Salaries predicted to rise by 10% this year, according to report

Irish salaries are expected to rise by 10 per cent in 2016, with employees in sectors where there are skills shortages set to see increases of 15-20 per cent.

The latest Morgan McKinley salary and benefits guide, published today, says professional talent will be most in-demand in life sciences, engineering, IT, accounting and financial services sectors, including tax and funds.

The recruitment firm warned against excessive salary hikes despite robust job market. Chief operations officer Karen O'Flaherty said record job creation numbers from IDA Ireland and Enterprise Ireland last year highlight the importance of remaining cost competitive into 2016.

“We are anticipating, on average, a 10 per cent increase in salary levels this year and would caution restraint in this area. Inward investment is dependent on the ability to attract top talent and to be cost-competitive.”

Technical skills

Candidates with strong technical skills across all disciplines are becoming the norm as technology infiltrates all sectors. Ms O’Flaherty said a narrowing of the gender gap is occurring, especially in the area of HR, where more men are entering the profession and in the life science and engineering areas as more women are qualifying and securing roles.

A separate survey points to a sharp rise in the number of business students identifying job security as a key goal.

The Deloitte report, Talent in Banking, contains results from more than 1,900 business students in Ireland. It shows that despite software and computer services, fast-moving consumer goods, and banking sectors declining in popularity in 2015, they remain the most popular industries.