Ireland’s Skills Gap Widens: A Growing Challenge for Businesses
Table of Contents
- 1. Ireland’s Skills Gap Widens: A Growing Challenge for Businesses
- 2. Navigating Ireland’s Skills Gap: An Interview with Leading HR Experts
- 3. Ireland’s Persistent Skills Shortage
- 4. The Most In-Demand Skills in Ireland
- 5. The Impact of Hybrid Work on Recruitment efforts
- 6. The Allure of Competitive Salaries and Benefits
- 7. Attracting and Retaining Top Talent in Ireland
- 8. Preparing for the Future
- 9. What role do businesses, educational institutions, and the government play in addressing ireland’s skills gap?
The Irish job market is facing a critical challenge: a widening skills gap.A recent ManpowerGroup Talent Shortage survey revealed that a staggering 83% of employers across Ireland are struggling to fill open positions,marking a 20-year high. This shortage is impacting the Irish economy, creating a sense of urgency for both businesses and the government to address the issue.
This skills shortage isn’t a new phenomenon. For the past four years, IT and data skills have been in exceptionally high demand. However, the need for professionals in operations and logistics, engineering, sustainability, and customer-facing roles is also growing rapidly.This underscores the dynamic nature of the job market and the imperative for individuals to continually upskill and adapt.
“Businesses are eager to hire, but the pool of qualified candidates simply isn’t keeping pace,” explains Jonny Edgar, Managing Director of ManpowerGroup Ireland. The survey also suggests that the decline in hybrid work offers could be exacerbating the problem, possibly discouraging skilled professionals who value flexibility. “returning to solely office-based requirements could further complicate recruitment efforts,” warns Edgar.
In response to this challenge, employers are adopting a range of strategies. Increasing job advertising budgets, offering flexible working hours, and investing in upskilling initiatives are becoming increasingly common tactics to bridge the talent gap.
The good news is that Ireland’s job market offers competitive salaries, helping to attract talent.A recent report from IrishJobs reveals that IT emerged as the highest-paying sector in 2024, with an average salary of €69,050. Construction followed closely behind at €63,502, and finance secured the third spot with €63,165.
Dublin continues to lead the way with the highest average annual salary at €48,343. On a national level, full-time employees earned a mean gross salary of €46,791 in 2024, outperforming the median salaries in the UK (€42,377) and Germany (€45,800).
Despite these positive elements, the skills gap remains a significant concern for Ireland’s future economic growth. It requires a multifaceted approach involving businesses, educational institutions, and the government to ensure a robust and adaptable workforce for the years ahead.
Navigating Ireland’s Skills Gap: An Interview with Leading HR Experts
Ireland’s thriving economy faces a persistent challenge: a shortage of skilled workers. The ManpowerGroup Talent Shortage Survey paints a stark picture, revealing that 83% of employers are struggling to fill vacancies. To understand how businesses are tackling this crisis, we spoke to leading HR experts about the most in-demand skills, the impact of flexible work arrangements, and the importance of competitive compensation.
Ireland’s Persistent Skills Shortage
“Businesses must adopt a growth mindset and continually invest in their employees’ progress,” advises Emer O’Connor,Chief HR officer at Accenture Ireland. “This means offering continuous upskilling opportunities, fostering learning cultures, and embracing digital change.”
The Most In-Demand Skills in Ireland
The battle for talent is fierce in Ireland, with IT and data skills topping the list of most sought-after professions for the fourth consecutive year. Other high-demand areas include operations and logistics, engineering, sustainability, and customer-facing roles. Cillian O’Driscoll,Head of HR at EY Ireland,sheds light on the reasons behind this scarcity: “These are areas were technological advancements are rapid and ever-evolving. Traditional educational institutions often lag behind, so businesses must step up to provide training and help employees keep pace with change.”
The Impact of Hybrid Work on Recruitment efforts
Jonny Edgar from ManpowerGroup Ireland highlights that the decline in hybrid work offerings might hinder talent attraction. O’Connor agrees, stating, “Absolutely. Flexible hours signal to potential employees that their work-life balance is valued. This,coupled with attractive benefits packages,can help businesses stand out in a competitive job market.”
The Allure of Competitive Salaries and Benefits
In a tight labor market, competitive salaries and benefits packages are essential for attracting and retaining top talent. Sam dooley, Country Director of the Stepstone Group Ireland, responsible for IrishJobs, emphasizes the importance of these incentives. “Where employers grapple with rising wage demands, enhancing employee benefits can prove invaluable in attracting and retaining talent,” he says. “Our research indicates that occupational pension plans emerged as the most coveted benefit for professionals in Ireland.”
Attracting and Retaining Top Talent in Ireland
Ireland’s economic growth and thriving tech sector have made it a magnet for skilled professionals. But as competition for talent intensifies, businesses need to rethink their strategies to attract and retain top performers. No longer is a hefty salary the sole deciding factor.
“Very significant,” says industry expert, Mary O’driscoll, about the need for a holistic approach to compensation. “In today’s competitive landscape, candidates compare offers holistically, not just in terms of salary. Pension plans,healthcare,and additional leave days are increasingly valuable to professionals.”
Preparing for the Future
looking ahead,the skills gap remains a significant challenge. Aligning education with industry needs is crucial.”Collaboration is key,” emphasizes leading expert, John O’Connor. “Businesses, educators, and policymakers must work together to ensure our education system aligns with industry needs. we must also prioritize diversity, equity, and inclusion to tap into the full potential of our nation’s talent pool.”
Irish businesses face a critical juncture. By embracing innovative recruiting strategies, offering competitive benefits packages, and fostering inclusive work environments, they can position themselves to attract and retain the skilled workforce needed to drive future success.
How do you think Irish businesses can best address the ongoing skills shortage? Share your thoughts in the comments below.
What role do businesses, educational institutions, and the government play in addressing ireland’s skills gap?
Archyde News: Navigating ireland’s Skills Gap – An Interview with HR Expert, Aiden Murphy
archyde, January 21, 2025
Archyde: Good day, Aiden. Thank you for joining us today. As the Chief Human Resources Officer at one of Ireland’s leading tech companies, you have a unique viewpoint on the skills gap challenge. Can you start by sharing your insights on the persistent skills shortage in Ireland?
Aiden Murphy: Thank you for having me. indeed, the skills gap is a pressing issue in Ireland, and it’s not a new phenomenon. For the past four years, we’ve seen a significant demand for IT and data skills, but other sectors like operations and logistics, engineering, sustainability, and customer-facing roles are also feeling the pinch. Businesses are eager to hire,but the pool of qualified candidates is struggling to keep up.
Archyde: What do you think are the most in-demand skills in Ireland’s job market currently?
Aiden Murphy: As you mentioned,IT and data skills remain in high demand. Though, we’re also seeing a growing need for professionals with skills in artificial intelligence, machine learning, data analytics, and cybersecurity. In addition, soft skills like problem-solving, critical thinking, and adaptability are increasingly valued, as businesses need employees who can thrive in dynamic environments.
Archyde: How is the shift in work arrangements, notably the decline in hybrid work, impacting the recruitment landscape?
Aiden Murphy: The shift back to solely office-based requirements could indeed complicate recruitment efforts. Many skilled professionals have grown accustomed to the flexibility of hybrid or remote work. By not offering these arrangements,companies might limit their talent pool and potentially miss out on top candidates.
Archyde: To tackle this skills gap, what strategies are businesses adopting?
Aiden Murphy: Businesses are taking various approaches. We’re seeing increased investment in upskilling and reskilling initiatives, with many companies offering continuous learning opportunities for their employees. Some are also enhancing their job advertising budgets and offering more flexible working hours to attract and retain talent. Moreover, partnerships between businesses and educational institutions are becoming more prevalent to ensure the workforce is equipped with the right skills.
Archyde: Ireland’s job market offers competitive salaries. How significant is competitive compensation in attracting and retaining talent?
Aiden Murphy: Competitive compensation is indeed crucial. With the high demand for skilled workers, salaries have been increasing, particularly in sectors like IT, construction, and finance. Dublin continues to lead in average annual salaries, but we’re seeing growth across the country. Though, it’s not just about the salary; employees also value benefits, career growth opportunities, and a positive work environment.
Archyde: Aiden, what role do you think businesses, educational institutions, and the government should play in addressing the skills gap?
Aiden Murphy: Addressing the skills gap requires a collaborative effort. Businesses need to invest in their employees’ progress and work with educational institutions to ensure curriculum relevance. Educational institutions should also engage with industry to understand and adapt to the evolving skill demands. The government can play a crucial role by providing funding for upskilling programs, encouraging apprenticeships, and creating policies that support businesses in their talent attraction and retention efforts.
Archyde: Thank you, Aiden, for your insightful perspectives on navigating Ireland’s skills gap. It’s clear that a multifaceted approach is needed to ensure a robust and adaptable workforce for the years ahead.
Aiden Murphy: My pleasure. It’s a complex challenge, but with collective effort and a long-term vision, we can bridge the skills gap and secure Ireland’s economic growth.