Summary
On the surface the Irish labour market with low unemployment, and record female participation looks great, but beneath this veneer is a more nuanced reality.
Still in Transition
With circa 4% unemployment, inflationary pressure and the high cost of living it should mean double-digit growth in salaries in the main for 2025. Nevertheless with many companies struggling to make a profit, lower levels of vacancies and less attrition, we do not see this being achieved.
We are still in a transition phase post pandemic which alone makes salary predictions hard but when you add in contradictory labour market trends, global uncertainty and moving economic indicators it makes the 2025 Salary Guide our most challenging ever to produce.
Remote Working
As a country we have still not reached equilibrium on remote working. In the second half of 2024 momentum shifted considerably from a view that remote work is here to stay, to it’s more of a pandemic blip and we will eventually be back to pre-Covid norms. We can see from job advertisements that remote-only roles are now at 2%.
Evaluating how beneficial it is to employees, employers and other stakeholders must be considered in both current and future contexts. It is a challenge to find the optimal balance for individuals, teams, managers and businesses. In Sigmar we know ‘remote working opportunities’ are in the top 2 questions candidates ask about roles. As an employer being clear on what is or is not available will define the available talent pool. We are starting to see workers accept a lower salary for remote work and more are seeking an ‘onsite premium’ for being full-time in the office.
Increasing Attrition in 2025
Low attrition is partly driven by workers’ reluctance to give up the flexibility and work-life balance afforded by hybrid work arrangements. As more workers are asked to return to the office in 2025, we will see rising attrition which will drive more vacancies, and in turn will begin to inflate salaries. One way of combatting this is to be remote-friendly.
New Norms
Many employers, particularly in sectors like hospitality, construction, and healthcare, are experiencing a persistent skills shortage. At the same time traditionally buoyant areas like parts of ‘Tech’ are in the doldrums. And yet even within ‘Tech’ some roles are impossible to fill. In 2025 it is more important than ever that you benchmark roles before going to market to ensure your proposition is attractive and your campaign will not annoy hundreds of disappointed candidates and damage your employer brand.
So in summation, another interesting year ahead but the mixed talent landscape of 2023 and 2024 is starting to become clearer which will help us all take actions and move forward.