Return of Counter-Offer will cost Irish companies €20m in 2011

Matthew Wilcox our consultant managing the role
  • 1 in 5 resigning accountants now offered rise to stay in jobs
  • Average rise offered to resigning accountants rises to 13%
  • 2 out of every 3 top level accountants are being counter-offered

Substantial salary rises offered by employers to accountants who tell them they are resigning to take a new job will cost Irish companies €20m in 2011, according to research by accountancy and finance recruiter Marks Sattin Ireland.

1 in every 5 finance workers in the Republic of Ireland are being counter-offered now, compared to just one in 10 last year.

The average rise made in a counter-offer has risen from 4% this time last year, to 13% in 2011.

With average wages in the sector standing at €110,000 and employee turnover standing at around 10%, Marks Sattin says the cost of offering wage rises of 13% to this proportion of Ireland’s 65,000 accountants is €20,280,000 every year.

Dan McKeown, associate director Marks Sattin Ireland says, “The number of counter-offers has rocketed this year and this has led to huge unplanned expenditure for companies. Big employers have been caught out by how quickly the market for finance professionals has recovered. At the moment, 22% of accountants are being counter-offered when they tell their employers that they are jumping ship, up from 12% last year – and that number is still rising.”

The size of these offers should also make payroll controllers think hard about any future decisions to freeze wages as the result is rapidly spiralling costs that reward employees who get itchy-feet and which companies can do little to control. It may be that the rise of the counter-offer will fundamentally change the way finance functions negotiate wages. For now the power rests firmly with workers who have had to tolerate frozen wages during the recession. That may prove very unpopular with the 13.4% of the population who are currently unemployed.”

The phenomenon is being experienced in both practice and industry. Counter-offers are particularly prevalent in insurance and reinsurance.

Dan McKeown says “The insurance and reinsurance industries are leading the way in counter-offer wage inflation, but accountants working in tax, risk and compliance are also enjoying bidding wars for their talent.”

The Capital

In Dublin, counter-offers are even more frequent and involve sums that are twice as large. 1 out of every 3 candidates are now being offered more money to stay in their roles, and counter-offers of 15% of base salary are common. At managerial and directorial level, 2 out of every 3 candidates are counter offered.

Dan McKeown says, “Firms in Dublin are prepared to spend significantly more money maintaining the quality of their workforce than the rest of the country - and this may be an indicator of a two-tier recovery in the economy. While the public sector and construction sectors are temporarily dead,, international companies have opened substantial regional headquarters here, following in the footsteps of the likes of Pfizer, Google, and Cadbury's. This is troubling news for regional companies trying to prevent an exodus of talent to the capital.”

International Comparison

But comparisons with other countries show that the increase in the scale and volume of counter-offers in Ireland is not keeping pace with the rest of the world. While average counter-offers in the UK are 15%, those in Singapore have now hit 20% of salary.

Dan McKeown says, “This trend is particularly pertinent in Ireland because we have such an international workforce – there are over 6,000 accountants registered with UK body CIMA working here alone. These people were originally attracted to Ireland by the money. So, despite the extra cash being offered, there are more attractive offers being made elsewhere, so if the large multinationals moving to Dublin don’t poach them, we can expect these highly skilled professionals – and their tax Euros – to depart over the next twelve months.

External coverage

11/04/16
posts

Related articles

What's the latest on recruiting senior finance and accounting professionals?
What's the latest on recruiting senior finance and accounting professionals?

Teaser

Finance & Accounting

Content Type

General

25/04/24

Summary

Over the years, we have developed a strong reputation as a leading Senior Finance and Executive Search firm. We’re proud to have well-established teams of finance and accounting recruitment cons

Teaser

Our employment update for senior accounting and finance professionals.

Read full article
Neil Burton

by

Neil Burton

Neil Burton

by

Neil Burton

How technology is impacting the future of risk and compliance jobs
How technology is impacting the future of risk and compliance jobs

Teaser

Governance

Content Type

Fintech

18/04/24

Summary

The role of risk and compliance in financial services  As a sizeable, growing portion of the financial services sector, risk and compliance play a vital role in ensuring that firms conduct busine

Teaser

With no signs of slowing down, strong risk and compliance is now more important than ever.

Read full article
David Clamp

by

David Clamp

David Clamp

by

David Clamp

What does the future hold for private equity?
What does the future hold for private equity?

Teaser

Executive Search

Content Type

General

18/04/24

Summary

Private equity (PE) is a growing industry that has always attracted ambitious top talent due to its high risk/high gain capital investment. Pre-covid, we saw the global private equity industry b

Teaser

Learn about emerging private equity job opportunities and more.

Read full article
Tracey Alper

by

Tracey Alper

Tracey Alper

by

Tracey Alper

jobs

Related jobs

Management Accountant

Salary:

Up to £45,000 per annum

Location:

Bracknell, Berkshire

Industry

Real Estate

Qualification

Part qualified

Market

Financial Services

Salary

£40,000 - £50,000

Job Discipline

Part Qualified & Transactional Finance

Contract Type:

Permanent

Description

Management Accountant £45k. We are pleased to be working with an award winning property services company of close to £300m turnover as they search for a part qualified Management Accountant.

Reference

BBBH180496

Expiry Date

01/01/01

Nakita Kaur

Author

Nakita Kaur
Nakita Kaur

Author

Nakita Kaur
Find out more
Finance Operations Analyst

Salary:

£40,000 - £50,000 per annum

Location:

Chester, Cheshire

Industry

Consumer & Retail

Qualification

None specified

Market

Financial Services

Salary

£50,000 - £60,000

Job Discipline

Treasury

Contract Type:

Permanent

Description

Finance Operations Analyst in Securitisations | £50,000 | Chester | Hybrid

Reference

BBBH180492

Expiry Date

01/01/01

Megan Smith

Author

Megan Smith
Megan Smith

Author

Megan Smith
Find out more
Senior Accounts Payable Assistant

Salary:

£27,000 - £32,000 per annum

Location:

Harrogate, North Yorkshire

Industry

Business Services

Qualification

None specified

Market

Commerce & Industry

Salary

£30,000 - £35,000

Job Discipline

Part Qualified & Transactional Finance

Contract Type:

Permanent

Description

Senior Accounts Payable role - Harrogate - Up to £30k!

Reference

BBBH180382

Expiry Date

01/01/01

Yasmin Clough

Author

Yasmin Clough
Find out more
Finance Manager

Salary:

£50,000 - £60,000 per annum + + Benefits

Location:

Glasgow

Industry

Property and Infrastructure

Qualification

None specified

Market

Commerce & Industry

Salary

£60,000 - £70,000

Job Discipline

Qualified Finance

Contract Type:

Permanent

Description

Finance Manager required for well established real estate group!

Reference

BBBH180362

Expiry Date

01/01/01

Jaden Alie

Author

Jaden Alie
Jaden Alie

Author

Jaden Alie
Find out more
Business Advisory Tax Manager / Senior Manager

Salary:

£50,000 - £65,000 per annum

Location:

Leeds, West Yorkshire

Industry

Professional Services

Qualification

Fully qualified

Market

Professional Services

Salary

£60,000 - £70,000

Job Discipline

Tax

Contract Type:

Permanent

Description

Business Advisory Tax Manager or Senior Manager with a top 30 accountancy firm based in Leeds

Reference

BBBH180452

Expiry Date

01/01/01

Andy Craven

Author

Andy Craven
Andy Craven

Author

Andy Craven
Find out more
Valuations - Head of UK - Alts

Salary:

Negotiable

Location:

City of London, London

Industry

Investment Management

Qualification

Fully qualified

Market

Financial Services

Salary

£125,000 - £175,000

Job Discipline

Qualified Finance

Contract Type:

Permanent

Description

Superfund expanding their Valuations department hiring a Lead for their non-property unlisted assets

Reference

BBBH180483

Expiry Date

01/01/01

Cliodhna Lynch Find out more
Senior Credit Controller

Salary:

Up to £35,000 per annum

Location:

Kingston Upon Hull, East Riding of Yorkshire

Industry

Business Services

Qualification

None specified

Market

Commerce & Industry

Salary

£35,000 - £40,000

Job Discipline

Part Qualified & Transactional Finance

Contract Type:

Permanent

Description

Senior Credit Controller - Hull - £30,000

Reference

BBBH180478

Expiry Date

01/01/01

Cameron  Walsh

Author

Cameron Walsh
Find out more
View all jobs