KPMG Enterprise Barometer 2024
Ireland’s housing supply faces a myriad of challenges, including soaring property prices, insufficient affordable housing, and a shortage of available land for development. Macro issues like economic fluctuations and government policy also impact supply. However, according to Hazel Cryan, Corporate Finance Partner KPMG, “Tackling these issues requires a multifaceted strategy which includes access to equity and debt funding for development, improved planning regulations and economic and political stability.”
Similar to last year’s research, over three-quarters (76 percent) said the availability of residential accommodation in Ireland remains a hurdle in recruiting and retaining staff.
In addition, tax measures could be introduced to increase supply, help with affordability issues, and support the rental sector. Possible tax measures include extending mortgage interest relief beyond 2023, introducing tax relief for residential accommodation constructed or purchased by employers and rented to employees, and reforming the taxation of rental income.
Recruitment remains a significant hurdle for businesses, with nearly two-thirds of companies (64 percent) facing problems finding suitable candidates, compared to 60 percent last year. The tax regime in Ireland is also proving to be a concern, with 41 percent perceiving it as a disadvantage for recruiting and retaining employees. But on a more positive note, the majority (88 percent) are confident their management team has the right skill set.
Tackling these issues requires a multifaceted strategy which includes access to equity and debt funding for development, improved planning regulations and economic and political stability.
Diversity declines
Many pubs, cafes, and corner shops with large numbers of seasonal and part-time staff may still be in scope for future reporting
Our survey shows a decline in management team diversity amongst respondents. Two-thirds (65 percent) have a diverse management team, a decrease from 76 percent in 2023. Perhaps surprisingly, Dublin-based companies are less confident that their management teams are diverse. In contrast, businesses based outside Dublin and those with over 50 employees are more likely to feel their management team is diverse.
Half (50 percent) have policies and strategies to address any gender balance gap in their management team, a fall from 62 percent in 2023. These trends raise concerns, particularly for gender pay gap reporting, which is now an obligation for organisations with 150 or more employees as at a date in June 2024.
Employers with 50 or more employees will be mandated to disclose their gender pay gap in 2025 under Gender Pay Gap legislation. Reporting is annual and employers may come under pressure to show a narrowing of their gaps year on year and/or evidence of diversity initiatives to help reduce or eliminate any gaps.
Whilst near-term and emerging business challenges may have diverted management focus, these findings highlight an urgency for management teams to prioritise gender equality in the workplace and implement a proactive approach to fostering a more balanced and inclusive leadership structure.
Aoife Newton, Head of Employment & Immigration Law at KPMG Law LLP, notes, “While the legislation will not apply to every business, many pubs, cafes, and corner shops with large numbers of seasonal and part-time staff may still be in scope for future reporting.”
Employee retention strategies
Taking a strategic approach and intentionally creating or shaping your existing employee value proposition is key
As companies continue to struggle to attract and retain talent, our research shows little change in what Irish businesses see as essential factors in staff retention; a competitive financial package is still considered important for nearly eight in ten (78 percent). These multifaceted strategies encompass various aspects such as financial incentives, career advancement, diversity initiatives, fostering work-life balance, and prioritising social impact.
Conor McCarthy, Head of People and Change at KPMG, says, “Taking a strategic approach and intentionally creating or shaping your existing employee value proposition is key. This will require your leadership team to focus on what it actually means to work for the organisation, what’s uniquely different and appealing. It will also serve to develop a positive external perception as an employer of choice as you curate a unique set of benefits and rewards internally.”
Other tactical measures can include making sure the organisation is clear and comfortable with compensation benchmarks, implementing recognition programmes, providing intentional support around diversity and inclusion, flexible scheduling, and communicating clear paths for career advancement. Most importantly, creating open channels for employee feedback, like meaningful exit interviews, will help organisations continually evaluate their approach in a rapidly shifting supply and demand landscape.
Get in touch
At KPMG, we are committed to encouraging and supporting domestic entrepreneurship and helping companies in Ireland grow. Our teams work nationwide to support privately owned and entrepreneurial businesses to achieve their ambitions.
If this sounds like you, we should be talking. We look forward to hearing from you.
Alan Bromell
Partner, Head of Private Enterprise
KPMG in Ireland
Hazel Cryan
Partner, Corporate Finance
KPMG in Ireland
Conor McCarthy
Partner, Head of People and Change
KPMG in Ireland
Aoife Newton
Director
KPMG Law LLP
