Irish workers are in line for the highest salary increases in the EU next year, according to a report from advisory firm Willis Towers Watson.
The report shows Irish workers will get, on average, a 2.6% increase in salary next year.
The figure, which works out at 1.9% after inflation, is well ahead of the EU average of 1.1%.
Economist Jim Power said in order to attract staff, employers will also have to start looking at what other benefits they can offer.
The economist said: "Stuff like employee share ownership schemes, pensions and other non-pay benefits I think will have to be come a feature of the Irish labour market over the next couple of years and those employers who are not able or willing to go in that direction, I think, will suffer."
Mr Power added that it is no surprise given how well the economy is doing.
He said: "We are looking at an economy in 2019 and 2020 which is approaching full employment. The unemployment rate fell to 4.8% of the labour force in November, we have a record number of people at work in the economy.
"It is becoming more obvious that the challenge for Irish businesses at the moment is the recruitment and retention of workers."
