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The landscape of current HR issues extends far beyond traditional personnel management. Today, Ireland’s people professionals are juggling a complex ecosystem of challenges. Let’s explore these and how to navigate them.
HR teams need to cultivate hybrid workplaces, win talent in a competitive market, and foster employee wellbeing. Not to mention stay compliant with rapidly mounting legislation. As Irish organisations navigate a dynamic world of work, new AI technology offers the chance to radically enhance operations and employee experiences.
In this blog
The landscape of current HR issues
The landscape of current HR issues
HR teams in Ireland need to cultivate hybrid workplaces, win talent in a competitive market, and foster employee wellbeing. Not to mention staying compliant with rapidly mounting legislation.
Such is the spread of current HR issues that IBEC’s HR Management Guide contains 1,000 HR and employee relations topic including continuous learning, diversity and inclusion, and — of course — technology integration. As Irish organisations navigate a dynamic world of work, new AI technology offers the chance to radically enhance operations and employee experiences.
Hybrid and remote working
Working in Ireland has transformed beyond recognition compared to five years ago. The remote and hybrid working arrangements necessitated by the pandemic remain and workforce expectations have shifted significantly. Technology is also playing a key role in the evolving workplace ecosystem.
According to CIPD’s HR Practices in Ireland 2024 report, remote and hybrid working continues to grow, with 40% of employers planning to increase the use of hybrid working and 33% planning to introduce flexitime. Our recent blog looks at the rise of remote and hybrid working in Ireland and HR’s role in making it a success.
Talent management and resourcing
Talent management and resourcing are a top priority to develop our future workforce. In a set of conversations with HR leaders by Zellis, John Kennedy, Head of HR Organisational Development at Irish Rail highlighted:
“When I started out, many people were looking for a job for 40 years, but our graduates just don’t think like that. It’s a reverse of the JFK speech: they want to know what the company’s going to do for them. It’s not mercenary, it’s being selective.”
Compounding the expectations of candidates (and employees) for attractive packages is the well-publicised skills gap. The CIPD report states that nine out of ten organisations face skills shortages (especially in operational roles). Turnover remains high as employees move for career progression, change, or because of the cost of living.
Seán Murray, Director of Product Services at Zellis explains:
“While the unemployment rate is about 4.2% at present – which is classified as full employment – there are labour shortages, especially in the likes of healthcare and construction. The need to import labour from abroad and compete for those skilled resources with competitive packages is still very much a reality.”
Employee engagement
Promoting a healthy work-life balance and supportive wellbeing policies have become key to employee experience — which is in turn key for talent attraction and retention.
The CIPD research revealed that mental health and acute medical conditions were the most common reasons for absence last year. Also, maintaining a wellbeing culture remains a challenge, but there’s evidence of investment in mental health supports and online initiatives by employers.
Growing globalisation is another factor for HR teams, as they increasingly support an international workforce with diverse cultures and unique local compliance needs.
Benefex’s global study, The Evolution Report, examines employee priorities, motivations, and frustrations, helping inform how employers can elevate the workplace experience with employee benefits.
HR legislation changes
The costs of employment in Ireland are on the up. We’ve seen increases to the social insurance (PRSI) rates and minimum wage rates. The introduction of statutory sick pay means that employers now pay for the first few days of certified sickness for employees each year. Plus, there are the mandatory employer pension contributions that will have to be paid once pension auto-enrolment is introduced.
In a wider context, the introduction of pension auto-enrolment may be seen by IDA Ireland as positive for attracting foreign direct investment (FDI) and international labour.
Other regulations on the Irish horizon include the EU Pay Transparency Directive and the Instant Payments Regulation (which changes the SEPA Regulation).
AI in HR: a game changer
One of the biggest contemporary issues in HR is artificial intelligence. The CIPD report affirms how automation, technology, and AI are the top external drivers of change, with the people function increasing its digitalisation, particularly in the use of virtual learning, automated HR processes, and analytics.
AI HR tools have the power to deliver greater efficiency and better employee experiences by aiding with routine, transactional aspects of the work. This can free up practitioners’ time to do what they do best: connect with employees and deliver support to help them perform at their best.
Conclusion: Adapt and thrive
The Irish workplace is changing at a remarkable pace. HR professionals across the country tackle distinct challenges daily — managing hybrid teams, competing for talent despite full employment, and adapting to new statutory requirements. While AI offers promising solutions, the distinctly Irish context demands localised approaches. As costs rise and employees reassess their work relationships, HR teams who navigate these challenges while using technology to enhance human connection will help their organisations thrive in this transformed landscape.
Key takeaways
- Working practices in Ireland have evolved significantly in the last five years, with remote and hybrid working continuing to rise.
- Talent management and resourcing are a top priority to develop our future workforce, with candidates expecting more attractive packages and the well-publicised skills shortage.
- Mental health was the joint most common reason for workplace absence last year. Maintaining a wellbeing culture remains a challenge.
- A host of HR legislative changes in areas such as employer tax and pension contributions, are adding to the HR workload.
- Technology and AI are driving change, with virtual-based learning, automated processes, and analytics revolutionising the HR landscape.
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