Investment in skills to enhance workforce productivity

The challenge of skills availability and workforce stagnation took centre stage at the 25th annual Ibec HR Leadership Summit, ‘GenWise: Fusing Skills, AI & Generations.’ There, industry experts issued a clear warning: stagnant upskilling initiatives have become the primary bottleneck, preventing organisations from unlocking the productivity gains required to thrive in a digital-first economy. Joseph Fuller, Professor of Management Practice at Harvard Business School, highlighted a troubling trend: while our talent pools are shrinking, the efficiency of our remaining workforce has failed to scale at the same pace. With Ireland’s demographic profile becoming increasingly unfavourable, Professor Fuller urged businesses to place skills at the heart of their productivity agendas. Noting that nearly two-thirds of Irish employers are worried about skills shortages, he delivered a blunt assessment; “The reaction is often to complain and not take action. That needs to change”

Turning the tide requires embracing scalable models like learning in the flow of work. Fuller cited the National Skills Strategy as a vital step forward, particularly its target to double apprenticeships to 10,000; positioning hands-on training as a primary engine for Ireland's future productivity.

While Professor Fuller highlighted the strategic necessity of upskilling, Professor Dan Cable of London Business School shifted the focus to the biological engine behind it. He argued that continuous learning is not just a corporate requirement but a fundamental driver of employee engagement. Humans, Cable explained, are 'hard-wired' for change; our brains possess a 'seeking system' which releases dopamine when activated, generating enthusiasm and curiosity.

For employers, the key is to stop "switching off" this innate desire to learn. Creating productive and engaged employees, according to Professor Cable, involves recognising people for their unique strengths, providing a sense of purpose that transcends the paycheck, and fostering a 'psychologically safe' environment where experimentation and creativity can thrive

The takeaway for leaders is clear: sustained investment in upskilling, coupled with a culture that actively triggers curiosity, is no longer optional. It is the essential blueprint for boosting productivity and navigating Ireland’s complex demographic and skills landscape.

For more information or support on all things talent and transformation, contact the Ibec Knowledge Centre on knowledgecentre@ibec.ie and request a call with our HR Strategy team.