08 Jan 2018 | 10.51 am
Abrivia Publishes Salary Survey 2018
Find out about finance and IT salary levels
08 Jan 2018 | 10.51 am
A survey of businesses and employees indicates that most employers plan to hire more staff this year, but there could be trouble ahead as employee expectations for pay increases exceed those of employers by a wide margin.
Pay rises, the Brexit negotiations, GDPR, skills shortages, the problems of an economy approaching full employment, and increasing numbers of returning Irish are spotlighted in the 2018 Abrivia Recruitment/TCD Salary, Employment and Economic Trends Survey.
Abrivia and Trinity College’s Business School surveyed more than 7,400 clients and 45,000 employees from several industry sectors.
Abrivia managing director Donal O’Brien commented: “85% of employers plan to take on new staff in 2018, with salaries in IT and finance pulling far ahead of other sectors. In line with the general trend of staff shortages in key areas, 64% of employers have employed a non-Irish applicant based outside Ireland in the past 12 months, up from 58% in the previous survey.
“Employers expect salaries to increase in 2018 but at a more modest rate than last year, less than 3%. This contrasts with employee expectations – well over one third of those surveyed are looking forward to a pay increase of between 5% and 10%.”
Professor Brian Lucey of TCD Business School added: “In economic terms, 2018 is going to be a very interesting year for Ireland. We will finally see the extent to which the UK is willing to concede the existence of reality, negotiated seriously around an exit agreement from the European Union that preserves economic common sense.
“This will not be possible of course until the Tory Party civil war finishes and, as it has lasted for at least 40 years, we shouldn’t hold our breath. Without a shadow of a doubt Brexit remains the largest single cloud on the economic horizon. To ignore its reality, as many companies have been prone to do, is simply not an option.”
Among the main points of interest for employers are:
- Irish professionals are returning in greater numbers, with 56% of companies overall reporting they had hired returning Irish nationals in 2017, up from 47% in 2016. It was most pronounced in the Finance and Banking sector (71%).
- The shortage of rental accommodation continues to bite, with 47% of employers saying that it was impacting on their ability to hire staff, up from 40% in the previous survey.
- The cost of purchasing a home continues to impact, with 37% citing it as a major issue in recruiting staff in 2017, up from 27% in 2016.
- 70% of employers increased headcount in 2017. While some firms had dramatic expansions, most increased their numbers by 10-20%.
- 31% of employers surveyed still say ICT roles are the most difficult to fill and probably accounts for the fact that for a growing proportion of ICT firms, over a quarter of their staff are coming from outside the EU
- 85% plan to take on new hires in 2018, in line with last year
- 84% of employers expect salaries to increase in 2018 (80% in 2017). However, increases are likely to be more modest, less than 3% (between 3-5% the previous year)
- Almost 80% expect to pay bonuses in 2018, compared to 72% in 2017.
And among employees, some of the major conclusions and concerns are:
- The economic attraction of Dublin remains strong, with 72% saying they were unwilling to relocate to afford a house.
- Salaries in ICT and Finance pull far ahead of other sectors.
- 2% of respondents were earning over €100,000 per annum and well over one-third of those were in the ICT sector (37%), followed by Finance & Banking (14%) and Accounting (12%)
- 73% expect their wages to increase in 2018
- 8% experienced a reduction in salaries in 2017 while 25% said theirs remained static
- 69% of employees surveyed said that free third level college fees should continue and 9% are in favour of a graduate tax.
- 48% would accept a decrease of 1-3% in their salary to move outside Dublin
- 46% said they would need a salary increase of more than 21% to move to Dublin
- 73% expect a salary increase in 2018 and 37% of those are looking forward to a pay increase of between 5 and 10%, in contrast to what employers are expecting to pay.
- 46% of respondents surveyed plan to change employer in 2018.
- 82% seek out reviews from reputable sources before going for interview. 81% said a negative review would influence their decision to even accept an interview request.
Photo (l-r) Donal O’Brien, Abrivia’s Michelle Earley, and TCD academics Prof. Na Fu and Dr Charles Larkin. (Pix: Peter Houlihan)