With our Northern Ireland 2012 Salary Survey currently being compiled, we would like to know: Is your company likely to raise salaries next year?

David Bloch, MD of the Brightwater Group comments:

Northern Ireland has continued to surprise during the last few years. Inward investment, dynamic leadership, a bullish response to public sector cuts and the facts are that Northern Ireland has lower unemployment than the rest of the UK, salaries have remained positive and the business community has responded to each challenge. And with exports rising sharply, the future looks pretty good – and better than the prospects in most of Europe!

Over the last decade, NI has compared itself, generally unfavourably, with the ROI. The curve in the ROI (partly fuelled by uncontrollably low interests rates set by the EU) was too steep, and its fall too dramatic. In contract, Northern Ireland grew more slowly and steadily, and while some areas were exposed to the recession (like property) we have generally fared well.

Salaries in ROI and mainland UK increased dramatically and NI is catching up. Indeed salaries in ROI have dipped every year since 2008, with 2012 predicted to show the first increase (0.3%) since then. In contrast, NI earnings have continued to increase with the Annual Survey of Hours and Earnings (ASHE) showing earnings increased by 3.5% in 2011 (0.8% on the mainland). With our unemployment lower, and salaries also lower, a catch-up was inevitable and we still have a way to go with the average salary in NI £18,720 being 45% lower than the average in London.

The private sector continues to pave the way and it is essential that salaries rise in line with this in order to retain and attract the top talent to NI. Public sector salaries must remain more stable because the average salary in the public sector is almost £9,000 higher than in the private sector.

For salary analysis sector by sector, please ask for the Brightwater Salary Survey 2012 published in December.

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