The Talent Drought

I write this as a former recruitment consultant. You know, the type of person who calls you on a Monday morning, after bypassing your secretary through charm, charisma, or pure cunning, and asks how your weekend was; followed by a cut-to-the-chase question of "And tell me, are you on the lookout for new staff at the moment?" At least, that was the general flow when on the BD (business development) path. If I were ever asked to describe recruitment in a few words, it would be comparable to herding cats.

However, even since departing the recruitment industry, which I do actually miss at times, the landscape has changed dramatically. For established firms, BD is no longer really a mission-critical operation, simply because there has been a distinct paradigm shift in addition to common knowledge revealing that every business is struggling with talent supply.

The talent shortage has become more than a buzzword; it's a reality that Irish businesses and HR leaders are grappling with daily, and it's one that isn't going anywhere soon. This issue is not confined to Ireland; but Europe, affecting a myriad of industries and sectors en masse. To put things in perspective, 81% of Irish businesses are experiencing difficulty with talent attraction (Manpower Group 2023).

Now, I'm about to present you with a logical and oversimplified conclusion outlining the cause of this talent shortage - demand outpaces supply. While that statement is glaringly obvious, it's worth delving into the nuances as someone who used to recruit and as someone who has an understanding of the driving factors behind immigration and emigration alike.

So, let's begin with the most obvious of the obvious - multinational developments. While fantastic for the Irish economy as a whole, most of these industries have pulled in thousands of talented candidates. During the early hiring frenzy, recruitment firms lucky enough to be working with such corporations on a preferred supplier basis could be seen doing a swan dive into a bath of crisp, purple €500 notes. However, now that most corporations have either reached satisfactory operational staffing limits, or only require small amounts of employees due to natural attrition or tenure-based churn, the hiring frenzy has transformed into just hiring.

Next up on the list is competition. Countries such as the UK, Canada, Australia, and Germany are also experiencing talent shortages. They draw from the same talent pool as Irish recruiters but can afford to offer higher salaries, generous relocation packages, better perks, and affordable accommodation.

Ireland has experienced talent shortages before, but in 2023 the landscape, magnitude, and obstacles are starkly different. Any hiring manager or recruiter knows that looking beyond Europe in search of skilled candidates is the only viable option, which involves immigration...something WPS happens to know a thing or two about (shameless self-plug).

The talent shortage is a significant challenge for the Irish economy in general and affects some of our most critical sectors. The government is taking steps to address the issue, such as investing in education and training programs and making it easier for foreign workers to come to Ireland. Being frank, these initiatives, schemes, programs, and incentives take years before coming to fruition.

As a former recruiter, I've seen the ebb and flow of talent markets, but this current shortage is a different beast. It's not just about filling positions; it's about understanding the global dynamics of talent migration and the evolving needs of businesses.

The question now is, how do companies adapt to this new reality? How do they balance the immediate needs with the long-term strategies that will sustain our economy? Perhaps it's time to rethink not just how companies recruit, but how they nurture and retain talent, turning this challenge into an opportunity for innovation and growth.