As the economy recovers, attracting talent becomes the next big challenge

While the economy in Ireland took a massive hit over the course of the pandemic, with some industries more affected than others, all signs are now pointing to a recovery. With this welcome resurgence, comes a new problem – how can businesses attract the best talent?

Sitting tight 

In the US there is much talk of the Great Resignation, with many people leaving their jobs to seek better opportunities. So far, Ireland has not seen the same levels of movement, although that may change.

“Many people sat tight during earlier stages of the pandemic, unsure of what the future held,” says Derek Diviney, vice-president, EMEA customer success and sales at Indeed. “We saw job security cited as one of the main concerns for employees during this time.

“However, as time progresses, we are seeing more movement in the labour market now, as people feel more confident to make the move.”

Feargal de Freine, partner, assurance, and head of trade routes, EY Ireland, agrees. “Notwithstanding the huge impact the pandemic has had on employment, what we’re now seeing is a very strong recovery phase, both in the domestic economy as well as in the broader internationally-traded part of the economy.

“That bounce-back has happened more quickly than people anticipated even earlier this year. The growth of the economy is forecast to be very strong in 2021 and is translating into big increases in the numbers employed.”

What does this recovery mean for the war for talent? “Are people just ending up where they were before?” De Freine says not necessarily so. “The number one issue facing business today is talent – it’s the availability of people with the necessary skills. Not just being able to find them but also being able to keep them once they’re in the business.”

He says that people are now leaving jobs without having another job to go to “which would have been unheard of 30 years ago”.

Opportunities

Employers are realising that attracting – and retaining – staff is going to require new thinking and new methods. De Freine believes that employers need to have a really strong proposition to attract employees. “The pandemic has created opportunities for employees who might have previously limited their view to Irish employers, but who are now able to look overseas.”

He says it’s not just about rewards such as a baseline salary anymore, but less tangible things such as “corporate culture, a sense of purpose, opportunities for personal development, growth, and learning. Every employer is conscious of the need to do more to make sure they can retain their employees and do more to attract new employees”.

Diviney believes candidates are more discerning about the roles they apply for, even as employers are urgently hiring. “Health concerns and caregiving burdens could be holding some jobseekers back, while others may be reassessing their priorities after a tumultuous couple of years.”

In addition, employers “have seen that their old approaches to hiring are no longer sufficient for this new labour market, and it’s causing them to broaden their talent pools,” says Diviney. “As a result of the high labour demand, many employers are turning to creative ways of attracting job candidates. Some are offering hiring incentives, such as signing or retention bonuses, while some employers offer unlimited time off or extra company holidays.

“Companies are also focusing on their employer brand, ensuring that their online presence reflects who they are and what it’s like to work there. In a market where job seekers are becoming more choosy about where they work it’s important for companies to identify and communicate what sets them apart.”