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RTÉ News
17 hours ago
- Business
- RTÉ News
Are 'quiet redundancies' happening in your workplace?
Analysis: Employers in Ireland are implementing 'quiet redundancies' to scale back workforces in the face of uncertainty, tariffs and AI You've heard of revenge quitting, quiet quitting, coffee badging and micro-retirement, but what about 'quiet redundancies'? According to a recent report from consultants Morgan McKinley, there's been a 'subtle shift' in how workplaces in Ireland are strategising and planning around hiring, in order to scale back their headcount in the face of uncertainty. "One emerging trend this quarter is the prevalence of ' quiet redundancies '—non-renewals, scaled-back team structures and discreet workforce adjustments that are not immediately visible in headline figures," the report noted. But what exactly are quiet redundancies and how do they show up? "If you use the American phrase it's 'quiet firing' or 'stealth layoffs'," says Trayc Keevans, Global Foreign Direct Investment Director at Morgan McKinley in Dublin. "It's a situation where a company will reduce its workforce, but it won't do it through the official redundancy means, and they won't do it in the volume that would require a public announcement. So there's a lot of ways in which it can be done, and this is where it becomes a little bit complicated." From RTÉ Brainstorm, why micro-retirement has become a new workplace trend for Gen Z & millennials Quiet redundancies can involve, for example, roles being re-drawn or phased out, or the non-renewal of contracts. "Somebody who would have been on a contract, the work is still there but that contract wouldn't be renewed and that work would be allocated to, maybe, permanent team members," says Keevans. "There could be a situation where people might have a lack of support and resources and may leave of their own volition. There may be incentives for people to retire early. In some extreme cases, maybe exclusion from certain projects that would lead to discontent and people may be leaving of their own volition." "There's a lot of cases where we have had talent speaking to us about the fact that somebody in their team has gone on maternity leave, for example, and they're not getting the replacement for them. So that work has been allocated across a number of persons, where before there would have been a contract cover for that person," she says. "We are seeing a workforce that, yes it's been streamlined, but the workforce that's in place now, a lot of them are creaking at the seams, in terms of they're doing a lot more with less resources." How was the trend identified? Morgan McKinley produces a quarterly employment monitor that measures and compares two things: the number of professionals that are on the market at that time, and the percentage difference quarter on quarter, and year on year, as well as the percentage of professional job opportunities in the market. From PBS NewsHour, what is quiet firing, and how do you know if it's happening to you? "Quarter on quarter it wasn't telling us a lot," says Keevans. "But when we looked year on year it showed us that there was 16% more professionals on the employment market looking at opportunities, versus only a 2% increase in corresponding jobs. So the rate of professionals looking for jobs was increasing faster than the number of jobs being created, and that wasn't necessarily being reflected in the unemployment rate, which was largely holding its own around [3.9% to 4.2%] year on year." What's driving the trend? Previously, when someone handed in their notice, by and large the role was being replaced, says Keevans. "The only difference might be, would there be a different profile of person required from a soft skills point of view? Was there anything that had changed in terms of the role itself that required a think-through? That was maybe as complex as it got." But from the beginning of last year the pace of hiring slowed down and "there was a much more cautious and considered approach" to hiring, she says. So instead of a role being immediately or directly replaced, "a person would hand in their notice and then the organisation would have a discussion around, are the skills that were within that position still required within the organisation? Or does the organisation require a different set of skills, a different profile of hire to go forward? And very often what you had was a completely different position from what the person who handed in their notice would be - and that slows down the pace of hiring." From RTÉ Radio 1's Morning Ireland, how Covid changed how we work and the traditional workplace This was in part a consequence of a lot of over-hiring in the Covid years. "There was a need to maybe look at right-sizing their organisation," says Keevans. "There was more consideration, more stakeholders involved in that decision, there was caution around budgets, and was this an absolute necessary hire?" In parallel, AI is an inescapable part of the conversation. It's difficult to quantify the impact that AI is having at this point, Keevans says, but elements of jobs and processes are being automated, with the result that a role might not be completely replaced [by AI] but it might "involve a reallocation of the responsibilities of a role, where some can be automated across a number of employees. With the result of that work forces were reducing in size." "Cost saving was obviously one part of it but also there was a sense that companies didn't want the negative publicity that a redundancy situation would typically give to its employer brand," she says. "Because in parallel with this streamlining of headcount there was also a need to hire new emerging skills that were critical for the business to successfully move forward and continue to be successful in its given environment." From RTÉ Radio 1's Drivetime, creatives braced to be among first casualties of AI expansion The report noted that while it's too early to pinpoint the exact drivers behind the trend, "the combination of global economic uncertainty, AI-led transformation and anticipation around US tariffs suggests companies are shifting from reactive hiring to more cautious, long-term workforce planning." US tariffs and the growing role of AI are often cited as sources of uncertainty for the employment market, says Professor Kevin Murphy from the University of Limerick. "Both of these signal employers' inability or unwillingness to make lang-term investments across the board, including investments in the workforce." Tariffs, which have become a significant factor thanks to US president Donald Trump, are a source of "particular instability" because of "near-constant changes in the scope of proposed tariffs", says Murphy. "Depending on the day, US tariffs on exports from the EU might be 10%, 20% or 50%, with no guarantee that they won't change fundamentally the next day." Unlike many workforce adjustments in the past, Murphy says the current pattern of uncertainty is hitting skilled workers in knowledge-dependent jobs more heavily. "Managers and professionals have often been insulated from changes in the job market, but the continuing development of technology that can replace some of the services they have traditionally provided is making job markets for skilled knowledge workers particularly unstable." The moves in reaction to the current global economic climate have been more than six months in play, says Keevans. Global supply chain and procurement operations are, in some cases, being retrenched back to the US for some US-headquartered businesses "and that's largely to do with taxes, tax structures and agreements that can be in place." The tariffs add an additional burden and layer to operating in Ireland, with the result that "there's probably more senior procurement talent coming on to the market than we've seen in years, because they've been highly sought after by a lot of the US multinationals setting up here," she says. Is the 'quiet redundancies' trend going to continue? "It's hard to tell. What I would say is that hiring has become more unpredictable than I think it has ever been," says Keevans. "While Ireland is still very reliant on the US for Foreign Direct Investment, disproportionate to other locations, I do think there's really good work being done by IDA to repurpose that a little bit and safeguard future investments. I've seen a lot of investments opportunities coming from other international locations which would bode very positively for future hiring here in Ireland." "One of the things that's really apparent is hiring will take more of a skills-based approach, maybe than it ever has before," she says. "So there's huge opportunities for employees to really consider the role that they're doing, and saying, where are the gaps versus how the market is moving?" There has been is an increase in internal mobility and that's back to organisations upskilling and reskilling their existing workers "There's a lot of work being done on organisational structures throughout the country - is it fit for purpose? Is it fit for where markets are going, to insulate against any risks that they may have both locally and internationally? Skills will form a big part of that." "LinkedIn has released regular data on the speed of hiring and the volume of hiring, and what they can see is that there's been reduction in speed of hiring in a number of countries, Ireland included, year on year. But what there has been is an increase in internal mobility and that's back to the focus that organisations have of upskilling and reskilling their existing workforce, understanding better what are the skills that they have within their organisation."
RTÉ News
15-05-2025
- Business
- RTÉ News
Irish professional services firm Org Group buys Venturi
Cork headquartered Irish multinational professional services company Org Group has acquired technology recruiting business Venturi. Org Group employs over 3,000 people in 10 countries worldwide with subsidiaries including recruitment firm Morgan McKinley and business process managed services company Abtran. Venturi is headquartered in Manchester with offices in New York, the US and Germany. Venturi's founder, Brad Lamb, and the company's leadership team and staff will remain with the business within the Org Group after the deal. "Venturi has a leading presence in key technology sectors including technology consulting, fintech, and e-commerce with long established and high growth clients," said Seb O'Connell, Org Group's chief executive. "This strategic combination of our companies will add further value and scale to our offering and capabilities," Mr O'Connell said. Brad Lamb, Managing Director of Venturi, said the business is entering a new chapter of growth and innovation. "This partnership represents a powerful alignment of shared values and ambition where we will continue to deliver exceptional talent solutions to our clients worldwide," Mr Lamb said.
Observer
23-04-2025
- Business
- Observer
'Quiet redundancies' to scale back workforce
There is growing concern in the states of the European Union (EU) about the economy with companies being cautious in plans of recruitment and staffing levels. In Ireland – part of the EU – employers are resorting to 'quiet redundancies' to scale back their workforces as economic uncertainty has begun to hit hiring plans. The latest Morgan McKinley Ireland Quarterly Employment Monitor reveals a growing trend of 'stealth job cuts' as caution has crept in amid global turmoil following Donald Trump's tariff rhetoric and the potential impact of artificial intelligence (AI). It also reveals growing concerns about AI generated CVs as some job candidates fail to meet expectations. 'Quiet redundancies, or stealth job cuts are referring to discreet changes in workforce structures that aren't formally announced, which include non-renewal contracts, rescoping of roles or silent phasing out of certain positions,' said Trayc Keevans, an FDI director at Morgan McKinley. As well as the non-renewal of contracts, she said employers might merge roles without announcing it publicly, or decide against replacing workers who had left. Office workers take a lunch break outside the Bank of England, in London, Britain. — Reuters Supply-chain and procurement hiring dipped slightly in the first three months of the year. This was driven by the return of some operations to the US, according to the report. Keevans said some life-sciences employers were evaluating their supply-chain and procurement operations, and what would make sense in light of the tariff plans. 'While we can't definitely link all cautious hiring behaviour to the timing of the US tariff announcements, it's clear that many employers anticipated disruption and opted for a more measured approach to workforce planning with global supply-chain and procurement roles being the most visibly impacted areas,' she said. 'In addition to a decline in virtual supply-chain hub operations being established here, we are seeing some multi-national firms repatriate elements of their supply-chain functions to the US, leading to the displacement of senior professionals in Ireland. These individuals are now facing longer periods of unemployment than would typically have been the case in previous market cycles.' Keevans added: 'Despite having extensive experience many are finding it challenging to re-enter the workforce at the same level as companies remain cautious in their hiring strategies and prioritise transformation readiness over like-for-like replacements.' She said several factors were influencing this cautious hiring approach, including global economic uncertainty, regulatory changes and the adoption of AI-driven transformation. Despite the subtle shift in workforce strategy in relation to shedding staff, the report said that, overall, the professional jobs market had been holding firm in the face of economic headwinds. Professional job opportunities rose by 2pc in 2024 and by 7pc on the previous quarter. The number of professional job seekers rose by 16pc compared with the same quarter last year. However, this represented a 4pc drop compared with the final three months of 2024. The report noted that the national unemployment rate dropped to 3.9pc by the end of last month, down from 4.5pc at the close of last year. Keevans said the employment picture was increasingly complex – the data showed clear evidence of hiring confidence in sectors including technology, financial services and construction. 'The combination of global economic uncertainty , AI led transformation and anticipation around US tariffs suggests companies are shifting from reactive hiring to more cautious, long-term workforce planning', Keevans said. Many candidates were using AI to enhance or create CVs, but employers had raised concerns that they did not always accurately reflect the individuals encountered at interviews. 'Reports of mismatches between CV and candidate performance are becoming more common, placing pressure on screening processes and the assessment of authenticity,' Keevans said. Meanwhile, the recruitment firm reported that organisations were, 'adjusting' how they talk about diversity and inclusion. The report said multi-nationals had quietly pulled back on formal DEI budgets or job titles. (The writer is our foreign correspondent based in the UK)
Yahoo
14-04-2025
- Business
- Yahoo
UK bosses to slash hiring at fastest rate since Covid over tariff fears
Britain's biggest businesses are preparing to slash hiring and scale back investment plans to stave off the threat posed by Donald Trump's trade war. Plans are being drawn up for the deepest hiring cuts since 2020, according to Deloitte's quarterly survey of finance chiefs, which will see workers bear the brunt of aggressive savings. To cope with the impact of the US president's global tariffs, companies are set to water down planned pay rises to an average of 3pc, despite predicting that inflation will rise to 3.1pc over the course of next year. This presents the possibility of a renewed squeeze on households – as wages fail to keep pace with the cost of living. Two-thirds of executives said their priority will be to cut costs this year, according to the survey, which was carried out on the eve of Mr Trump's Liberation Day tariffs announcement on April 2. Only one in 10 said their aim is to invest more. It comes amid fears that Mr Trump's trade war is damaging confidence among UK businesses, as many fear the long-term impact of tariffs on growth and investment. Despite Mr Trump watering down his trade war last week, the UK is still subject to a baseline 10pc levy on all goods imported to the US. Amanda Tickel, head of tax and trade policy at Deloitte, said: 'Previous periods of uncertainty over future terms of trade have resulted in a prolonged squeeze on investment. 'This is still a rapidly evolving environment, and businesses will need to be proactive in mitigating the effects of tariffs. However, they will be unlikely to actually reconfigure their global supply chains or production until they see the results of negotiations or responses by other nations. 'Right now, businesses will be modelling the potential impacts, assessing whether their customs operations are prepared and ensuring they have as much flexibility as possible to source and supply.' Higher levels of tax have also climbed up bosses' lists of worries, as Rachel Reeves's increased employer National Insurance rates kicked in this month to pile more pressure on businesses. Mr Trump's trade war focuses on imported goods, but it is not only manufacturers that are suffering. Hiring in the financial services industry is also struggling, with Morgan McKinley's London Employment Monitor reporting a slump in job vacancies during the first three months of the year. 'The 11pc year-on-year decline in job availability points to underlying structural pressures within the industry,' said Mark Astbury, director at the recruitment firm. 'Persistent inflation, elevated interest rates and geopolitical tensions are fostering a conservative, risk-averse approach to hiring. 'Now that tariffs have been enacted, firms with international exposure are reassessing strategy and headcount plans, especially those tied to cross-border finance and trade.' These latest findings are the first real indicator of how Mr Trump's trade war will damage investment across Britain, with KPMG predicting last week that it could deliver a £22bn blow to the UK economy. The US president has in recent days sought to row back from some of his tariffs, including by introducing an exemption over the weekend for tech goods, such as smartphones and computers. However, Howard Lutnick, America's Commerce Secretary, said on Sunday that this reprieve could only last a month or two. His warning is likely to trigger yet more stock market turbulence this week, as tech companies such as Apple had surged amid hopes they would be spared the worst of Mr Trump's tariffs. While Mr Trump has suspended higher tariffs on most countries, he has targeted China with a 145pc levy. Beijing, which has hit back with 125pc tariffs of its own, urged Mr Trump on Sunday to abandon his trade war. 'We urge the US to take a big step to correct its mistakes, completely cancel the wrong practice of 'reciprocal tariffs' and return to the right path of mutual respect,' a commerce ministry spokesman said. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
Telegraph
14-04-2025
- Business
- Telegraph
UK bosses to slash hiring at fastest rate since Covid over tariff fears
Britain's biggest businesses are preparing to slash hiring and scale back investment plans to stave off the threat posed by Donald Trump's trade war. Plans are being drawn up for the deepest hiring cuts since 2020, according to Deloitte's quarterly survey of finance chiefs, which will see workers bear the brunt of aggressive savings. To cope with the impact of the US president's global tariffs, companies are set to water down planned pay rises to an average of 3pc, despite predicting that inflation will rise to 3.1pc over the course of next year. This presents the possibility of a renewed squeeze on households – as wages fail to keep pace with the cost of living. Two-thirds of executives said their priority will be to cut costs this year, according to the survey, which was carried out on the eve of Mr Trump's Liberation Day tariffs announcement on April 2. Only one in 10 said their aim is to invest more. Trade war damaging business confidence It comes amid fears that Mr Trump's trade war is damaging confidence among UK businesses, as many fear the long-term impact of tariffs on growth and investment. Despite Mr Trump watering down his trade war last week, the UK is still subject to a baseline 10pc levy on all goods imported to the US. Amanda Tickel, head of tax and trade policy at Deloitte, said: 'Previous periods of uncertainty over future terms of trade have resulted in a prolonged squeeze on investment. 'This is still a rapidly evolving environment, and businesses will need to be proactive in mitigating the effects of tariffs. However, they will be unlikely to actually reconfigure their global supply chains or production until they see the results of negotiations or responses by other nations. 'Right now, businesses will be modelling the potential impacts, assessing whether their customs operations are prepared and ensuring they have as much flexibility as possible to source and supply.' Higher levels of tax have also climbed up bosses' lists of worries, as Rachel Reeves's increased employer National Insurance rates kicked in this month to pile more pressure on businesses. Mr Trump's trade war focuses on imported goods, but it is not only manufacturers that are suffering. Hiring in the financial services industry is also struggling, with Morgan McKinley's London Employment Monitor reporting a slump in job vacancies during the first three months of the year. 'The 11pc year-on-year decline in job availability points to underlying structural pressures within the industry,' said Mark Astbury, director at the recruitment firm. 'Persistent inflation, elevated interest rates and geopolitical tensions are fostering a conservative, risk-averse approach to hiring. 'Now that tariffs have been enacted, firms with international exposure are reassessing strategy and headcount plans, especially those tied to cross-border finance and trade.' Britain to suffer £22bn hit These latest findings are the first real indicator of how Mr Trump's trade war will damage investment across Britain, with KPMG predicting last week that it could deliver a £22bn blow to the UK economy. The US president has in recent days sought to row back from some of his tariffs, including by introducing an exemption over the weekend for tech goods, such as smartphones and computers. However, Howard Lutnick, America's Commerce Secretary, said on Sunday that this reprieve could only last a month or two. His warning is likely to trigger yet more stock market turbulence this week, as tech companies such as Apple had surged amid hopes they would be spared the worst of Mr Trump's tariffs. While Mr Trump has suspended higher tariffs on most countries, he has targeted China with a 145pc levy. Beijing, which has hit back with 125pc tariffs of its own, urged Mr Trump on Sunday to abandon his trade war. 'We urge the US to take a big step to correct its mistakes, completely cancel the wrong practice of 'reciprocal tariffs' and return to the right path of mutual respect,' a commerce ministry spokesman said.
