78% of Irish businesses reporting skills shortages, survey reveals
According to the PriceWaterHouseCoopers’ (PWC) HR directors survey, 78% of Irish firms are experiencing skills shortages in areas such as IT, yet only 10% identify addressing these shortages as a priority in the next 18 months.
Income tax levels as well as the cost of living are major factors preventing the recruitment of senior leadership and specialist skills, according to the report.
On a positive note, more than 75% of Ireland’s HR managers are positive about the outlook for the economy in the year ahead, up significantly from 27% last year.
PwC director Gerard McDonough said the results show a shift towards a growth-focused outlook among HR managers.
“The mood of HR leaders has shifted from survival to growth... The most successful organisations will be those who have the right people and who learn quickly how to harness the opportunities and minimise the risks,” said Mr McDonough.
The mood of optimism among businesses generally extends to their own firms, according to the report, with 72% feeling their prospects are favourable, up from just over half lastyear.
The data suggests mixed news on the job front, however, with nearly half the businesses surveyed planning to increase their workforce but a fifth hoping to reduce their staff numbers.
The report identifies a lack of data analytics capability as the greatest impediment to adding value to the business for HR employees — up to 42% from just 8% last year.
In addition to the skills shortages firms are facing, the report indicates that managing existing employees’ talents could be significantly better.
Just 54% of businesses have a clearly defined management programme in place to identify key skills.
“Recruiting key skills is important but retaining them has also come into sharper focus,” according to PwC director Ciara Fallon.
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