2015 has been a great year in the Accountancy, Industry and Commerce markets as the Irish economy continues to improve. The ESRI has predicted that consumer expenditure will rise by 2.8% in 2015 and by a further 3% in 2016 resulting in job creation in Irish manufacturing,
FMCG and retail sectors due to increasing domestic demand.
We expect to see a sustained rise in activity within the Accountancy & Finance permanent market in 2016. Salaries, bonuses and overall remuneration packages will increase throughout 2016 as companies focus on employee retention. Employers will continue to place a heavy emphasis on cultural fit as well as strong technical ability, commerciality and interpersonal skills
The Abrivia Recruitment 2016 Salary Survey has revealed the key issues facing employers and staff in the Accountancy sector for the coming year.
The Key Findings for Ireland’s Financial Sector are as follows:
- 25% of companies intend to increase the size of their financial teams in 2016
- 77% of respondents working in finance related roles expect a salary increase in 2016
- 98% of respondents were in full-time employment
- 53% of respondents planned to change job in 2016
- 89% said that basic salary was what mattered most in terms of reward, followed by amount of annual leave (47%) and bonus (39%)
- Almost half of the finance professionals surveyed (49%) cited flexible working hours as an important aspect of a working environment, second only to those in the ICT sector (53%)
- 84% said they would seek out reviews before accepting an interview offer
- 76% said that a negative review of a company’s working environment would influence their decision to accept an interview offer or a role, second only to the ICT sector
- 24% said they were looking to buy a home in 2016 and 6 in 10 of those said they were likely to seek new employment to finance the mortgage.
2015 Review and looking ahead to 2016
The average length of accounting contracts increased from four to twelve months in 2015 with the majority of contractors offering permanent roles at the end of the period. The most-in-demand candidates in 2015 were financial accountants, financial analysts, management accountants and commercial analysts.
Completion and performance-related bonuses are now being offered for long-term contracts to ensure that candidates stay for the full period.
Darren McCabe, manager of Abrivia’s Accountancy & Finance Division, said “With the increase in permanent opportunities, the availability of temporary accountants is diminishing. We expect to see a sustained rise in permanent roles in 2016 and employers will continue to place a heavy emphasis on cultural fit as well as strong technical ability, commerciality and interpersonal skills.”
Employers are now considering candidates returning to Ireland from the UK, EU, Canada and Australia to cope with strong demand for accounting professionals in areas like FMCG, pharma, technology, healthcare and shared service centres.
There is increased focus in sourcing accounting professionals in Dublin who are interested in returning home to regional areas like Kildare, Kilkenny, Wexford, Galway and Kerry.
Other Survey Results – covering all sectors
Economist Dr Daragh McGreal said, “In 2016, GDP growth is anticipated at around 4%, unemployment is expected to fall below 8% by year-end, and the State’s budgetary deficit is expected to fall to 1.2%. These factors provide for a strong climate in which industry can thrive. However, those same factors can lead to demands for salary increases from employees, who see a growing economy, less competition for work, and a government more capable of procuring from the private sector. “
Donal O’Brien, managing director, Abrivia Recruitment said, “73% of respondents in our 2016 Survey expect a salary increase and 57% plan to change jobs. This leaves employers with two options: either pay the current employee higher wages or seek a replacement for the same salary. The preferred option is clear: 89% of our respondent employers expect to pay higher salaries in 2016.”
“45% of small and large firms said that the current market was hindering their ability to hire staff. New rules regulating tenancy contracts may affect salaries in 2016. Some employers may seek evidence of rental increases before granting salary increases,” said Dr McGreal.
CENTRAL BANK MORTGAGE RULES
The survey revealed salary increases will be necessary to both finance a mortgage under the new rules and to keep pace with house price increases in Dublin. One fifth of respondents said they were looking to buy a home in 2016. When asked how Central Bank rules in relation to mortgage deposits might impact their employment situation, 68% of those said they will look for a salary increase and 56% said they would look for a new job.
SALARY EXPECTATIONS
77% of respondents working in finance and related roles expect a salary increase in 2016, 71% working in ICT expect the same compared to 75% in human resources, 74% in marketing and sales, and 67% in office support.
Post by Darren McCabe
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