Survey: More than 40% of managers predict rise in staff

A survey has found that 42.8% of managers were planning to hire new staff.

For 39.2% of companies hiring is on hold, with the remaining 18% unsure of their hiring activity for the next 12 months.

Of these respondents, 61% expect these new hires to increase staff numbers by up to 5% of their firm’s current headcount, while 23.6% believe new hires will be more in the region of 6-10% of current headcount.

Almost 2% of managers expected dramatic staff increases of more than 50% of their firm’s current headcount.

The survey by Morgan McKinley also revealed that 63.6% expect salaries in their organisations to stay the same in 2011.

They conducted the telephone survey of 723 senior-level operational and HR managers hiring across the finance, technical, office support and IT functions in businesses in Ireland.

Karen O'Flaherty, Chief Operations Officer, Premier Group Ireland said: "It is expected that multinational companies will be the main drivers of this hiring activity, as many continue to restructure and rebuild their teams after significant job cuts in 2008-09. The IT sector is particularly buoyant and should be the 'sector to watch' in 2011. Demand for temporary, interim and contract professionals is set to remain strong across all industries, as fiscal pressures force hiring managers to seek more flexible and cost-effective recruitment solutions.

"Although the results of the survey are encouraging, they could not be described as a significant ‘ramp up’ in hiring activity. The majority of respondents (61%) predict that staff increases within their organisations will be less than 5% of current headcounts, followed by 23.6% who believe they will be in the region of 6-10%. Although positive, these levels are still well short of the hiring volumes experienced three years ago during the boom."

"It’s encouraging that this is a slight uplift from Morgan McKinley’s previous Salary Survey, conducted in April 10, in which 22% of respondents expected to see salary increases within their businesses.

"During the downturn, a number of companies froze some or all elements of their compensation packages in order to manage costs in the short term. As the market recovers, more businesses are seeking advice on their remuneration structures, indicating a renewed focus on pay and rewards.