MORGAN McKINLEY IRISH EMPLOYMENT MONITOR DECEMBER 2010
MORGAN McKINLEY IRISH EMPLOYMENT MONITOR DECEMBER 2010
Monitoring the pulse of the Irish professional jobs market
Survey finds 43% of organisations plan to hire professionals in 2011
Managers predict salaries to remain stable this year
Salary Guide Highlights
The majority (63.6%) of managers across the finance, technical, office support and IT functions in Ireland expect basic salaries in their organisations to stay the same over the next 12 months, while just over a quarter (25.7%) think they will rise and only 10.7% fear they will fall
In a positive indicator for the Irish economy, 42.8% of respondents expect their organisations to hire new staff over the next 12 months
The majority of respondents (61%) predict that the number of staff in their organisations will increase by up to 5% of the current headcount
Irish Employment Monitor Highlights
The volume of professional job vacancies in Ireland decreased by 12% from November to December 10. There was, however, a 14% increase when compared to job opportunities in December 09
The number of professionals beginning their job search in Ireland dropped dramatically in December 10, with a 51% decrease from November 10 and a 29% decrease year-on-year from December 09.
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 firms 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 firms current headcount.
Karen O'Flaherty, Chief Operations Officer, Premier Group Ireland commented: The results of Morgan McKinleys 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. Its encouraging that this is a slight uplift from Morgan McKinleys 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. The IT sector 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 Irelands 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.
December 10 sees volume of new professional job seekers drop by more than 50%
The Morgan McKinley Irish Employment Monitor registered a 12% month-on-month decrease in the number of new professional roles coming onto the market 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 figurerecorded 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 Governments EU/IMF bail-out announcement in late November 10, along with the extraordinary weather that caused severe disruptions to business activity in December 10, also impacted the countrys professional jobs market during that month.