Eight in 10 firms plan salary increases in 2025

Cpl salary guide addresses trends across industry

Cpl chief executive Lorna Conn said the world of work is undergoing 'signficant transformation'. Picture: Julien Behal

More than eight in 10 employers are planning wage increases for staff in 2025, but flexible working remains a key consideration for most employees, a report by recruitment firm Cpl said.

The Cpl salary guide for 2025 released on Wednesday details expected salaries across 20 different sectors, and addresses trends across the industry.

The report also noted that 84% of companies are planning to increase their employees’ salaries this year, with increases averaging 3.4%. 

The bulk of Irish employees favour hybrid or remote arrangements, with almost seven in 10 (66%) availing of hybrid working. Indeed 60% of those say they would turn down a new position if it didn’t meet their hybrid working needs, and Cpl says the Irish workplace continues to change.

 “We continue to see a vast majority of Irish employees favouring hybrid or remote arrangements. The dynamic is shifting as we are beginning to see a decrease in fully remote job postings but also in hybrid,” said Cpl chef sales and marketing officer Áine Fanning. “This trend suggests that the future of work in Ireland will require a thoughtful balance to ensure that operational needs align with the flexibility employees value.” 

Cpl says that employers should prioritise the professional development needs of workers, with 85% of professionals citing learning opportunities in the workplace as critical to their career decisions.

Meanwhile 34% of firms expect significant productivity impacts from generative AI in the next five years, with adoption of AI redefining job roles across industries, the report said. In Ireland, 44% of medium-sized businesses plan to invest in AI within the next year, with 29% aimed at cost-saving measures.

Notably, 25% of leaders report employees using publicly available generative AI tools rather than secure enterprise-grade solutions, underscoring the urgency for clear policies and oversight in firms. Cpl notes that the EU AI Act is set to impact recruitment and talent management further, necessitating compliance measures and comprehensive governance frameworks.

The guide says a growing focus on mental health and financial well-being reflects the evolving priorities of the Irish workforce. With 61% of employees reporting financial stress  and increased emphasis on mental well-being in the workplace, organisations are expanding their support systems.

Cpl chief executive Lorna Conn said the world of work is undergoing “significant transformation”. “At the heart of this change is a redefinition of how organisations attract, engage, develop, and retain talent. This shift goes beyond technological advancements or economic trends. 

"The ultimate goal is to create meaningful connections between businesses and their employees to build resilient, adaptable, and future-ready workplaces.”