Anxiety within the boardroom continues to be exacerbated by external challenges; the ongoing war in Ukraine, increasing cost of living, an unwavering housing crisis, there is little doubt as to why companies are tightening their purse strings where hiring budgets are concerned. However, while international businesses are preparing for the looming recession, Ireland need not put this on the list of concerns; the country does not anticipate itself entering recession, and there will be little impact locally on the financial services sector.
Budgetary advice for recruitment processes
Bearing the above in mind, now is the time to act; international recession will have a limited impact on the sector, and companies are advised to get ahead of the competition. Companies should invest in innovative R&D and new technologies that support attraction and retention, as well as overall business performance.
With the external stressors affecting your employees, now is not the time to stall hiring by introducing freezes; staff burnout will occur if growth doesn’t continue. Consider your return on investment – by hiring now, your teams will avoid attrition and the loss of value-add expertise.
Attitudes towards salary increases for existing staff salaries
There is little discussion regarding increasing staff salaries due to the worries surrounding recession in Ireland. While this is not anticipated, the cost of living is indeed rising, and as banks increase interest rates, this will continue to squeeze residual income. It is imperative, now more than ever, to talk to your teams about the issues they’re experiencing to identify solutions to ease this burden. Offering more flexibility for remote working, or a once-off payment to support your staff which AIB and Bank of Ireland provided to their workforce, will offer some respite in these challenging times.
It is crucial that retention plans are a key area of focus as we approach the end of the year. If it is a case that salary increases are not viable across the company, identify your value-add players who you cannot afford to lose, and prioritise these individuals for salary increases.
If you are interested in learning more about live opportunities, or you would like to discuss how we can support your hiring processes in the current market, please get in touch with Mark Fallon, Co-Founder and Director for Accounting.