66% of technology firms will hire new staff this year - Mazars - Ireland

Two-thirds of technology firms in Ireland are seeking to hire new staff members in 2011 according to a new study by Mazars R&D Tax Group but companies may not be fully utilising R&D tax credit incentives that may be used to hire additional Key employees.

‘The Mazars R&D Tax Group Job Creation Survey 2011’ assessed attitudes in Ireland’s technology companies to employment levels, educational background of potential employees and commercial awareness of R&D tax credit incentives with the results showing that:

• 66% of firms are seeking to hire additional staff in 2011;
• 77% of companies intend to take on more employees in 2012;
• College qualifications have never been more important in the sector with 41% of companies who are hiring additional staff looking for employees with postgraduate qualifications;
• 55% of Irish technology firms would hire more staff if R&D tax credit incentives could be used to finance the cost of taking on new employees;
• 42% of technology companies are not aware that R&D tax credit incentives can assist in hiring key new staff.

Mark Byrne, Head of R&D Tax Group in Mazars, said that these results confirm that the outlook is exceptionally positive for the Irish technology sector and that continued directed investment in education and the knowledge economy remains vital.

“There is no doubt that this is good news for Irish technology firms, for graduates and for the economy at large. Ireland Inc is clearly open for business in this sector and this is a good news story that should provide a welcome uplift in economic sentiment in general”.

“This confirms that continued investment in higher education and the knowledge economy is essential. Our survey, in a straight forward manner, confirms that the reward for greater & focused investment in education is greater employability.”

Gerry Vahey, Tax Partner at Mazars, pointed out, though, that technology companies may not be fully utilising the R&D tax credit incentives available to them to hire additional key staff.

“It is interesting to note that 42% of tech companies are not aware that R&D tax credit incentives can assist in financing new, key staff additions. These companies need to be fully informed of the options available to them, especially since 55% of the firms state that they would hire new staff if they could part finance this cost through R&D tax incentives.”

Gerry Vahey went on to say that R&D tax incentives are fulfilling a vital role in promoting the ‘knowledge economy’ as it is legislatively required that qualifying and claimable costs associated with key staff hires in respect of an R&D Tax Credit claim be suitably qualified experts.

Download Survey Results

RandD survey July11