The Abrivia Recruitment 2016 Salary Survey has revealed the key issues facing employers and staff in the coming year. The Dublin-based consultancy, which employs 25 people, has compiled data from a survey of 4,000 companies and 45,000 employees in Human Resources and other sectors with macroeconomic analysis and commentary from lecturer and economist Dr Daragh McGreal.
KEY FINDINGS FOR HR SECTOR
• 72% of HR professionals surveyed planned to change jobs in 2016
• 75% of HR professionals are expecting a salary increase in 2016, either as a result of changing job or through a salary increase
• 78% of HR professionals cited basic salary as what matters most in terms of reward followed by amount of annual leave given (50%) and bonus (26%).
• 67% of HR professionals surveyed said that the quality of the management team was the most important factor for them in their working environment, followed by secure working environment (45%), quality of employees (44%) and flexible working hours (42%) and option to work from home in fifth place (31%).
• When asked what keeps them motivated at work, 69% said interest in their role responsibilities, followed by work/life balance (56%), level of autonomy encouraged (47%) and management listening to their opinion (43%) as most important factors.
• 74% said they would seek out reviews of the company before accepting an interview and 69% said that a negative review would influence their decision on whether to attend an interview or accept a role offered to them.
• One in five HR respondents said they were looking to buy a home in 2016 and the vast majority of those said that they are likely to seek a salary increase or new employment as a result.
The Human Resources sector, long in the doldrums, has had its best year since pre-recession days with a significant increase in activity across all levels. Associate director Anne Coleman, who leads Abrivia’s HR recruitment division said, “Recruitment specialists with at two or more years in-house or tech multinational and startup experience are in high demand and there has also been a welcome shift from contract work in 2013 and 2014 to more permanent roles in 2015.”
The steady recovery in the HR jobs market will be maintained as the wider Irish economy continues to grow. 72% of HR professionals surveyed plan to change jobs in 2016 and there will also be an upward shift in salaries in a sector where they were more or less static for the past five years.
“However there is a distinct lack of availability of candidates at the 1-3 years’ post graduate experience level,” Anne Coleman continued. “ This is because HR graduates really struggled to secure an entry level job in the past couple of years and therefore were either forced into a different career route or emigrated, hence leaving behind a very small pool of junior HR candidates.”
Anne predicted that the HR skills most likely to be in demand in 2016 is recruitment as most employers are looking to increase headcount. Demand for talent management and learning and development specialists is expected to rise as organisations now have larger budgets to invest in developing and retaining their best people.
Economist Dr Daragh McGreal said, “In 2016, GDP growth is anticipated at around 4%, unemployment is expected to fall below 8% by year-end, and the State’s budgetary deficit is expected to fall to 1.2%. These factors provide for a strong climate in which industry can thrive. However, those same factors can lead to demands for salary increases from employees, who see a growing economy, less competition for work, and a government more capable of procuring from the private sector. “
Donal O’Brien, managing director, Abrivia Recruitment said, “73% of respondents in our 2016 Survey expect a salary increase and 57% plan to change jobs. This leaves employers with two options: either pay the current employee higher wages or seek a replacement for the same salary. The preferred option is clear: 89% of our respondent employers expect to pay higher salaries in 2016.”
THE IMPACT OF DOMESTIC RENT INCREASES
For those in rental accommodation, 2015 was a year of mixed fortune: well over half (60%) were hit by rent increases, of which 22% saw theirs rise by over 10% and 28% between 5 and 10%. 10% of renters experienced increases of less than 5% and 40% said their rental had remained static.
One in four renters said they cannot manage the 2015 rent increases on their current salaries. 38% of renters will seek a salary rise in 2016 solely due to changes in rent.
“45% of small and large firms said that the current market was hindering their ability to hire staff. New rules regulating tenancy contracts may affect salaries in 2016. Some employers may seek evidence of rental increases before granting salary increases,” said Dr McGreal.
CENTRAL BANK MORTGAGE RULES
The survey revealed salary increases will be necessary to both finance a mortgage under the new rules and to keep pace with house price increases in Dublin. One fifth of respondents said they were looking to buy a home in 2016. When asked how Central Bank rules in relation to mortgage deposits might impact their employment situation, 68% of those said they will look for a salary increase and 56% said they would look for a new job.
For the full survey download, including salary breakdown by role and sector - Read More...