Employers will take a measured approach to salary increases in 2025, with pay rises expected to remain “modest” at 2-3%.
That is according to the latest Irish salary guide from recruitment company Morgan McKinley.
The research has found that despite a tight labour market and rising costs, businesses are prioritising targeted salary hikes for high-demand roles over broad pay adjustments.
“The days of across-the-board salary increases appear to be over, as firms adopt a more calculated approach, offering raises where they are most needed to address skill shortages,” according to the report.
It found that rather than large-scale pay hikes, firms are adopting structured salary transparency and career progression plans to attract and retain skilled professionals in sectors such as technology, life sciences, and financial services.
The study showed that the demand for flexible working arrangements remains high, with 67% of employees valuing remote work options and 56% prioritising flexible hours.
“While overall pay growth is modest, demand for skilled talent in technology, finance, compliance, life sciences, projects and change and construction give professionals in these fields strong negotiating power,” said Global FDI Director at Morgan McKinley Trayc Keevans.
“Employers must take a strategic approach to pay and benefits to retain top talent.”
“Despite 44% of companies increasing salaries in the past six months, businesses remain cautious about wage inflation,” Ms Keevans said.
