Expleo’s research indicates that larger Irish firms are prioritising company culture investment amid efforts to attract and retain talented employees.
Company culture has become more than just a buzzword, especially for businesses looking to compete in a crowded marketplace. In a time where talent shortage is limiting company potential, strong culture initiatives can empower employers to create an environment that promotes the individual and cultivates loyalty.
This often requires significant investment in programmes and infrastructure that supports employee training, development, networking and engagement, for example in DEI initiatives, career management and community outreach. As culture becomes increasingly important to modern day employees and consumers, organisations will have to approach culture cultivation as more than just a box ticking exercise.
This certainly seems to be the plan as figures from the recent Expleo Business Transformation Index Ireland 2024 report, indicated that in the next 12 months, many larger Irish businesses intend to prioritise culture building, with a key focus on the attraction and retention of top tier talent.
Global engineering, technology and consulting service provider Expleo partnered with research consultant Censuswide to gather data from 150 business and technology leaders positioned within Irish medium-to-large companies.
The study showed that issues such as hiring, retention, AI, cybersecurity and upskilling were of key concern and that companies could potentially spend more than €7.8bn, a company average of €1.7m, on culture projects, in the next year.
The cost of poor culture
While implementing culture-focused initiatives undoubtedly requires the allocation of a broad range of resources, the price of creating a harmful or ineffective company culture is arguably more costly. From poor retention, reduced job satisfaction and potential litigation, to limited growth, no core values and the loss of trust, company culture, or the lack thereof, can greatly damage a company and its employees.
According to Expleo’s report, 99pc of responding business leaders stated that their enterprise is dealing with problems related to hiring and retention. Nearly one-quarter (24pc) cited poor company culture as a serious hindrance and a further 21pc are of the opinion that limited opportunities for development, growth and promotion, alongside weak training infrastructure, are to blame.
“Despite the diversity of our business landscape, we are made up of communities and if people don’t enjoy working in your organisation, word will very quickly get out and that can impact your ability to hire the most skilled people,” said Phil Codd, the managing director of Expleo Ireland.
“Recruitment has become incredibly competitive, and everyone is looking to make marginal gains to improve their value proposition to prospective employees. Projects succeed or fail based on the quality, diversity and collaboration of the people involved and it is evident that many organisations are struggling with this.”
IT investment
Expleo’s report suggests that AI and other advanced technologies have a part to play in the broader discussion on the future of work. Many companies across Ireland are looking to implement long-term digital transformation strategies and will require robust, experienced and technically skilled employees to round out their teams.
While research suggests that 82pc of responding decision-makers believe that they have the required number of IT employees needed to support current business ambitions, 35pc are of the opinion that those same team members lack the necessary skill to meet expectations.
To address skills deficits, Expleo’s survey states that on average, medium-to-large-sized enterprises will spend €2m on the training and upskilling of team members, equating to a spend of €8.9bn. Many will employ the services of external experts, with only 13pc stating that they intend to cut back on outsourcing help to meet skill demands.
In relation to issues with recruitment and limited company culture, Codd stated, “our research showed that working with experienced partners is helping to mitigate this, as well as training and upskilling team members. It is important that employers think of the issue holistically, their innovation in this area will spark the innovation of their teams, too.”
While some companies are preparing to invest in their people, as well as technologies, nearly 40pc (37pc) of responding business leaders feel that their teams are already surplus to requirements, signalling potential redundancies and job loss.
Layoffs and uncertainty create a negative atmosphere and low morale among employees, therefore, a focus on company culture and the cultivation of a workplace that encourages learning, development and job satisfaction, is paramount. Data indicates that this is going to be a sole focus for Irish enterprise in the coming 12 months.
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