Over three quarters (78%) of Irish companies have experienced ‘moderate’ or ‘extreme’ skills shortages over the past twelve months. This is according to the Hays Ireland Salary & Recruiting Trends 2018 guide published today.

In a survey of 1,700 employers and employees across Ireland, the guide revealed that organisations across the country are being challenged by skills shortages, of which half of employers reported an impact on productivity as a result.

To counteract this problem, more than a third (34%) will hire temporary or contract staff to address immediate skills shortages and 30% will increase training budgets. Twenty nine percent — the majority in construction, the life sciences and tech—will resort to hiring workers from overseas.

The report finds that nearly three-quarters (74%) of employers said they had given their employees a pay rise over the past year, with almost a quarter (24%) said they have given employees an increase between 2.5-5%, and 19% by more than 5%. The most significant pay rises are occurring industries with persistent skills shortages such as technology and construction.

Despite this, most employees — 58% —are dissatisfied with their salaries, and nearly a third (30%) want to leave their job as a result. Additionally, over a half (51%) expect to move jobs over the next 12 months.

Hays has urged employers to review the importance of work-life balance for their employees. While the majority (58%) say they have a positive work-life balance, 42% rate it as average or poor. More than 1 in 10 (13%) said they have noticed an increase in absenteeism due to workplace stress.

Twenty percent of employers think that career development is the most effective way to attract staff, but 41% of employees think that their current place of work does not offer this. Just 12% of employers believe that work-life balance is an important factor in hiring new staff, but this is the most important for a quarter of employees when looking for a new role.

Commenting on the report, Director at Hays Ireland, Maureen Lynch said, “Not having the right talent available is more than just a short-term operations and admin headache—31% of employers acknowledged that it’s a serious problem that can undermine revenue streams and stunt growth. Senior management needs to understand the risks of being chronically short-staffed, mitigate them, and make best use of the solutions available to them, like in-house training or overseas recruitment.”

She added, “Businesses need to remain competitive to survive this war for talent, and one key tactic in the fight is developing a strong, distinct brand with a discernible culture, mission statement and vision for the future.”

Article Source: Business World