DUBLIN, October 24, 2022 – The war for talent looks set to continue with over one-third (36%) of companies in Ireland expecting problems in attracting talent in 2023, according to WTW’s latest Salary Budget Planning report. Furthermore, the research also shows that over half (52%) of companies in Ireland are anticipating problems next year when it comes to retaining employees.
In response to these challenges, many companies in Ireland have taken action to attract talent. Nearly three quarters (71%) have increased workplace flexibility while 60% have placed a greater emphasis on diversity, equality and inclusion (DE&I).
Of those companies planning to upweight their attraction activities, 45% plan to reinvigorate the employee experience by measures such as introducing new employee supports and social programmes for example, while 32% will increase salary ranges and 30% will offer training opportunities.
With regard to retention, 60% of businesses in Ireland are broadening their focus on DE&I, 50% are allowing employees in certain jobs to work from anywhere and 39% are changing compensation programs. Looking to the future, 45% are looking to improve the employee experience and 37% are changing health and wellness benefits.
Looking at sectors and roles, attraction and retention is overwhelmingly an issue with regard to IT/Digital talent, with 80% of businesses in Ireland experiencing difficulties in attracting these skills, and 76% struggling to retain such workers. This is followed by engineering, with 56% of employers struggling to attract and 52% struggling to retain suitable talent.
“Returning to pre-pandemic levels of employment has been difficult for companies, however these findings illustrate the awareness of the issues and willingness to act.”
April McDonnell | Director of Rewards Data Intelligence at WTW Ireland
Commenting on the research, April McDonnell, Director of Rewards Data Intelligence at WTW Ireland said, “Companies are taking measures to attract and keep talent in the workforce here in Ireland. Returning to pre-pandemic levels of employment has been difficult for companies, however these findings illustrate the awareness of the issues and willingness to act.
“Overall, it will be important for employers to take a holistic view of the various means at their disposal and be prepared to make changes that meet the real needs of their people. For example, the WTW research found that companies in Ireland are focusing not just on salary levels but also on the frequency of salary increase adjustments, with more than one in ten (12%) having already taken action and almost a quarter (21%) planning on increasing how often they offer salary increases to staff in the future. This is a clear indicator of how progressive employers are focused on not only being competitive, but also mindful of external factors such as inflation and the cost of living.”
“Companies should focus on the entire employee experience they offer at work rather than short-term reactive measures. Employers who take a strategic and inclusive approach will benefit the most, particularly when it is expected that recruitment issues will extend well into 2023.”
April McDonnell | Director of Rewards Data Intelligence at WTW Ireland
Concluding, April McDonnell said, “Recruitment and retention have always been areas of concern for businesses, and it is important for employers not to be overwhelmed. Companies should focus on the entire employee experience they offer at work rather than short-term reactive measures. Employers who take a strategic and inclusive approach will benefit the most, particularly when it is expected that recruitment issues will extend well into 2023.”
The Salary Budget Planning Report is an authoritative global study about salary budgets and recruitment compiled by WTW’s Reward Data Intelligence practice. The survey was conducted in April and May 2022. Approximately 22,570 sets of responses were received from companies across 168 countries worldwide. In Ireland, 413 organizations responded.
