Insights into Ireland’s Workforce: New Research on Salaries, Bonuses, and Hybrid Work Practices

Adare HR Barometer 8.2 Provides Guidance for Employers

Adare, leading experts in HR and Employment Law, released the findings of their latest workplace survey, the HR Barometer Series 8.2, shedding light on the latest salary trends, diversity and inclusion efforts, and working arrangements for 2025.

This research, based on comprehensive surveys of organisations across various sectors, provides critical insights for employers aiming to future-proof their HR strategies.

Key Insights from the HR Barometer Series 8.2

Salary and Compensation: The report reveals that 66% of organisations plan to increase salaries in 2025, a notable decrease from the 86% that did so in 2024. The average planned salary increase is 3.6%, closely aligning with the 3.7% actual increase in 2024.

Furthermore, 53% of organisations are tying salary increases to overall company profitability, with 30% requiring a profitability threshold of 90-100% for these increases to take effect.

Bonuses: In 2024, 53% of organisations plan to pay bonuses, with 69% of these bonuses being tied to employee performance. On average, bonuses will account for 9.9% of employees’ salaries, underscoring the continued emphasis on performance-based rewards.

Pensions: With the impending introduction of auto-enrolment in Ireland, only 23% of organisations are prepared for the change, reflecting a modest increase from 2023.

While 43% of employees are expected to be auto enrolled, one in three organisations will not be affected due to existing occupational pension schemes already being in place.

Diversity & Inclusion: Diversity and inclusion policies have seen growth, with 68% of organisations now having a formal D&I policy, up from 63% in 2023. However, 31% of organisations still lack such a policy.

The average gender pay gap in Ireland has risen to 10.7% in 2024, a 3.3% increase from the previous year. Notably, 56% of organisations do not record their gender pay gap, although 58% believe their figures are either in line with or below the national average.

Working Practices: Hybrid working continues to be the dominant model, with it accounting for 76% of organisations’ current working model, a 4% increase from 2023. Only 3% of organisations are fully remote, down from 7% in 2023, reflecting a shift toward having employees back in the office in some form.

On average, employees are spending 2.7 days in the office each week, consistent with last year’s data. Additionally, 79% of HR professionals believe that hybrid working has had a positive effect on productivity, a 15% rise from 2023.

HR Priorities for 2025: For 51% of organisations, employee engagement and experience remain the top HR priority for 2025. Talent retention follows closely behind at 48%, while talent acquisition is a focus for 25% of organisations.

Learning and development (23%) and succession planning (21%) also emerge as key priorities as businesses seek to develop and retain their talent in a competitive market.

 “2024 highlights key shifts in working practices back to the office at least in a hybrid model. As HR Priorities for 2025 are on Employee Engagement and Talent Retention, it is likely to see Organisations making a continued attempt to engage Employees in a more personalised manner.” said Sarah Fagan, Managing Director at Adare

“After a number of years when Organisations were faced with having to make reactive short term decisions based on external factors, there seems to be a desire and capability for more flexibility, innovation and strategic long-term thinking when it comes to business decisions and how best to engage with employees”. 

“ 2024 has become a year of evolution for Organisations. Legislation updates, preparation for auto-enrolment and an easing of economic pressures along with advancements in technology has given Organisations further positivity going into 2025. This offers opportunity to engage and develop the Irish workforce to increase their competitiveness domestically and Internationally. ”

Adare HR Barometer 8.2 highlights the evolving challenges and opportunities that organisations face as they navigate the complexities of HR management in 2025. These insights offer valuable guidance for companies striving to stay competitive by aligning their workforce strategies with emerging trends. By addressing key areas such as salary, working practices, and diversity and inclusion, Adare remains committed to helping businesses build resilient, future-ready teams equipped to thrive in an ever-changing landscape.

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.