A survey of employers conducted by Hays Ireland has concluded that skills shortages and the retention of talent remain among the key challenges facing organisations.

Almost all of the firms surveyed - 94% - said they had faced skills shortages in 2023, up slightly from the 92% who gave the same response last year.

Over half said recruiting the right talent presents the greatest external challenge for their organisation.

Talent retention is also a significant challenge, with 62% saying they predict that talent retention will present the greatest internal challenge to their organisations over the next 12 months.

85% of employers surveyed said they plan to hire over the next 12 months, down from 90% last year. Last year's figure represented a six-year high.

Almost two-thirds said they intended to predominantly hire full-time staff, while the remaining third said they would seek to employ staff on a temporary basis.

This time last year, three-quarters of respondents indicated that they intended to take on staff mainly on a full-time basis.

"The steadfast commitment of Irish employers to their hiring goals despite some continued economic concerns not only speaks to their adaptability but also signals another positive outlook for the job market," Maureen Lynch, Managing Director at Hays Ireland, said.

"Challenges will persist in the upcoming year as both employers and employees grapple with economic challenges like living costs and inflation. A talent and skills shortage continues to be a concern for employers, with many having to raise wages to both attract new talent and retain existing employees," she added.

On the employee side, the main reasons for moving jobs in 2023 were a lack of career progression - cited by 40% - and a dearth of career development opportunities (38%).

56% of employees felt upbeat about their career prospects this year. However, this has dipped slightly from last year, when 58% gave the same response.

The survey of almost 1,500 employers and professionals occurred between August and September this year.