Pay equity remains a top challenge for nearly a third of employers in Ireland.
Nearly three-quarters of employers in Ireland are investing in pay equity initiatives.
An independent study commissioned by SD Worx and carried out by iVOX among 1,000 employers in Ireland found that more than half of employers are struggling to balance attractive rewards with manageable labour costs.
“Tackling pay inequity needs to be at the forefront of employers’ agendas in Ireland, as equal pay for equivalent work should be the rule, not the exception”
30% of employers cite pay equity as a major challenge when it comes to rewarding employees.
Gender pay gaps
The EU Pay Transparency Directive, which came into force in 2023, requires Irish organisations to report and provide transparency across key areas including pay equity and gender pay gaps.
SD Worx’s research found that some 49% of employers in Ireland are committed to pay transparency, which would see the pay level of employees being made available to employees of similar grade in the organisation. Moreover, 43% of organisations cite pay transparency as a top challenge when rewarding employees.
As the war for talent continues to rage, businesses are adopting more strategic approaches to rewards.
More than half (51%) of employers say their reward policy plays an essential role in their reputation as an employer. As such, 31% are offering flexible wage payment dates, which could include paying employees early, or paying on special request.
Some employees have the flexibility to choose how they would like to be rewarded, and 31% of employers say that workers can put together their own reward package based on an allocated budget. Aside from salary, employee rewards offered by Irish employers include bonuses and commission (53%), health and wellness benefits (48%), and vouchers (45%).
“Tackling pay inequity needs to be at the forefront of employers’ agendas in Ireland, as equal pay for equivalent work should be the rule, not the exception,” said Eimear Byrne, country leader, SD Worx Ireland.
“Businesses of all sizes must establish structures to effectively manage their pay transparency obligations, especially as mandatory gender pay gap reporting is extending to organisations with more than 50 employees in 2025.
“Businesses must place their team members at the core of all business decisions – particularly in relation to rewards and remuneration. Not only will this lead to happier, engaged, and productive employees who are more likely to stay long-term, it will also set organisations apart as they look to attract new, skilled workers.
“The ever-increasing cost of doing business is being felt across the board, and our research shows that Irish employers are finding it difficult to balance what employees want and need with what the business can reasonably afford to do. To navigate these challenges effectively, organisations need to be capable of delivering transparent reporting and supporting wage cost projections. These tools are essential for businesses to ensure sustainable success,” Byrne added.
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