FRS Recruitment Employment Insights Report 2023
FRS Recruitment published its 2023 Employment Insights Report in June. As with its insights from previous years, the report explores patterns and trends in the Irish economy based on its survey of thousands of people from across the country and from overseas. This year, FRS included new sections examining the emergence of Artificial Intelligence and the impact of the cost of living on the Irish market.
According to our survey, 4 out of 10 Irish employers and 1 in 4 employees believe AI will impact or replace their job in the future. Those most worried were in the Arts, Entertainment and Recreation sector with 53% admitting they are concerned, followed by Charities and Not for Profit (43%), Banking and Financial Services (38%), Telecoms and Insurance (33%) and Agriculture (33%).
On a county-by-county basis, Monaghan and Leitrim had the highest levels of concern (43%) followed by Sligo (37%). There was less worry expressed in the larger urban centres with only 19% believing AI will impact them in Dublin, 27% in Cork, 23% in Galway and 22% in Limerick.
The FRS Recruitment Employment Insights survey also showed that as many as 6 out of 10 employees say they would be willing to change jobs for a salary increase of 25% or less, with 1 in 5 being willing to move for a 10% increase in their pay.
Almost 3 out of 4 employees (73%) also expect to receive a pay rise in the next 12 months and 43% believe they are underpaid for their current role, saying their salary does not adequately reflect their position. The majority of employees (54%) also believe they are more likely to secure their desired wages by changing jobs and more than half are of the view that a change in employer will make them more likely to progress in their careers. 44% of employees also describe themselves as “employed but looking” for new career opportunities.
Employers are feeling the impact of these expectations, with 2 out of 3 saying workforce attrition is up this year and 4 out of 10 (42%) employers believing that the main driver for that attrition is salary.
A total of 4,347 people participated in this year’s survey, which was conducted in April 2023. FRS Recruitment has been undertaking this research on an annual basis since 2009 to provide insights on the changing trends and perspectives of Irish employees and their employers.
The survey also shows that 3 out of 4 employers are either currently hiring or plan to do so in the next 3 months, while 4 out of 10 also have experienced an increase in the number of job applications they received this year.
The cost of living is also having an impact on the recruitment market, with 65% of employers saying inflation has impacted on their recruitment outlook.
56% of employees also say they are more likely to seek new employment due to rising costs, while 3 out of 10 of employees (29%) admit they are trying to spend more time in the office to reduce their home heating/electricity costs. A further 27% are also trying to work at home more to keep their travel costs down.
On the issue of remote working, 9 out of 10 employees believe they are either more productive or just as productive when working from home. Most employers would share this perspective, with 3 out of 4 admitting employees are either more productive or having a neutral view on employee productivity. Yet despite these findings, 4 out of 10 employers have been pressing their employees to spend more time in the office over the last year.
The housing shortage is also having an impact on the employment market with almost 4 out of 10 employees (38%) saying a lack of accommodation makes them more likely to seek new employment.
Speaking about the survey, Lynne McCormack, General Manager with FRS Recruitment said, “This is a wide-ranging survey which covers employer and employee attitudes to a host of different topics – from technology to cost of living, salary expectations to the impact of the housing shortages. These are all what is occupying the employment market at present and this research illustrates where the market perspectives are on many of these topics.
“For example, there has been a lot of talk this year around the progression of artificial intelligence and the implications of its use. This has led to growing levels of awareness around AI and its potential, which is now causing concern in the Irish employment market. With 4 out of 10 employers and 1 in 4 employees of the belief that AI will impact or replace their jobs in the future, this is clearly an area that a significant portion of the workforce are mindful of and will be watching how it evolves in the coming months and years.
“Aside from AI, another key issue of public discussion in recent times has been the rising cost of living. Increased costs put pressure on salaries and this is now clearly coming to the fore across the Irish employment market. More than 4 out of 10 employees believe they are underpaid in their current role and 3 out of 4 employees expect to receive a salary increase over the next year.
“Of even greater concern to employers though will be the data which shows that 6 out of 10 employees would move jobs for a 25% bump in their salary while 1 in 5 will move if they receive a 10% increase. In these circumstances it is perhaps unsurprising that 2 out of 3 employers say workforce attrition is up, with salary being cited as the main cause.
“The cost of living is also encouraging significant cohorts of employees to either spend more time in the office to reduce their home heating/electricity costs or to seek out more remote working to cut their transportation expenses. While 4 out of 10 employees are considering changing jobs due to the housing situation.
“There is also some positive news in the market. 3 out of 4 employers are either hiring at present or planning to do so in the next 3 months, which shows the continuing level of recruitment opportunities in this country. The workforce has also become more fluid, with a growing number of people open to moves. More than 4 out of 10 workers describe themselves as “employed but looking” while the same proportion of employers are experiencing an increase in applications. This highlights there is plenty of movement and opportunity in the market for those who are seeking out new roles or who wish to add to their workforce,” Ms. McCormack concluded.
FRS Recruitment is one of the leading recruitment businesses operating in Ireland. We have 11 offices nationwide, with locations in Dublin, Cork, Galway, Tipperary, Limerick, Kerry, Kilkenny, Offaly, Cavan and Portlaoise. A 100% Irish business, FRS Recruitment is part of the FRS Network – the social enterprise co-operative.
Download our Insights Report in full HERE