New HR Research Reveals Rising Workplace Conflicts, And A Significant Shift In Remote Working

Adare, leading experts in HR and Employment Law, today released the findings of their latest workplace survey, the HR Barometer Series 8.1, offering critical insights into the evolving landscape of human resource management in Ireland.

Drawing on over eight years of research on HR trends; amid global pandemics, increasing legislation, growing geopolitical tensions, economic shifts, and the rapid pace of digital transformation, the HR Barometer stands as a pivotal resource for Organisations striving to navigate the complexities of today’s workforce dynamics.

Key Insights from the HR Barometer Series 8.1

Employee Engagement and Retention: Employee engagement is a concern for Irish businesses, with 56% of Organisations identifying it as their top HR priority. Close behind, 53% of Organisations are prioritising retention rates, signalling a continued emphasis on maintaining a stable workforce amidst evolving labour market dynamics.

Performance Management on the Rise: Marking a significant shift, performance management has climbed to the third spot in HR priorities, with 36% of Employers increasingly focussed on enhancing Employee productivity and effectiveness.

Turnover Rates and Forecast: The study reveals an Employee turnover rate of 14% for 2023 and an expected turnover rate of 12% for 2024.

Motivations for Leaving: Remuneration remains a leading factor for Employee turnover, though its dominance is waning in favour of career progression and geographic flexibility. This indicates a broader trend of Employees valuing professional development and work-life balance over financial incentives alone.

Cost of Turnover: The financial impact of Employee turnover is high with an average backfill cost of €9,461 per Employee.

Absenteeism and Health: A notable rise in absenteeism rates to 8.2% in 2023 from 5.6% in 2022. Mental health and work-related stress emerge as the leading causes of short-term absenteeism with 68% of Organisations noting increased absence rates due these factors. This highlights the importance of supportive workplace practices; Employee Assistance Programmes (EAP) are widely implemented with 84% of respondents having one in place, this is up from just 50% of Organisations having an EAP in place just 2 years ago.

Workplace Conflict and Dispute Resolution: Despite a reduction in formal disputes, 74% of Organisations experienced workplace conflict, with a one-in-five invited to attend the WRC or Labour Court. 4 is the average number of times those surveyed attended at the WRC or Labour Court.

Salary Trends: The survey indicates an 88% of Employers plan salary increases in 2024, with an average anticipated raise of 3.6%.

Working Practices: Additionally, the landscape of working practices is shifting, with 46% of employees engaged in hybrid work arrangements, reflecting the ongoing adaptation to flexible working models.

Kieran Mulvey, Director at Adare, said, “As we move into 2024, the findings of the HR Barometer Series 8.1 provide invaluable insights for organisations aiming to future-proof their workforce strategies. Considering the backdrop of economic fluctuations and digital transformation, it is clear that a people-led approach remains at the heart of sustainable growth and innovation.”

“In today’s dynamic business environment, growth isn’t just about profits, it’s about harnessing technology and innovative HR strategies to empower your workforce and thrive in a constantly evolving landscape,” said Sarah Fagan, Managing Director at Adare.

“This year calls for a profound shift towards agile talent management, enhanced Employee experiences, and the strategic integration of technology, ensuring Organisations can unleash the potential of their people and thrive in the future of work.”

Adare’s Barometer research reflects their commitment to empowering organisations with the knowledge and tools needed to navigate the ever-changing complexities of HR. These insights will be instrumental for businesses to develop robust and adaptable HR practices, not only tackling current hurdles but also unlocking future possibilities as they plan for the evolving world of work.

For HR Barometer Highlights, download our infographic with key statistics HERE.

If you would like to know more about any of the workplace challenges or trends highlighted in our report, please do contact our team of Employment Law and Human Resource experts.  Reach out to us at (01) 561 3594 or info@adarehrm.ie for support tailored to your needs. Learn more about our services at www.adarehrm.ie.