With more firms choosing Republic as a base, demand for talent is rising, writes Gabrielle Monaghan

Financial services companies in Ireland are struggling to fill job vacancies due to a "worrying" shortage of candidates, according to a top recruiter for the industry.

Since the new year, the average number of new jobs advertised by the sector has risen 30 per cent from the last four months of 2005, data from the Blomfield Group showed. It took financial services firms 10 weeks to fill a permanent job vacancy in February compared with eight weeks over the Christmas and New Year period.

But the situation here is not as bad as in Britain's major cities. Similar companies operating in London, Edinburgh and Glasgow took 12 weeks to fill vacancies.

"There isn't the availability to fill these jobs because Ireland is at full employment," says Paul Cotter, managing director of Joslin Rowe, Blomfield's office in Ireland. "One company registered with us has 42 positions available."

Many firms, especially in Dublin's IFSC, are seeking new talent because more companies in the industry are setting up shop here. With more than 50,000 people employed in financial services in Ireland, and a further 25,000 employed in the industry's support services, it's not surprising that finance has become the buzz-word for the Irish recruitment market.

Some financial services companies are counting on industry professionals to seek new jobs once their bonuses are safely in the bank. There is evidence that more candidates will register for new jobs over the coming months, once bonuses have been paid for all institutions, according to Joslin Rowe. Bonuses are typically paid in April, July and December.

In a survey last month, Joslin Rowe found that 61 per cent of respondentsin Dublin intended to change jobs within three to six months of receiving their bonus, while a more recent poll indicated that 40 per cent of financial services workers plan to stay with their current employer for less than six months.

"As the financial services sector gears up to face the challenges of 2006 and beyond, we can expect to see steady growth in the jobs market. For the time being, there's a significant lack of candidates but as bonuses get paid, more will come forward and fill the large number of vacancies available in most sectors," says Cotter.

Employment in the financial services industry may double this year, despite globalisation and increased regulation, according to Pat Wall, a senior tax partner with PricewaterhouseCoopers. Recruiters in the sector placed about 10,000 jobs last year, up from 8,000 in 2004, the National Recruitment Federation has said.

Foreign financial services companies, led by hedge fund administrators, ranked as one of the biggest new employers in Ireland in 2005.

In the funds industry alone, the number of people employed rose by about 1,000 in 2005 to 7,000. More than 60 per cent of European hedge funds are now administered in Ireland.

Earlier this month global financial services company Citco opened a premises in Cork city that will employ as many as 250 people, mostly in hedge fund, custody and support activities. Citco already has a hedge fund administration, banking and custody services centre at the IFSC in Dublin, as well as a data processing operation in Cork.

Hewlett Packard Financial Services, meanwhile, said in March it would centralise its European, Middle Eastern and African businesses to its base at Leixlip, Co Kildare, which will be the division's new headquarters. The move means that numbers employed by HP Financial Services in the Republic will increase to 360 by the end of this year.

"Not every foreign financial services company is moving to India or Poland. For every one that does, two are coming into Dublin," Joslin Rowe's Cotter says.

"Even when there was a big economic downturn in 2001 and 2002, Dublin and Luxembourg escaped the damage suffered by London and Frankfurt because they were focused on fund administration.

"As the front office business expands again, there is more funds to be managed here and therefore more back-office work." The rising demand for staff in the financial services industry is pushing up pay.

Permanent salaries in Dublin rose 3.5 per cent to an average €33,311 in the three months ending in February. People employed in the accountancy and risk management sectors saw their salaries climb 7.1 per cent to €70,742 between December and February.

Even pay for temporary staff is on the increase. Hourly rates in Dublin rose to €12.84 in February from €12 in January, though it only takes an average of two days to fill a temporary vacancy. "This skill shortage will enable good candidates to be more discerning about who they choose to work for," says Cotter.

"Some firms may face difficulty in fulfilling their recruitment needs unless they are prepared to compete on salaries, pushing up fixed costs."

Dublin financial services firms are also competing for staff with rivals in London, where permanent financial services workers command an average 60 per cent more than their counterparts in Dublin, Edinburgh and Glasgow, according to Blomfield, which recruits for the industry in the UK and the Republic.

Temporary workers in London earn twice as much as those in Dublin.