With demand outpacing supply, employers are turning to upskilling, internal mobility and non-traditional recruitment to build the workforce of the future.
In the most recent AmCham member survey, 63 per cent of respondents identified Ireland’s highly educated and skilled talent pool as the country’s main competitive advantage. Ireland is ranked first in the world for attracting and retaining talent, while the OECD has identified Irish workers as being the most productive in the world.
On the other hand, companies across Ireland and in all sectors are facing skills shortages that threaten to hamper growth. What strategies are being deployed to attract and retain talent and what policy measures are required to improve the talent pipeline?
Sinead Wallace, director and head of executive search and advisory at BDO, acknowledges that Ireland is rightly recognised globally as a leader in talent attraction. “We’ve built a strong reputation thanks to a combination of factors: a highly educated workforce, a business-friendly environment, and our position as a gateway to Europe for multinational companies,” she says.
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“However, the paradox is that while we’re attracting talent, we’re also facing acute skill shortages, particularly in areas like technology, healthcare, construction and green energy because demand is outpacing local supply. Global competition, housing challenges and a disconnect between education and industry needs are making it harder to fill roles. So, while we’re attracting talent, we need to focus more on developing and retaining it.”
To attract and retain talent, there are three key themes, says Feargal De Freine, EY Ireland assurance partner and head of FDI. “Firstly, the importance of a strong employee value proposition, including flexible working arrangements, corporate culture and security of tenure.
“Secondly, there is a strong correlation between corporate purpose and employee tenure; in other words, if employees align with the corporate mission and vision, they are more likely to remain in the organisation.”
Finally, offering training, development and upskilling opportunities, and rewarding employees who build personal credentials are also hallmarks of organisations that successfully retain key talent, says De Freine.
Culture has become a key factor in attracting and retaining talent, adds David Burke, senior director, global talent acquisition, with Workhuman. “In a tight labour market, salary may get someone in the door, but culture, and feeling valued, keeps them there. Recognition plays a central role, shaping how employees feel, strengthening engagement and turning people into advocates for your organisation.”
There’s a growing awareness among Irish employers of the importance of reskilling and internal mobility, but in many cases, external hiring is still the default, says Wallace. “Some companies are doing it well, investing in internal talent training and upskilling programmes and leadership development. The pace of change in areas like AI, sustainability, and digital transformation means we need to move faster. Building internal capability isn’t just good for retention, it’s essential for long-term competitiveness.”
Workhuman has seen “great results” by taking non-traditional approaches to hiring, especially through internships and programmes for people returning to work after a break, says Burke.
“Our internship programme gives real, hands-on experience. Interns aren’t just observing or doing small, side tasks – they work with teams, contribute to real projects and get a feel for our company culture. Many interns go on to become full-time employees.”
The company has also had success with programmes that help women return to tech careers after a break, focusing on those with transferable skills. These programmes help to fill skill gaps and promote gender equity in tech, which is key for long-term success.
Ireland needs to retain talent and bridge skills gaps, so we need more joined-up thinking at policy level, says Wallace. “That means investing in education and lifelong learning, supporting internal mobility within organisations, and making it easier for people to reskill mid-career. We also need to address practical barriers like housing and childcare that impact talent retention.”
It’s important to recognise that no single policy lever can fully address the issue – progress depends on co-ordinated action across several policy areas, says De Freine. “The challenges faced in Ireland are not unique to Ireland either. The key is to have a strong bias to action in each individual area and to ensure that policy direction is aligned and clearly communicated.”
