Morgan McKinley: Bonus culture is back for financial firms

Irish finance companies are paying professionals bonuses of up to 25% as the “bonus culture” returns to Ireland, according to the latest recruitment survey from Morgan McKinley.

The recruitment firm also said economic growth here and what it termed “the recent positive sentiment” meant emigrants who had left seeking work during the crisis were seeking to return home, particularly from London, Australia, and Canada.

Citing IDA data for rising numbers of people employed by multinationals, it said skills shortages in certain professions are re-emerging as services firms chase the same type of professionals.

The return of a “bonus culture” is however limited to some areas of financial services only, and is not widespread across the economy, said the recruiter.

In general, “we are still seeing a cautious approach to bonuses, with rewards of between 5% and 10% the norm”, Morgan McKinley said.

It reports that, outside Dublin, financial firms after the slump are starting to recruit more senior managers and financial controllers and finance directors. Jobs for risk officers are also growing.

“The 21% month-on-month drop in job seekers is evidence we are entering a period of skills shortages,” said Morgan McKinley.

“Professional services firms attempting to hire senior level professionals face stiff competition.

“There is a return of the bonus culture, particularly within the finance sector.

"Bonuses of up to 25% reflect the necessity for firms to retain talent with critical skills, especially those with technical and project management experience.”

The recruiter said German speakers are also in demand.