CONFIDENCE among employers in Ireland has risen this year, with fewer companies planning to cut staff and some even considering increasing salaries.

A large number of companies are also planning to change at least one compensation benefit plan or policy, such as private medical benefits, defined benefit pension plans and training or education policies.

A new survey from Mercer on reward planning for 2011 found that only 27 per cent of firms planned to reduce their headcounts, while 41 per cent said they planned to increase pay next year. Some 22 per cent plan to freeze pay.

Multinational firms are more likely to increase pay than Irish companies, the survey said, with only 17 per cent of indigenous companies planning to award employees a pay rise. In comparison, 56 per cent of multinationals said they planned to increase salaries. The average overall increase next year is about 2 per cent.

More than two-thirds of organisations said they were considering changes to benefit plans. Among those examining medical plans, 9 per cent of companies are considering introducing a healthcare allowance, and 7 per cent are looking at changing plan and provider. Some 4 per cent said they would be changing the employer subsidy for cover.

Some 22 per cent of firms said they made a change to their defined benefit pensions schemes in 2010, with that figure rising to 27 per cent in 2011.

Alterations including closing defined benefits schemes off to new entrants, or replacing them with a defined contribution plan.

Organisations also reduced training and education benefits, or introduced stipulations that said courses must be related to the job.