Throughout November 10, Morgan McKinley conducted a telephone survey of 723 senior-level operational and HR managers hiring across the finance, technical, office support and IT functions in businesses in Ireland. The survey found that the majority of managers (63.6%) expect salaries in their organisations to stay the same in 2011.
When asked about recruitment plans for 2011, 42.8% of managers stated that their firms were planning to hire new staff. For 39.2% of companies hiring is on hold, with the remaining 18% unsure of their hiring activity for the next 12 months. Of these respondents, 61% expect these new hires to increase staff numbers by up to 5% of their firm’s current headcount, while 23.6% believe new hires will be more in the region of 6-10% of current headcount. Almost 2% of managers expected dramatic staff increases of more than 50% of their firm’s current headcount.
Karen O'Flaherty, Chief Operations Officer, Premier Group Ireland commented:
“The results of Morgan McKinley’s 2011 Salary Guide show that the majority of managers (63.6%) expect salaries to remain stable over the next 12 months. A further 25.7% of respondents believe salaries are likely to rise over this period. It’s encouraging that this is a slight uplift from Morgan McKinley’s previous Salary Survey (conducted in April 10) in which 22% of respondents expected to see salary increases within their businesses.
“During the downturn, a number of companies froze some or all elements of their compensation packages in order to manage costs in the short term. As the market recovers, more businesses are seeking advice on their remuneration structures, indicating a renewed focus on pay and rewards.
“In a more positive indicator for the Irish jobs market, 42.8% of managers said that their organisations plan to recruit new staff in 2011. It is expected that multinational companies will be the main drivers of this hiring activity, as many continue to restructure and rebuild their teams after significant job cuts in 2008-09. IT recruitment is particularly buoyant and should be the ‘sector to watch’ in 2011. Demand for temporary, interim and contract professionals is set to remain strong across all industries, as fiscal pressures force hiring managers to seek more flexible and cost-effective recruitment solutions.
“Although the results of the survey are encouraging, they could not be described as a significant ‘ramp up’ in hiring activity. The majority of respondents (61%) predict that staff increases within their organisations will be less than 5% of current headcounts, followed by 23.6% who believe they will be in the region of 6-10%. Although positive, these levels are still well short of the hiring volumes experienced three years ago during the boom.
“Overall, the survey illustrates how Ireland’s severe economic challenges have muted expectations of professional salary levels for 2011. The general outlook for the next 12 months is for salaries to remain static and for hiring activity to continue cautiously.”
The Morgan McKinley Irish Employment Monitor registered a 12% month-on-month decrease in the number of new professional roles during December 10. Vacancies decreased from 5,926 in November 10 to 5,227 in December 10. This was however, a 14% increase from the 4,587 jobs registered in December 09, illustrating a slight improvement in the number of new professional job opportunities year-on-year.
December 10 also saw a significant monthly decrease (51%) in the number of professionals entering the Irish jobs market; down from 11,015 in November 10 to 5,365 in December 10. This also marked a 29% fall year-on-year from December 09 when 7,560 professionals were interested in new roles.
Karen O'Flaherty, Chief Operations Officer, Premier Group Ireland, commented:
“The Morgan McKinley Irish Employment Monitor showed a month-on-month decrease (12%) in the volume of new professional job roles in December 10 which coincided with a 51% decrease in the number of professionals looking for jobs – the lowest figure recorded since December 06.
“These low levels can be attributed to a number of factors. December is traditionally a subdued month for recruitment as companies taper their hiring and professionals are less active in their job searches heading into the holiday season. Many professionals, especially those at more senior levels within the financial services industry, are also hesitant to switch jobs before they receive their bonus pay-outs early in the New Year.
“The Government’s EU/IMF bailout announcement in late November 10, along with the extraordinary weather that caused severe disruptions to business activity in December 10, also impacted the country’s professional jobs market during that month.”
Chart 2: New jobs v. new candidates
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Notes to editors
Further press information:
Tim Kinsella, MKC Communications, Tel: 086 813 7512, Email: firstname.lastname@example.org
Morgan McKinley conducted a telephone survey of 723 senior-level operational and HR managers within the finance, technical, IT and office support functions in businesses in the Republic of Ireland between the 16th and 24th of November 2010. The aggregated results of this research are used in this edition of the Morgan McKinley Salary Guide 2010.
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The Morgan McKinley Irish Employment Monitor (previously known as the Premier Group Irish Employment Monitor) measures the pulse of the Irish professional jobs market by tracking the number of new job vacancies and new candidates within the Republic of Ireland each month. The first Premier Group Irish Employment Monitor was launched in May 2009 with data from April 2008 onwards.
Monthly new jobs and new candidate figures are based on Morgan McKinley's own monthly records of new permanent job vacancies and new candidates registering with the firm for permanent employment. Statistics for the full market are derived using Morgan McKinley’s own market share.
Job vacancies are professional level roles within the following sectors and functions:banking & financial services, commerce & industry finance, insurance, public practice & tax, legal, HR, IT, life sciences, engineering, process & manufacturing, professional services, sales & marketing, customer service, secretarial & office support.
The data is based on new job vacancies and new candidates registered with the Morgan McKinley Group’s network of Irish offices in Cork, Dublin, Kilkenny, Limerick and Waterford.
Morgan McKinley is an Irish-owned global professional recruitment consultancy connecting specialist talent with leading employers across multiple industries and disciplines.
With offices across Ireland, the UK, Europe, the Middle East and Asia-Pacific, its professional recruitment expertise spans the accounting and finance, financial services, technical and IT sectors. Morgan McKinley is a preferred supplier to many of the major employers in its specialist sectors and thousands of smaller local firms.
From October 6th 2010 Premier, Brunel and Verkom the specialist recruitment divisions of Premier Group in Ireland are called Morgan McKinley. Nothing else has changed. We are the same people, the same Irish company delivering the same recruitment service.
Morgan McKinley currently publishes a similar Employment Monitor in London. It was launched in 2004 and reports on the new roles, candidates and salaries within the financial services jobs market in London each month.