The second Abrivia Salary Survey Breakfast Briefing took place in the lavish surrounds of the Dining Hall in Trinity College on Wednesday, January 24th. Over 140 clients attended the Breakfast Briefing and received fascinating insights from our three keynote speakers; namely Dr Charles Larkin, Dr Na Fu and Dr Brian Lucey. Dr Brian Lucey, executive committee member of Trinity College opened proceedings and explained how universities are responsible for over €1 billion in exports annually and are a greater exporter than the Irish drinks Industry. He also explained how the collaboration between Abrivia and Trinity College is extremely important in producing research which has a strong business focus.
L-R Donal O’ Brien, Dr Brian Lucey(seated), Ruaidhri Horan (marketing manager), Dr Na Fu and Dr Charles Larkin
Dr Charles Larkin dealt comprehensibly with the thorny subject of Brexit. He explained how throughout history “English rows tend to be bad for Ireland”. Dr Larkin described Brexit as an “unprecedented act of national self-harm” deeply rooted in history.
He then went on to explain that Ireland’s future is not British. Instead, it is with a new European Union which will eventually encompass a Banking Union. Capital Markets Union, Fiscal Union and Political Union. The UK will have a continued relationship with the EU but which will be very different to being a member.
According to the 2018 Salary Survey Dr Larkin explained that ICT Employers are becoming increasingly concerned about the implications of Brexit, with mobility of staff being a major worry. 17% of Ireland’s GDP consists of exports to the UK, valued at €39Bn annually. Sectors which are particularly exposed to a hard Brexit are the Irish Beef and Irish Cheddar Cheese sectors with 50% of all beef production destined for the UK and 66% of all cheddar cheese is UK bound also. Dr Larkin explained how Ireland is particularly exposed to the multinational sector due to European tax reform and a Europe more focused on the East. 1.5% of firms make up 25% of employment in Ireland and 10 firms make up 38% of our corporate tax take! However, despite these risks, as Ireland approaches full employment, it’s recovery has been phenomenal.
Dr Na Fu was the next speaker and took a deep dive into the HR results of the Salary Survey. A massive 40% of companies plan to take on new hires in 2018 with the ICT sector having the most difficult to fill roles. 3 Key factors which impact recruitment negatively are the shortage of rental accommodations (47%), the marginal tax rate (46%) in attracting overseas applicants and the increasing cost of purchasing a new home (41%).
Another very interesting finding was that significantly more employees then employers think their work is flexible. There was a huge difference in attitudes to performance feedback. 71% of employers believe they provide effective performance feedback. However only 55% of employees believe the same.
In regards HR system strength only 45% of employees believe HR policies are clearly communicated to employees whereas 77% of employers believe they are great at communication.
A mere 56% of companies believe that managers implement HR policies properly whereas a miserly 36% of employers believe the same.
What is the solution to the above gaps in translation and implementation?
Dr Na Fu emphasised that line managers are critical to HR Strategy translation and implementation. Whilst the majority are highly motivated there appears to be a skills gap in regards HR policy translation and implementation. Hence, training of line managers is critical to successful HR policy implementation.
Dr Na Fu concluded by saying that investing and retaining the right talent is extremely important as is effective talent management. To achieve this companies, need to build stronger HR systems and ensure that line managers are fully trained and equipped with the tools to ensure proper HR policy implementation.
Dr Brian Lucey’s presentation focussed on the 11 factors which will impact the Irish Economy in 2018. These include Brexit, China, Global Inequality, Global Growth, Technology, Populism, Mainstreaming Millennials, Geopolitical Instability and Global Warming.
In regards Brexit, due to populism, nationalism and a lack of planning, the UK could be walking off the edge of an economic cliff.
There are fewer workers in China and in the coming years China will not have enough workers to meet demand, so Chinese growth is unsustainable.
In regards, technology, artificial intelligence and automation, retail sales people are the most susceptible to automation. Counsellors and Therapists are the least exposed to automation. Dr Lucey made some very interesting suggestions that most people want income but don’t necessarily want to work so why not let the robots do the work and let the humans take the income!
In Ireland and populism and parish pump politics is not good for effective decision making as Ireland faces this new global reality.
Donal O’ Brien, MD of Abrivia, concluded proceeding by explaining that that the recruitment sector acts as a remarkable bell weather for what is happening in the economy and that as a business Abrivia have never been as busy since 2006!
The economy is booming – GDP last year ran at 5%. We have returned to full employment in the economy and that has created challenges for all of us.
Donal went on to say that in terms of sentiments we can see from the results of the salary survey that
- 85% of you plan to make new hires this year!
- 84% of employers expect salaries to rise
- 73% of employees expect their salaries to rise
- 46% plan to change job in 2018
Donal stressed that the above findings are hugely positive but not without their challenges! New and different challenges! The main challenges are as follows
- Talent Acquisition
Good people are generally in employment so the people you want must be approached.
In regards most clients that Abrivia work with, Abrivia only find them talent by approaching passive candidates in the market.
- Attraction
Traditional approaches leading to poor ROI (job boards responses are down)
Donal stressed that in the last 6 months Abrivia have experienced a drop in applications across the job boards by 32%. The way that we have overcome this is to use our networks, company database and all Recruiters have LinkedIn Recruiter licences and have the time to go after the best people
- Retention
It is far more efficient for you to retain your pest people than hire new talent.
Abrivia have worked with a number of clients and advised them in terms of salary benchmarking with information straight from our database.
- Competitiveness
Particularly in low margin businesses competitiveness is being eroded and profitability by higher wage expectations.
Donal concluded by offering a huge thank to Dr Na Fu, Dr Charles Larkin and Dr Brian Lucey for their engaging insights and to all the 140 clients in attendance for their attention and concentration in what was an information packed morning.
To read about a Positive Outlook from the Abrivia Salary Survey Breakfast Briefing, please click here >>>
