36% of organisations have yet to model the impact of AI on their workforce structure, according to HR leaders

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• The majority of HR professionals do not expect AI to negatively affect headcount in 2027, but 36% have yet to formally model its overall impact on workforce structure
• Niche skills, labour shortages, and senior recruitment among top reasons for hiring international workers
• 12% increase in the number of organisations operating an occupational pension scheme

Ibec, the group representing Irish businesses, will today launch its latest Talent Trends Report at the annual HR Leadership Summit, highlighting key trends shaping HR practices in Irish workplaces. The report, based on a survey of 319 HR professionals, shows most respondents do not expect AI to negatively affect headcount in 2027, but that 36% of organisations have yet to model its impact on their workforce structure. The report also shows that 61% of HR leaders say their company does not plan to change its hybrid policies next year. Meanwhile, the implementation of the EU Pay Transparency Directive was identified as the single most impactful factor affecting HR operations, cited by 68% of HR leaders as compliance deadlines approach.

In terms of talent acquisition, 77% of companies are recruiting non-EEA nationals, citing the sourcing of niche skills, labour shortages, and senior recruitment as the primary reasons. The introduction of pension auto-enrolment has led to a significant rise in the proportion of firms providing occupational pensions, climbing from 69% to 81%, alongside a shift from voluntary to mandatory schemes. There has also been a notable decline in businesses using tenure as an eligibility criterion for joining a company pension scheme, falling from 55% of schemes in 2025 to 28% in 2026.

Maeve McElwee, Executive Director of Employer Relations at Ibec, said:

AI/Workforce Transition

"Unsurprisingly, AI and workforce transition remain front and centre of HR operations, given the scale of organisational change underway. However, there is genuine confidence that while some roles may change, the narrative of job displacement does not currently reflect what HR leaders are seeing. What we are seeing from the feedback is that the challenge for businesses lies in gaining a better understanding of how they capture and measure the productivity benefits of AI across their business operations.

Hybrid Work Policies

"Across recent reports, HR leaders have noted a stabilisation in how workplaces manage hybrid and flexible working compared to four or five years ago. While off-site work is not feasible for every workplace, our report shows that where it is possible, the vast majority of companies recognise the productivity and employee engagement benefits, and do not plan to change policies next year, further underlining this stability."

Access to International Workers

"In terms of labour skills, the report underscores the vital importance of international workers to our economy. Burdensome visa and work permit procedures, the absence of the Single Permit Directive (SPD), and lengthy delays in issuing Irish Residence Permit (IRP) cards, which disrupt business travel, remain problematic given the importance of this talent pool to skills attraction and development.

EU Pay Transparency Directive

"Regarding other pressure points for businesses, preparing for and complying with the EU Pay Transparency Directive is the top issue for HR leaders. Arguably the most significant piece of EU employment legislation in decades, it is vital to ensuring alignment with the values of a modern, inclusive labour market. However, ensuring employers are equipped with the right information, appropriate tools, and sufficient time to act has been a major concern over the past year. That is why Ibec continues to support employer preparedness and why we will be actively engaging with government to seek greater certainty in the timelines for enactment and commencement of the legislation and related guidance.”

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