Some wage rises on the cards for 2014

Wednesday, June 04, 2014

Performance-related bonuses emerging as a staff retention tool 

Hiring-activity of Indigenous Irish Firms increases by 40%

Pockets of notable salary inflation in specific sectors of demand such as construction, science, food and technology

 

Modest wage rises may be on the cards for the majority of employees this year with slight increases evident across the board according to the Cpl 2014 Annual Salary Guide. These sectors include legal, marketing, HR, engineering, languages, and office support.

Some jobs within certain sectors have shown double-digit increases.  However, these are mostly in sectors which were harshly adjusted after low demand in the recession, or have seen growth from a boom in the sector and for specific roles and qualifications.  These sectors include banking, construction, science, tech and food retail management. 

Cpl also noted that indigenous Irish firms are beginning to hire again, reporting a 40% increase in such activity. 

The company also identified an increase of 10% in revenue from permanent placement in the latter part of 2013, and this trend has continued in 2014. This shows Irish business confidence is increasing with more companies hiring permanent staff than in the last five years. 

Cpl’s Annual Salary Guide is in its third year and gives a very comprehensive view of salary levels at national, Dublin and regional levels.  It is the most popular document on the Cpl website which has more than 100,000 visitors per month and is the only recruitment agency in the top 10 Irish jobs boards.

Some of the findings of note are:

  • Certain banking roles are in demand across mortgage collections, underwriting and credit analysis due to increased activity in these areas.
  • Construction jobs across both Design and Build show marked salary increases, reflecting an upswing in commercial construction and a legacy of harshly adjusted salary levels in the recession.  A Design Manager’s upper salary band has risen by 15%; Building Services Engineer, M&E Coordinator and M&E Engineer all by 18%.
  • Certain Science roles have had double digit salary increases in the last year, particularly in Dublin, however these reflect a growth in certain industries which heretofore may not have been so prevalent in Ireland;
  • Finance CEOs in larger companies top the CEO pay scale at €500K, with Pharmaceutical CEOs not far behind with a top salary level of €420K;
  • Salary levels in Accountancy and Finance remain similar to 2013, but trainee accountant roles for each of the Big 4 are increasing; demand for Auditors remains high among the Big 4 and Top 20 practices with newly qualified up to Manager Level salaries steadily increasing;
  • Non-profit CEOs average between €85 and €145K depending on organisational size;
  • Sales jobs are on the increase and good candidates are being fought over.  However salary increases are mostly only in the senior roles. This would indicate that companies are seeking to grow revenue rather than to cut costs.

Anne Heraty, CEO, Cpl Resources Plc said: “We are beginning to see the jobs market move and wages increase slightly in most sectors.  With virtually no salary increases in the last five years, there is a trend of firms re-introducing performance related bonuses to retain good staff”. 

“This is good news for employees, however we must keep focused on Ireland’s role within a global jobs market. To remain competitive, we must continue to train and produce the best people at the best price.  Controlling salary inflation must be part of this strategy,” she added. 

“Payroll can account for 2/3 of a business’s costs so the Cpl Salary Guide provides a valuable and reliable indicator of wage inflation in certain sectors.   Further, it is a useful guide for candidates to understand their value when they are pitching themselves to employers,” Ms Heraty concluded.