People and Change

How skills shortages threaten growth and delay success

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Grant Thornton were involved in a significant workforce survey taken in the greater Dublin area, across five counties during the month of January 2022.
Contents

Workforce Challenges and Regional Implications

The results provide a good overview of workforce challenges and sentiment at the moment amongst employers. These findings could be equally applicable to the greater Belfast area and Northern Ireland.

Skill Shortages Impact Growth and Productivity

Companies surveyed are preparing for growth despite existing skill shortages within their teams. Alarmingly, 31% of respondents do not believe their organisation has the talent needed to achieve current objectives. Furthermore, 63% described the skill shortages experienced in the last year as either extreme or moderate.

The survey highlights significant impacts of these shortages:

  • 39% report ongoing limitations to organisational productivity.
  • Increased stress for leaders and staff morale issues.
  • A reduced ability to deliver projects.
  • Fewer opportunities for innovation and productivity growth.

The companies surveyed span a range of industries, including pharma, med-tech, food and beverage, IT, professional services, and manufacturing.

Rising Costs and Recruitment Challenges

Employers anticipate ongoing challenges in hiring talent, citing the following top concerns:

  • A shortage of suitable candidates.
  • Intense competition from other employers.
  • Rising salary costs.

In response, 63% of organisations intend to increase salaries in the coming year. However, rising energy, transport, and material costs add further pressure to manage organisational budgets effectively.

Evolving Work Models and Employee Expectations

Remote and hybrid work arrangements continue to shape the workplace landscape. The survey reveals:

  • 78% of organisations offer remote working options.
  • 81% of employees work remotely at least part of the time.
  • Only 26% of respondents are satisfied with a full-time return to the office.

The shift towards hybrid working is evident, with 77% of organisations planning to offer remote work in some capacity. The most common long-term hybrid model will involve remote working approximately 50% of the time.

Hybrid Work: A New Normal

Hybrid work offers potential benefits, including high employee engagement and time-efficient productivity. However, businesses must invest in training and support to maximise these opportunities and maintain a motivated workforce.

Sector-Specific Skill Shortages and Retention Issues

Skill shortages remain a significant challenge across sectors and locations, particularly in manufacturing, food, transportation, and tourism. SMEs face unique difficulties in retaining staff, with many employees leaving for larger corporations offering:

  • Better pay and working conditions.
  • Greater cultural diversity.
  • Sustainable business models.

Attracting and Retaining Talent: A Nationwide Priority

To address these challenges, employers must focus on strategies to attract and retain talent, extending beyond the greater Dublin area to every region of the country.