Employers remain committed to recruitment despite market concerns as hiring plans at six-year high
- Hiring plans are at their highest level in six years, with 90% of employers reporting they plan on hiring over the next year despite market concerns
- Hiring focus remains primarily on recruiting permanent staff, with 75% preferring to fill roles this way, while 28% will seek to employ temporary staff
- The effect of the cost-of-living crisis on staff is the biggest external challenge employers expect to face in the coming year (61%), while the biggest internal challenge is talent retention (64%)
- Almost all employers (92%) say they have experienced skills shortages over the last 12 months
- 84% of employers increased salaries over the last year, compared to 56% who did so the year prior. 79% expect to increase salaries again in the next 12 months
- Pay remains the top reason employees moved jobs last year (42%) and is expected to be the main driver for employee movement in the year ahead (34%)
Despite concerns over the global economy, employers remain committed to their recruitment goals over the next year, according to a new report released by recruitment industry leader Hays Ireland. 90% of employers surveyed reported that they plan on hiring over the next 12 months, an increase of six per cent from last year. The vast majority of employers (75%) indicated that they primarily plan to hire permanent staff, while 28% of respondents will seek to employ staff on a temporary basis.
The survey findings were published as part of the Hays Salary & Recruiting Trends Guide 2023. The survey received over 1,600 responses from employers and professionals across Ireland between 29 August and 26 September, 2022. The complete findings will be published at the Hays Salary & Recruiting Trends Guide 2023 webinar on Wednesday, 30 November.
Employers confident on performance despite economic concerns
Despite some concern over long-term economic prospects, 72% of employers predict an increase in their organisation’s expected performance over the coming year. However, the cost-of-living crisis is still at the forefront of their minds, with 61% indicating that the rising cost of living for staff is the top external challenge they expect to face. Meanwhile, 64% felt that talent retention remains the biggest internal challenge.
Competition for talent exacerbates skills shortages
Almost all employers surveyed (92%) said they have faced skills shortages in 2022. This is almost unchanged from last year (91%). Competition from other employers for talent is the main cause of skills shortages (66%), and there has been a rise in employers pointing to fewer employees entering the job market as the main issue in recruiting talent (42% vs 33% last year). Employees at the intermediate (54%) and management (46%) levels are especially difficult to recruit.
41% of employers have turned to temporary or contract staff to counteract skills shortages, while 38% have increased their recruitment budgets in a bid to attract new talent. 34% have increased their use of recruitment agencies to do the same.
Pay rates continue to climb
According to the research, 84% of employers have increased their employees’ salaries or rates of pay over the last year, compared to just 56% who did so the year before. Over half (58%) say this is a direct result of the rise in the cost of living. Additionally, 70% of employers offered staff a performance-related bonus this year, and 74% of employers either sometimes or always make counter offers to staff when they inform them of the decision to resign from their position.
Pay remains the top reason employees moved jobs last year (42%) and is expected to be the main driver for employee movement in the year ahead (34%).
Maureen Lynch, Operations Director at Hays Ireland said, “Despite headlines in recent weeks suggesting a period of economic uncertainty is on the horizon, our 2023 Salary & Recruiting Trends Guide paints a brighter picture and reaffirms that 2022 has been a positive year of economic growth in Ireland. Our data shows that, on balance, employers remain optimistic that 2023 will see further economic and job growth across sectors, including accountancy and finance, engineering, and healthcare.
“However, there is no denying that challenges will persist in the year ahead as employers and employees alike continue to grapple with the rising cost of living and inflation and a more cautious mood in the Irish tech sector. Skills shortages remain a persistent problem for employers, the majority of whom have had to increase wages to both attract new talent into the workplace and retain in-demand existing employees. This is a trend that shows no sign of slowing down in the year ahead.”
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360, A Finn Partners Company
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360, A Finn Partners Company
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Hays plc (the "Group") is the world’s leading specialist in workforce solutions and recruitment, such as RPO and MSP. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK, Germany and Australia and one of the market leaders in Continental Europe, Latin America and Asia. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 30 June 2022, the Group employed c.13,000 staff operating from 253 offices in 32 countries. For the year ended 30 June 2022:
– the Group reported net fees of £1,189.4 million and operating profit of £210.1 million;
– the Group placed around 83,750 candidates into permanent jobs and around 250,000 people into temporary roles;
– 16% of Group net fees were generated in Australia & New Zealand, 26% in Germany, 22% in United Kingdom & Ireland and 36% in Rest of World (RoW);
– the temporary placement business represented 55% of net fees and the permanent placement business represented 45% of net fees;
– Technology is the Group’s largest division, with 26% of net fees, while Accountancy & Finance (14%) and Construction & Property (11%), are the next largest
– Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, the Czech Republic, Denmark, France, Germany, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Romania, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA