The rise of the temp

Domestic banks in Ireland are likely to be offering contract or temporary roles - sometimes as short as one month - instead of permanent positions for the medium to long-term and only exceptional candidates can gravitate towards a full-time place.

The hiring freezes in place at Ireland's large domestic banks are well-known, and the policy of not replacing departing staff has left the remaining teams with an increased workload. To alleviate this, contract staff are being brought in - and this strategy doesn't look like changing any time soon.

"The number of contract roles we're placing in banks is around 40% up on this time last year," says Hilarie Geary, CEO of Irish recruiters Executive Connection. "These are usually six to 12 months, but sometimes a one-month contract is being offered on a rolling basis."

These one-month contracts are usually either offered to junior credit analysts (who have scant opportunities elsewhere) or for specialist roles around compliance projects and due diligence around NAMA-related issues, suggests Eoin Blake, director at Lincoln Search & Selection.

"Banks are telling us that the strategy of employing people on a fixed term contract is one they'll be deploying for the foreseeable future," he says. "Most people taking on these jobs are looking at this as an opportunity to get a pay rise - which isn't on the cards in a permanent position - and have enough confidence in their own ability to believe they'll be made permanent."

Pay has increased by an average of 10-15% for contract roles in financial services, says Blake.

The trend of offering contract positions over permanent isn't just restricted to the banking sector. Ireland's fund administrators are also reluctant to commit to a permanent hire.

"Fund administrators are taking on a lot of new business, but still don't have the authority to add to the global headcount. Offering a six-month contract gives them a get out of making snap decisions over permanent recruitment," he says.

Still, market forces could come into play shortly. While domestic banks and some other firms are offering short-term contracts, others are recruiting on a permanent basis, which means they could lose out on candidates.

"We've reached the point where we have a shortage of candidates and I believe if people put their head above water they would soon realize that there are very attractive opportunities available in the market," he says. "Offering a six-month contract to a potential employee may have worked last year, but with more and more possibilities in the market candidates are able to push for at least a 12 month if not 24 month contract".