How much of an issue is the cost and availability of housing for tech firms in Ireland now in terms of staff recruitment and retention?
The results of our recent Salary survey, considered the most authoritative on the Irish recruitment market found that over 17% of IT employees in Ireland feel that their salary cannot accommodate recent rent increases. In fact, 53% of IT professionals spend over 25% of their monthly income on rent and a further 34% are going to seek a pay rise because of rent increases.
On the employer side, 58% of IT firms said that the shortage of rental accommodation has a negative impact on their ability to recruit staff and a further 38% expect to lose staff because of rent increases.
22% of IT professionals were looking to buy a home in 2017 and of these 56% were very concerned by house prices and of these 64% intended to seek a pay increase thus.
Soaring house prices are having a negative effect on staff retention in the Irish IT industry. 67% of respondents who are planning to purchase a home stated that they are willing to relocate to a new job to ensure affordability. 62% of respondents stated that they are willing to seek new employment if this meant they could obtain a mortgage. On the employer side 30% of IT employers felt that the cost of purchasing a new home was hindering their ability to recruit staff and a further 25% of IT employers expect to lose staff as a result.
When compared to other sectors, the IT sector, due to high salaries, is relatively cushioned when it comes to mortgage and rent affordability. However, it is still of concern that 17% of IT professionals feel that their salary cannot accommodate recent rent increase and the majority will seek a pay increase as a direct consequence.