Irish-based CEOs raise fresh concerns over skills shortages

Concerns persist despite Minister Harris' 3-year upskilling plan. File Picture

Three-quarters of Irish company CEOs are concerned over skills shortages, according to a survey, but only a fraction of them are planning to significantly invest in developing staff talent.

The findings from the survey, carried out by PwC, show Irish-based company chiefs to be far more concerned about skills deficits among the workforce than their global peers.

Nevertheless, only a quarter of Irish-based CEOs said they plan significant investment around talent development within their companies and only just over a third said they see skills as being the key focus when it comes to making their business more competitive.

"If current patterns in access to training persist, upskilling will increase social inequality when it should be doing precisely the opposite,” said Gerard McDonough, people and organisation partner at PwC Ireland.

“Government and business leaders need to work together to intensify efforts to ensure people in the most-at risk industries and groups get the opportunities they need. Automation and technological disruption are inevitable, but we can control whether its negative effects are managed or not," he said.

Earlier this month, higher education minister Simon Harris launched the Government’s three-year strategy to boost skills and talent as part of wide-reaching reform of the higher education and research and innovation areas.

Minister Harris said part of the aim is to “develop the skills agenda”.

The PwC survey found that – on a global basis – the pandemic has accelerated people’s efforts to upskill digitally. However, it suggests that key groups of society are still missing out on the benefits. 

It said 40% of workers around the world improved their digital skills during various lockdowns, but still feel there is unequal access to career and training opportunities.

The report said half of the global workforce feel they are missing out on career opportunities due to bias – with training opportunities focused on those who already have high levels of skill.

Furthermore, two-in-five workers believe their job will be obsolete within five years.

Three-quarters of employees globally said they want to work for an organisation that will make a "positive contribution to society".

On that note, 51% of Irish CEOs said that they are making changes to their organisational purpose to better reflect the role their business plays in society.

“As the world continues to grapple with a global health crisis and economic uncertainty, we’ve seen employees come to demand more from the business community, expecting their employers to make a positive contribution to society,” said PwC Ireland director Ciara Fallon.

"Focusing on societal impact and maximising profit are not mutually exclusive, and being a purpose-led business can actually help boost your bottom line."