The “war on talent” (within recruitment) means Northern Ireland now has a lot to offer incoming or returning professionals who have studied elsewhere in the UK and not yet returned to seek employment on these shores.
At HNH Human Capital we are frequently asked to recruit for newly or recently (3 years) qualified accountants both within practice and industry, and recruiters have recognised (for a number of years) that there is a shortage in their supply.
Whilst this shortage of supply has (to date) presented challenges for local business, the acceleration of certain sectors means that opportunities now exist for burgeoning finance and IT professionals in Northern Ireland. Quite what the macro effects of this skills shortage means for the NI economy is unclear, however, PWC’s recent report on ‘talent shortage’ highlights the extent to which related factors may be playing a significant role in Northern Ireland’s economic recovery.
PWC’s recent report has identified that ‘talent shortage’ is driving much of today’s significant takeover activity within UK business. The report found that “Three quarters of CEOs now say that skills shortages are the greatest threat to their business. With the skills gap so pronounced that many are resorting to mergers and acquisitions to access talent.”
In addition, the report found that “CEOs are now more concerned about talent than they have been at any point in the last six years.”
From a legacy perspective, it is easy to see how the shortage came about. With fewer training contracts being awarded in the downturn, many looked outside of the province to further their career, others simply pursued another vocation.
In addition, many Northern Ireland graduates who chose to study elsewhere in the UK have not been returning home after completing their education, thus we have been left with a skills deficit on an ongoing basis.
In 2013 DEL reported that “Just one in three of our graduates are coming home. Of 2,470 students who went to England, Scotland or Wales to study, 1,550 did not return in 2011/12”
Whilst 2015 figures show Northern Ireland is getting better at retaining graduates, there is still much more to be done in terms of highlighting this region as an excellent place to make a career.
Either way we have been left with a frustrating supply: demand ratio.
Companies are doubly disadvantaged, as not only is there a shortage of supply, but the risk of high performing employees being enticed away (by competitors) has resulted in many firms looking at cost effective staff retention strategies. However, simply enhancing one’s annual salary is a merely a short term fix, which sets an unenviable precedent and demonstrates a lack of awareness in terms of what employees are looking for. That’s not to say that salaries should not be subject to review and if necessary realignment, however, in my experience employees are motivated by a sense of purpose, career advancement and a feeling of value. Employee engagement through mechanisms like; flexible working, salary sacrifice schemes, accelerated career paths and share options provide modern incentives for ambitious professionals within all sectors.
On a positive note, I believe Northern Ireland companies are making headway and are now in a position to offer professionals exciting opportunities in the wake of the “war on talent”.
I feel the local economy is ripe for talent to return and enjoy a successful career and, my thoughts have been supplemented by the Economic Research Centre’s recent report which showed that Northern Ireland is the best place to start and grow a business in the UK.
Furthermore, the cost of living in Northern Ireland is at its lowest point for 55 years, thus having a successful career and supporting a family is more realistic than ever.
I myself am “a blow in” from North East England and can testify first hand to the improvement I have found in the cost of living, and also the unique networking ability that Northern Ireland provides. Economically, we may be on the cusp of some exciting times in Northern Ireland.
Sarah Orange
Managing Partner
HNH Human Capital Llp