Ireland’s educated, diverse, and international workforce represents one of the country’s greatest areas of competitiveness. However, the continuous development of key skills will be essential in ensuring Ireland remains a foremost location for FDI investment in the future. Is there a skills gap and if so how can it be managed?
The workforce in Ireland has the competence and skills needed to drive productivity and support ICT, manufacturing, engineering and a range of specialist industries, says Chris Collins, country president Ireland, Schneider Electric. “Historically Ireland has always been a good place to invest and grow a business, mainly because of the high standards of education provided by its first-class colleges and universities.
Education and training have always underpinned a diverse and highly skilled workforce, Collins says. “It has helped Ireland to attract business and investment in areas like manufacturing, life sciences and pharmaceuticals, which have become cornerstones of the Irish economy. This in turn has created a demand for skills and innovation that has been met by local talent, but also talent from across the EU.
“Companies that invest in Ireland do so in the knowledge that they have access to a larger pool of skilled workers who can easily relocate.”
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In addition to a highly skilled and diverse talent pool Ireland is one of the main innovation hubs in Europe, says Niamh Graham, senior vice-president of human experience at Workhuman. “That means that we have a strong emphasis on R&D, with many tech firms collaborating with universities and research intuitions to drive innovation.
“Additionally, Ireland has a strong and supportive start-up ecosystem that fosters an entrepreneurship spirit amongst talent. This environment promotes knowledge-sharing and collaboration, allowing people and businesses to learn from each other to develop new ideas together.”
Leaders across industries have noted the skills shortage and the potential ramifications for businesses, says Graham. “There has been an explosion of new technologies in recent years that are specifically driven by how we work, live, spend and interact. In turn roles and job requirements across artificial intelligence, ecommerce, information security, data, video communications, user experience and more have grown enormously – and we are left to play catch-up.”
Workhuman’s Human Workplace Index Research found that employees in Ireland are struggling to meet the demands of their jobs due to skills gaps, says Graham. “The research found that 70 per cent of employees say they work with one or more people whose skill sets do not meet the criteria of the role. This has resulted in 24 per cent of employees saying they are being slowed down because they have to provide a lot of support to those colleagues.
“But on the other hand the research showed that while significant skills gaps prevail in Ireland, employees are proactively seeking to upskill. Some 86 per cent of those surveyed said that they are aiming to learn at least one new skill this year. Almost half – 48 per cent – believe this will help them uncover new job opportunities, while 47 per cent are seeking a salary increase or promotion.”
It’s difficult to say what the immediate solution is but State-sanctioned apprenticeship schemes and programmes need to create more places for apprentices to meet the demand for electricians and other skilled workers, says Collins. “However, I wouldn’t say that skills shortages present a barrier to foreign investment. Skills shortages are universal, they’re not restricted to Ireland, but we have an opportunity to reduce the skills gap by focusing resources on improving access to training and development.”
Apprenticeships offer young people a dynamic and fulfilling route to success, says Collins. “They tend to be more technically focused, but on-the-job training also allows apprentices to learn softer skills too – and this mix of technical and interpersonal skills supports quicker progression routes while equipping apprentices with the skills they’ll need for future roles.”
When employees don’t receive recognition they may feel disconnected from their company and less engaged in their work. If they don’t feel valued for their contributions they’re less likely to spend time and effort on learning new skills, says Graham.
“Research shows that employees who aren’t recognised often lack a sense of belonging at work. The consequences of this go beyond just the skills gap. Not addressing recognition can lead to a negative work environment, and higher turnover rates, and make it harder for the organisation to compete. Companies need to create a culture that values recognition, which can help close the skills gap and improve overall employee engagement, satisfaction and retention.”
With employees eager to learn new skills, investing in training programmes is an important step, says Graham. “However, companies also need to focus on creating a culture that appreciates people for their hard work and achievements.
“When employees feel valued for their efforts and the skills they gain it boosts their motivation and engagement. A workplace that recognises accomplishments encourages everyone to grow both personally and professionally. This leads to a cycle where employees are more likely to look for new learning opportunities and share what they know with others.
“By celebrating successes, no matter how big or small, organisations can foster a supportive environment that values skill development and improves job satisfaction and retention.”