does a nugget come from ? – The mechanically separated of what is left over.
    People say “I love animals” – No – you love pets – if you love animals you would stop eating them…

    5
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    Mute Seán
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    Apr 28th 2021, 4:51 PM

    The content of the article kind of contradicts the headline. If its understood some ministers are “pushing for outdoor dining” that means they’ll have to enforce the 9 euro substantial meal carry on again because that implies that “outdoor dining” will be allowed while “outdoor drinking” won’t be and so that demands there be a distinction between gastro pubs and “wet pubs”.

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    Mute Simon Spellman
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    Apr 28th 2021, 5:51 PM

    @Seán: and will gastro pubs even bother opening for outdoor dining only, might not be worth their while and may wait till they are allowed indoors too
    Also may not want drinking tables only, not enough money from that, they will want to keep their tables for ppl having food&drink, better return off them

    12
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    Mute Dave Hammond
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    Apr 28th 2021, 8:41 PM

    @Seán: no i think they are finally realising that the public have moved ahead and the days of garda or health officers being expected to be checking up on premises this summer is just not gonna work – honestly if people could see the level of social activity already along canals and parks at weekends – its crazy busy and they really should reopen the more controlled environments with toilet facilities etc even this bank holiday weekeend – actually disgraceful the lack of toilet facilities last weekend in places like Howth head – people just trying to do what they were allowed outdoors but they shut toilet facilities – honestly we are a shambles at offer decent services to the public – still 25% capacity on transport and yet telling the public to get outdoors creating backlogs and crowds at places like howth dart station – we are seeing the worst of both worlds – our abundance of caution is not whats happening in the the real world – its nonsense

    13
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