Cautious optimism within the professional jobs market leading into 2011 [press release]

Aldagh McDonogh 09.12.2010

Hiring Market Survey Highlights

  • Compared to 2010, 46% of managers across the finance, technical, office support and IT functions in Ireland feel more positive about the economic outlook for 2011
  • Approximately half of respondents expect their organisations to pay year end bonuses for 2010
  • The majority (83%) believe these bonuses will be between 1-10% of base salaries

Irish Employment Monitor Highlights

  • The volume of professional job vacancies in Ireland decreased by 5% month-on-month in November 10. This was however, a 34% increase when compared to the same time in November 09
  • The number of professionals beginning their job search in Ireland held quite steady in November 10, with a minimal 1% drop from October 10 and a 2% increase year-on-year from November 09


Half of managers surveyed expect their companies to pay modest year end bonuses

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 46% of managers feel more positive about the outlook for the Irish economy in 2011, compared to the same time last year. Of the remaining respondents, 23% felt less positive and 30% felt the same.
 
When asked about year end bonuses, the response was fairly evenly split between those who expect their business to pay bonuses this year (50.5%) and those who do not (49.5%). Those anticipating bonuses expect them to be quite modest, with 45% of managers expecting them to fall in the range of 1- 5% of base salaries, while 38% of respondents are anticipating bonuses to be 6-10% of base salaries.

Karen O'Flaherty, Operations Director of Premier Group Ireland, commented:
“The results of Morgan McKinley’s latest Hiring Market Survey show that approximately half of managers working across finance, technical, office support and IT functions in Ireland expect their businesses to distribute year end bonuses for 2011.

“This may come as a surprise considering there is currently caution in the Irish marketplace on the back of serious economic uncertainty. The data does show however that the majority of managers anticipating bonus pay outs believe they will be modest in size; that is between 1 and 10% of basic salaries. This reflects increased business performance in some areas of the market compared to last year, however business activity remains relatively muted.

“Despite the current mood of austerity, some organisations are choosing to recognise and reward their employees, many of whom have not received bonuses or salary increases for a number of years or have taken reduced salaries or benefits because of the downturn. In particular, companies where projects have been shortened or terminated, and/or there is the threat of redundancies, may be using year end bonuses (even minimal ones) as a mechanism to retain key staff. Even in this challenging economic climate, companies recognise there are still shortages of skilled professionals in certain sectors, so staff retention is a priority.

“The survey also found that 46% of Irish managers (most notably those in the IT sector) feel more positive about the country’s economic outlook for 2011 than they did at the same time last year. This suggests that even though the majority of Irish professionals have been affected by economic challenges and uncertainty, there is still a sense of cautious optimism leading into 2011. As reflected by trends in Morgan McKinley’s Irish Employment Monitor, many Irish professionals feel that overall, 2010 was a more positive time for business than the previous couple of years. There appears to be a hopeful, yet restrained, mood that this slight improvement will continue into 2011.”

Chart 1: Economic outlook

Do you have a more positive economic outlook for 2011 than compared to last year?

Irish job opportunities dip slightly in November 10

The Morgan McKinley Irish Employment Monitor registered a 5% decrease in the number of new professional roles coming onto the market during November 10. Vacancies decreased from 6,244 in October 10 to 5,926 in November 10. This was however, a 34% increase from November 09 figures, illustrating an improvement in the number of new professional job opportunities year-on-year.

A minor decrease in the number of professionals entering the Irish jobs market was also registered. Volumes of new job seekers fell by 1% from 11,115 in October 10 to 11,015 in November 10. This was however a small rise of 2% year-on-year from November 09.

Karen O'Flaherty, Operations Director of Premier Group Ireland, commented:
“The 5% monthly decrease in the number of professional jobs is quite typical for this time of year, as many firms begin to wind down their hiring activities moving into the festive season.

“November 10 did however see increased recruitment activity in the technical jobs sector, predominantly due to the organic growth of multinational and SME employers. Technical salespeople and procurement specialists are in high demand as companies look to hire staff that will positively impact their bottom lines. There is also strong demand from the pharmaceutical industry for medical advisors in anticipation of the Irish Medicines Board’s new regulatory laws due to be laid down in the first half of 2011.

“There was a very slight decrease month-on-month in the number of professionals newly active in the Irish jobs market in November 10. Overall, this volume holds relatively steady when compared to both month-on-month (-1%) and year-on-year (+2%) results.

“Overall, job opportunities have peaked in the last three months which is a positive indicator as we look ahead to 2011.”

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Notes to editors

Hiring Market Update methodology

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 Hiring Market Update 2010.

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About the Morgan McKinley Irish Employment Monitor

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.

Statistical methodology

Monthly new jobs and new candidates

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 classification

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.

Geography

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.

About Morgan McKinley in Ireland

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 London Employment Monitor

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.

Transformation Director
amcdonogh@morganmckinley.com