The digital technology sector contributes 4.4% to Ireland’s GDP, and is growing at 16% per year – that is more than 10 times the rate of growth of the economy as a whole.
With exports worth €72 billion per annum (40% of total national exports) and four of the top five exporters in Ireland being technology companies, this sector is a major employer, accounting for an estimated 105,000 employees.
This year, after several years of stagnation, salaries have risen as confidence increases in the job market. We attribute this to increasing revenues and optimism which inclines companies to offer pay increases (where perhaps there were pay freezes), and also due to employers needing to compete with the numerous new entrants to the Irish employment sector – many of whom are IDA-backed dotcom businesses who have a healthy hiring budget and comprehensive benefits package. Local Irish businesses are now starting to compete with these dotcoms to acquire and retain the best talent, whereas for many years there was a significant difference between these two types of firms.
Another factor that pushes up salaries is the emergence of the ‘counter-offer’ – we have seen this increase noticeably in 2014 as employees are counter-offered more often than in the last 5 years, as the battle for good talent increases in Ireland.
The most obvious reason for increases in salaries is the ratio of supply and demand – certain skills are in huge demand and there are a finite number of experienced professionals in Ireland, therefore certain skillsets are commanding a higher than market average as companies compete for the same talent.
As part of this survey, we have also undertaken a detailed analysis of how Dublin compares to other International Digital hubs. We have compared these regions across a comprehensive set of criteria, including (but not limited to): an overview of the digital landscape of each hub, access to talent and funding, quality and cost of living, and also comparative salaries between the regions.
As this research is protected by copyright laws, if you wish to copy, reproduce, republish, disseminate or distribute any part of this text by any means you may do so only if you state the following: Courtesy of Prosperity.ie, Ireland’s specialist recruitment agency to the web sector.