Oireachtas Joint and Select Committees

Wednesday, 1 March 2023

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Challenges Facing Small and Medium Enterprises: Discussion

Mr. Shane Conneely:

We would like to contextualise remote working in a broader context of flexible working. This is because it is an issue within a broader context. The workplace has changed, and employers are changing with it. There are certain sets of managers who are very unhappy with it. I probably do not have a huge amount of sympathy for them because the tide is shifting. If they do not shift with it, they are going to be left stranded.

What we are finding around the country is that very often the first question potential employees are asking is whether there is remote, flexible or hybrid working. If the answer is “No”, they are not asking about salary from that point on for many jobs. There are particular businesses and sectors where it is not possible, and that is fine. There are particular businesses which may be better suited towards one form or another. An issue that has come up is that firms which perhaps set up in the past six or seven years and had an offer that staff could live wherever they want, but at lower wages, are finding that this is not competitive anymore.

Probably the most profound issue is in those small to medium-sized towns where staff were working for a local firm and they are now working for firms in Dublin, Cork and Galway. That is becoming a bigger issue, and it means their positions are being backfilled by people with perhaps lower skill sets, which means productivity is declining. There is a general upskilling required in the context of the economy. A response to that would be to move towards some kind of voucher scheme to allow those who are in employment or seeking employment to engage with more modular and flexible upskilling for themselves. The OECD is working on this at the moment. An issue we can see is that a large number of people, particularly women, are underemployed. These people would not necessarily be in full-time work and are perhaps working below their potential skill levels. Having them refresh their skills in order that they can engage to a higher, more effective level would be better for overall productivity.