Salaries for new employees down by as much as 20%

By Niamh Hennessy

Tuesday, March 30, 2010

BANK staff saw their pay plunge by as much as 25% last year, with secretaries, engineers and construction workers also being hit.

According to the latest IrishJobs.ie salary survey, the jobs market is now stabilising with more recruitment activity in the last few months. It said benchmark salaries for new employees in most jobs are down by between 5% and 20% since 2008. In the banking sector the average drop in salary has been between 10% and 25%. A head of treasury’s salary has dropped from €180,000 in 2008 to €135,000 in 2010, while a credit analyst’s pay is down from €55,000 in 2008 to €42,000 in 2010.

A head of compliance saw no change in their salary, maintaining the same levels seen in 2008, up to €120,000. Marketing manager with IrishJobs.ie Valerie Sorohan said: "For the past 12 months we have been hearing anecdotally of employee salary reductions in most industries.

"It will come as no surprise that the market rate for salaries for new employees has been adjusted downwards in most sectors."

She added: "Prior to 2008, Irish salary rates were rising rapidly, making Ireland less competitive for inward investment. The reduction in salary rates across the board, as seen in the 2010 salary survey, may work to attract new business investment to Ireland."

In hotel and catering a general manager who earned up to €140,000 in 2008 now earns around €100,000.

Salaries for permanent IT roles are down by up to 15%, while contractor pay rates have fallen up to 27%.

Salaries for newly qualified solicitors, meanwhile, have dropped by about 10% but there has been an increase in salaries for experienced legal staff in some roles. PA and secretarial salaries have been hit with a 25% cut while construction salaries have dropped between 15% to 22%.

"Everyone should be aware of the salaries within their industry and should keep their own salary expectations within realistic market parameters," said Ms Sorohan.

This appeared in the printed version of the Irish Examiner Tuesday, March 30, 2010