First published on Thursday, January 2, 2025
Last updated on Thursday, January 2, 2025
2024 was a busy year for business owners, especially within the world of HR. Ireland saw major changes, including updates to employment permits, significant increases to the minimum wage, and expanded sick leave entitlements, to name a few.
With so many changes, employers understandably have questions about what might be on the horizon for 2025. The landscape will face its share of challenges and changes, including:
A continuation of the cost-of-living crisis
Increased technological advancements
The introduction of pension auto-enrolment
So how can business owners address the challenges head on? Here’s what we think…
The cost of living crisis continues…
According to research by People Management, one of the biggest concerns for employees throughout 2024 was the continued rise in the cost-of-living. And unfortunately, this isn’t going away.
75% of HR directors saw a drop in productivity, resulting from employees being concerned, burnt out, or preoccupied with the stresses associated with the cost-of-living.
For example a survey conducted in 2024 revealed that almost two thirds of Dublin businesses lost employees and had prospective ones decline job offers due to the severe lack of affordable housing in the city.
As the financial strain continues to affect households, your staff’s morale and wellbeing will be affected more than you might think.
Try to consider the financial implications on your staff if you’re planning a strict return-to-work policy. Also, consider looking into providing access to an Employee Assistance Programme to give your team someone to talk to when they need it most.
Other benefits you could consider offering include:
Discounted employee benefits (like those found on Bright Exchange)
Free food and drink
Pay increases (if you can afford it)
These measures can help boost retention and engagement, which is cheaper than constantly rehiring and training.
The rise of technology and AI
Lots of new technologies are emerging, leading many workers to worry about losing their jobs. This is especially true of AI.
AI and advanced technologies can enhance the satisfaction of your staff and boost productivity by automating various tasks. Alternately, job insecurity can drive high turnover, low productivity, and low engagement. So what can you do to avoid this?
Start by offer upskilling opportunities where you can, educating your staff on any new systems, technologies, or use-cases for AI. This way, you’ll provide the tools for success, while reassuring your staff of their future in your organization.
2025 Budget opportunities
The 2025 Budget introduced several pro-business measures aimed at alleviating cost pressures and fostering growth throughout the country. One notable initiative was the €257 million Increased Cost of Business Scheme, which offers grants to approximately 130,000 small and medium businesses to help offset rising operational expenses.
We also saw an increase in the Research and Development Tax Credit from 25% to 30%, encouraging innovation across many sectors. Plus, an Angel Investment Scheme, featuring a reduced Capital Gains Tax rate of 16%, designed to stimulate investment in innovative SMEs.
With so many measures presenting opportunities for business owners, your business may want to consider new hires to fuel expansion. Tools like the People Navigator can make this process a breeze in the New Year.
Big legislation changes
In 2025, businesses can expect some major legislative changes, including the implementation of pension auto-enrolment, which will require employers to automatically enrol eligible employees in pension schemes as of September 2025.
Employers will also need to prepare for expanded gender pay gap reporting, as the threshold for mandatory reporting is lowered to businesses with 50 or more employees as of June 2025.
Another major change comes in the form of maternity leave regulations under the Maternity Protection (Amendment) Bill 2024, which will require businesses to update their policies related to the postponement of leave.
It’s essential for your business to plan ahead to ensure you’re ready for these shifts in legislation. Non-compliance can lead to major fines and penalties, so having compliant policies in place via an online HR document library is an effective way to save time and stay compliant.
Culture is king
Company culture remains a huge priority for employees. It dictates everything from how your team interacts with each other to the values, beliefs, and attitudes you uphold in your organisation.
For Millennials and Gen Z employees in particular, culture is a top priority when choosing the type of employer they want to work for. Looking ahead, your business needs to find genuine ways to showcase your culture to attract the best talent.
How BrightHR supports your business
There’s a lot for your business to contend with in 2025. But worry not, BrightHR has got your back!
Book a demo with one of our friendly experts to discover how our expert document templates, confidential 24/7 HR and health & safety advice, and streamlined HR software can support your business in 2025.
