New research has found that skills shortages are posing significant problems for Irish employers when it comes to productivity, business growth, revenues and profitability.
According to Hays Ireland, 91 per cent of employers faced recruitment problems in the last 12 months.
Of those surveyed, 50 per cent said skills shortages have impacted productivity, while 30 per cent said business growth and expansion also suffered as a result.
Some 20 per cent of employers also identified skills shortages as undermining profitability.
Furthermore, 39 per cent identified skills shortages having a negative impact on their ability to deliver key projects while 30 per cent claimed it stalled their plans for expansion.
Competition from other employers was cited by 68 per cent as being the primary reason for their recruitment difficulties. Other reasons identified included a shortage of new talent entering their industry, individuals leaving to work in other industries, and people moving to other geographic regions.
Speaking about the findings, Maureen Lynch, director at Hays Ireland said: “the competition for talent has been a universal challenge for Irish-based employers throughout 2021, and we expect this trend to continue into the New Year, based on the findings in our Hays Ireland Salary and Recruiting Trends Survey.
“In line with the report’s findings, it is telling that nearly two in five Irish employers are more likely to make counter-offers to resigning staff than they were pre-pandemic.
“This development points to employers’ acute awareness of the ongoing competition for talent, and the time and resourcing that goes into replacing in-demand skill sets,” she added
“At a more macro-level, it is well documented that the Irish economy has rebounded strongly in the second half of the year and Irish employers understandably want to capitalise on this growth and position themselves for further expansion in the 12 months ahead.
“To this end, it is important that we look to identify meaningful solutions, including tackling recent work permit delays, to alleviate ongoing recruitment pressures.
“The ability of employers to recruit and retain talent is integral to delivering upon their wider business objectives, including realising their growth projections, maximising revenues and ultimately driving the fundamentals of a healthy business environment.”
According to Hays Ireland, over the next 12 months, 84 per cent of employers intend to recruit staff, representing the highest levels of recruitment activity in the last five years.
