80% of employers are planning for pay increases in 2023, with an average increase of 3.8%, according to a new study from business group Ibec.

The annual HR Update Workplace Trends & Insights Report also shows that more than half of respondents are planning to increase their headcount in 2023 amid a high level of competition for talent, particularly for those with IT skills.

The study highlights the importance of hybrid and flexible working when it comes to retaining staff.

Diversity and inclusion also continue to be a priority for many organisations with supports most prevalent in larger organisations.

The study was released by Ibec ahead of its HR Leadership Summit which takes place in Croke Park today.

"The findings of today's Ibec HR Update 2022 report spotlight the many challenges and opportunities facing HR practitioners and indeed, the broader business community," said Maeve McElwee, Ibec Director of Employer Relations.

"Set against a background of continuous disruption in the new world of work and changing economic headwinds, the survey shows that Irish businesses are facing talent shortages resulting in greater focus being placed on staff retention initiatives including wage increases, additional benefits, additional leave, the provision of a variety of well-being programmes and greater accommodation of flexible, hybrid/remote working."

329 senior HR leaders participated in the Ibec survey and shared their views on pay, resourcing and HR trends.