A little over a third (36%) of professionals in Ireland plan on actively looking for a new job in the next six months, 17% down from last year, according to the latest Morgan McKinley Irish Salary Guide.

The Guide also anticipates that salaries in most professional areas will see little to no significant change into 2024, closely mirroring an expected inflation rate of around 3%, following significant pay increases in recent years.

This is despite the report showing 68% of hiring managers say they will increase salaries in certain roles in the next 6-12 months.

The report also noted that, in specialised positions and industries facing skills shortages, professionals with significantly in-demand skills could potentially expect salary increases of up to 15%, underscoring the strong competition organisations will encounter as they seek to attract top talent in these areas.

Trayc Keevans, Global FDI Director, Morgan McKinley Ireland, said, “The professional job market in Ireland faced significant challenges in 2023, characterised by fierce competition, talent migration, rising salaries, evolving job seeker dynamics, skills shortages, changing work preferences, and a growing emphasis on transversal skills.”

Further data from the report found that 79% of organisations have found hiring ‘quite or very competitive’ in 2023. It also found that ‘lack of skilled candidates available’ is the main hiring challenge for 40% of employers in Ireland.

Meanwhile, 72% of employers have lost talent in the last six months.

As for working in the office, 1-2 days in the office is the preference of 47% of professionals in Ireland.

According to the Guide, professionals were more considered around switching permanent roles and organisations were tentative in their commitment. This, coupled with an increase in projects and transformation activity, led to a spike in the contracting market, which is set to continue through 2024.

Keevans said, “In 2023, the hybrid working model remained prevalent. However, over a quarter of employers acknowledged losing out on potential hires due to their inability to meet remote and hybrid work expectations. 42% of employers are now encouraging their employees in Ireland to return to the office more frequently. The main motivations behind this shift include enhancing employee collaboration, strengthening company culture, and boosting overall performance. Only 8% of employees expressed a desire to work in the office five days a week. In contrast, 50% of surveyed Irish employees are open to accepting a reduced salary in exchange for the work flexibility they desire.”

“We anticipate that employers' focus for hiring in 2024 will be two-fold,” Keevans said. “Companies will continue to adopt a discerning approach to recruitment, carefully assessing the necessity of each replacement before making hiring decisions and ensuring that such hires are productive and add value to the bottom line. Secondly, we expect leaders to concentrate on retaining their talent and matching the expectations of their employees around flexible working practices, career advancement opportunities, and a supportive company culture."