Recruitment companies see SME hiring phase as a very good sign

Recruitment agencies are a reliable bellwether for the state of the employment market. If they are busy, everyone’s busy. Recruitment agencies, it turns out, have a bellwether of their own – small businesses.

“Once the SMEs are hiring, that’s always a very good sign because they are very cautious. And they are hiring,” says Michelle Murphy of Collins McNicholas in Galway.

The recruitment agency is hosting recruitment fairs over Christmas to persuade skilled workers who are home for the holidays to stay.

Demand for them is growing. “Over the past 12 months we have seen recruitment across all sectors as companies ramp up. There has been no slowdown in recruitment activity towards the end of the year either,” she says.

This demand is leading to a lengthening of contracts, as well as the creation of more permanent roles.

“Contracts are moving out from six months to a year. And employers are realising that they are not going to attract people home to Ireland for a contract. We’ve had some willing to change a vacancy from a contract to a permanent position once they find the right candidate. If they find someone with the right skillset, particularly if they have spent a couple of months looking, very few hiring managers will say no,” she says.

Reasons for return

The vast majority of returned emigrants are coming home for family reasons, she says. For younger candidates it is to be closer to parents and siblings, while for a slightly older cohort, a large part of the appeal is the desire to educate their children here.

Very many of the candidates employers are keen to attract home are Millennials. Typically born in the 1980s and 1990s, it’s a label that is recognised internationally. But Irish Millennials come with their own distinct flavour, according to Donal O’Brien of Abrivia, a recruitment agency.

“For a start, 330,000 jobs were lost during the recent recession and 10 per cent of Millennials emigrated. Thankfully, the tide has turned and, according to the latest CSO statistics, 21,000 people returned to live in Ireland in the last year alone,” he says.

“This is a huge opportunity for employers who position themselves effectively in regards attracting Millennials. However, company loyalty is at all an all-time low amongst this generation so the challenge is not only to attract the right Millennial talent into the organisation but also to re-engineer the culture of your organisation to ensure they stick with you for the long haul.”

For employers, this means being aware of what motivates them. “Millennials are interested in variety, and in having a good, enriching experience,” says Susan Kilty, people partner at PwC.

Corporate and social responsibility is important too. “CSR matters a lot because Millennials are focused on the value and culture of an organisation. They want to work for an employer whose values are aligned with their own,” she says.

Millennials are often characterised by a willingness to change job. In this they are no longer alone however. While the recession encouraged those lucky enough to be in a job to hang on to it, the tightening labour market has given many the confidence to move, with pent up demand to do so.

According to a 2017 salary survey from Hays, a recruitment agency, nearly half (49 per cent) of all employees plan to change jobs in the next year, while 24 per cent are considering a move within two years.

It found workers born in the 1960s and 1970s – often called Generation X – are just as likely to consider a career change within the next year as Millennials (both 49 per cent). Baby Boomers – born in the 1940s and 1950s – are even more likely to, with 63 per cent anticipating a move in the next year.

Of those wanting to move, 25 per cent of all generations cited salary or benefits package as the main driver, followed by lack of future opportunities (22 per cent) and the work itself (10 per cent).

Shortage

With more than three-quarters (76 per cent) of employers here expecting a shortage of suitable candidates, it looks as if the war for talent will be matched only by the war for a better job.

“It’s no longer accurate to frame Ireland’s economy through the lens of ‘recovery’. We have entered a new economic cycle, and from our own findings, the problems facing businesses now are much more in line with what they faced 10 years ago, pre-crash,” says Richard Eardley, Hays Ireland managing director.

“The demand for labour, particularly in technical fields, is so high that candidates can essentially pick and choose who they work for and push for higher salaries. This in stark contrast to just four years ago where for many it was a matter of taking what was offered. Employers need to adapt to this changing landscape.”