The Abrivia Recruitment 2016 Salary Survey has revealed the key issues facing employers and staff in the coming year. The data was compiled from a survey of 4,000 companies and 45,000 employees across multiple industry sectors with macroeconomic analysis and commentary from lecturer and economist Dr Daragh McGreal.
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. “
Other key findings of the 2016 Salary Survey were:
- The current rental market, especially in Dublin, will have a significant impact on salary expectations in 2016
- High rents in Dublin are pushing employees to seek higher salaries or change jobs
- Employers may seek evidence of rent increases before granting salary increases
- The new Central Bank mortgage rules are driving employees to seek higher salaries or change jobs in order to buy a home
- Around 45% of small and large firms said that the current market was hindering their ability to hire staff
- 73% of those surveyed expect a salary increase while 57% plan to change jobs
In regards a sectoral analysis and the ICT industry it found that 2016 will be another strong year for the ICT industry given its premium status within the Irish economy. Salaries and daily rates are likely to see an upward curve again and there are indications that IT professionals will become more mobile and more open to explore opportunities given the strength of the industry.
The battle for staff continues in the ICT sector and in 2016, 95% of firms plan to increase headcount and 96% plan to increase salaries, compared to 67% and 75% respectively in 2015. And as only 19% of ICT firms have an average employee tenure of greater than 5 years, indicating the fluidity of the market, candidates working in this sector can expect good opportunities and competition for their talents.
The key findings for the Irish ICT sector are as follows:
- 67% of the ICT firms surveyed increased headcount in 2015 and 14% of those nearly doubled their staff numbers
- 95% of ICT firms plan to increase headcount in 2016, compared to 67% in 2015
- 90% of ICT firms surveyed plan to hire permanent staff in 2016, up from 73% in 2015.
- 96% plan to increase salaries, compared to 75% in 2015
- 62% of ICT firms plan to pay bonuses in 2016, the key reason being to reward staff
- 81% of ICT firms employed a candidate based outside Ireland in 2015
- 57% of ICT firms said that average employee tenure was 3-5 years
The key findings in regards Irelands Accountancy sector were:
- 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%)
The key findings in regards HR were that the following skills were in high demand:
- HR Business Partners, specifically with ICT sector or EMEA experience
- HR Managers/Business Partners willing to consider interim or contract roles In-house Recruitment Specialists (at all levels)
- Reward/Compensation & Benefits Specialists (at all levels)
- Learning & Development Managers
- HR Administrators (with 1 – 3 years HR experience)