by Ciara Farrell, Client Solutions Director, Aureol Global Connections
Irish employers are facing the worst skills shortage in 20 years. That’s according to the annual ManpowerGroup Talent Shortage Survey which has recorded the highest skills shortage since the survey began, with 83% of Irish employers saying they are struggling to find candidates.
IT and data skills have been the hardest to source for the fourth consecutive year, closely followed by expertise in operations and logistics, engineering, sustainability and customer-facing roles. With these shortages creating mounting pressure to keep projects on track and services running smoothly, many organisations are now grappling with a critical question: should they invest in upskilling their existing workforce or bring in new talent to bridge the gap?
It’s a dilemma that cuts to the heart of business strategy. Upskilling promises long-term resilience but takes time and resources, while hiring delivers immediate expertise but comes with high costs and turnover risks. For companies in sectors such as technology, healthcare, engineering and construction, the decision can make the difference between staying competitive and falling behind.
The case for upskilling
Upskilling can be an attractive option because it builds capability from within. Employees who are given access to professional development opportunities, whether through training programmes, mentoring or digital learning, are more likely to stay loyal to their employer. Investing in people strengthens morale, reinforces company culture and creates a workforce that is better prepared to adapt to future changes. Another advantage is speed. Existing staff already know the company’s systems and culture, so expanding their skill sets often takes less time than onboarding new recruits.
However, upskilling is not without its challenges. Training takes time, which can reduce productivity in the short term and not every skill gap can realistically be closed. In some cases, the expertise required is so specialised that years of study or practical experience would be needed. There’s also the irony that a newly trained employee may become more marketable to competitors, increasing the risk of losing them.
The case for hiring
Hiring new staff offers an entirely different set of benefits. When a business needs skills immediately, recruitment can deliver results far quicker than training existing employees. New hires also bring fresh ideas and perspectives, often drawn from different industries or international markets, which can spark innovation. For sectors where workloads fluctuate such as project-driven construction, bringing in additional staff may be the only way to keep up with demand.
The downsides are significant, though. Recruitment costs are high, especially when factoring in advertising, agency fees, relocation packages and the administrative burden of onboarding. Even once a new employee is in post, cultural integration can take time and there’s always the risk of high turnover if expectations don’t align. The financial drain of replacing staff repeatedly can quickly outweigh the benefits of securing immediate skills.
Costs and considerations
Comparing the costs of upskilling and hiring is not an exact science, but certain patterns emerge. Training existing staff is often more cost-effective over the long term, as the investment is spread across multiple employees and feeds directly into retention. Hiring, on the other hand carries a heavier upfront price tag but offers the fastest route to plugging urgent gaps. The right choice depends on how quickly the business needs results and how sustainable it wants its talent pipeline to be.
Sector-specific dynamics
The balance also varies by sector. In the construction industry, firms frequently rely on external hires to meet strict project deadlines, but apprenticeships and training schemes remain vital for building a long-term pipeline. Healthcare is an area where international recruitment has become indispensable. The time it takes to train nurses or doctors can be measured in years, so overseas hiring is often the only cost-effective solution in the short run. In technology, the pace of change means that ongoing upskilling is non-negotiable, yet highly specialised roles such as cybersecurity experts may still require external hires.
A hybrid approach
For most businesses, the most sustainable answer lies in a hybrid strategy. Upskilling should form the foundation, creating a loyal and adaptable workforce that is prepared for change. Hiring, meanwhile, should be used selectively and strategically, to bring in niche expertise or to respond to immediate pressures. Companies that strike the right balance can avoid the trap of perpetual recruitment cycles while also ensuring they remain agile enough to seize new opportunities.
The bottom line
The debate between upskilling and hiring should not be reduced to a simple cost calculation. It is a question of strategy, culture and long-term resilience. Upskilling strengthens teams from within, building loyalty and adaptability. Hiring delivers quick access to critical expertise and fresh ideas but can be costly and unstable if over-relied upon.
The organisations that thrive will be those that treat workforce development as an investment, not an expense. Now is the time for HR leaders to take a hard look at their workforce strategies, ask where immediate expertise is essential and where patient investment in people will pay the greatest dividends. Striking the right balance between the two is no longer optional. It is the difference between reacting to skills shortages and building the kind of resilient, future-ready workforce that defines long-term success.
About the author
Ciara Farrell is General Manager at Aureol Global Connections, where she drives international recruitment solutions that connect employers with highly skilled talent. With three years leading operations and client solutions at Aureol Global Connections and a background throughout management and operations in other roles, Ciara is known for her sharp insights, practical leadership and ability to solve complex workforce challenges from end-to-end.
