New research has found that the loss of staff is the biggest risk to Irish businesses today, which, according to 46% of business leaders, is driven by cost-of-living pressures.
Four in ten (40% ) also believe the housing shortage is a primary driver of employee retention difficulties. he primary reason businesses are finding it hard to hold onto staff is “a change in employee attitudes to work”, with more than half of those asked (52% ) reporting that a shift in mindset has played a key role in staff retention becoming the biggest risk to their business.
The inaugural Gallagher Business Risk Index for Ireland, released today, is a nationwide survey, which captures the views of 200 leaders across small, medium and large enterprises, examining the biggest risks faced by Irish businesses today – and what is driving those risks.
Top five biggest risks to Irish businesses – and what’s driving them
The Gallagher Risk Index research found that the biggest risks to Irish businesses right now are:
1.Employee retention
Nearly a quarter (24% ) of respondents identified employee retention as one of their top three business risks. This issue becomes more pronounced in larger organisations, with almost one in three (31% ) companies employing more than 150 people citing it as a key concern. When asked why retention poses such a significant risk, business leaders pointed to several influencing factors. More than half (52% ) cited shifting employee attitudes towards work, while 46% pointed to rising living costs. A further 40% referenced the limited supply of housing, and an equal percentage noted increased competition for labour.
2. Cost-of-living crisis
Almost one in five (19% ) respondents named the cost-of-living crisis among their top three risks. This concern is particularly acute among companies with between 10 and 50 employees, where the figure rises to 27%. When asked what is driving this concern, around four in ten business leaders cited inflationary pressures and broader economic instability. One in five (20% ) also mentioned the impact of Brexit and ongoing global conflicts, including the war in Ukraine and tensions in the Middle East.
3. Cybercrime
Cybercrime ranks as a joint-third leading risk for Irish businesses (15% ). While just 6% of companies with 10 to 50 employees included it in their top three concerns, this figure rises significantly to 25% among larger organisations with more than 150 staff. Among those who consider cybercrime a major threat, 75% attributed their concern to growing reliance on technology. Additionally, 20% pointed to an increase in geopolitical conflict and rising crime or declining crime prevention efforts.
4. Sector competition
Sector competition was cited by 15% of businesses as one of their top three risks. 40% of business leaders pointed to unstable or challenging economic conditions leading to heightened competition. A further 30% referenced the impact of the rising cost-of-living, while 28% highlighted inflation as a contributing factor.
5. Skills shortages
Skills shortages were identified by 13% of respondents as their greatest risk. Nearly half (49% ) said this was due to a smaller pool of candidates or increased competition in the jobs market. Another 37% cited shifting employee attitudes toward work, and nearly one third attributed the issue to a rise in job-hopping among workers.
