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  • HR Heartbeat: Skills mismatch, or poor applications? “Micro-retirement”, and…

HR Heartbeat: Skills mismatch, or poor applications? “Micro-retirement”, and…

Get your weekly roundup of workplace insights & analysis from James Potts, CEO of BrightHR Ireland

First published on Thursday, June 12, 2025

Last updated on Thursday, June 12, 2025

5 min read

Welcome to HR Heartbeat, where we take a look at the week’s most pressing HR and employment law stories. With over a decade of experience as a solicitor working in employment law, I give my opinion on current trends impacting your business, as well as my own personal commentary on all things HR and legal.

AI is coming, but are Ireland’s leaders ready? Not quite

Only 5% of Irish business leaders say they have the skills to fully harness AI and digital innovation, according to the latest IMI Leadership Barometer. With 42% admitting they lack the expertise to strengthen cyber controls, it’s clear many leaders are navigating the digital age without a map.

That’s a problem. Especially as AI advances and cyber threats evolve faster than ever. Add in the fact that nearly half of decision-makers reported gaps in financial leadership, and the skills challenge becomes even clearer.

The good news? Many leaders are still showing resilience, but gaps need addressing—fast. For employers, it’s time to prioritise leadership development: upskilling managers in tech, cyber awareness, and financial acumen, while giving them the tools to manage change effectively.

Skills shortage, or just poor applications?

According to new research from IrishJobs, over two-thirds of job applications in Ireland are rejected for one simple reason: candidates lack the right skills. And 78% of employers say they’re unhappy with the quality of applications they receive. No surprise when one in five are binned for poor formatting alone.

The skills mismatch is slowing hiring right when businesses need agility the most. With unemployment still near historic lows, competition for top talent is fierce. Interestingly, 35% of candidates are now turning to AI tools to polish their CVs and cover letters, but even an AI-optimised CV won’t fix a genuine skills gap.

For employers, clear job ads and realistic role expectations help attract stronger candidates. Internally, tracking skills, identifying gaps, and investing in training are key to building the talent you need. The right tools can help you manage recruitment smarter, because finding the right fit shouldn’t be this hard.

Micro-retirement: The new sabbatical trend you can’t ignore

First came quiet quitting, then coffee badging. Now micro-retirement is the buzzword of 2025. Think of it as a modern sabbatical: workers, especially Millennials and Gen Z, are opting to take extended breaks (months or even a year) to recharge and refocus.

For today’s workforce, work-life balance trumps career ladder climbing. Research shows that 65% of younger employees value wellbeing over progression. And many actively avoid leadership roles that threaten this balance.

To retain the best talent, you need a culture where wellbeing and ambition aren’t mutually exclusive. This includes offering flexible working options, setting clear policies for career breaks, and having leaders who model healthy boundaries.

 

And that’s a wrap from me. Tune in next time for my take on the latest headlines and employment law stories, helping keep your business ahead!


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