PAY DATA
Pay and benefit survey for Northern Ireland
A survey of companies based in Northern Ireland by Mercer has shown that nearly three-quarters of participants reduced their payroll costs in 2009. On average, these costs were reduced by 10%.
Patrick Robertson, Senior Consultant at Mercer, said: “Companies have taken a number of steps to reduce their costs including changes in their rewards and hiring policies. More drastic measures such as compulsory redundancies and pay cuts have been less common, particularly in the larger organisations.” The most common initiatives taken are hiring freezes, voluntary redundancies and a reduction in overtime and incentive payments.
Over half of the survey respondents anticipate a salary freeze in 2010. Amongst those organisations planning an increase in 2010, the median reported increase is 2%.
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Comparisons with Republic of Ireland
Northern Irish companies have been quicker to react to deteriorating economic conditions, with more of them reporting salary freezes in 2009 than in the Irish Republic. However, for 2010, more organisations in the South are projecting salary freezes than in the North. Robertson said: “Part of the difference is likely to have been driven by national wage agreements in the Republic, and the fact that Northern-based companies reviewed their salaries later in the year, allowing more time to react.”
Key survey results
59% of organisations in Northern Ireland reported changes being made to at least one of their employee benefit plans and policies, in order to reduce costs.
The areas receiving the greatest attention are pensions (both defined benefit and defined contribution plans), training and development, and overtime payments.
40% of organisations are taking a total rewards approach to employee communications in order to promote their current benefits package and improve employee engagement. Robertson said: “Along with changes in their HR policies, an increasing number of employers are moving to a more integrated approach to communicating their company benefits. This way, employees are better able to appreciate the extent and value of the entire package they’re being offered.”
Want to know more?
Title: Mercer Human Capital Planning for 2010 Survey in Northern Ireland.
Survey sample: The analysis was part of a wider survey across the whole of Ireland, involving responses from 126 private sector organisations industry-wide in the Republic and with 22 responding in the North. It was conducted in late 2009.
Mercer is a “leading global provider of consulting, outsourcing and investment services”. It works with clients to “solve their most complex benefit and human capital issues, designing and helping manage health, retirement and other benefits”. Mercer’s 18,000 employees are based in more than 40 countries. To find out more visit http://uk.mercer.com.