A skills deficit and shortage of key workers is threatening to stifle innovation and is hitting quality standards at Ireland’s companies, according to a new report published this morning by PwC.

Its survey of human resources directors found that 75pc of them are having difficulty filling roles.

It also shows that the key shortages are in areas fundamental to Ireland’s continued economic growth – technology, engineering, finance and regulatory roles.

A recent survey of chief executives by PwC had found that those leaders believed the skills gap in Ireland is at a 13-year high.

The new survey of human resources directors shows that 89pc of them are planning to award pay increases to staff this year, of between 2pc and 3pc.

“The primary driver of salary increases in 2019 is individual performance, which suggests that organisations are keen to reward and retain their key talent in an increasingly competitive marketplace,” it noted.

Accommodation, income tax levels and the cost of living in Ireland were all cited by human resources directors as primary inhibitors to luring staff for leadership and specialist roles to Ireland.

The survey reports that 54pc of human resources directors highlighted a shortage of accommodation as a barrier to mobility in Ireland, up from 41pc last year.

It also found that 40pc of HR leaders are concerned about the impact of Brexit on employee mobility, down from 70pc in 2017.

PwC noted that the figure is “still high” and the free movement of people remains a major issue for human resources directors.

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