Rising salaries in tech sector could erode Ireland’s competitiveness

Rising salaries in the technology sector could erode Ireland’s competitiveness, Hugh McCarthy, head of Brightwater Recruitment’s IT division, has said.

A survey of IT professionals, carried out by the company, found job opportunities and salaries in the sector are on the rise.

“While salaries in IT in Ireland are not yet at the levels being paid in California or London for example, there may be a danger as rates push upwards we may become less competitive and therefore more likely to lose potential jobs to other countries,” said Mr McCarthy.

He said companies are faced with the challenge of attracting and retaining the people they need in the organisation.

“As a technology community, the challenge is to reward people appropriately for innovation, skill and productivity while at the same time remaining competitive in the international market,” he added.

More than 45 per cent of IT employees surveyed said they were more interested in moving jobs to an SME or start-up company, compared to just 15 per cent who said they would choose to work for an established multinational. When results are broken down further, the data suggests that a majority of software engineers have a preference to work with more established small- to medium-sized businesses.

Mr McCarthy said the draw towards start-ups for developers lies in the perceived flexibility of smaller companies, their tendency towards innovation and the perception they have their fingers on the pulse of the local IT market.

In contrast, the majority of project managers, creative and infrastructure professionals had a preference for employment in a multinational organisation.

The survey also showed that there is still a feeling of misalignment between what the universities in Ireland are delivering and what industry is demanding in terms of skills. Within software development for example, 40 per cent of respondents felt that universities did not equip graduates with the knowledge required, compared to 31 per cent who did.

When respondents were asked then they intended to look at new employment opportunities, more than 59 per cent said they are looking immediately or plan to look within 12 months.

“We attribute this increase to rising confidence in the market, with very competitive rates on offer for candidates with key skill sets and many opportunities available, meaning there is more chance of finding further employment at the end of the contract period,” said Mr McCarthy.