85% of businesses are facing skills shortages

The majority (85%) of employers in Ireland are having to contend with skill shortages, according to annual research from CIPD Ireland.

The latest results from the organisation’s ‘HR Practices in Ireland’ study show 36% cite ‘significant shortages’ when it comes to the skills they need in their workforce.

The data has been released to coincide with CIPD Ireland’s Annual HR Awards, sponsored by VHI, which are taking place at the Mansion House in Dublin today.

The professional body for HR and Learning & Development conducts the annual research project in conjunction with the Kemmy Business School at University of Limerick.  

Other results of note this year include:

59% say access to key skills is the top external driver for change, ahead of Covid19 at 55%
47% say attracting, developing and retaining employees is their top priority
54% report that their level of employee turnover has increased, yet when the research examined actual employee turnover rates, these were comparable to 2019 and early 2020, and do not provide evidence of a great resignation
61% of employers are planning to review their skill needs for the future, an increase of 23% since last year
56% say remote/hybrid working is part of their strategy to attract and retain staff - this shows a significant increase from early 2020, when the figure stood at 25%
 

Director of CIPD Ireland Mary Connaughton says the problem of finding suitable new talent can be seen across all types of enterprise: “When you compare this year’s figures to the pre-pandemic data, many of the trends are stark. 20% of organisations had problems recruiting for operations/frontline roles in 2019, and this figure has jumped to 50% this year. 6% of organisations had trouble hiring customer service staff in 2019, this has now more than trebled  to 21%. This trend is presenting serious challenges that organisations are trying to address in their strategies to attract new employees and retain the talent they have”.

Researchers were keen to examine whether the data would uncover evidence of a great resignation phenomenon. Despite 62% of employers reporting concerns about staff turnover, the actual employee turnover rates reported were comparable to 2019 and early 2020. Mary says the study closely examines the reasons why people may choose to leave their job: 

“Our members who measure employee leaving intentions say that 69% cited a re-evaluation of what employees expect from their working life as the biggest contributing factor. This figure was higher than those who would consider moving jobs for better rewards (65%) or career opportunities (62%). At this point, workers are ready to take advantage of a positive shift in their labour market power when thy believe their employer is not meeting their needs. In response, employers need to put more attention on the purpose of the work being done, and provide flexibility in how people can work.”.

Today’s ceremony at the Mansion House marks the return of CIPD Ireland’s HR Awards as an in-person event, which Mary says her team is looking forward to: “The past two years have been transformative for the role of HR in Irish enterprise. People professionals across the country have stepped up to the mark when it comes to forging a new way of working in very difficult circumstances. Today’s ceremony is an opportunity to get together, showcase their dedication and resourcefulness and reward them for going above and beyond for their organisations”.

HR Director of the award sponsors VHI, Amy Burke says: “We’re delighted to partner once again with Mary and her team on their annual HR awards. We’ve seen the contribution people professionals have made during such a difficult time and they are so deserving of the recognition these prestigious awards bring with them. We’re looking forward to a great event at the Mansion House today”.