According to the report, 70pc of employers have struggled to recruit talent over the last year
A survey of CEOs and HR leaders published today by business group Ibec found skills deficits are acting as a “strategic handbrake” as pressure mounts to keep pace with emerging technologies.
It shows 82pc of business have significant skills deficits.
CEOs and HR leaders are reporting a mismatch between what they need and prospective employees’ skills. Photo: Getty
News in 90 seconds – Thursday 22nd of January
Ibec’s 2025 Skills Survey found a mismatch between open roles and available talent, as the needs of a modern economy move from a marginal concern to a major threat.
Employers expect competition for talent to rise in the next five years, potentially making the situation more challenging.
An Ibec spokesperson said the type of roles where strong AI skills are most required include content generation, data analytics, quality control, marketing, planning, HR and recruitment, risk management, financial administration, fraud detection, and manufacturing.
The report identified a ‘preparedness gap’ between big firms and smaller businesses
“The survey confirms that businesses are simultaneously managing intense and immediate competition for talent in a tight labour market and escalating pressure to keep pace with new and emerging technologies, including AI,” said the report.
With near full employment, seven out of 10 companies said they faced difficulties in recruiting staff over the previous 12 months.
Existing teams of workers face frustration and potential burnout when they are over-stretched covering roles due to skills deficits, the report said.
“This directly impacts talent retention, with one in four businesses reporting increased staff losses and absenteeism as a direct result,” it said.
“These internal pressures inevitably feed into operational setbacks, manifesting as pervasive lower productivity across the organisation.”
The report identified a “preparedness gap” between big firms and smaller businesses in relation to new technology.
Thirty percent of large organisations are training for AI, compared to just 13pc of smaller businesses. Most large firms reported having a dedicated training budget.
The report said this “supports [large organisations’] significantly greater investment in strategic skills such as soft skills (91pc v 46pc), sustainability skills (51pc v 21pc), digital skills (41pc v 28pc) and, crucially, AI skills (30pc vs 13pc)”.
There is no excuse for underinvestment
The report found that Ireland’s lifelong learning rate – the proportion of adults engaging in learning – has improved to 16pc, but remains less than half that of “European leaders” like Sweden (42pc) and Denmark (32pc).
Ibec wants the government to roll out a national scheme, funded through the National Training Fund, to incentivise employers to prepare for “megatrends”.
“With a €3bn surplus projected for the National Training Fund, there is no excuse for underinvestment,” said Meadhbh Costello, author of the report and Ibec senior executive for skills and innovation policy.
“The Government must now move decisively to unlock these employer-contributed funds and jump start training and lifelong learning.
“By investing in proven upskilling programmes … we can empower SMEs to bridge the digital divide and ensure that our workforce is not just prepared for the future of work, but is actively leading it.”
She said it is deeply concerning that firms who are actively contributing 1pc of their payroll to the National Training Fund are not able to access the supports they need to prepare their workforce for the future.
Ms Costello said programmes such as Skillnet business networks are internationally recognised as best-in-class, but are underfunded.