FRS Recruitment Employment Insights Report 2024

MORE THAN 1 IN EVERY 2 EMPLOYEES HEADHUNTED IN LAST 12 MONTHS – FRS RECRUITMENT

More than 1 in every 2 employees (54%) have been headhunted in the last 12 months, according to a new survey conducted by one of Ireland’s leading recruitment agencies, FRS Recruitment. This is despite 6 out of 10 employers (58%) saying they are concerned about the economic outlook.

1 in 6 employees also say they are willing to change jobs for a pay rise of 10% or less, with the number willing to move rising to almost half of all employees (47%) if a salary increase of 20% is on offer.

The FRS Recruitment Employment Insights Report, also found most employees (54%) believe they are more likely to secure the wage they believe they should receive by changing jobs and more than half (51%) feel they are more likely to progress in their career by moving.

Staying with salaries, 51% believe their salary fairly reflects their current position, which is down from 57% in 2023 and 64% in 2022. However, while 6 out of 10 expect to receive a salary increase in the next 12 months, this level is lower than the 73% who felt they were due a raise when the same question was posed in 2023 and the 71% who felt that way in 2022.

Salary is also the reason most cited by employers for attrition in their workforces (29%), followed by the job itself (27%) and employees seeking a new challenge (25%). The majority of employers (56%) also say they are noticing more attrition amongst their workforce this year and that the suitability of candidates applying for vacancies has decreased (51%).

A total of 1,886 people took part in the survey behind this year’s FRS Recruitment Employment Insights Report, which was conducted in April and May. FRS Recruitment has been undertaking this research on an annual basis since 2009 to provide statistics on the changing trends and perspectives of Irish employees and their employers.

The growth of Artificial Intelligence (AI) is also being felt in the employment market, with 8 out of 10 employees saying they have used it in the workplace. Almost half of employees (47%) believe AI will impact or replace their job in the future, a figure which represents almost double the number who held that view when the same question was posed 12 months earlier (26%).

Those most likely to be using AI in the workplace were in the Education and Training (84%), Hospitality and Tourism (84%) or Agriculture, Farming and Agri-Food (83%) sectors. The lowest usage of AI in the workplace was reported amongst those working in IT (72%), Professional Services (69%) or Pharma and Medical Devices (61%).

When it comes the future job impact of AI, those in the IT sector expressed the most concern (64%), followed by Pharma and Medical Devices (52%) and Education and Training (51%). Least worried about AI impacting or replacing their jobs were in Professional Services (43%), Hospitality and Tourism (44%) or Retail as well as Manufacturing and Supply Chain (45%).

Staying with technology and more than 1 in 2 people (51%) have personally experienced cyber security issues in the previous 12 months such as hacking, phishing or scamming. On the employers’ side, 4 in 10 employers say their organisation has experienced phishing in the last year, 3 out of 8 organisations (37%) have been subjected to identify theft, 37% have experienced scamming and the same number have dealt with hacking (37%). While 35% of employers also say their organisation has dealt with malware or virus threats in the last year.

Almost 6 out of 10 employers (58%) say that housing issues are impacting their recruitment outlook. The housing situation is also affecting the jobs’ market from the employees’ perspective, with 2 out of 3 people saying it has impacted on how they have managed their careers. 23% say they stayed in a job for housing reasons and another 23% say they didn’t apply for a particular role due to accommodation concerns. While 1 in 5 (19%) actually applied to a particular job because of housing.

The broader economic outlook is also concerning employers, with almost 6 out of 10 (58%) admitting it is impacting their hiring activity. This economic uncertainty seems to be impacting employees too, with 47% saying they fear for their job security, up from 37% who were concerned in 2023. Additionally, less than half of employees (49%) believe they would secure a new job within 3 months or less, which is significantly below the 76% of employees who felt they could secure new employment in that timeframe when asked in 2023.

While only 35% of employees believe there will be more job opportunities for them in 2024, down from 49% who felt that way last year.

When seeking a new role, almost half of people (47%) believe employers can improve their hiring process by being upfront about salaries, while 45% would like to see an easier job application process adopted and 44% want clearer job advertisements. More than 6 out of 10 (62%) say the lack of salary information has put them off from applying for a job.

Finally, 1 in 4 people (25%) are in their first year with their current employer, while only 4% have been with their employer for 10 years or more.

Speaking about the research, Lynne McCormack, General Manager with FRS Recruitment said, “What comes through in this year’s survey is how the state of the economy is influencing attitudes within the jobs’ market at present. While the most obvious expression of that is the 6 out of 10 employers who say the economic outlook is impacting their recruitment activity, it can also be seen in the employee perspectives this year. The number of employees who fear for their job security is up from last year, fewer believe there are more job opportunities available and the number who believe they would secure a new job within a 3 month period is also down compared to the 2023 figures.

“Not unrelated, is the greater focus on remuneration. Salaries are the most common reason cited by employers for attrition in their workforces and they also acknowledge they are noticing more attrition amongst their workforce this year. Compared to last year, the number of employees who believe they receive the salary they deserve is down and fewer expect to receive a pay rise in the next 12 months.

“Salary concerns are clearly a driving force in the market, with as many as 1 in 6 employees willing to switch jobs for a 10% increase and almost half being willing to move for a 20% rise. With over 1 in 2 employees also saying they have been headhunted in the last year, this is something employers would be wise to pay attention to. Employers being more proactive in their hiring approach also aligns with the difficulties they are experiencing in finding the right personnel, with employers noting a drop in the suitability of candidates over the last 12 months.

“The workplace is also increasingly being impacted by the use of AI. 8 out of 10 people now say they have used AI in their workplaces and the number of employees who say AI will impact or replace their jobs in the future has almost doubled in the past year. It is also notable how many people and workplaces have been impacted by cyber security issues during the last 12 months and how these issues are becoming of increasing concern to employers.

“With attention on salaries becoming even greater in the current market conditions, employers may also wish to consider how they design their job postings. Almost half of people believe employers could improve their hiring processes by being more upfront about salaries, while more than 6 out of 10 people say they have walked away from a job opportunity because the salary information wasn’t provided,” Ms. McCormack concluded.

FRS Recruitment is one of the leading recruitment businesses operating in Ireland. They have 10 offices nationwide, with locations in Dublin, Cork, Galway, Tipperary, Limerick, Kerry, Kilkenny, Offaly, Cavan and Portlaoise. A 100% Irish business, FRS Recruitment is a proud part of the FRS co-op.