Ireland is heading towards a major talent crisis over the next 12 months, with employers predicting they will have to offer two out of every three employees pay increases to retain talent this year, according to recruitment firm Sigmar.
Almost 269 HR managers across Ireland took part in the Sigmar EY 2018 Talent Leaders Pulse Survey, which focused on key talent themes and priorities for the year ahead. When asked to rank their priorities for 2018, retention and attraction of talent came out on top.The results are unsurprising in a strong economy, with the lowest unemployment rates since 2008, according to Kate Stewart, Sigmar Head of HR recruitment. "However, what has become clear from the results is that companies are preparing themselves for an acceleration in the war for skills and are prepared to pay for that talent," she said. "As a result, salaries are set to rise considerably over the next 12 months."
Results of the survey indicate that employers are likely to offer two out of every three employees a salary increase in 2018 to retain their best talent.
"While it is difficult to put a precise figure on just how much salaries are likely to increase in 2018, it is likely to be considerably more than the rate of inflation," Ms Stewart said. "However, it is perhaps possible to draw inference from figures being offered to employees working for a rival company in order to lure them away. This figure is often in the region of a 10 -15% increase of the current salary.
The survey found that employers are being forced to headhunt talent with one out of every four positions now being filled are as a result of active engagement.
Ms Stewart said this is indicative of the war amongst employers for talent and this heated competition is set to create a crisis in 2018 to rival the current housing crisis.
Commenting on the survey results, Niamh O'Beirne, partner, People Advisory Services Group, EY said the lesson from the survey results is that what may have worked in the past will not always work in the future.
"Given the unprecedented pace of change and unpredictability in today's working world, it is becoming ever more important to hire for mindset and not necessarily skillset," she said. "In the future, we are going to have jobs we don't know yet, using technologies we don't have yet, solving problems that don't yet exist. This uncertainty will bring game-changing threats but also huge opportunity. Organisations need to be supported in doing things differently, in building leadership capability and flexing their culture to respond to the changing conditions around them."
