CIPD Ireland have published their annual report on HR Practices in Ireland for 2025. Inside we see the most prevalent challenges facing the People and Culture landscape, as well as insights on the strategies members of the people profession are using to respond to such challenges.
Top Priorities for Organisations Over the Next Two Years
- Cost Management
- Digitalisation and Technology
- Performance and Productivity
- Organisational Agility
- Talent Management
Top Priorities for HR Functions Over the Next Two Years
- Talent Management
- Leadership Development
- Employee Experience
- Performance and Productivity
- Digitalisation and Technology
In previous iterations of the report, we have seen strong alignment between organisational priorities and the priorities of HR functions. However, HR functions are reporting a different and more diverse set of priorities, namely leadership development and employee experience.
The low level of alignment highlights how the people function is focused on delivering the core activities of resourcing, development and retention, while the organisational context has moved on to the pressing issues of costs, technology and productivity. As the level of change and uncertainty grow, the people profession will need to connect its work with the key challenges facing businesses.
Challenges Facing Today’s People Agendas
- Skills shortages is on top of the list of challenges facing the people profession today (64% of people professionals reporting challenges attracting, retaining and developing employee skillsets.)
- Budgetary constraints were also reported as a constraint for HR functions (56%) reflecting the impact of the cost of doing business and ongoing cost increases, as well as many organisations prioritising cost management.
- Managers’ time for people management activities was again a concern for members of the people profession (51%). However, it has continued to trend downwards (from 64% to 56% to 51%), a positive step in the right direction that reflects the increased time investment by line managers in people management activities.
Resourcing and Talant Management
Talent management and resourcing continue to be a critical focus as organisations compete to attract, retain and develop the workforce they need for the future.
Factors influencing these challenges include:
- the changing nature of employee expectations, such as an increased demand for personalised ways of working and autonomy
- housing issues, increasingly reported as a constraint to talent resourcing
Many organisations affected by skills shortages have adopted new recruitment strategies to adapt to these challenges such as:
Digital Transformation and Preparedness for AI
Digital transformation across the globe is changing the nature of work, work processes and methods, requiring new mindsets, skills and organisational practices. Automation and AI in particular have been the biggest drivers for change, pushing businesses to take advantage of the technologies to stay competitive, manage costs and remain attractive places to work.
Despite the implementation of digital HR tools, the 2025 survey indicated a low readiness for introducing and managing AI in the workplace. More worryingly, between 50 and 60% of respondents had no plans to address these issues in their organisations. This is a clear opportunity for the people profession to step in and provide leadership in their organisations.
Hybrid Working: The Debate Continues
Much public debate continues around the benefits of hybrid working for organisations with many high profile organisations mandating a partial return to the office. However, flexible working practices continue to be an impactful tool in recruiting and retaining talent.
65% of organisation reported no change to their mandated on site days with 26% increasing their onsite days in 2024/2025. In line with last years survey, 60% of organisations reported a 60% increase in productivity, with 30% reporting no change over the last 12 months. Interestingly, when accounting for hybrid working employees, 28% reported increased productivity while accounting for fully remote employees, organisations reported 28% perceived lower productivity.
You can download the HR practices in Ireland 2025 report here.
Eoghan Harley, HR Consultant
