Now that the dust has finally settled on how Covid has fundamentally changed how we all work and live. A clearer picture is emerging as to what the future holds for the Irish workplace.
The new Workplace Trends report issued by IBEC this week gives a very clear and stable view of how we now work and will into the future. For non-hands-on required jobs the hybrid model is here to stay, we all have accepted that, but a more realistic home workplace balance has emerged.
- 2 days on site = 18% down from 22%
- 3 days on site = 31%
- 4 days on site = 9% up from 1%
- 5 days on site = 30% up from 26%
So, in essence there is a gradual but steady move back towards the more traditional model of attending the workplace. The legacy of Covid will be that for the majority of non-hands-on workers there will be an element of flexibility and a balance between working from home and the workplace. To reinforce this, 63% of firms say that they have no plans to change the balance going into 2026. Most people except that a ‘slipper career’ was never going to be a healthy medium to long-term option for most people. Anybody in a career over 10 years can look back to the previous norm of the 9-to-5, five days a week and a horrible commute that most people in Ireland had to face. Those days are gone for most people but there is a healthy balance which the above figures confirm.
Other headline numbers from the 52 page report IBEC report include that the average pay increase for companies is 3.6% in 2025. 85% of companies increased wages and 15% kept them the same as last year. It is worth noting that these pay increases are not across the board with 73% of smaller firms increasing wages up to 97% of large employers doing likewise. Regards sectors, all had average increase of about 3.5% with one exception being hospitality with a larger 5.2% increase.
The churn rate in the workforce was 8.3% in 2025 which was similar in 2024.
Absenteeism rates increased slightly to 4.1% in 2025.
The top 5 HR related issues companies quoted in order are:
- EU Pay Transparency Directive
- Pension auto-enrolment
- Employee expectations regard hybrid working
- Statutory sick pay
- Proposed introduction of a Living Wage
The top 5 HR related Talent Management issues companies quoted in order are:
- Workforce planning / business continuity
- Leadership development
- Talent acquisition
- Talent strategy and business alignment
- Performance management
Finally, it will come as no surprise that by far the top priority for talent management continues to the availability of suitable new talent and skills to fill vacancies with 39% of companies saying it is their top issue and 64% saying it is in their top three priorities.
Successful companies should have a mix of strategies for this talent dilemma:
- Employee bonuses to attract outside talent
- Internal recruiters if the cost / benefit ratio makes sense
- Good relationships with several recruitments agencies who know your business
- An Executive Search firm as a trusted advisor for mid to senior positions and more challenging positions to fill.
Bob Hoffman
Managing Partner
Vista Executive Search