Sandra Lawler reports on current salary and benefits trends as we start a new business year in a climate of some unease
The start of another new year. In the recruitment business, it is often the busiest time. One question always asked of recruiters in January is how does my own or my team’s salary and benefits benchmark against the industry average? Objectivity is critical. Alternatives carries out an annual salary and sentiment survey with 1,200 respondents in Irish marketing.
The result? Benchmarked data on salaries, by level, role and sector, as well as detailed information on benefits. What follows is some of data to enable simple comparisons be made. Overall, respondents in the marketing industry were well remunerated, with salaries ranging from early career support level at an average of €30,000 to €123,000 for directors.
However, salaries vary significantly. Those working in multinationals rather than Irish owned, and/or large companies – rather than smaller companies – will fare better.
Again, salaries differ by sector and size. A marketing director in a small business earns an average of €107,000, where one working in a company of 500 or more employees will earn about €144,000. Digital executives get an average of €34,000, but €39,000 in multinationals, which reflects the competition for talent in this area, a trend led by the technology giants.
In addition, 61 per cent of respondents got salary increases in the last year. Some 41 per cent got increases of one to five per cent; one in 10 of six to 10 per cent and a further 10 per cent of 11 per cent upwards. Sectors averaging more increases included utilities, drinks, FMCG and financial. Some 65 per cent of men got an increase, compared to 59 per cent of women.
Gender difference
Although females are continuously progressing through the ranks, survey results show that male respondents are paid more for the same roles than their female counterparts at almost all levels from practitioner level upwards. The pay differential increases the more senior the career stage. A male director will get €15,000 more than a female director (plus 13 per cent).
However, in general, men are less well paid at first career stage, with the survey showing minus eight per cent. Females at mid to junior career level are paid better for account management and general marketing roles; males for sales, or sales and marketing roles.
When it comes to annual leave entitlements, one in two respondents get 20-24 days holidays and a further 36 per cent get 25-29 days. The amount of annual holiday leave increases with seniority, with half of directors getting 25-29 days, for example. Higher annual leave is given in pharma, telco, financial services and – perhaps fittingly – in travel and leisure sectors.
Benefits increase
There is a wide range of benefits on offer and these have increased in the last year, in line with market competition. Lead benefits include mobile phones, bonuses and contributory pensions. There is also a marked rise in remote working, with employees working from home, and flexible hours, a trend we have seen develop steadily in Ireland in recent years.
As one might expect, better benefits are in larger companies – in multinationals, in sectors such as telco, FMCG, drinks and big tech. Smaller companies try to play with flexible or remote working as a way to compete. Men get more benefits than women across the board, but in particular in bonuses, contributory pensions, healthcare, share options and cars.
The exception is flexible working, which is also considered more motivating for women than men. Maybe it is a question of what you prioritise and what you ask for, but for employers this area is sometimes below the radar and needs to be actively managed as much as salaries, to ensure equal remuneration and benefits packages for men and women and at all levels.
Other motivating factors
Good salaries and benefits are important but only count for so much. The survey shows that as long as they are not out of kilter, then other elements are more decisive. At every career level people are looking for a meaningful role, one where they feel they can really add value. They are looking for career progression opportunities, particularly early on in their careers.
As always, the people factor is central-and working with a great boss and great colleagues is key. In our view the culture fit of all of the team is often overlooked for other factors, undoing a lot of the hard work that goes into shaping reward packages. Flexible hours and remote working as a benefit is increasing and is a motivating factor for both genders.
Staying put or moving on?
The survey shows a higher level of people with permanent rather than fixed-term contracts than before and a better sense of security in roles. Salary and benefits across sectors have increased. However, despite this trend, we also saw the lowest levels of personal engagement in five years, with 58 per cent saying they would not recommend their employer to a friend.
There was also a high number of respondents – almost two in three- who expect to move on to a new company within two years and one in three who expect to do so in the next 12 months. Nowhere is this trend more evident than at early career stage, where 80 per cent of respondents expect to move on within two years and 42 per cent some time in 2019.
The survey shows there are important issues that need to be addressed by companies in order to retain a motivated and talented workforce. Issues like looking at company purpose, clear career progression ladders, flexibility around families and commutes and moving on those who do not fit culturally. These and other elements help build a better work environment.
Outlook for 2019
2019 will be a broadly positive year for the marketing, digital and customer community. The uncertainty surrounding Brexit will cause a lot of companies to pause and this is likely to be reflected in salary and benefits management in the sectors most impacted. The demand for great talent will continue, particularly in key areas such as data analytics and insight, digital, strategic planning, experienced product and brand management. There is likely to be continued upward pressure on salaries and benefits for these skills.
Sandra Lawler is founder director of Alternatives, specialists in marketing, digital, data and customer focused talent and job placements; slawler@alternatives.ie
