New research from insurance broker and risk management firm Gallagher has found that loss of staff is seriously impacting modern-day businesses.
Cybercrime, the cost of living and the housing crisis are among the largest risk factors affecting Ireland’s companies and leading to a loss of key talent, according to a report published by insurance broker and risk management firm Gallagher.
The inaugural Gallagher Business Risk Index for Ireland, released today (6 August), gathered data from 200 leaders across a range of small, medium and large enterprises. Its aim was to examine the risks faced by Irish businesses in 2025 and the factors driving those risks.
What was discovered is that a loss of talent caused by a range of internal and external factors is by far the largest threat to companies today. 46pc of contributing business leaders explained that this is driven largely by increasing cost-of-living pressures.
This issue is felt most strongly by companies with a workforce of between 10 and 50 employees, 27pc of which hold the cost-of-living crisis among their top three risk factors.
Roughly four in 10 believe that the rise in inflation and broader economic instability are also driving these concerns, with 20pc of the opinion that Brexit and global conflicts such as the wars in Ukraine and Palestine, are having a serious impact on the cost-of-living.
Commenting on the report, Laura Vickers, the managing director of Commercial Lines with Gallagher in Ireland said, “The cost-of-living crisis is also proving especially challenging for smaller companies, who often have fewer resources to shield their teams from inflationary pressures or rising operational costs.
“What’s clear is that the current economic landscape shaped by global instability, rising prices and domestic challenges like housing has created a complex environment for businesses of all sizes.”
Lower sense of security
With 40pc of participating leaders of the belief that the ongoing housing crisis has led to reduced organisational retention rates, Vickers explained it is no secret that staff often can’t afford to live in close proximity to their place of employment. Especially in the capital city and areas where property and rental prices are too high.
“Businesses need to be imaginative to address this issue and there are a number of options which employers can explore in order to retain staff against the backdrop of the cost-of-living and housing crisis.”
She explained this can include the availability of flexible working arrangements, access to temporary housing or company-sponsored housing and offering benefits that can help reduce other costs such as transport and childcare.
Unsurprisingly cybersecurity also emerged as an area of key concern for Irish businesses. In fact, three out of every four people who contributed to the survey said that an over reliance on technology has actually made organisations more cyber vulnerable.
There was however, a disparity in the level of concern, with only 6pc of smaller companies citing it as a factor to be strongly considered, compared to one-quarter of companies with more than 150 employees.
According to Vickers, “Irish businesses cannot afford to be complacent about cybercrime. Cybercrime is no longer a niche or occasional risk, it’s a persistent, evolving threat that affects almost every organisation in some shape or form. There are a number of preventative measures businesses can take to help protect themselves from cybercrime and the many other risks they are facing today.
“Being in business is always challenging but many would find today’s business environment particularly tricky. Having an understanding of what is behind the various risks is crucial as it can help businesses manage, eliminate and overcome them.”
Shallow skills
A skills gap amongst employees was also identified as having an impact on talent retention, with 13pc of respondents agreeing that it poses the greatest risk. Almost half of the survey’s participants stated this was largely due to a much smaller pool of candidates and increased competition in the jobs market.
The report suggested that a steady rise in job hopping and shifting employee attitudes towards work could also be blamed in part for the skills shortage.
“Staff retention is a key issue for many Irish businesses and competition for talent is often ferocious,” said Vickers. “It’s interesting that changing employee attitudes to work, rather than pay and bonuses, present the biggest difficulty to employers who want to hold onto staff today.
“There has been a seismic shift in workplace priorities, with a positive work-life balance greatly valued as well as hybrid working, remote working and new and diverse experiences.”
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