Healthcare provision the costliest benefit for employers in Ireland
DUBLIN, June 30, 2025 – Financial pressures impacting businesses and the challenges in relation to attracting and retaining talent are the two biggest issues affecting how employers reward employees in Ireland today. The findings are part of the latest Benefit Trends Survey by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company. The global research is conducted every two years across 105 markets, including Ireland.
The 2025 Benefits Trends Survey has found rising benefit costs to be a top issue (61%) influencing employers in Ireland and their benefit strategies. Providing healthcare benefits was identified as being the most prevalent cost, with 41% of employers in Ireland citing this benefit as the most challenging to implement. This is due to the continued increase in the cost of medical care in Ireland which is projected to increase by 7.9% in 2025.
In 2025 competition for talent is also a key business issue shaping benefit strategies, as cited by 73% of employers in Ireland. Other notable issues and considerations impacting employee benefits strategies include employee expectations for enhanced experience (44%), pay and benefit transparency (34%) and cost of living issues for employees (24%).
“Irish employers are under increasing pressure to do more with less”
Orlagh Farrington | Head of Health of Benefits at WTW in Ireland
Commenting on the research findings, Orlagh Farrington, Head of Health of Benefits at WTW in Ireland said; “Irish employers are under increasing pressure to do more with less. While competition for talent remains the top driver of benefits strategy, the 2025 WTW Benefits Trend Survey reveals a clear shift towards benefits programmes having a more value driven approach with a focus on what matters most – mental health, financial wellbeing and an improved employee experience.”
When compared to the 2023 survey, the 2025 research shows that benefits focusing on climate change and ESG are an increasing priority for employers in Ireland, and the number of employers focused on employee work arrangements has dropped from 37% in 2023 to 20% in 2025. In 2025 one in three employers are looking to reduce remote working for employees.
The 2025 research also found that new technologies are now a consideration for 15% of employers in Ireland with regard to employee benefits. Employers expect AI to make an impact to their benefits and business operations over the next 3 years in areas such as communications, administration and operations, however the majority are currently taking a ‘wait and see’ position.
“Research is reflective of what we are seeing in the Irish market, that employee expectations are generally evolving”
Orlagh Farrington | Head of Health of Benefits at WTW in Ireland
With regard to the current situation and future trends in Ireland, Orlagh Farrington continued, “The 2025 research is also reflective of what we are seeing in the Irish market, that employee expectations are generally evolving. Employees in Ireland increasingly now seek flexible, personalised benefits and experiences, supported by digital apps that provide instant access to view and manage their benefits. As such, employers are integrating technology solutions to enhance their overall employee value proposition with a view to meeting current and future requirements in a competitive talent market.
“Overall, we are recommending that employers reimagine benefits as a strategic tool, balancing value, purpose, and employee experience through smarter spend, greater choice and data driven decision making. As such, WTW are here to support clients with reviewing and evolving their benefits strategy in short, medium, and longer-term.”
The 2025 Benefit Trends Survey was conducted from early March to mid-April. Respondents include 41 employers in Ireland, representing over 41,000 employees across a broad range of industries in both the private and public sector.
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