Brexit jobs feast pushes up wages in Ireland’s financial sector

DUBLIN (Reuters) – Ireland’s allure as a post-Brexit base for global financial firms has driven wages for some roles considerably higher with some positions offering 15 percent more than a year ago.

Risk and compliance staff are particularly sought after, five of Dublin’s leading recruitment consultants told Reuters. Expertise in data science and newer technologies such as payment platforms is also in demand.

And upwards pressure on wages could continue, with the central bank expected to approve more firms’ expansion plans in the coming months.

While the higher pay is good news for workers, it can bring concerns for others. International financial firms only account for 2 percent of Irish jobs but have contributed to a sharp fall in the overall jobless rate. The central bank said last week the economy could overheat if capacity constraints emerge in the labour market.

“Financial services is one of the areas seeing a definite spike in recruitment,” said Gerard Murnaghan, vice president at job search site Indeed. Its first-quarter postings were up 15 percent year-on-year.

Although Ireland is widely considered the most vulnerable among EU members to any change in trade after Brexit, the financial services firms want to keep close access to clients after Britain leaves the European Union in 2019.

Barclays, Legal & General Investment Management and Standard Life Aberdeen are among companies to pick Ireland as a post-Brexit base against stiff competition from rival centres including Luxembourg, Frankfurt and Paris.

Robert MacGiolla Phadraig, Sigmar Recruitment’s chief commercial officer, said headhunted personnel were securing increases of between 10 percent and 15 percent, with front-office staff able to command the highest salary jumps.

Two thirds of employers surveyed by Sigmar and accounting firm EY earlier this year said they expected to give staff a pay rise in order to stop poaching by rivals, a practice already accounting for one in four hires.

“We have reached a tipping point.. this is a talent crisis.”

Local banks Allied Irish Banks and Permanent TSB both said they had lost staff to international rivals in recent weeks, hobbled by a salary cap and ban on share-based remuneration.

Around a fifth of vacancies are being filled from abroad and more employers were also offering flexible working to help seal the deal.

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