- 71% have hired underqualified talent due to budget limitations
- 46% of employers cite budget constraints as the primary challenge in hiring the right talent
- 80% of employers have noticed increased stress levels due to unqualified new hires
- Only 17% of professionals agree that compensation packages meets expectations
- 84% of candidates would walk away from an offer if the salary was reduced at final stage
Nearly half (46%) of surveyed employers identified budget constraints as the primary obstacle in hiring the necessary skills and talent for growth. This was followed by a lack of qualified candidates (38%) and high competition from other companies (9%).
The findings from a recent poll by global recruitment consultancy Robert Walters of 1,500 Irish professionals and employers, reveals that 71% of employers admit to hiring underqualified talent – employees lacking the full set of qualifications, skills or experience required for a job. Only half (34%) are willing to invest in training required to bring these new hires up to scratch.
In the second quarter of this year, Ireland’s employment rate hit 74.4% – the highest ever recorded. In turn, this has led to increased demand for skilled professionals across all industries.
Commenting on the findings, Suzanne Feeney, Country Manager of Robert Walters Dublin, said: “These findings highlight the concerning trend where budget constraints are causing the majority of Irish employers to hire underqualified talent. While only 34% of employers are willing to invest in training underqualified hires, this approach may also not be the most efficient use of resources. Allocating budget towards hiring well-qualified talent from the outset could be a more strategic investment, potentially saving time and improving overall company performance.”
Employee Stress and Increased Workload
The survey reveals that 80% of employers have noticed an increase in employee stress levels due to the additional workload created by hiring underqualified candidates.
This sentiment is echoed by employees, with 72% reporting an increase in their workload due to less experienced new hires. As a result, 48% of employees feel their workload is only somewhat manageable, while nearly a quarter (23%) feel they have too much work at one time.
Suzanne continues: “Despite it being crucial that employers ensure their staff have the right skills to avoid workloads falling on the shoulders of qualified professionals, the fragile economy and still high costs are adding to employers’ overall reluctant to extend training budgets. If this trend continues, we will no doubt see a spike in cases of burnout and quiet-quitting amongst Irish workforces.”
Discrepancy in Salary and Benefits
The findings also uncover a gap between employee expectations and what companies can offer, with just 17% of employees agreeing that their compensation fully meets their expectations considering their qualifications. Furthermore, 50% of employees do not feel supported by their company in terms of resources and staffing to perform their job effectively, leading to increased burnout and a potential reduction in output.
Risky Hiring Practices
In an effort to attract top talent, some employers have resorted to offering more attractive salaries initially, only to reduce these offers at the final interview stage. This strategy is highly risky, with 84% of professionals stating they would walk away from such an offer, leaving a lasting negative impression of the organization. Less than 1 in 5 state that their decision would depend on the role or company in question.
Suzanne explains: “Employers must move beyond short-term fixes and consider long-term strategies to attract, retain & train top talent. Consistently offering competitive compensation that reflects the market rate and employees’ qualifications is vital. Additionally, ensuring a supportive work environment with adequate resources and staffing is essential to prevent burnout and maintain productivity. By focusing on these areas, companies can ensure sustainable success and a positive reputation in the job market.”
These findings highlight a need for employers to carefully evaluate their budgeting strategies for 2024 and beyond. Without adequate investment in talent, companies risk not only their growth and performance but also the well-being and satisfaction of their existing workforce.