New Year, same pay pressure

The New Year looks likely to be a happy one for Irish finance professionals: pay rises are set to continue.

The tight Irish labour market will drive salaries up at the same pace next

year as in 2006, according to Mercer Human Resource Consulting. In key areas like compliance and risk, it predicts pay will rise by as much as 8%.

Don't expect increased pay as a matter of course, however. Mercer's research also suggests it's increasingly linked to how well you perform.

"More and more, bonuses are growing in importance as companies are focusing

on paying for performance," said Mary McDermott, a consultant with Mercer in

Dublin. "There is a shift away from the traditional fixed package of base

pay plus benefits towards a more variable package of base pay plus

incentives and long term incentives."

Mercer's research suggests that in 2006 bonuses for finance teams rose about 8%, while those for IT staff in finance climbed 5%.

The best paid were senior managers (surprise, surprise), who saw a massive 34% increase in their bonus payment - on top of a 6% increase in base salary. Accountants didn't do too badly either - finance departments enjoyed a 21% pay increase last year.

Not all senior managers are equal. If you're near the top of the managerial hierarchy in finance, you're best off working in fund management, where Mercer's survey suggests senior staff are paid 10% more than their counterparts elsewhere.

The "hot jobs" for 2007 will be compliance, risk and finance roles, largely driven by increased regulatory requirements, McDermott says.