As we begin a new year, rising costs, labour shortages and employee retention are among the most significant barriers for Irish SMEs, according to a new survey.
The report was published by Peninsula Ireland, which surveyed 6,400 Irish businesses from diverse industries, with 64% of participants based outside of Dublin and the majority employing fewer than 50 staff.
SMEs (small and medium enterprises) account for an estimated 99.8% of all businesses in Ireland, employing over 69% of people employed in the country. The hair and beauty sector makes up a significant portion of SMEs here.
The survey found that 43% of SMEs identified escalating costs, such as recruitment expenses, payroll increases and the cost of living, as their primary concern, with 26% prioritising survival as their biggest goal in the current economic climate.
Some 16% reported a labour shortage as a top business concern, with over half (56%) saying that recruitment was their primary staffing challenge. To address this, and to attract new talent, 48% have offered increased wages, 46% have offered flexible working hours, while 37% have invested in upskilling.
The hair and beauty industry in Ireland has been vocal in the past number of years about the ongoing challenges in faces in recruiting staff.
“To survive long-term, SMEs must focus on growth and innovation,” said Moira Grassick, chief operations officer, Peninsula Ireland. “Challenges with recruitment and retention, which we hear about every day from business owners, are adding strain and could put the brakes on growth goals.
“Reforms such as adjustments to the Universal Social Charge (USC) and tax incentives for employers to reward their staff offer some relief for business owners. While these measures are certainly welcome, the real challenge lies in how businesses strategically adapt.”
