Dublin-based consultancy, Abrivia Recruitment, have released their latest 2016 Salary Survey which has compiled data from a survey of 4,000 companies and 45,000 employees across multiple industry sectors with macroeconomic analysis and commentary from lecturer and economist Dr Daragh McGreal.
The survey shows that the current rental market, especially in Dublin, will have a significant impact on salary expectations in 2016. Over half (60%) of respondents in rental accommodation were hit by rent increases, of which 22% saw theirs rise by over 10% and 28% between 5 and 10%, while 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 and 38% of renters will seek a salary rise in 2016 solely due to changes in rent.
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.
Seventy three per cent of those surveyed expect a salary increase while 57% plan to change jobs. Men are more likely than women to expect a salary increase and to change jobs.
Economist Dr Daragh McGreal 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. “