Life sciences sector struggling with talent gap – report
12 September 2017 | 0
Reform of personal taxation is essential for the attraction and retention of new talent in the life sciences sector, according to a new survey from Accreate Executive Search.
Some 350 leaders of life sciences businesses based in Ireland were asked to identify the biggest challenges facing the sector and gather suggestions from the industry as to how these challenges could be overcome.
The results found that 84% of respondents rated attracting and retaining talent as ‘most challenging’ or ‘challenging’.
In terms of taxation, while 98% of respondents rated Ireland’s corporate tax regime as ‘favourable’ in comparison to other EU countries, however 82% agreed that personal taxation reform was the biggest challenge facing recruiters.
There was a clear preference for the broadening of the highest marginal tax rate. Most felt that the highest rate of tax should kick in at a much higher level of income and should be capped at a 50% effective rate, which is still less competitive than in the UK.
Finally, 79% of respondents see Ireland as being of significant importance to the future of their businesses
“Attracting and retaining talent was seen to be the ‘most challenging’ or ‘challenging’ issue affecting their businesses to date. Our personal income tax regime and our regulatory environment were the next ‘most challenging’ or ‘challenging’ issues,” said David Phelan, managing partner, Accreate (pictured).
“However, the difficulties with attracting talent and personal income tax are not mutually exclusive. Well over three-quarters of leaders say personal tax reform would facilitate growth in the sector as it would enhance their ability to attract and retain talent.”
“If personal taxation, corporation tax and R&D tax credits were reformed, 84% believe their business would both increase investment in Ireland and increase headcount. 42% also felt that they would see a growth in revenue, should these measures be introduced.”
“Overall, the sentiment for the businesses currently situated in Ireland is strong. 79% of respondents see Ireland as being of significant importance to the future of their businesses, which is a considerable endorsement of the value which Ireland brings to the many multinational businesses here.”
Ireland’s life sciences industry employs over 50,000 people across all regions and has exports worth €45 billion each year.