HR Practices in Ireland 2025

Conducted in conjunction with Kemmy Business School, University of Limerick, our report explores the latest insights on the strategies and challenges for the people profession in Ireland.

The external environment and pace of change over the past year has been challenging for organisations and people professionals. The contribution of HR is more vital than ever as we address drivers of change and embed new ways of working, with digital transformation changing the nature of work processes and methods, requiring new mindsets, skills and organisational practices.

Our 2025 report addresses key priorities, how challenges are being faced and the current impact of the profession. It looks at talent management and resourcing solutions, skills shortages and the readiness of organisations for artificial intelligence (AI). It also explores hybrid working and productivity, wellbeing, inclusion and sustainable people practices.

HR practices in Ireland 2025

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Key findings and recommendations

Growing impact of the people profession

People professionals are adding value through championing diversity (95%), enhancing the employee experience (90%) and contributing to strategic direction (91%).
The response to championing a people-centred approach to technology has fluctuated since the recent advent of AI, reflecting a capability gap.
Talent management, resourcing and skill shortages remain top priorities as organisations compete to attract, retain and develop workforces for the future.

Recommendations

Align HR and organisation priorities – invest more in connecting the people profession’s work to pressing business challenges.
Provide ongoing upskilling and development for the people team, particularly on AI, technology and the skills to deliver transformational change and support people-centric decision-making.

Ongoing challenge of resourcing

Nine out of ten survey respondents face skills shortages, especially in operational roles, and leadership and influencing skills are seen as the top capability gap.
Access to housing has made recruitment more difficult and flexible working was seen as a high-impact strategy to address recruitment and retention challenges.
The most prevalent employee turnover rate decreased to less than 5% although over a quarter reported an increase in the level of employee turnover.

Recommendations

Analyse future skills requirements and invest in upskilling to minimise the ongoing risks of skills gaps.
Maximise the use of hybrid and flexible working arrangements in ways that address commuting and work-life balance challenges.
Prioritise continued investment in leadership and people management skills to build capability to lead and retain employees.

Digital transformation and preparedness for AI

Automation, technology and AI is one of the top external drivers of change, with the people function accelerating the rate of digitalisation, particularly automating HR processes, employee engagement platforms and learning management systems.
There is a low readiness for introducing and managing AI in the workplace with the majority of organisations not giving clear guidance or training to employees, and two-thirds not regarding the leadership team being fully equipped to lead in a digitalised/AI world.

Recommendations

Develop people professionals in AI, digitalisation and change management tools to have the credibility and confidence to contribute to technological developments, and lead people-centred decision-making.
Take ownership of addressing the gaps in AI leadership in the organisation through communications, training and setting standards for the appropriate use and risks of AI tools and how to best augment quality work.
Implement consultation and engagement with employees around technology changes to minimise fears, and involve those impacted in determining howtech will work in their work area.

Hybrid working: the debate continues

Organisations are increasingly conscious of the impact of remote and flexible working, citing limitations on informal learning and managers’ ability to manage, however reporting positive impacts on recruitment and retention, productivity, wellbeing and culture.
Over a quarter perceived productivity was higher for hybrid working, and a similar number reported lower productivity for remote working.
A quarter of organisations have increased or will increase the number of mandated days onsite and an increasing number have moved to centralised decisions about the number of days onsite. The pattern of mandated days onsite has not changed, with about a third requiring employees to work onsite two days per week and a similar number three days per week.

Recommendations

Recognise the need to assess the impact of remote and hybrid working on an ongoing basis, know where it adds value and adjust to meet the changing needs of the organisation.
Ensure collaboration and the right activities are structured into onsite days and there is a clear rationale for onsite versus offsite work tasks.
Ensure policies allow for changes in the operation of flexible working to meetbusiness needs and highlight the benefits of an onsite presence.

Wellbeing, and mental health still a concern

Over a third reported that wellbeing has become more challenging over the past year, and a similar number reported an increase in absenteeism.
Mental health and acute medical conditions were the most common reasons for absence in the last year.
Over half of organisations identified workload and lack of management support as a contributing factors to mental health issues. Nearly a quarter reported bullying and harassment as a contributing factor.
There has been an increased emphasis on mental health support (54%) and online wellbeing/health initiatives (51%) however only half of respondents said wellbeing was increasingly on senior leaders’ agenda.

Recommendations

Visible senior leader support for wellbeing is critical, with a need for leaders to take responsibility for the impact of culture, technology and working hours on employee wellbeing.
Adopt a more proactive approach to ways of working and job design, considering workload and technology challenges.
Increase commitment to addressing issues of workload, working hours, gaps in management support and bullying and harassment to minimise the negative impact on absence, mental health, and employee turnover.

Culture, inclusion and sustainability: ongoing challenges

Leadership and influencing skills were identified as the most concerning capability gaps, as organisations recognise that future leaders are not adequately equipped to build the right culture and support the employee experience in a hybrid working world.
Three in five respondents believe that remote and flexible working have a positive impact on culture.
Among the nine equality grounds, nearly a quarter identified disability as the biggest challenge, followed by age, gender and race. On the policy front, only 44% have policies on domestic abuse despite the legal entitlement to domestic abuse leave, and a quarter provide additional leave for parents.
Whilst most organisations are engaged in activities to support sustainability, such as wellbeing, diversity and inclusion and flexible working arrangements, most do not have a specific strategy on sustainable people practices.

Recommendations

Allocate time to understand the extent and ways in which hybrid and flexible working is impacting the culture in your organisation.
Increase training for line managers to ensure they can effectively create an inclusive environment and can drive employee experience.
Address the need for a culture, policies and procedures that provide fundamental workplace rights, and an environment free from bullying and harassment.
Use the Sustainable people practices framework to build a relevant strategy and provide appropriate leadership on enhancing sustainable people practices.