Monthly Management Report
Human Resources
1. Management Overview
Overall, the company's human resources position remained stable during August, although several indicators require management attention. Total headcount increased slightly from 184 employees at the beginning of the month to 188 at month-end. This compares with 171 employees in August 2025, representing an increase of approximately 10% year on year.
The increase reflects continued growth in the Production and Logistics departments following higher customer demand. However, the company is experiencing greater difficulty recruiting experienced technical staff, particularly maintenance technicians, shift supervisors and qualified machine operators.
Employee turnover for August was 2.1%, compared with 3.4% in August 2025. Although this represents a significant improvement, exit interviews indicate that salary expectations and shift patterns remain the two most common reasons employees give for leaving the organisation.
Absence levels have also increased and are currently above the company's internal target. Management should therefore continue monitoring staffing levels, overtime and employee workload during September.
2. Workforce and Headcount
The company employed 188 people at the end of August, compared with 184 at the beginning of the month and 171 at the same point last year.
| Department | Headcount |
|---|---|
| Production | 82 |
| Logistics and Warehousing | 39 |
| Sales and Customer Service | 24 |
| Finance and Administration | 16 |
| IT and Technical Services | 15 |
| Human Resources | 7 |
| Senior Management | 5 |
During August, seven new employees joined the company while three employees left. Five of the seven new recruits were employed in Production and Logistics.
The average length of service is currently 4.6 years, compared with 4.9 years in August 2025. HR believes the reduction is mainly due to the recruitment of 31 additional employees during the last twelve months rather than an increase in long-serving employees leaving the business.
Approximately 72% of employees are on permanent contracts, 18% are on fixed-term contracts and the remaining 10% are temporary or agency workers. In August 2025, temporary and agency workers represented 16% of the workforce. The company has therefore reduced its reliance on temporary labour despite increasing its total headcount.
3. Recruitment
Recruitment activity remained high during August. The company advertised 11 positions and successfully filled seven. Four vacancies remain open: two maintenance technicians, one night-shift supervisor and one senior sales executive.
The increase in recruitment expenditure was mainly caused by the use of two specialist recruitment agencies for technical positions.
Despite the higher expenditure, management considers the overall quality of new candidates to have improved. Of the 23 employees recruited between January and April 2026, 21 remain with the company. During the equivalent period in 2025, only 16 of the 22 recruits remained after six months.
HR has recommended expanding the employee-referral programme. Employees currently receive €150 when a person they recommend successfully completes six months with the company. HR proposes increasing this payment to €250 for difficult-to-fill technical positions.
4. Employee Turnover and Retention
Three employees left the business during August. Two resigned voluntarily and one fixed-term contract was not renewed.
The monthly turnover rate was 2.1%, down from 3.4% in August 2025. Year-to-date turnover currently stands at 14.8%, compared with 18.6% for the same eight-month period last year.
Exit interviews continue to show three recurring concerns: salary competitiveness, weekend work and limited opportunities for internal promotion.
Production remains the area of greatest concern. Six of the company's 14 voluntary departures this year have come from Production, and four of those employees had less than two years' service.
5. Attendance, Absence and Overtime
The overall absence rate increased to 4.7% in August, compared with 3.9% in July and 4.1% in August 2025.
A total of 176 working days were lost through sickness absence. Production accounted for 91 of these days. HR has identified six employees who have recorded three or more separate periods of short-term absence during the last six months. Managers will conduct attendance-review meetings with these employees during September.
Long-term sickness remains relatively low, with only two employees currently absent for more than four consecutive weeks.
Overtime increased by 12% compared with July and by 19% compared with August 2025. Most additional overtime occurred in Production and Logistics. The Operations Director has warned that continued reliance on overtime could increase labour costs and contribute to fatigue and further absence.
6. Training and Development
The company delivered 326 hours of formal employee training during August, compared with 210 hours in August 2025. Training included health and safety, food hygiene, leadership development, forklift certification and advanced machine-operation courses.
A new supervisor-development programme was attended by 14 employees. Twelve completed the programme successfully, while two will repeat the final assessment in September.
Training expenditure for August was €11,400, compared with €8,900 last year. Although costs have risen, management considers professional development an important part of the company's retention strategy.
Internal promotion has improved. Eleven positions have been filled internally so far this year, compared with six during the same period in 2025. HR would like at least 35% of supervisory and management vacancies to be filled internally by the end of 2027.
7. Employee Engagement and Relations
The quarterly employee survey was completed by 81% of employees, up from 68% in the equivalent survey last year.
Overall employee satisfaction was 76%, compared with 71% last year. Employees gave particularly positive ratings to relationships with colleagues, communication from immediate supervisors and access to training.
Work-life balance received a score of 63%, down from 67% last year. Production employees working rotating shifts reported the lowest satisfaction in this area.
HR dealt with five formal employee-relations cases during August: two grievances concerning working schedules, one complaint involving communication between a supervisor and an employee, and two disciplinary cases concerning repeated lateness. Three cases have been resolved and two remain under investigation.
No serious workplace accidents were reported during the month. There were four minor incidents, compared with seven in August 2025.
8. Pay and Employment Costs
Total payroll expenditure for August was €612,000, an increase of 8.5% compared with August 2025. This increase reflects both the larger workforce and the 3.2% average salary adjustment introduced in January.
| Cost item | August 2026 | August 2025 |
|---|---|---|
| Total payroll | €612,000 | — |
| Overtime payments | €41,600 | €34,900 |
| Agency staff costs | €27,200 | €38,500 |
Agency staff costs fell largely because several temporary positions have been converted into permanent roles.
HR estimates that total employment costs remain within the annual budget, although continued overtime at the current level could create additional pressure during the final quarter.
9. Priorities for September
- Concentrate recruitment efforts on the four outstanding vacancies, particularly the maintenance positions.
- Review Production absence levels and investigate whether shift patterns, overtime and employee fatigue are contributing factors.
- Begin a salary benchmarking exercise following concerns raised in the employee survey and exit interviews.
- Launch the second stage of the supervisor-development programme and begin identifying employees for future management positions.
Management does not expect an immediate company-wide salary increase, but adjustments may be considered for positions where pay is significantly below the external market.
10. Management Conclusion
The overall HR position is stronger than at the same point last year. Headcount has increased, turnover has fallen, retention of recent recruits has improved, employee satisfaction is higher and the company is relying less heavily on temporary workers.
Nevertheless, several connected risks require attention. Absence and overtime are increasing, particularly in Production, while employee feedback indicates continuing concerns regarding salary and work-life balance. Recruitment of technical employees is also becoming slower and more expensive.
The key management challenge for the next quarter will therefore be to support continued business growth without placing excessive pressure on the existing workforce.