Top Challenges Facing Chief People Officers in Ireland in 2025

Here at HR Search we work with, advice and guide Chief People Officers across Ireland – some are proactively searching for a new role, others are more passive and purely sense checking the market. What is apparent are the broad salary ranges on offer from a basic of 175K to 350K and that is before bonus and equity. What is also apparent is that CPO’s have many plates to juggle and this role requires huge capability to face multiple challenges and make an impact.

Ireland’s CPOs in 2025 are facing a complex landscape. Below, I have reordered the challenges by strategic importance, balancing urgency, regulatory deadlines, and their impact on talent and organisational performance.

Top-Tier Priorities (Immediate and Strategic Impact)

1. AI Adoption and Workforce Readiness

• AI adoption in Irish workplaces has surged, 91% of firms report using AI in 2025, up from 49% in 2024. Employee use of AI tools has also doubled in a year. This fundamentally reshapes roles, productivity, and engagement. CPOs must lead workforce capability-building, governance, and ethical use frameworks.
• Action: Launch AI literacy programs, governance frameworks, and reskilling strategies to future-proof roles.

2. Talent Attraction and Retention

• Labour market churn remains high (~11% in Q1 2025). Staff turnover ranges from high single to mid-teens percentages, depending on sector. The EVP, career pathways, and flexibility remain critical levers to retain and attract talent in a mobile market.
• Action: Refine EVP, deploy predictive attrition analytics, and implement targeted retention levers.

3. Hybrid Working and the Return-to-Office Debate

• Hybrid remains the norm, but employers are testing stronger return-to-office policies. Evidence shows rigid mandates risk higher attrition and weaker attraction. Flexibility remains a top driver of candidate decision-making.
• Action: Build role-based hybrid models, measure impact on productivity, and adapt policies based on data.

4. Gender Pay Gap Reporting (2025–2026 Deadlines)

• From 2025, all employers with 50+ employees must publish pay gap data. The EU Pay Transparency Directive adds further obligations from 2026. Reputational and regulatory risk is high.
• Action: Audit pay practices now, close structural gaps, and prepare transparent narratives and remediation plans.

5. Auto-Enrolment Pensions (2025–2026 Launch)

• The long-delayed auto-enrolment pension scheme is due to begin in late 2025 or early 2026. It will cover workers aged 23–60 earning above the threshold. Employer contributions will create new payroll costs.
• Action: Model employer cost, adjust total rewards, and design clear employee communications.

Second-Tier Priorities (Material, Medium-Term Impact)

6. Housing Shortages for Overseas Hires

• Vacancy rates remain critically low (3.8% nationally; lower in Dublin). This constrains the ability to recruit and retain overseas talent, particularly in high-skill sectors.
• Action: Provide relocation support (temporary housing, subsidies) or explore distributed hiring models.

7. Employer Branding

• Candidates exposed to strong employer brands are many times more likely to apply. In a competitive labour market, brand credibility reduces cost-per-hire and boosts quality.
• Action: Align external messaging with internal culture, invest in employee advocacy, and track funnel conversion metrics.

8. Data Analytics and Making Numbers Meaningful

• HR teams hold vast data but often lack decision-grade insights. Moving from descriptive dashboards to predictive analytics (attrition risk, critical role forecasting) is the differentiator.
• Action: Build a roadmap for people analytics, invest in predictive tools, and ensure GDPR compliance.

9. Global Economic Uncertainty

• Wars, tariffs, and global supply-chain risks create volatility for open economies like Ireland. This often leads to hiring freezes, restructurings, or delayed investments.
• Action: Integrate scenario planning into workforce strategy and build flexible talent pipelines.

Third-Tier Priorities (Structural and Cultural Foundations)

10. The DEI Agenda

• Public and employee support for DEI remains strong, but representation gaps persist — 16% of Irish firms still report no women in senior management. DEI progress underpins employer brand and fairness.
• Action: Set measurable representation goals, invest in mentoring/sponsorship, and strengthen DEI data tracking.

11. Catering for a Broad Age Range in Employment

• The share of workers aged 55+ is rising, with participation rates increasing across older cohorts. Employers must adapt for longer careers and intergenerational workforces.
• Action: Design flexible work options, create phased retirement pathways, and provide reskilling opportunities.

12. Balancing Fairness and Organisational Need

• CPOs must constantly navigate trade-offs between fairness and cost. Transparent frameworks and evidence-based decisions reduce risk and strengthen trust.
• Action: Codify fairness principles, publish impact assessments, and use data to guide decision-making.

In 2025, the Irish CPO agenda is about navigating urgent regulatory change (pay gap, pensions), harnessing rapid AI adoption, and sustaining talent attraction in a tight labour market — all while housing, branding, and global uncertainty constrain strategy. Long-term cultural priorities like DEI, ageing, and fairness remain essential foundations, but immediate energy must focus on the top-tier challenges above.

Here at HR Search, we are on standby to assist CEO’s to source CPO talent. We have a demonstrated record of success working across a broad range of sectors including Professional Services, Banking, Tech/IT, Fintech, Pharmaceutical and FMCG. Please get in touch here if you need any assistance sourcing the best available CPO within the Irish market or further afield.