Ireland’s tightening labour market is beginning to cause recruitment difficulties while Dublin’s cost of living is expected to drive senior business leaders abroad, according to two companies which offer employee services.
Over 80 per cent of Irish businesses reported difficulty recruiting over the past year, a survey from Performance Reward Consulting found, a fact that caused three in four business to offer above market salaries.
Additionally, almost 60 per cent of respondents said that they expected to have to recruit internationally to fill Irish-based roles in 2019.
"As the market continues to heat up, Irish based organisations are now struggling to recruit and retain key talent and they are now often having to look outside Ireland to recruit for certain skills," said Patrick Robertson, managing director of Performance Reward Consulting.
“This brings challenges integrating employees who have worked abroad and concerns around insurance, healthcare, driving licences education and housing often arise during the recruitment and induction process.”
Meanwhile, executive search company Ardlinn said Dublin's cost of living will likely create significant talent problems within five years.
“When you look at where the majority of FDI and big business is based in Ireland, it is largely Dublin centred. The problem with that is middle management, and talented professionals, one or two rungs below C-level (senior executives) are being priced out of the market and are increasingly considering options elsewhere,” the company’s founder, Áine Brolly, said.
She noted that rising property prices in particular was creating a “serious risk” for employers and employees.
Although wage rises aren't nearly competing with property price rises, Mr Robertson's survey found that the majority of organisations are forecasting pay increases next year of 2.5 per cent in the Republic and 3 per cent in Northern Ireland.
