The number of firms planning to use remote or hybrid working as an incentive to lure would-be employees during the coming year is set to halve, according to the annual Manpower talent shortage survey.
The figure was put at 30 per cent in 2023 and 38 per cent in last year’s survey but just 17 per cent of employers said they anticipated offering the option of remote or hybrid working during 2025, a move in line with widely reported developments at a number of high-profile US owned tech multinationals, which have issued back-to-the-office mandates.
Skills shortages in key areas continue to be a big concern for employers across the economy, with tech and the public service topping the list of those finding hiring the most challenging, survey of 420 organisations suggests. .
The survey found that 83 per cent of employers nationally say they are struggling to find candidates with the right skills for roles, the highest figure produced since the recruitment firm starting carrying out the research and up from just 15 per cent a decade ago.
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Those finding the situation most problematic are small firms and those based in Leinster, excluding Dublin, although the figures are universally high across sectors, company sizes and geographical location.
The increased adoption of artificial intelligence (AI) is seen as a contributory factor to the skills shortage numbers with the technology driving some of the demand for skills, some of them new, that are in short of supply but the problem is said to be broader than that, with large numbers of organisations in ICT, the public sector, healthcare, energy and hospitality all reporting difficulties recruiting the people they need.
“Businesses are keen to hire, but there simply aren’t enough candidates with the skills employers are looking for,” said Jonny Edgar, managing director, ManpowerGroup Ireland. “Skills needs are changing at a pace we haven’t seen in recent memory, and employers are relying on expensive and time-consuming approaches like headhunting and direct sourcing to find candidates who have the right skills. These traditional approaches assume enough talent is out there if you look hard enough, but it’s not.
“The decline in hybrid work offers may be a counterproductive move while skilled talent remains in short supply,” he added. “Employers going back to basics with office-based working requirements will face increased difficulty attracting candidates.”
Manpower says it sees :”high-skilled, good-fit” candidates for roles withdrawing from consideration when they hear that remote or hybrid working options will not be available.
“Business leaders should not abandon such a valuable tool in their arsenal while talent shortages remain at record highs and unemployment sits at record lows,” Mr Edgar said.
“To reverse the widening talent shortage, more employers have to start building in upskilling and reskilling to their workforce strategies. Hiring candidates for their potential – based on past experience, aptitude, and transferable skills – and then offering training to bridge the gaps gives workers the development they’re looking for and, crucially, increases the supply of candidates with the right skills in the labour market.”
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