Salaries to rise by up to 5% as economy turns, survey finds

The State’s economic turnaround is expected to translate into salary rises of 2-5 per cent on average across all sectors this year, and even up to 10 per cent in the IT sector where there is a notable skills shortage, according to a survey by Dublin-based Brightwater Recruitment.

While these increases were forecast at the start of the year, the recruiter said its survey reveals the “real change” in 2014 has been the rise in benefits, with a noticeable pick-up in annual bonuses of 5- 20 per cent depending on the individual and the company performance.

It also noted a rise in the number of healthcare packages as well as car, phone and laptop allowances being offered to employees.

The survey, which is based on responses from over 800 employers and prospective candidates, found life, critical illness and disability insurance, plus pensions, typically in the financial services sector, were more common this year than previously.

Other benefits included everything from gym membership to canteens, but also 40 per cent of respondents said their companies offered some form of flexible working.

Executive level base salaries were seeing increases ranging from 10-18 per cent, Brightwater said, with discretionary target bonuses improving, varying dramatically from 18-55 per cent depending on the sector.

"We have seen a strong and growing demand for recruitment services over the past 18 months, proof of the strengthening economy and increasing business confidence. As a consequence there is a growing pressure to attract and retain talent" said David Bloch, managing director of Brightwater.

"While we are nowhere near 2007 where Ireland employed 2.15 million people (currently 1.93 million) we are growing. We have noticed significantly increased recruitment activity particularly in the banking, legal and accountancy sectors where the firms are recruiting in volume again."

“Also of interest is the fact that we’re witnessing an encouraging increase in senior level hires across industry and financial services. At this stage a client does not necessarily have to look beyond their own sector for a specific skill set and it will be an interesting trend to monitor for 2015 as we see the job markets continuing to pick up.”

A separate report from international recruiter Manpower suggests Irish employers expect to grow staff numbers across most industry sectors in the first quarter of next year.

In its latest employment outlook survey, the company’s Irish arm said employers here are reporting a net employment outlook - the percentage of employers anticipating an increase - of 10 per cent for the January to March 2015, an increase of 13 percentage points on the previous quarter, and a substantial 16 points ahead of the same time frame last year.

It was also the strongest net employment outlook figure reported in Ireland since the second quarter of 2007, when the figure stood at 18 per cent.

The Manpower report, which is based on a sample of 620 Irish employers, also suggested staffing levels were expected to grow in ten of the 11 industry sectors under review.

Employers in the pharmaceutical sector expect the strongest job growth of all 11 sectors evaluated, reporting an outlook of 26 per cent, up 17 percentage points on the previous quarter, which was the strongest ranking for the sector since the third quarter of 2002.

The survey also reflect the recovery in the construction sector, which registered an employment outlook of 13 per cent, up 22 percentage points on the last quarter, making it the highest quarter on quarter growth for all sectors evaluated.

The report also noted optimism among employers in the restaurant and hotels sector had also improved sharply.

On a regional basis, employers in Ulster report maintained the most optimistic hiring intentions, with an outlook of 15 per cent, closely followed by employers in Leinster, which registered a 12 per cent outlook.

Dublin’s forecast of 10 per cent is up 8 percentage points on a quarterly basis while Connaught employers reported the weakest regional hiring plans with an outlook of just 5 per cent, dropping one percentage point since the last quarter.

Jonny Edgar, operations manager at Manpower Ireland said: "This is the strongest outlook reported in Ireland in nearly seven years, indicating that employers are much more confident that Ireland has finally turned the corner and is now on the path to substantial growth."