Faced with a changing economic, regulatory and globalised environment the world of recruitment is having to evolve at a rapid pace. But what does it really mean for employers? How can they future-proof their business in terms of staffing?
Ireland punching above its weight
When analysing the global economic landscape, Ireland is growing at an accelerated rate. For a small island we have a large global footprint which is resulting in an intensive impact on recruitment and staffing.
According to the most recent CSO figures (released March 2018) the Irish economy is the fastest growing economy in the EU; 3.5% faster than the wider EU area at 7.8% growth in 2017. With the rising levels of employment, it’s therefore no surprise the unemployment rate is nearly 3 points below the Euro zone average of 8.9% at 5.9% and is forecasted to drop to around 5.5% by the end of 2018.
A widening skill shortage
Whilst this level of unheard-of growth is great news to businesses in Ireland, it does present challenges. Employers are facing a widening skills gap with a decreasing talent pool at the same time as a substantial shift in the expectations of the emerging working population.
Recent stats show that 79% of the millennial generation want flexible working options. What is becoming increasingly obvious is traditional staffing strategies are simply not able to bridge this gap.
There has already been a shift in the ways companies are engaging staff. According to a recent Deloitte Human Capital Trends survey, based on 11,000 business and HR leaders across 140 countries, only 42% of organisations are primarily made up of salaried employees.
Clearly contingent, part-time and gig workers are increasingly becoming a larger proportion of employer’s workforces. Whilst the Irish market stats of salaried vs non-salaried workers aren’t quite at the level indicted in the Delloitte report, all the signs are pointing towards us catching up quickly!
Ireland ranked third ‘Most Attractive Staffing Market Globally’
In a recent Staffing Industry Analysts (SIA) study, Ireland ranked third as the ‘Most Attractive Staffing Market Globally’. Ireland scored highly in the categories of ‘Ease of Doing Business’ and ‘Regulations on Temporary Agency Work’. We also scored well in the quality of available ‘Human Capital’ category; all indications are there that the Irish staffing market is going to continue to grow and the rise of the Contingency Worker is on an ever upward trajectory.
The Workforce Ecosystem
Listed by Deloitte in their Human Capital Trends survey as one of the top 10 global trends, this particular trend also ranked high with their Irish respondents. Contractors and “gig economy” workers are playing an increased role in today’s workforce. Organisations must find ways to reconcile existing culture and management practices with this new workforce model in order for these “temporary workers” to work effectively and feel at home within the organisation. Interestingly it is the technology sector that is highlighted as being most comfortable with the concept of the work ecosystem, already facilitating collaboration and flexible working.
Outsourcing elements of staffing and recruiting is becoming an increasingly attractive and cost-effective proposition for any organisation that has a growing contingency workforce.
Managed Service Providers (MSPs) are specialists in managing temporary recruitment, with a litany of services MSPs provide covering Vendor Neutral Supply; Direct Sourcing; Hybrid Model; Workforce Planning; Total Workforce Management; EVP; Talent Engagement; Compliance & Risk Management; RPO; BPO and Statement of Work. The list is extensive…
MSPs in Ireland
Guidant IRC recently launched in the Irish market and offers a unique service offering in the MSP space.
What we’ve learned is that every business has its own set of challenges, demands and objectives, molded by unique cultures and influenced by ever-changing economic, political, social and geographical factors. We understand that a managed service provider (MSP) needs to take all of this into account in order to provide a specific service that responds directly to the particular challenges that a business is facing.
If staffing or recruitment is a threat to the growth of your business, then it is worth considering an MSP partner. At Guidant IRC we can demonstrate through proven programmes, a well-managed contingency workforce can be a defining asset for a company.
We have summaried the key points of this article in the below infographic, please feel free to share on social media!