New research from law firm Mason Hayes & Curran and the Irish Management Institute has identified key issues impacting organisations and senior businesspeople in Ireland, including sourcing talent.

The research was completed in June among senior management executives and clients of the two organisations, across multiple industry sectors, including managing directors, executive directors, CEOs, divisional and departmental management, to identify currently perceived critical business opportunities and threats.

More than three quarters of Irish businesses cite increased business costs as having the greatest impact on their organisation in the past twelve months.

The business sentiment research also found that 2 in 5 businesses expect inflation to be their biggest challenge this year, followed closely by staff turnover (29%).

Aligned to these various pressures, mergers and acquisitions are increasingly identified as a way to recruit new talent and drive competitiveness, with 38% of those involved in M&A predicting it will be the key driver in the coming year.

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People & Hybrid

When it comes to people management, 4 in 5 businesses see recruiting suitable staff as their biggest talent/people management challenge, followed by retaining existing staff (66%).

As a result, 3 in 5 businesses have increased their level of investment in people development over the last two years.

Three in four of the survey cohort stated that remote working has been positive for their business, and 1 in 5 have reduced their office space in the past 12 months.

Martin Kelleher, corporate partner at Mason Hayes & Curran, commented: “The attitudes to remote working indicate that the government’s stated intention to ensure remote working is a permanent feature in the Irish workforce is having success. This represents a seismic societal shift.

“It’s interesting to see mergers and acquisitions playing a larger role in overcoming talent shortages. With Irish M&A activity at near-record levels, particularly in the technology sector, there is no doubt that gaining access to highly skilled employees is a key driver.“

Sinead Farrelly, HR director of the Irish Management Institute, said: “The findings of this research show a stark shift in the fundamental principles of work that we identified with in the past.

“As sentiments evolve and businesses become more adept at unlocking the opportunities that a hybrid working model affords, business leaders can develop a holistic approach to retain and develop talent, setting their organisations up for sustainable success in a highly competitive business environment.”

Levels of digital adoption have been higher for businesses over the last 12 months with greater movement towards a hybrid working model. 71% of companies have increased their investment in digital channels in the past 12 months, with 70% expecting this to increase again in the coming year.