Attracting high-calibre talent will be a critical challenge for business leaders as we head into 2025, says Shane O’Sullivan, CEO of the Irish Management Institute.
The IMI chief also highlights the need for employers to ensure that they are keeping pace with innovation in AI and other emerging technologies. Nurturing talent and updating employees’ skills will be critical to attracting and retaining talent.
Mr O’Sullivan says that the acceleration of business cycles in recent years has brought a host of challenges and opportunities, with leaders facing an interconnected web of operational, economic and global challenges.
“Irish leaders, especially those with stakes in multinational and export-driven sectors, are navigating the complexities of a shifting global order, where the risk of trade barriers and protectionist policies loom larger than ever and could disrupt Ireland’s existing economic model,” he said.
“Meanwhile, advancing innovation — particularly in technology — has become increasingly urgent as the digital and AI transition accelerates. Against this backdrop, the world of work continues to evolve, with a tight labour market an ongoing difficulty for organisations to navigate.
“Leaders find themselves at the forefront of these challenges, expected to guide their organisations through the turbulence and lead through uncertainty. In this environment, enhancing leadership capabilities is not merely beneficial; it’s become essential even just to stand still.”
Citing a survey conducted at the IMI’s recent National Leadership Conference, Mr O’Sullivan said that the highly competitive labour market looks set to continue, with 83% of leaders saying that attracting high-calibre talent will be a critical challenge in the months ahead.
“Many leaders are proactively planning to enhance their workforce capabilities to address skills shortages and respond to this reality. Two in three leaders intend to focus on upskilling and reskilling initiatives to equip their workforce with the skills to drive future growth and innovation.
“Re-evaluating the structures that empower their workforce should also be top of mind for decision-makers. While some organisations are demanding employees return to the office, leaders must not ignore the growing preference of their workforce for flexible working structures.
“While being in the office together under one roof still has a vital role to play, it’s not a silver bullet for workplace culture and performance. Return-To-Office mandates may do more harm than good and damage employee trust in the long-term. As people’s expectations of work evolve, organisations must rethink culture and performance. Only through reimagining the workplace experience can we reimagine high-performance.”
Meanwhile, Mr O’Sullivan notes that AI transformation is not merely a technological shift but a fundamental change in how businesses operate and grow.
Despite its revolutionary potential, only 30% of business leaders consider AI a strategic priority according to findings from the IMI Leadership Barometer, published earlier this year.
“While organisations across the globe in other countries and regions are seizing the digital advantage, Irish business leaders may be struggling a little, at this point, to keep pace with rapid change,” he says.
“This urgent need for upskilling and education in AI and other areas was highlighted last year by the OECD, who raised concerns about the readiness of Irish professionals to adapt to changes in the world of work.
“To remain competitive and thrive in the complex business landscape of the future, leaders must develop a robust set of skills and capabilities that remain as relevant in 2030 as they are today.”
But how can leaders look ahead to 2030 when they are struggling to keep pace with the challenges of today?
“From enhancing capabilities around people management to strengthening communication and influencing skills and strategic thinking, there are several key skills that will remain relevant over the coming years and can help leaders successfully navigate to the end of the decade,” he says.
“Ensuring that leaders develop a deep understanding of themselves, developing emotional intelligence, accountability and resilience will foster more effective leadership and a culture of trust across teams. Leaders must also ensure their organisations operate effectively and efficiently and adapt to the rapid changes in the business environment.”
Mr O’Sullivan says that the IMI’s new Leadership Model focuses on the development of these essential capabilities. This leadership capability model is built upon IMI’s expertise in executive education; and is informed by listening to the needs, opportunities and challenges of the broadest range of organisations that we partner with.
“By putting people and their growth at the heart of organisational success and cultivating a culture of continuous learning and development, leaders can empower their teams to innovate, excel and ultimately drive growth,” he notes.
“Investing in these leadership capabilities also has significant implications for Ireland’s position on the global stage. By ensuring that leaders possess the right skills and competencies for the future, we can strengthen the competitiveness of Irish businesses and enhance our reputation as a global destination to do business.
“As we look to the future, the success of our organisations — and the broader economy — will depend on our ability to nurture talent and embrace a leadership model that aligns with the shifting business landscape. By prioritising people and their development, we can build a sustainable, thriving business environment that benefits everyone.”
