Written by Brian McFadden, Co-founder and Client Services Director at RECRUITERS.
"What an extraordinary year 2021 was in the Irish economy and indeed the hiring market. The turmoil experienced in both far exceeded the great financial crash of 2007, which was also jaw-dropping. However, the outcome from the COVID-19 pandemic on the economy and subsequently the hiring market has been far more surprising to date.
In March 2020, the economy was caught like a rabbit in the headlights, stalled in a state of shock. Every sector grappled to find its footing in a new reality of COVID-19. Once those who could work from home got set up and learned how to get off “mute”, we slowly began to drive forward in our new world of work. Unfortunately, others were not so well positioned. Sectors like retail, travel & tourism, the arts, construction and aviation fared terribly in this new world.
The unemployment figures from the last two years are staggering. Not only in the percentages but also in the timescales of change from 4.5% unemployment rate in Q4 2019 to 31.5% in April 2020 to 10% in September 2021.
So, a quick SWOT analysis of where we are. On the weaknesses and threats side, the CSO estimates that 17% of all people employed are in (some) support of the Employment Wage Subsidy Scheme as of Q2 2021, which is still remarkably high. What happens when these schemes end? Ireland’s corporate tax rate is set for a hike of 20% from our enshrined 12.5% to 15%, and Brexit has not gone away, so there are some factors at play that means we may not be out of the woods yet.
On the strengths and opportunities side, things are looking good as of October 2021. The somewhat unexpected economic growth of 2020 and 2021 is accelerating now into 2022 and the ERSI and Government are upbeat about 2022. The CSO puts GDP for Q2 2021 now at 6.3%. Ireland is coming out of much of the restrictions imposed on the country to curb the transmission of the virus and sectors like construction, the arts and aviation are opening once more.
So, with the economy charging ahead, the war for talent is heating up to levels I have not witnessed since pre-September 11th 2001. Confidence is high in the employment market, with a focus on flexibility, retention efforts and the need for new skill sets. The outlook is upbeat as companies get back to business and hiring. Organizations are ramping up operations and restarting projects — and hiring additional employees to handle the growing workload. Overall hiring is near or even exceeding pre-pandemic levels in many markets.
There is a shortage of skilled professionals, increasing competition for top talent and driving up salaries will continue into 2022. The new phrases of 2020 and 2021 now will continue into 2022: WFH (Work from Home), Hybrid, Retention, Diversity, Meaningful Work, Remote Worker Strategy, and The Great Resignation. These are the new lenses businesses are adopting and fitting into the frames of their organisations.
Businesses are at a major junction in how they pay new and existing staff in Ireland. The new (remote) world of work is leveling the playing (and paying!) field as some, but not all, companies begin paying all their staff Dublin salaries regardless of where they are in Ireland. So, while our new world of working has potentially widened talent pools for nearly all employers, it has also made it harder for many local SMEs to compete with larger companies that can embrace remote working policies and afford to pay Dublin salaries.
The data shows that businesses embracing hybrid teams benefit from a wider talent pool, higher employee morale and better performance. Plus, they have an edge in hiring and retaining top talent as fully and hybrid working models become a non-negotiable for employees. Many companies in the face of the massive movements of talent and demand for talent are shoring up the fences and focusing on retention by offering more incentives, empowerment, and flexibility. Retention is a key focus for many managers as we move into 2022. In the face of the difficulty of finding talent and everyone else looking for yours, keeping your good people is key. To overcome the “great resignation”, more and more businesses are bringing in contract professionals to support their core teams as a preferred talent solution. Many businesses are also adopting a labour model that includes managed solutions arrangements, working with external teams to handle high-priority projects or functions, such as talent acquisition such recruitment agencies.
RECRUITERS' 2022 Salary and Hiring Trends Report aims to provide valuable data and insights to our business community to overcome some of the hiring challenges and capture the many opportunities out there. RECRUITERS remain committed to engaging with our clients and candidates to accelerate both companies and careers. I would like to thank all of our colleagues, partners, clients and candidates for their support and engagement. I hope we can continue to be of service to you all in months and years to come, in the face of all the challenges to come and how we overcome them!"
Learn more about Brian and reach out to him today for a free confidential consultation.
