The Hot Topic

RUSH ON RECRUITMENT

According to research released by Hays Ireland, 91% of employers faced recruitment problems in the past 12 months. Of those surveyed, 50% said skills shortages have impacted productivity, while 30% said business growth and expansion also su ered as a result. One fifth of respondents identified skills shortages as undermining profitability. Competition from other employers was cited by 68% as being the primary reason for their recruitment di iculties. Other reasons were a shortage of new talent entering their industry, individuals leaving to work in other industries and people moving to other geographical regions. Over the next 12 months, 84% of employers intend to take on new people, representing the highest level of recruitment activity in five years, Hays Ireland notes.

THE HOT TOPIC Talent Shortages

Commentary and findings on the latest skills and recruitment trends impacting Irish businesses

Robert Mac Giolla Phádraig

“ is year has gotten o to a particularly heated start. All indications so far are that talent shortages will be a major threat to the Irish economy in 2022 with double-digit wage in ation across all sectors. Demand for talent remained at an all-time high throughout 2021 across all sectors. Job placements in December were the highest for the same period in our 20-year history, going against the typical seasonal trend of pre-Christmas abatement, but rather accelerated right through the month. Current demand for both permanent and temporary talent is unprecedented, indicating continued growth at a similar trajectory for the rst half of 2022 at least.”

Robert Mac Giolla Phádraig, Founding Director and Chief Commercial O cer, Sigmar, commenting on a record number of job placements by the recruitment rm for 2021, up 48% on the previous year.

Work permit challenge

While globalisation allows for a larger pool of potential employees, 23% of Irish companies say that their growth over the next 12 months will be hindered as a result of di iculties in securing work permits, while 23% also pointed to the lengthening processing time for non-resident employees. This is according to the latest Grant Thornton International Business Report, which found that 63% of Irish businesses report access to a skilled workforce as a significant constraint to the growth and development of their business; a notable increase on the 37% of businesses that reported the same in the first half of 2021.