2016 ABRIVIA SURVEY SPOTLIGHTS ICT EMPLOYMENT TRENDS

“2015 was the year of the data breach so we noted a huge increase in demand for IT Security and IT Audit professionals,” said Gareth Fleming, IT Recruitment Manager. “Bring Your Own Device to Work became much more commonplace in 2015 whilst more companies migrated to the cloud; these and other factors are bringing increased risk to commercial IT environments.”

The battle for staff continues in the ICT sector and in 2016,  95% of firms plan to increase headcount and 96% plan to increase salaries, compared to 67% and 75% respectively in 2015. And as only 19% of ICT firms have an average employee tenure of greater than 5 years, indicating the fluidity of the market, candidates working in this sector can expect good opportunities and competition for their talents.

l/r Donal O’Brien, managing director  associate director, Anne Coleman, economist Dr Daragh McGreal and Michelle Earley, manager – office support, at the launch of Abrivia Recruitment’s 2016 Salary and Employment Trends Survey. Survey results available for download on www.abrivia.ie. l/r Donal O’Brien, managing director  associate director, Anne Coleman, economist Dr Daragh McGreal and Michelle Earley, recruitment consultant at the launch of Abrivia Recruitment’s 2016 Salary and Employment Trends Survey. Survey results available for download on www.abrivia.ie. Photo: Peter Houlihan

“In 2015, there was a marked increase in the instances of counter offers as well as multiple offers for IT job seekers, very reminiscent of the Celtic Tiger days, even for roles with a high candidate to job ratio historically, such as technical support roles,” commented Chris Jennings, IT Recruitment Manager.

Another noticeable feature of the IT jobs market in 2015 was the increased readiness of companies to provide employment for non-EU citizens who require work permits. With the EU well of talent drying up considerably, many organisations felt compelled to look further afield to source candidates for high-skilled roles.

81% of firms in the ICT sector employed a candidate based outside Ireland in 2015. 60% of non-EU candidates had lower salary expectations than Irish applicants. This suggests that ICT firms are willing to look beyond Irish candidates, with lower salary expectations likely an attraction.

Another noticeable feature of the IT jobs market in 2015 was the increased readiness of companies to provide employment for non-EU citizens who require work permits. With the EU well of talent drying up, many organisations were compelled to look further afield for suitable highly skilled candidates.

For 2016, salary and rates in the ICT sector are likely to see an upward curve again and there are indications that IT professionals will become even more mobile and more open to exploring opportunities given the strength of the industry.

OTHER SURVEY FINDINGS – COVERING ALL EMPLOYMENT SECTORS
Dr Daragh McGreal, economic consultant for Abrivia Recruitment, 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.