Delving into the Dynamics Behind the Contracting Surge 

The surge in contracting work within Ireland's STEM industries can be attributed to several factors. Employers increasingly turn to contractors for their projects, drawn by the advantages of flexibility, cost-effectiveness, and the ability to access specialised skills on-demand. For many companies, contracting offers a flexible solution to address fluctuating workloads and specific project needs without the long-term commitments associated with traditional employment. 

Internationally there is a general trend toward an increase in the use of contingent workers, including contractors, across various industries, including STEM. A 2023 report by ManpowerGroup predicted that the global temporary workforce would reach 36.4% by 2025. There’s a similar trend in Ireland. A 2022 report noted a 24% increase in temporary staffing positions from 2021 to 2022, with a particularly high demand in tech and engineering. 

Simultaneously, STEM professionals themselves are embracing contracting roles, enticed by the fact that they can better manage their own schedules to maintain a better work-life balance, project-based nature, and potentially higher compensation that such arrangements afford. This trend reflects a shifting preference among some professionals who value autonomy and the opportunity to work on diverse projects over the stability of traditional employment.  

Most organisations, about 72%, have at least 10% of their workforce are made up of contractors, and nearly half, or 46%, have between 26-50% contractors. This means that it's quite common for businesses to have a mix of both employees and consultants working together. As both employers and employees adapt to the changing landscape of work, the role of contractors in Ireland's STEM sectors continues to grow, shaping the future dynamics of the industry. 

Money-Talks: How much more do contractors earn? 

The data paints a clear picture: compared to their permanent employee counterparts, highly skilled contractors enjoy a substantial financial advantage. In 2022, their annual earnings averaged a massive €123,572, more than double the average perm employee salary of €46,813. This translates to a remarkable 2.64 times higher income! And it gets even better when compared to equivalent employee roles in their field. The latest CSO data reveals that such employees earned approximately €72,444 in 2022, meaning high-skilled contractors out-earn them by an impressive 71%. 

The project economy itself presents further opportunities for financial growth. Professionals working in this space raked in an average of €126,971 annually, while perm workers earned slightly less at €118,534. Even this lower figure, however, still exceeds the average employee income. 

Now, let's delve into specific sectors: