Prosperity Recruitment releases its 2020 Salary Survey for Ireland’s Digital Sector

Increasing wages and in-demand skills:

Last year, Prosperity’s salary survey highlighted a growing demand for specialist digital skills in data, UX and programming. This year, these continue to be in high demand along with other specialist roles in PPC and SEO. This demand is reflected in rising wages for positions in these areas.

PPC specialists and SEO executives are the highest-paid non-management roles in digital marketing. While salaries for those with the title ‘Head of Search’ have increased. This time last year, candidates with five years experience could expect a maximum salary of €120,000. This year, they can expect up to €130,000 per annum – an increase of 8.5%.

Average weekly earnings in Ireland have been going up across the board since 2014, according to CSO figures. In the year to Q3 2019, weekly wages increased by an average of 3.4% – the highest growth in over a decade. However, a massive difference in sectoral earnings exists.

Looking closer at the figures, data shows that weekly wages have increased by 13.5% over the past five years across all sectors and roles. But wage growth is significantly higher in the information and communication sector – at 23.2% growth since 2014. Likewise, the professional and technical sector has seen a 21.9% growth in earnings.

The CSO also puts Ireland’s job vacancy rate at 0.8%. But again, when you dig deeper, this is higher in digital-orientated sectors. The professional and technical sector has the highest vacancy rate of 2.7%, while the information and communication sector is 1.9%.

Ireland’s unemployment rate is holding steady at its lowest point in more than a decade. Full-employment approaches, but Prosperity Recruitment argues that the digital sector reached this point some time ago.

Gary Mullen, Director of Recruitment at Prosperity, commented:

“In the context of full-employment, high-paying jobs at multinationals push up wages at indigenous companies. We’ve already seen that happen. In our experience, there is a critical shortage of talent in areas like SEO and PPC.

“Although we have heard from business owners throughout the year that spending has tightened due to Brexit and a potential global slowdown, there is still a drive for new hires in digital. Salary hikes in key areas have put extra pressure on employers who are dealing with this uncertainty, particularly within the SME sector.

“Our salary survey aims to throw light on average annual salaries in the digital sector. However, high-paying multinationals can skew the average figures. Any business owner looking for advice on salaries can contact the team at Prosperity Recruitment for advice.”

Irish SMEs have to compete with some of the world’s largest multinational companies for talent. With the likes of Google and Facebook offering the industry’s highest salaries, it is likely rising wages and increasing skill shortages will continue over the coming years.

E-commerce is booming in Ireland:

Ireland is the best EU member for integrating digital technology, according to the 2019 DESI Report. This is largely down to Irish SMEs excelling in e-commerce, with 35% of businesses in Ireland selling online – the highest of any member state.

This explains why demand and salaries for e-commerce managers, PPC specialists and SEO roles is increasing. In Prosperity Recruitment’s 2017 survey, pay for an experienced ‘Head of E-commerce’ role started at €110,000. With the exception of Digital Marketing Director, this was the highest client-side salary on the list. Since then, this figure has increased to start at €120,000.

In recent times, a weak pound has made imports to the UK more expensive and British goods cheaper to European shoppers. But post-Brexit, the UK may not be part of the EU’s Digital Single Market and consumers may no longer be protected by EU legislation. A 2019 Government report outlines that e-commerce will be affected by additional import charges, duty and VAT, while the cost of returns is likely to increase because of additional export and import administration.

“Some Irish businesses may benefit from a boost in sales as European consumers turn away from UK retailers. But many are likely to suffer from a drop in trade with the UK. In the coming year, it’s unclear exactly how Brexit will affect Irish e-commerce and its related salaries,” said Gary Mullan, Director of Recruitment at Prosperity.

Brexit’s impact on the digital economy in Ireland:

Since the 2016 Brexit referendum, businesses have been dealing with uncertainty, making it difficult to plan ahead. Last year, 37% of marketers surveyed said their plans would be negatively impacted by Brexit.

Though this would indicate that Brexit is impeding growth and business owners are cautious about investment, it hasn’t decreased digital spend. New talent is in high-demand and IAB’s most recent data shows that Irish digital advertising spend is growing, despite fluctuations in sterling.

It is difficult to say precisely what impact Brexit will have on Ireland’s digital economy, but a 2018 Government report highlights opportunities for foreign direct investment. Already an inviting location, Ireland will be even better-placed to attract companies wanting to locate within the EU in an English-speaking, common law country. Technology and digital media are two sectors which can take advantage of this, the report states.

“Marketers are no more or less ready for Brexit than the wider business community. Although most clients assume there will be some sort of Brexit agreement made, they are still cautious. However, Brexit may encourage growth in the digital sector by driving international businesses to locate in Ireland. It will be interesting to see how many multinationals land in Dublin,” said Gary Mullan of Prosperity Recruitment.

As Brexit is finalised, Prosperity Recruitment envisages that businesses will finally start investing in long-term digital marketing strategies once again. There will be investment in new websites which cater to British and Irish consumers separately. Exporting businesses are also likely to invest more in marketing as Brexit comes to a close. These activities will promote growth in the digital sector and encourage salary increases in areas like web development and design.

SMEs vs multinationals:

Since 2016, Ireland has seen an influx of new companies in the digital landscape. Many of these are startups; some are attracted by tax relief measures and some are set up by talented Irish people who have gained skills and experience at multinational tech companies. But these startups and SMEs often struggle to attract candidates.

“The digital talent pool in Ireland is highly-skilled but quite small. Often top talent is attracted to multinationals because they offer great benefits and can pay 20% more than SMEs and agencies,” Gary Mullan of Prosperity commented.

“The candidates we meet are quite fixated on base salary, which is understandable given the cost of renting in Dublin. But in other job markets, like the US, more candidates are open to opportunities in startups where they have the potential to grow their careers and salaries at a faster pace,” he said.

“The lack of skilled candidates in the SME market needs to be addressed. Policymakers in Ireland should focus on closing the gap between multinationals and indigenous industries,” he added.

For its clients, Prosperity Recruitment often seeks candidates with PPC, data and SEO experience from abroad. Gary Mullan believes all SMEs will have to adopt an international approach to hiring in the future.

For example, more than 20% of Irish businesses take advantage of big data, which is higher than in most European countries. The same goes for e-commerce. Irish SMEs should look to countries where the skills aren’t in such high demand.

“We see great candidates from abroad who want to come to Ireland, but they are often overlooked because they aren’t native English speakers. In France and the UK, there is a big talent pool which can fill the gaps we have here in Ireland,” says Gary Mullan of Prosperity Recruitment.

He also suggests retraining managers who have experience in traditional marketing, so they can bring their business experience and new skills to vacant roles.

The methodology:

The 2020 salary survey is based on analysis of currently available salary data, as well as Prosperity Recruitment’s own data, industry knowledge and recruitment expertise.

Readers can download the full 2020 salary survey here. Reporters will find a PDF copy here.