Majority of managers expect salaries to remain static

According to the 2010 Salary Guide produced by recruitment firm Premier Group, just over a fifth (22pc) of managers think basic salaries will rise, while only 8pc think they will fall.

The survey showed that the finance sector is the most optimistic for salary rises, with nearly one third (30pc) of managers saying they expect basic salaries to increase over the next year.

Meanwhile, across technical functions, nearly a quarter (24pc) of managers expect basic pay to increase in the next 12 months.

However, only 18pc of respondents anticipate salary increases for office support roles over the next year.

The survey also showed that managers in the IT sector were the least positive on the potential for basic salary rises, with just 17pc expecting an increase over the coming year.

Downturn lowered expectations
According to Brian Murphy, CEO, Premier Group Ireland, the survey reflects the challenges that the Irish employment market has faced since the start of the downturn.

“Employers in the finance sector who experienced a severely contracted jobs market in 2009 expressed the most positive outlook on salary levels with close to a third expecting pay to rise in the coming year, ahead of those hiring for technical, office support and IT roles. The increasing demand that we are seeing for qualified accountants in financial services and opportunities for newly qualified accountants in general industry has given rise to a more positive market sentiment amongst finance professionals,” he explained.

“IT managers are less optimistic about salary rises. There are still very good opportunities in software development and salaries have held up very well for talented professionals in this area.  However, the increased popularity of cloud computing in the workplace means that those with infrastructure expertise have been less in demand than in previous years and remuneration packages have started to reflect this.

“Overall, the survey illustrates how the downturn has lowered expectations of professional salary levels.  In 2009, many people had to endure significant pay cuts and the survey shows that the general outlook for the next 12 months is for salaries to remain static,” Murphy said.

Professional job vacancies increase
According to Premier Group’s Irish Employment Monitor for April, the volume of professional job vacancies in Ireland increased by 9pc month-on-month in April 2010 and also rose by 18pc to 5,333 in April compared to 4,896 in March last year.

The number of new professionals active in the jobs market also fell very slightly by 2pc in April 2010 compared to March 2010, although it increased by a significant 50pc compared to April 2009.

“We were pleased to see a modest 9pc uptick in the number of professional vacancies coming to the jobs market in Ireland in April 10.  Although slightly lower than February 10, this is the second-highest number of jobs available this year and exceeds the volume of new job opportunities at any point last year, showing the continuation of an overall positive trend in the Irish jobs market compared to 2009,” Murphy said.

“We are finally starting to see the finance jobs market pick up pace with increased demand for qualified accountants.  Particularly hard hit last year, the financial services market is also seeing increased opportunities fuelled by a drive for growth in business banking and insurance as well as a demand for professionals with knowledge of Solvency II and experience in quantitative roles.”