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The Changing World of Work: Current Employer and Employee demands in the Irish Job Market

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Jessica Weld

On a cold November morning, I squeezed through the typical rush to board a packed Irish Rail Commuter service from Sallins & Naas to Dublin Heuston. As I sat on one of the last available seats, I took notice of the other passengers around me. Many of them were fellow college students and the remainder were workers on their way to their respective nine to fives. 

It made me think: Wow, aren’t we supposed to be in an era of remote working? 

With the recent news of the co-working giant WeWork’s move to file for Chapter 11 bankruptcy in the US due to the falling numbers of office attendance, I pondered on the current demands in the job market and its remote working allowances. Some of Dublin’s largest firms have begun to scale back the office space they occupy in the City Centre. Deloitte has announced plans for its new office space in Dublin to have around 1,400 desks for its circa 2,500 employees. To make the comparison black and white, prior to the COVID-19 pandemic, firms had to have desks for every single last one of its employees. Remote working was only a mere fantasy to most workers. Nowadays, it’s almost an expectation.

The question is: What is the consensus amongst employers to allow their employees to work from home? And is the lack of remote working opportunities a deal breaker for workers seeking employment?

To help answer these questions I had a discussion with Chloe Gallagher, a Senior Recruitment Consultant at Dublin based recruitment firm Eirkoo. Chloe recruits on behalf of Eirkoo’s clients in the Financial, Professional and Legal services sectors, possessing a special interest in roles relating to emerging markets in ESG areas. Boasting over four years of experience in the world of recruitment, Chloe has been on the front lines of the employment market both pre and post pandemic, garnering a deep understanding of the changes COVID-19 has inflicted on the workspace. Here is what she had to say:

We hear tales of companies downsizing or closing their office buildings to move their operations fully remote. Have you seen this happening around Dublin?

“Definitely in the tech sector, this has happened. The tech sector had the infrastructure to support this better at the time than other industries. This was big at the start of the pandemic where firms didn’t renew leases on their buildings. Although this isn’t as widespread as people may think. Employers are big on getting their employees in the office at least two days a week. A fully remote role is really difficult to come by at the moment.”

What changes have you seen from Employer’s offerings since the COVID-19 pandemic?

“There has certainly been a more flexible offering across the board with all employers. In 2022 we saw “The Great Breakup” where about 1 million women left their roles due to a lack of flexibility afforded by their employers. Flexible hours is now a lot more wide scale since before the pandemic, for example women can take a few hours off during the day to pick their children up from school and make up the time in the evening.

A development I’ve seen recently is in alternative offerings like Wellbeing Programs and other areas of Corporate Social Responsibility like Diversity and Inclusion initiatives. Support like this can be really important for prospective employees. For example, one of the clients I hired for had a Parent Support Group which proved really attractive to working parents.”

What proportion of the roles you recruit for offer remote working opportunities and what flexibility are employers affording in relation to working hybrid or  fully remote?

“Most roles do offer remote working upon completion of a probation period but as I said, it is very difficult to get a fully remote role in today’s job market, even though the current position of the market is ‘candidate short’ meaning that recruiters everywhere are in headhunting mode, a non-negotiable for firms is office attendance.

I have seen many instances where employees have rejected this, one client I was recruiting for told me that when Covid-19 restrictions eased and offices opened up, one of her staff handed in his notice when he was asked to return to the office.”

Has a lack of remote working been a dealbreaker for any of your candidates?

“It definitely has, of the few fully remote jobs I recruit for, I have seen people take pay cuts of up to €20,000 for the flexibility of fully remote working. Especially when working parents have to consider high childcare costs or if someone’s daily commute can be three hours or more, remote opportunities are very valuable.

Something I’ve observed is that because employees have gotten so used to remote working that they are sometimes anxious about returning to the office. This can sometimes be a reason why candidates are more likely to take up a remote role. 

This is something employers have had to consider to support staff on both sides of the fence, helping employees adapt to working remotely which can be often isolating and also supporting employees in their return to the office environment which can be overwhelming.”

Apart from salary, what else are candidates demanding in roles? Has this changed from pre-pandemic times?

“I’ve noticed that especially amongst the younger generations of workers, wellbeing initiatives have become a key factor in attracting candidates to roles. There has been a huge shift in promoting wellbeing in the workplace and many firms offer benefits like Employee Assistance Programs which can be very attractive. The Wellbeing agenda has been pushed by organisations like IBEC in recent years.

Thinking in comparison to the generation of my parents, back in those days an attractive benefit would be a pension and they wouldn’t expect any more. There has been a big change in this regard. Considering companies like Google and LinkedIn where the facilities and benefits never end because they don’t want you to leave the office!

One benefit that would be almost unheard of before the pandemic is the ability to work from abroad. This is quite rare and is usually only afforded to senior management but if there is an opportunity to work towards this, it can be a strong factor to attract candidates towards an organisation.”

What feedback have you gotten from candidates in remote jobs?

“The feedback overall has been very positive. People have more time to spend with their families, they take up new hobbies and they can get active by getting into walking and running. By not commuting every day, workers have more spare time to enjoy.

A big benefit in management roles is less of a need for work travel for meetings and the flexibility of remote working has allowed mothers to remain in the workplace for the most part as they can work around their families.

There are negatives to remote working of course, many people feel isolated as they can be stuck working in their box room for example. Another issue would be that people sometimes find it hard to disconnect from their work and they are more inclined to work after hours. Having a good company culture and support from your employer is important for a good remote working experience.”

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So as it seems, remote working is still around and is here to stay, although I wouldn’t advise that anyone decides to relocate to Inis Oírr anytime soon. A Hybrid model of working seems to be the way forward for most companies and anyone in the market for a new job will be hard pressed to find a role that is fully remote. 

For now, I’ll have to put up with the busy commute and learn to appreciate the joys of being packed in like sardines on the Red Line Luas. Although, it’s not all that grim; I’ll get to look forward to the comforts of being at home two to three days a week and a wellbeing programme by way of dog therapy and free fruit in my future graduate role. It really was high time that working parents were given more flexibility and being in the next generation of workers, which is something that I as a future member of the workforce celebrate. As it seems, compromise is the name of the game in today’s job market, and a proactive stance to the effects of COVID-19 on the workplace is critical.

Liz Truss: The Great Resignation and its Impact on UK Policy & Economy

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Following the resignation of Boris Johnson, Liz Truss distinguished her leadership campaign by her commitment to deliver “growth, growth, growth”. In reflection, Truss’s brief stint in office was disastrous for the British economy. 

Truss’ ‘growth plan’ included cancelling a planned increase to corporation tax, reversing a rise in National Insurance Contributions, cutting the basic rate of income tax and abolishing the higher rate completely. Truss’ policies culminated in an unfunded £45 billion tax cut in her Chancellor of the Exchequer, Kwasi Kwarteng’s mini-budget.

Truss’ rationale seemed to invoke a renaissance of neo-liberal economic policies to fight inflation and stimulate economic growth. Previously supported by Ronald Reagan and Margaret Thatcher, neo-liberal economics purports minimal state intervention, deregulation and confidence in free markets. These austerity-driven financial policies favour the wealthy, and were unsurprisingly met with enormous public backlash in the UK against the current macroeconomic backdrop. In the midst of a cost of living crisis, stagnant growth and an energy crisis, Truss’ plans for the economy were seen as unorthodox by some and frankly naïve and reckless by many.  Upon the news of Kwarteng’s mini-budget, the pound dropped to the lowest level ever against the dollar, UK government bonds saw a heavy sell-off and the FTSE ended the day deep in the red. The Bank of England’s decision to intervene and purchase £65 billion of long-dated gilt was the calamitous culmination to a string of bad days for the British economy.

The backlash culminated in Truss sacking Kwarteng, only to step down herself 6 days later. Truss’ 44 day stint in office makes her the shortest-serving British prime minister in modern history. 

Her resignation has shaken the economy of Britain as it faces a worsened cost of living crisis as well as a looming recession. The election of the more economically moderate Rishi Sunak to No.10 has had somewhat of a calming effect on the economy with the pound stabilising. 

Sunak has outlined that difficult decisions lie ahead as he intends to cut spending. Jeremy Hunt, Chancellor of the Exchequer, warns that the new budget being prepared, is ‘going to be tough”.  

After weeks of financial turmoil, expectations for a recession have intensified and forecasts for its extent deepened.  While the appointment of Sunak has eased economic uncertainty and tensions in the bond market, the country still faces a profound economic challenge with a fourth-quarter GDP decline of 1.6%, predicted by Goldman Sachs’ economists. 

To curb inflation, it is expected that the Bank of England will increase monetary contractions by hiking interest rates 75 basis points in November and December. This will hopefully cool the economy enough to calm inflation and panic.

Truss’ brief stint as PM shows that neoliberal economic policies remain unpopular.  They are particularly unwelcome in economically challenging times and can even be term-ending for its proponents in power. With Sunak we can expect less turbulence but the outlook is still negative for the British economy as businesses and citizens alike brace themselves for tightening monetary policy.

Recession Talk: The OECD Forecasts for the European Economy 

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On Monday 26th September, the Organisation for Economic Cooperation and Development (OECD) released their forecasts for the global economy. The outlook is bleak. International output growth is projected to grow at a rate of 2.2% over 2023, down from initial projections of 2.8% growth for 2023. This contrasts negatively to a growth rate of 3% in 2022 and represents an even greater fall from 6% growth in 2021. The Russian invasion of Ukraine, the ongoing effects of China’s Zero Covid Policy, as well as an increase in interest rates by the ECB, Federal Reserve, and Bank of England, have been identified as the main causes of this sluggish economic activity. The OECD identifies the Russian invasion of Ukraine as a key contributor to these negative forecasts – with forecasts outlining a $2.8 trillion decrease in global GDP thanks to the invasion. It also notes that the economic impact of the War is greater than previous forecasts predicted.

As a result, ECB policy has transitioned away from negative interest rates. This tightening of monetary policy has led to a decrease in the money supply, alleviating pressure on prices. This has also been cited as a primary contributor for slower economic growth over the next calendar year. 

The OECD predicts that because the US Fed started contractionary monetary policy earlier, their high inflation levels will decline more swiftly than those of Europe and the UK.

The OECD also notes the impact of reduced energy supplies from Russia to the EU. Gas storage levels have recently been recorded at 90% of capacity in the EU. However, projections indicate that this initiative will not be sufficient on its own to assist households through the Winter. A serious reconsideration of energy usage in Europe is pivotal and new European policy must acknowledge the necessity of reducing gas consumption. The OECD projects that European growth could fall by a further 1.25% points relative to their initial forecasts for 2023 if supply is not better diversified and gas consumption reduced. This, together with increasing inflation, would plunge several European economies into recession in 2023 if European leaders do not properly confront the energy crisis.

Although slow and laborious growth is predicted for the Eurozone, a recession is unavoidable if gas consumption cannot be reduced or if problems arise with other energy suppliers to the European countries. The outlook for the UK looks even more bleak with the OECD projecting zero growth. Germany’s dependence on Russian energy supplies has seen the OECD project a contraction in its economy for 2023. The outlook looks bleak indeed.

The Future of Digital Assets in the EU 

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Many people have long seen the market for digital assets as the Wild West of investing, filled with lucrative volatility and a significant risk of fraud. However, the European Commission’s Markets in Crypto-Assets (MiCA) is a regulatory framework that seeks to change this. MiCA is due to come into effect in 2024 with the dual objectives of harmonisation of existing EU regulations and the protection of investors.

One of the key impacts of this new framework will be to broaden the scope of existing regulation to include additional Virtual asset service providers (VASPs). Owing to the market’s rapid development, many service providers are unregulated, putting investors at risk of exploitation. Crypto-asset service providers (CASPs) is a term that exists in many other jurisdictions and has now been adopted by MiCA’s drafters to replace the Financial Action Task Force’s well-known definition for VASPs. The CASP definition is very similar to the original definition however it is much broader in scope so as to provide for as many crypto-related entities as possible. The most important thing to understand is that all VASPs will be considered CASPs but not all CASPs will be VASPs as they will fall outside the previous, narrower definition.

VASP definition:

  1. Exchange between virtual assets and fiat currencies;
  2. Exchange between one or more forms of virtual assets;
  3. Transfer of virtual assets;
  4. Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets; and
  5. Participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset.

CASP definition: 

  1. The custody and administration of crypto-assets on behalf of third parties; 
  2. The operation of a trading platform for crypto-assets; 
  3. The exchange of crypto-assets for fiat currency that is legal tender; 
  4. The exchange of crypto-assets for other crypto-assets; 
  5. The execution of orders for crypto-assets on behalf of third parties; 
  6. Placing of crypto-assets; 
  7. The reception and transmission of orders for crypto-assets on behalf of third parties;
  8. Providing advice on crypto-assets;

MiCA will also regulate the digital assets which currently fall outside the scope of EU and Member State regulations, such as e-money tokens, asset-referenced tokens and utility tokens. Surprisingly, MiCA does not address non-fungible tokens (NFTs), although the European Commission has indicated that it will address them in the future.

When MiCA comes into effect it will be applicable across the EU, without requiring Member States to introduce implementation laws. This uniform approach will bring about greater clarity and certainty for CASPs who are currently faced with differing domestic regulations across Member States. For example, MiCA will streamline the licensing process for crypto-asset issuers and make it valid across all Member States. 

Notwithstanding the greater ease of doing business, the regime itself will impose stricter obligations on CASPs so as to protect investors from market abuse and ensure transparency. These obligations relate to the authorisation of issuers and the marketing of crypto-assets themselves, as well as the requirement to publish reports and whitepapers. However, issuers that operate on a smaller scale will be exempt, such as those that deal with less than 120 investors per Member State. 

While some CASPs may be sceptical of MiCA’s impact on their business models, the Commission anticipates that the increased protection will attract investors. For example, CASPs involved in the custody of digital assets (custodians) will be required to store their customers’ assets separately to their own data, using Distributed Ledger Technology (DLT). This will ensure the assets are more secure in the event of a malware attack. Furthermore, these custodians will also be liable for losses that result from hacking or break down in technology. These requirements will undoubtedly increase consumer confidence and thus stimulate investment. 

Finally, it is interesting to note that because the safeguards relate to EU consumers, these changes will also apply to any firms outside the EU who wish to do business in the EU. Therefore, MiCA will have far-reaching implications for both CASPs and investors in the digital assets market not just in the EU but around the world. As Dublin is one of the world’s investment fund and asset management hubs it will be interesting to see what opportunities and challenges arise as a result of MiCA.

Ethereum Upgrade “Merge” Represents a Shift Forward in the Future of Cryptocurrency and Blockchain

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Since the formulation of Bitcoin in 2009, the ground-breaking idea of using blockchain to generate what is now known as “cryptocurrency” has attained a level of popularity, even in the face of tremendous volatility, that detractors could never have imagined. Ethereum was first conceptualised in 2013 and brought to life in 2014 by programmer Vitalik Buterin. The cryptocurrency was founded not as a currency in itself, but as a platform with a goal to fully decentralise the internet. Since its formation, Ethereum has grown to earn its position as the second-largest cryptocurrency in the world with a current market cap of $163.28bn, despite a recent but steady fall in price of 66% from annual highs. 

Although Bitcoin and Ethereum are quite different with regards to their structure and capabilities, they have faced common criticisms by both observers and users alike. “Proof-of-work” is the decentralised mechanism used by both whereby members of a network solve arbitrary mathematical problems that use massive amounts of computing power for mining new tokens and validating transactions. The total consumption of energy needed to fuel this computing power has been condemned. According to estimates, Bitcoin alone consumes as much energy as Poland. In the face of climate change and energy shortages, there has been increased pressure on governments and corporations to disincentivise the growth of such cryptocurrencies based on the system of proof-of-work. The White House proposed restrictions on proof-of-work mining earlier this month as a way to reduce energy consumption. 

These problems prompted Ethereum developers to reconsider the “proof-of-work” system and led to the proposal of a “proof-of-stake” upgrade to underwrite Ethereum. This project eventually led to the “Merge” that took place last Thursday, 15th September which went off without a hitch. The proof-of stake mechanism is based on the work of “validators” rather than “miners”. These validators are compensated modestly in return for their validation of transactions and collateralize their own cryptocurrency which deters dishonest or lazy work. Over 100 developers worked on the upgrade for years to ensure minimal risks for bugs and the new mechanism is estimated to cut energy consumption by the cryptocurrency by roughly 99.95%.

The upgrade will significantly reduce the quantity of Ether (Ethereum’s token) coming into circulation which may allow it to serve as a deflationary currency in the coming months. Ethereum may well become more accessible for institutional investors as corporations can no longer use the wasteful use of energy as an excuse to ban its use in portfolios. Institutions such as Bank of America have recently indicated that the upgrade may ease their current restrictive policy on Ethereum. Cryptocurrency advocates say the transition marks a turning point in the future of digital assets while critics argue that a number of challenges remain. While the “Merge” will accelerate the process of introducing upgrades and make Ethereum more efficient, it will still face the inherited problems of congestion and very high transaction costs. The proof-of-stake upgrade represents more than just a change in operating system. Proof-of-stake has now been proven to be a suitable mechanism for operating blockchain technology and will have broad implications for the innovation of digital assets in the future. 

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