Rising costs, labour shortages and employee retention are the most significant concerns for Irish small and medium enterprises (SMEs), according to new research.
The survey from HR consultants Peninsula Ireland engaged 6,400 Irish businesses from diverse industries.
It shows that 43% of SMEs said that escalating costs, including recruitment expenses, payroll increases, and the cost of living, is their top concern.
Labour shortages were also highlighted as a major concern with over half of respondents saying that recruitment was their primary staffing challenge.
To address this, and to attract new talent, many businesses said they have offered increased wages, offered flexible working hours, and invested in upskilling.
"To survive long-term, SMEs must focus on growth and innovation," said Moira Grassick, Chief Operations Officer at Peninsula Ireland.
"Challenges with recruitment and retention, which we hear about every day from business owners, are adding strain and could put the brakes on growth goals," she added.
"The recent general election and Budget 2025 are likely to introduce opportunities for businesses to better support their staff while maintaining financial stability," Ms Grassick said.
"Reforms such as adjustments to the Universal Social Charge (USC) and tax incentives for employers to reward their staff offer some relief for business owners," she added.
