Professional job prospects high for 2011
Date: 13 January 2011Close to 43pc of managers across the finance, technical, office support and IT functions in Ireland expect to hire new professional staff this year, according to a survey from Morgan McKinley today.
It found that the majority (63.6pc) of managers expect basic salaries in their organisations to stay the same over the next 12 months, while just over a quarter (25.7pc) think they will rise and only 10.7pc fear they will fall.
"The results of Morgan McKinley's 2011 Salary Guide show that the majority of managers (63.6pc) expect salaries to remain stable over the next 12 months. A further 25.7pc 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 22pc of respondents expected to see salary increases within their businesses," said Karen O'Flaherty, Chief Operations Officer, Premier Group Ireland.
When asked about recruitment plans for 2011, 42.8pc of managers stated that their firms were planning to hire new staff. For 39.2pc of companies hiring is on hold, with the remaining 18pc unsure of their hiring activity for the next 12 months. Of these respondents, 61pc expect these new hires to increase staff numbers by up to 5pc of their firm's current headcount, while 23.6pc believe new hires will be more in the region of 6-10pc of current headcount. Almost 2pc of managers expected dramatic staff increases of more than 50pc of their firm's current headcount.
The Morgan McKinley Irish Employment Monitor registered a 12pc 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 14pc 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 (51pc) 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 29pc fall year-on-year from December 09 when 7,560 professionals were interested in new roles.
"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, 42.8pc 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," said Ms O'Flaherty.
"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 (61pc) predict that staff increases within their organisations will be less than 5pc of current headcounts, followed by 23.6pc who believe they will be in the region of 6-10pc. 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."
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