New Research Reveals Absenteeism as Key Indicator of Organisational Health in 2025

Wellbeing and hybrid work pressures reshape performance priorities

April 2025, Dublin, Ireland – Adare, a leading provider of HR and Employment Law support services, has released the findings from its latest HR Barometer Report (9.1), underscoring absenteeism as a critical indicator of overall workplace health and performance. This comes at a time when hybrid work, economic pressures, and escalating employee stress levels are heightening the challenges for organisations.

The comprehensive biannual HR Barometer Report offers deep insights into the trends, challenges, and priorities that are shaping the Human Resources landscape across Irish organisations in 2025. It highlights that while organisations are increasingly focusing on employee wellbeing, the anticipated absence rate for 2025 is forecasted to rise to an average of 8.5%. This figure has significant implications for productivity and operational costs.

While 79% of organisations have an Employee Assistance Programme as part of health & wellbeing initiatives, only 8% are currently measuring performance as a direct output of wellbeing initiatives, revealing a disconnect between intention and measurable impact.

Sarah Fagan, Managing Director at Adare, commented “While our HR Barometer highlights several areas of concern, the findings around absence management point to a particularly troubling trend. Absenteeism is not simply a standalone issue – it’s a key indicator of broader organisational health. Organisations are forecasting a significant average absence rate of 8.5% for 2025. What deepens the concern is that despite an acknowledged focus on employee health and wellbeing, a mere 8% of organisations currently measure performance as a direct output of these crucial initiatives. As absence rates rise, so too do costs, inefficiencies, and the strain on team performance. Organisations must adopt a more data-driven and integrated approach to managing absence, with a focus on building sustainable performance and long-term resilience.”

The report also sheds light on the increasing pressures faced by employees – from rising workload demands to heightened stress and anxiety. These factors contribute to burnout and long-term health risks. Additionally, while hybrid working has become the norm, 1 in 2 organisations report challenges in maintaining employee engagement under this model.

Other key findings from the HR Barometer 9.1 include:

• Health, Wellbeing & Absence: Organisations anticipate an average absence rate of 8.5% in 2025. While the focus on employee health and wellbeing is growing, only 8% currently measure performance as a direct output of related initiatives, indicating a potential gap between focus and measurable outcomes.
• HR Priorities Shift: Talent Retention emerges as the top HR priority for 2025, cited by 43% of organisations, with Employee Engagement and Experience remaining crucial at 40%.
• Talent Turnover and Costs: Medium-sized businesses reported an average turnover rate of 14.3% in 2024, with the average cost of replacing an employee estimated at €10,125.
• Rising Conflict Levels: 44% of organisations reported an increase in time spent on managing workplace conflicts. Senior management, on average, spends 29.9 days per year dealing with employee relations issues.
• Compensation Trends: 72% of organisations plan to increase salaries in 2025, with 21% considering changes to their pay models in response to market pressures and the sustainability of existing pay frameworks.
• Hybrid Working Practices: Hybrid work continues to be the norm, with employees working an average of 2.6 days in the office. However, 50% of organisations report challenges in maintaining employee engagement with this model.

The Adare HR Barometer advocates for a more strategic, data-led approach to absence management, which is integrated within a broader commitment to creating a healthy, high-performing workplace. Through its Healthy Place to Work offering, Adare supports organisations in aligning wellbeing initiatives with measurable outcomes, driving sustainable performance and fostering cultures of trust and resilience.

Amanda Finnegan, Head of Organisational Design & Development at Adare, commented, “At Adare, we recognise that creating a healthy workplace goes beyond managing absence. It’s about cultivating environments where employees feel supported, engaged, and valued. When organisations prioritise wellbeing and embed it into their culture, absenteeism reduces, and overall engagement improves. This holistic approach ensures that employees can perform at their best, even in times of change and pressure, fostering resilience and long-term success.”

The full Adare HR Barometer 9.1 report offers further analysis across these areas, providing actionable insights and benchmarking data for HR professionals and business leaders navigating the year ahead.

For all the latest HR Insights and Analysis, please contact Adare here.

About Adare Trusted People Partners

Adare Trusted People Partners (Adare), established in 2003, is one of Ireland’s leading consultancies specialising in employment law, industrial relations, and best practice human resource management. With a focus on delivering bespoke HR solutions, Adare has become synonymous with excellence, innovation, and dedicated client service. ​At Adare, we recognise the significant role HR leaders play in achieving an Organisation’s strategic objectives which is why our tailored and solution-focused approach enables our clients to drive HR-led transformation. With over two decades of experience, the company continues to lead the way in HR consultancy, supporting Irish businesses in navigating the complexities of employment law and HR best practice.