Navigating the Hiring Maze: Understanding the Challenges of Appointing Professional Staff in Northern Ireland

Over the last year when speaking to a range of hiring clients across business sectors, I have been having a very similar conversation.  I am always asked ‘Why can’t we hire?’ or ‘Where are all the good people?’  When your business has a desire to grow, but is being stalled by the inability to appoint, frustration results.

In this blog I wanted to provide my opinion based upon recent recruitment exercises, but I also wanted to reference some recent reports and articles that evidence my position.  

1 – Confidence Wavers: Economic Uncertainty Dampens Professionals’ Willingness to Move

Economic uncertainty in the last year caused by the recession, is exacerbated by factors like Brexit outcomes and global market fluctuations, collectively these factors cast a shadow over professionals’ confidence to make career moves.

In Northern Ireland, where the aftermath of Brexit negotiations impacts trade and regulatory frameworks, and more recently the effect of US Foreign Direct Investment firms and local Corporates reducing staff numbers via redundancy programmes, professionals are hesitating to change jobs. NISRA reports a 100% year on year increase in the number of redundancies in the period May 2023 to April 2024 to 4,010.

Professionals cite economic instability as a primary concern when considering job changes.  With inflation slowing, and the recessionary period ending, there is less of a drive for earnings growth, as we saw so prominently in 2022. Job security now becomes the primary consideration for top talent.

2 – Expanding Horizons: New Entrants to the Employer Pool Transforming the Landscape

The employment landscape in Northern Ireland is evolving with the influx of employers offering highly remote jobs. This trend, accelerated by the pandemic, very noticeably in the last 2 years, opens doors for professionals seeking flexible work arrangements.  Northern Ireland based professionals used to be viewed as far away, this is no longer the case. With remote work becoming increasingly normalised, professionals now have access to opportunities beyond geographical constraints and employers can access talent in previously unreachable areas. Northern Ireland professionals are being seen as an untapped resource for UK mainland based businesses who are also struggling with talent shortages.

A recent study by the Office for National Statistics found that remote work has surged by 88% in the UK since the onset of the pandemic, highlighting a significant shift in work patterns (ONS, 2022).  Many Northern Ireland based businesses are now trying to increase the time staff attend in the office.  For many professionals being forced to return to the office is a major issue, employers should tread with care. 

3 – Post-COVID Employment Boom: Northern Ireland Leads the Charge

Despite economic uncertainties, Northern Ireland has emerged as a beacon of employment stability post-COVID. With the highest level of employment across the UK, the region highlights resilience in the face of adversity. The latest employment figures from NISRA (May 2024) reveal a steady employment growth trajectory, the Q1 2024 rate standing at its highest-ever percentage level 71.8%, up 1% in the last year. This statistic is particularly thought-provoking when the record number of redundancies in the year is considered.

Optimism certainly exists in the local job market from a jobseeker perspective, multiple jobs are available. The high level of employment locally is certainly linked to the previous point on new employer entrants. A recent NI Chamber survey stated two-thirds of employers locally are struggling to recruit. It is time to be aware, when labour supply cannot meet demand, prices for talent will bid up.

4 – Skills Exodus: Reduction in the Talent Pipeline Due to Retirement, Relocation & Reduction

The retirement of highly skilled senior professionals poses a challenge in the Northern Ireland job market.  The post-covid attitudes of the over 55’s have changed significantly.  Many professionals have taken early retirement or decided to work on a reduced hours or self-employed basis. With a significant portion of the workforce approaching retirement age, there’s a looming talent gap in critical sectors. According to projections by the UK Office for National Statistics, over a third of the UK workforce is expected to retire in the next decade, intensifying competition for skilled professionals (ONS, 2022).

Statistics which directly affect the number of available people in the local workforce are very concerning. In Northern Ireland the birth rate continues to decrease, population growth is slow (1.9 Million people live in Northern Ireland an increase of just 90,000 in the last 10 years), and an increasing trend whereby our ‘best and brightest’ students leave each year to study in UK Universities, means that by the year 2030, ten thousand 18-21 years will leave our shores (CBI Jan 2024).

These are big issues for the recently formed Executive to tackle.

5 – Rising Temptations: The Emergence of ‘Extreme Counter-Offers’

In a bid to retain key talent in the face of the mounting challenges, businesses in Northern Ireland are resorting to extreme counter-offers, inflating salary packages and perks to unprecedented levels to ensure employees remain in position.  The main driver for this approach is the strong belief that finding a suitable replacement will be very difficult in terms of time and represent a significant opportunity cost. 

While initially appealing to employees, these counter-offers may not address underlying issues like job satisfaction or career progression.  Unfortunately for employers studies show that over 40% of professionals who accept counter-offers end up leaving their jobs within a year anyway. (Glassdoor Economic Research, 2023). It appears that counter-offers are a short-term fix.

6 – Standing Out in the Crowd: The Importance of Business Differentiation

Despite all the challenges listed so far, businesses in Northern Ireland can succeed in the war for talent.  Businesses must differentiate their offerings to attract and retain top talent. From fostering inclusive workplace cultures to investing in employee development programs, companies need to go beyond monetary incentives (financial aspects are assumed by top talent).

All employers, big and small, should regularly review and assess their offering against the ‘employer of choice’ model.  Research indicates that 76% of professionals consider workplace culture as a critical factor when evaluating job opportunities (LinkedIn, 2023). Culture requires time and effort from senior leaders in the business, it is not something that can be outsourced or delegated.

In navigating the complex terrain of professional staffing in Northern Ireland, understanding these challenges and implementing targeted strategies is key to hiring success. By addressing economic uncertainties, embracing remote work trends, and prioritizing culture and employee well-being, businesses can position themselves as employers of choice in the competitive job market.

Recruitment is a consistent item on board room agendas, it looks very much like a permanent fixture for the immediate future.