The gap between the best-paid jobs and entry-level posts has widened in Ireland in recent years by more than 5%, marking one of the largest increases in Europe, according to a leading business consultancy.
The Korn Ferry survey was based on 25,000 firms and showed that pay for junior jobs has “stagnated” while pay for “higher-skilled positions that require in-depth technological and creative knowledge” had increased here sharply since 2008.
Ireland’s widening top pay gap of 5.3% compares with the average increase across Europe of only 1.6% — which includes France and Italy where the pay divide has shrunk in the same period by almost 6% and by over 3% for a number of reasons, including government tax hikes for the best paid and subventions for the low paid in those countries, Korn Ferry said.
In the UK, the pay gap widened by over 9%, according to the survey. Ukraine’s pay gap widened the most in Europe, by over 79%, and posted the second-largest increase in the world behind Bahrain, where the divide soared by almost 118%.
“Pay for lower-level jobs remains predominantly static; an oversupply of labour for these roles is ongoing, while offshoring, automation and wider digital growth continue to put pressure on traditional administrative and manual roles,” said its Ireland chair Rob Wilder.
“On the other hand, top level pay continues to escalate, as companies vie to attract skilled talent in an increasingly competitive market.”
Korn Ferry was commissioned last year by Finance Minister Paschal Donohoe to report on pay for Irish bankers. The report has yet to be made public.