It is evident that organisations are facing a formidable challenge throughout 2024: the scarcity of skilled talent and the requirement to retain existing expertise.
Since 2020, the recruitment landscape has undergone significant transformation, and now a sense of normalcy in the global business environment has emerged. As we progress further into 2024 and witness an escalating war for talent, organisations willing to adapt and stay attuned to market trends will emerge as frontrunners. In these dynamic times, the famous words of wisdom resonate strongly with me: “It is not the strongest of the species nor the most intelligent that survives, but the one most adaptable to change”.
Key findings following a live snap poll of over 400 organisations conducted by Osborne in Q1 2024, include the percentages of organisations offering salary and benefits increases in 2024 and reveals the uncertainty felt surrounding the potential impact of increased sick leave, minimum wage, and pension contributions on businesses.
1. Talent Acquisition Challenges:
The escalating departure of skilled professionals to global markets poses a significant concern, intensifying the competition for top-tier talent. Our survey unveiled that 58% of respondents identified skills shortages and retention as their foremost challenge in 2024. Moreover, while 60% expressed intentions to recruit this year, 24% remain undecided as of February 2024, indicating a notable increase in uncertainty since November 2023.In some sectors it is noted that the number of live jobs have reduced between Q1, Q2 and into Q3, while in certain sectors such as Engineering and Financial Services, jobs remain buoyant and skills in demand. The Temporary and Contract staffing market is predicted to remain in high demand in 2023 as fluctuating business needs require flexibility.
2. Salary & Benefits in 2024:
In response to the challenges posed by talent acquisition and retention, 81% of organisations have either implemented or are planning to increase salaries and benefits. This represents a 6% increase from our previous poll. Competitive compensation packages are proving instrumental in attracting and retaining top talent, with surveyed organisations reporting average increases ranging from 3% to 5%. Artificial intelligence (AI) platforms, for example ChatGPT, are increasingly making their presence felt in both the Recruitment Industry and the broader workplace. More and more companies and workers are embracing these technologies to enhance productivity and knowledge, leading to their widespread adoption and acceptability.
3. Demand for Skilled Professionals:
The evolving regulatory landscape has fueled demand for talent in fields such as Accountancy and Finance, with 27% of organisations intending to hire financial professionals in 2024. Similarly, there is a burgeoning need for skilled individuals in Office and Administration positions, with 25% of surveyed organisations planning to hire in these domains. Due to increased regulatory requirements, there is also a growing demand for sustainability roles which is proving a significant challenge for companies to find suitable candidates. while the opportunities in sustainability are expanding, the competition and specificity of skills required are also increasing, presenting both challenges and opportunities in the Irish job market.
4. Uncertainty Surrounding Regulatory Changes:
While 62% of organisations expressed uncertainty regarding the potential impacts of regulatory changes, there is a discernible decrease from previous polls, reflecting a more optimistic outlook. Notably, 19% of organisations are feeling positive ahead of the regulatory changes anticipated this year.
5. Evolution of Work Models:
Organisations are adapting to changing workplace dynamics, with a notable shift towards onsite and hybrid work models. While 29% are operating fully onsite, the hybrid model, involving three days of onsite work per week, has gained traction, with 32% of organisations embracing this approach.
As we navigate the challenges on the horizon, forward-thinking companies are investing in innovative training programs and talent development initiatives to bridge the skills gap. Moreover, there is a growing emphasis on employee engagement and satisfaction, with strategies focusing on flexible work arrangements, competitive compensation packages, and robust career development opportunities.
