News

Ireland’s labour market is shifting fast. Employment among 15–64-year-olds has surged to 74.7%, while unemployment increased to 4.9% in July according to the CSO’s latest data with the latter likely driven by economic pressures in certain sectors. On the other hand, the skills shortages persist across technology, financial services, healthcare, and manufacturing. For Irish employers, replacing talent is expensive and increasingly challenging, with a cost of €10,125 per employee reported in the Adare HR Barometer Series 9.1 in 2025.

At the same time, HR leaders face an unprecedented regulatory wave from gender pay gap reporting applying to headcounts of 50+ this year and the EU Pay Transparency Directive implementation fast approaching, to the Corporate Sustainability Reporting Directive (CSRD) and the EU AI Act.

For business leaders, this convergence signals a clear imperative: workforce data has evolved from an HR back-office tool into a strategic asset. Companies that use people analytics effectively are achieving measurable returns on investment (ROI) through better retention, smarter hiring, and stronger compliance.

When using data in a manner relevant to your business the drive of actionable insights enables changes in both people and business performance. Too often, companies treat analytics as a reporting exercise but the businesses leading in this space start with a business challenge, not a dashboard.

An ROI Playbook for Leaders
The first step in assessing the relevant data points for your Organisation is to focus on what matters most. Choosing two to three high-impact use cases that are compounding the furtherance of business goals is the starting point. For some it may be attrition reduction or skills planning and capabilities for others the focus could be on addressing pay equity ahead of regulatory deadlines. Identifying where the gaps lie is crucial to remediation and the strategic plan that will address these challenges in the year ahead.

The next step is to build your value model. Working with your finance department to quantify potential gains and validate savings assumptions early is essential. This allows you to understand where the investments should go but also helps establish the metrics that will demonstrate progress against any plans. Make insights easy to act upon by embedding simple, practical recommendations directly into managers’ workflows thus empowering your managers with decision making capabilities.

Finally, establish a quarterly People Value Scorecard linking analytics to outcomes such as the monetary value of any attrition avoided, the value of reducing recruitment time by days inputted or the cost of closing pay equity gaps and risks avoided from financial penalty. All of this will help shift your analytics from HR reporting into business performance enablement.

The Bottom Line
In 2025, people analytics is no longer optional for Irish businesses. It’s the key to retaining talent, optimising workforce investments, and staying compliant in a rapidly evolving regulatory landscape.

Business success will be driven by those who combine data-driven insights with responsible governance and manager-led action. Those who wait risk higher costs, lower retention, and reputational exposure in a market where talent and transparency have never mattered more.

The message for HR and business leaders is clear, identifying the right analytics that act for your business will enable the right return on investment.

WANT TO GAIN INVALUABLE INSIGHTS INTO HOW YOUR ORGANISATION COMPARES?

Adare are conducting their bi-annual national HR Barometer survey and want to hear from you. The Adare survey analyses the impacts, challenge, and opportunities within HR and Employment Law in Ireland, including detailed research on HR metrics, Learning & Development, Retirement & Pensions, Diversity & Inclusion, Performance Management, Pay, Working Practices, and Strategic HR priorities.

By participating in the Adare survey, you will receive free access to expert analysis of these critical areas, empowering you to benchmark your practices against those of other Irish organisations.

Adare is a team of expert-led Employment Law, Industrial Relations and best practice Human Resource Management consultants. If your Organisation needs advice, support, or guidance about compliance requirements or any HR issues, please contact Adare by calling (01) 561 3594 or emailing info@adarehrm.ie to learn what services are available to support your business.