Never before has such a complex jobs market been witnessed in this country, says Barry Whelan, who this year celebrates 22 years of Excel Recruitment.
Never before has such a complex jobs market been witnessed in this country, says Barry Whelan, who this year celebrates 22 years of Excel Recruitment.
“On the one hand, Ireland has almost full employment with career opportunities at every corner for those who want them. But on the other hand, economic factors both in Ireland and overseas, added to by a period of hyper-inflation, are creating an environment of economic uncertainty and possible instability.”
Initially formed as a retail recruitment company, Excel bore the brunt of the recession due to a sharp decline in retail sales, followed by a steep rise in unemployment. Diversification was crucial to survival, and was managed successfully to encompass healthcare, commercial, industrial, events, hospitality and IT through its Stelfox brand.
“We are currently experiencing a period of hyper-growth which comes with its own challenges.”
“Firstly, our business processes need to be replicated across much larger teams, some of whom are based remotely and regionally, which is a complex management challenge. Secondly, the labour shortage certain sectors in Ireland have been experiencing post-covid means we are having to work harder than ever to find the talent required for our customers.”
The legacy of covid is still being forcefully felt by employers who cannot fill roles due to the mass exodus of overseas workers and Ireland’s younger labour force, he explains. This has forced employers to go to lengths to attract and retain staff.
At the beginning of 2023, Excel announced up to 100 new jobs, a €1.5m investment in its office network and the opening of a new 5,000 sq. ft office. “We also increased our island-wide reach with the opening of an office in Belfast, to complement our branch network of Cork, Naas and Galway.
“In 2024, we are concentrating on the implementation of a brand new advanced software system and CRM into our business. Due to the growth of the business, we outgrew our systems. We have carefully chosen what we believe is the best software on the market for recruitment businesses and our challenge in 2024 is to on-board this with zero business disruption.”
The cost-of-living crisis, the rise in interest rates, general inflationary pressures and for many sectors under pressure for labour, the minimum wage rise will see an unprecedented push from employees for wage increases, index linked and beyond, this month.
“Employers who are not tied into wage agreements will find themselves on the back foot early as staff come to them looking for a raise to navigate how far their euros go in the next year compared to the last,” he says.
The recruitment industry is adapting to a changing landscape, and a number of hiring trends are emerging — the first of which is proactive early engagement of prospective candidates, which was originally a common practice in C-suite roles. “Now however, companies reach out to applicants at all levels early and often building a relationship during the hiring process to facilitate the hiring.”
Another trend is the use of advanced screening tools. Streamlining the recruitment process has become essential for companies racing to offer employment to qualified candidates — before they find a position elsewhere. “Non-location specific hiring has become a post-covid practice, with companies often hiring candidates on working-from-home contracts, which allow these candidates to be based anywhere.”
Ireland needs more visas and permits for non-EU talent, Mr Whelan points out. “This country is currently home to thousands of students from abroad, many of whom are eager to work. However, their Stamp 2 visa model only allows them to work for 20 hours for seven months of the year and for 40 hours for just five months.”
These students could contribute significantly to solving staff shortages, he believes, if our visa system facilitated this. “What we have is a case whereby people are struggling to exist on the pay from a 20-hour working week, while employers throughout the country, particularly in the hospitality and retail sectors, are shouting out for workers.”
Given the acute labour shortages across many disciplines, Excel would like to see an overhaul of the work permit process and a revaluation of the critical skills list to include disciplines such as chefs, butchers and bakers in hospitality and retail, and not just the issuing of critical skills visas for healthcare and information technology.
“As we work with more than 3000 SMEs throughout the country in hospitality, retail, industrial, healthcare and other sectors, we are acutely aware of the challenges they are facing. These challenges include rising energy and staff costs, interest rate hikes, and major staff shortages, particularly in the retail and hospitality sectors.
“Employers are also navigating changes in the working environment such as the much-welcomed Domestic Violence Leave entitlements, and the new Right to Request Remote Working legislation.”
The January 2024 recent increase in the minimum wage will be “a smack in the face” for the many small businesses who are facing high energy bills and additional sick pay entitlements, he says.
“The entitlement to statutory sick pay, which has increased to five days in 2024, is a huge cost for employers to bear. As the country grapples with a cost-of-living crisis, what does the Government think businesses will do with such a large rise in wage and sick pay costs: close or pass those costs onto the consumer and drive inflation higher?”
There seems to be a belief that employers can absorb whatever costs the Government sends their way — however, the recent increase in business failures shows clearly that this is not the case.
“While the supports for small businesses announced in the Budget are welcome, they don’t go far enough. There has been a significant increase in the number of businesses shutting up shop of late — corporate insolvencies in the first six months of 2023 were almost a third higher than the same period in 2022. This will have a big impact on our economy.”
The impending roll-out of auto-enrolment will be another huge change in the Irish business landscape, he predicts, but more needs to be done by Government in advance of this to support employers and offer guidance as to how to navigate and fund this development.
After more than two decades in business, Barry Whelan offers his accumulated wisdom on how to maintain and grow a successful business: “I was lucky to come from the retail industry, where leaders lead and work exceptionally hard.
“I have learnt from the mistakes I made along the way, and from having great people around me, who have no problem telling me when I am wrong! As to the advice I would give: diversify your business, but always remember your core customers.”
