Slowing economy could be good for temporary workers

The Brightwater 2009 salary survey suggests casual staff will have a major role to play as businesses cut costs, writes Ciara…

The Brightwater 2009 salary survey suggests casual staff will have a major role to play as businesses cut costs, writes Ciara O'Brien

THE SLOWING economy and rising redundancy rate could be good news for temporary workers, a new salary survey has claimed.

According to the 2009 salary survey by recruitment firm Brightwater, which ranks all the employment segments from chief executive to retail sales staff, temporary workers will have a major role to play as businesses cut costs, lay off workers and impose recruitment freezes.

"Additional headcount are often genuinely needed but cannot be hired," the report says. "Utilising temporary staff is a cost-effective, flexible solution. They can be engaged at very short notice, from a day to several months and, most importantly, they remain below the permanent headcount radar."

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However, salary expectations, which have remained static for both junior and senior temporary workers, are expected to continue in this manner until at least the middle of next year.

The Brightwater study looks at pay rates for a range of industries, including insurance, retail, sales and marketing, and IT roles.

It also compares pay rates in the Republic and Northern Ireland, and reveals there is still a considerable difference in pay north and south of the Border, particularly in higher earning roles. In the Republic, a chief technical officer can expect to earn between €75,000 and €110,000, while those who work in firms in Northern Ireland can expect to earn only between £45,000 (€53,800) and £75,000 (€89,700).

Many top executives can expect little change in their salary scales in the coming year, with a managing director in the banking sector in Dublin earning up to €160,000, the same as in 2007.

Northern Ireland bankers can expect the same, with the survey predicting the salary scale for the position to remain static at £50,000 to £80,000.

Despite the economic downturn, some sectors are still finding it hard to source suitable candidates.

Potential sales workers are being offered packages that include company cars or car allowances, a pension, healthcare cover and commission of up to 50 per cent of base salaries in an effort to tempt stronger candidates to jobs.

There is continued strong demand for senior sales professionals in Munster and Connacht, with the survey pointing out that some sectors, such as pharmaceutical and medical industries, are feeling the pinch of the economic conditions less than other sectors, such as construction.

Meanwhile, sales roles in Northern Ireland have increased as investment and strategic business plans have helped boost businesses.

The survey particularly highlights an increase in ICT investment in the region, which it says will contribute to strength in software and telecommunication sales.

Employers in the construction sector, which has been particularly hard hit by a weaker property market, may benefit from the number of job losses in the sector, the survey said, with high-calibre staff now on the lookout for employment.

"Increased availability of candidates in the market allows employers to recruit to match their development plans," the report said. "This has created a shift in the processes of recruitment, allowing organisations to focus on their developmental requirements and reducing the requirement for compromise."