The third Abrivia Salary Survey Breakfast Briefing took place in the Tercentenary Hall in Trinity Biomedical Science Institute on Pearse St. Dublin 2. Over 150 guests were treated to 90 minutes of insights and analysis from three expert speakers from our partners in Trinity Business School; Dr Charles Larkin, Dr Brian Lucey and Dr Na Fu.
The general theme of the seminar was of “Disruption”. Dr Charles Larkin explained how a hard Brexit will cause major disruption to the agri-food sector along with the transport sector. A hard Brexit could cost Ireland between 4% and 7% of our overall output along with causing huge disruption to supply chains. Another huge disruption for Ireland is the USA and their interest rate policies, which can have a negative impact on global stock markets. When interest rates rise in the US, the stock market gets spooked. On the other side of the globe, China’s economic performance has a huge effect on the global economy. The Chinese economy performed badly last year and cost international investors a phenomenal $2 trillion in losses.
On a micro scale, we also have a few home-grown “disruptions” of our own making. Expenditure on the Irish health sector and huge health expenditure overruns are putting huge pressure on the Irish governments fiscal policy and disrupting what can be spent on other key areas, such as infrastructure. In recent years these health overruns have been masked by unexpected Corporation Tax and Interest.
Ireland’s debt levels are still very high, and this limits the government manoeuvre room in terms of spending in order to adhere to fiscal rules. Other disruptions to Irish economic growth are the housing crisis, wage inflation in the Finance, Insurance and ICT sectors and the general economy beginning to overheat.
Dr Na Fu’s presentation continued with the disruption theme with a hugely informative presentation titled “Get Ready for Disruptions”. The first disruption is the rise of the gig economy, which will result in huge disruption in regards not only how people work but also how people are managed. The gig economy involves companies hiring independent contractors and freelancers, who do not receive an hourly rate but are paid per task or gig. Approximately 7% of the total workforce in Ireland at present is working in the gig economy.
Another hot topic/disruption in the HR arena is HR analytics. 71% of respondents to a recent survey rate HR analytics as a priority but only 8% have usable data! For HR analytics to be truly valuable to a company, one needs high quality data, an analytical competency to interpret this data and the strategic ability to act on HR analytical insights. With these factors all in place the HR function can make better decisions in regards recruitment strategies, retention strategies, better employee engagement which will ultimately lead to more successful companies with higher performance where HR management decisions are evidence based.
Dr Na then went through some very positive insights from the Abrivia/ TCD Salary Survey which included:
-75% of employees expect a salary increase in 2019 and 90% of employers plan to increase salaries by up to 5% in 2019.
-In 2018, 52% of employees received a salary increase which was better than expected and a whopping 86% of firms granted a salary increase in 2018.
-69% of employers increased their net headcount in 2018 and a further 86% of employers plan new hires in 2019.
-65% of employees have a HR person in their top management team.
There were also a few not so positive findings, such as:
- Firms are having huge difficulty in filling ICT roles with 41% saying they were the most difficult roles to fill.
- There is a disconnect between employers and employees when it comes to what is the main factor which keep people in a job. Employees rank work-life balance as the most important factor whereas employers think it is pay.
- Employees identify fun at work as a huge motivator but there is little support from their organisations and managers in this regard.
The next speaker up was Dr Brian Lucey.
Dr Brian Lucey’s presentation focused on global megatrends, many of which will cause disruption to Ireland. These included:
- The growth of megacities (especially in India) in the future. Lagos, the capital of Nigeria, is predicted to be the world’s most populous city by 2100.
- The rise of the global middle class. By 2020 the middle class will become a majority of the global population for the first time ever. By 2030 Asia could represent 2/3 of the global middle class population.
- The main population and middle-class growth countries in the future are known as the N11. These countries consist of Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey and Vietnam.
- Singapore has on average 60 mbps broadband speed where the average broadband speed is a mere 18 mbps. In fact, Ireland is near the bottom of the EU in terms of broadband speed.
- There is a global physical infrastructural deficit which requires huge investment. The state of infrastructure in many parts of the US is fairly depressing, with many of the country’s roads, bridges, dams, and other infrastructure in poor condition.
Donal O’Brien, MD of Abrivia Recruitment concluded proceedings by mentioning the extensive coverage the ninth Abrivia Salary Survey received in the national media, which culminated in a two-minute feature on both the Six o’clock and Nine o’clock news on RTE. With the backdrop of Trump, a fired-up economy, a US/China trade war and Brexit, the future direction of the Irish economy is quite uncertain.
Donal re-iterated the key findings of the survey:
-53% of people residing outside of Dublin say it would take a pay increase of 20% or more for them to consider a move to Dublin. A further 19% would not countenance a move to Dublin, regardless of salary.Over 65% of respondents check out their prospective employer on employer review websites. The most popular website in this regard is Glassdoor which was closely followed by Irish Jobs.
-Whilst 69% increased net headcount in 2018. The architectural sector has had the largest increase (63%) followed by marketing (34%) and finance/ banking (23%)
-86% of employers surveyed intend to expand numbers in 2019.
-66% of firms would provide visa sponsorship for staff. 57% of firms have not had difficulty with the administrative requirements of a visa application,
-Firms are still willing to recruit from abroad though, with 61% having hired a non-Irish applicant within the last year
-86% of employers surveyed increased salaries last year, with 80% of firms increasing salaries up to 5% year-on-year. 90% to intend to increase salaries in 2019 and the same percentage intend to increase salaries up to 5% year-on-year.
-78% of organisations are planning to pay employee bonuses in 2019, either to reward (81%) or retain (52%).
-The ICT sector continues to be the hardest market to recruit for
Donal then introduced Marie Peelo of Pieta House (Abrivias CSR partners) who explained the important service Pieta House provide for people in distress.