With 44% of Irish workers planning to look for a new role this year, compensation is central to employers’ talent attraction and retention efforts. However, as worker demands evolve, employers need a compensation strategy tailored to the priorities and expectations of a workforce seeking stability, development and balance.
In this article, we’ll be exploring compensation strategies and planning, and looking at how you can craft packages that help you attract and retain talent in Ireland.
Key takeaways:
- Employers need a compensation strategy that reflects shifting worker priorities, including flexibility, development and work-life balance.
- 72% of Irish jobseekers won’t apply for roles that don’t include salary information – making pay transparency a baseline expectation.
- Earning more money is workers’ top career goal in Ireland (41%), ahead of improving work-life balance (34%).
- Health insurance is the number one desired benefit among Irish workers (38%), yet only 4% of employers advertise it.
- Benefits strongly influence retention, with 73% of workers satisfied with their package.
- With the EU Pay Transparency Directive being transposed into Irish law by June 2026, employers face growing pressure to be clearer and more consistent about pay.
- Employers should benchmark pay and benefits against the Irish market to stay competitive and avoid over- or under-paying.
- A modern compensation strategy must balance pay, benefits, flexibility, and development.
- Compensation frameworks should clearly outline pay bands, bonus structures, eligibility and review processes.
- Transparent communication about how compensation decisions are made helps build trust and improve satisfaction.
Why is a compensation strategy is so important?
With today’s workforce being more selective, values-driven and vocal about what they expect from employers, a strong compensation strategy is no longer optional. Let’s delve into the specifics.
Attracting talent in a competitive market
With candidates becoming increasingly selective, a competitive compensation offering is one of the most effective tools at employers’ disposal for appealing to talent.
While salary remains the decisive factor for most Irish candidates – with 7 in 10 (72%) refusing to apply for roles that don’t display salary information – candidates now screen roles based on a broader set of criteria, including benefits, flexibility, and development opportunities.
According to the IrishJobs Salary Trends Report 2026, the top drivers of job search beyond salary and benefits are:
- Better work-life balance, including flexible working (32%)
- Better career and progression opportunities (31%)
- Better learning and training opportunities (23%)
- Greater job security (21%)
- More interesting or engaging work (17%)
As a result, compensation strategies increasingly need to go beyond pay and include a broader value proposition.
Retaining top performing staff
While 44% of Irish workers are planning to look for a new role, the remainder are staying put – and their loyalty is often tied to how valued they feel. Among workers overall, 73% say they are satisfied with their current benefits. suggesting that a strong benefits package plays a meaningful role in retention.
Crucially, employers who invest in meaningful, relevant benefits are more likely to maintain a stable workforce and reduce their turnover costs. Given that 1 in 4 Irish workers say they would give up a pay rise in exchange for their top benefit, benefits carry real weight in compensation decisions.
Supporting wellbeing and financial resilience
Ireland’s gross median salary currently stands at €54,928, but there is significant variation across sectors and cities – with Dublin commanding a median if €60,000 compared to €46,200 in Cork and €52,000 in Galway. For many employees, particularly those outside the highest-paying industries, cost-of-living pressures remain a real concern.
Compensation strategies that provide competitive pay, strong benefits and clear progression opportunities can therefore help employees feel more financially secure and engaged. With 58% of workers having received a pay rise in the past year at an average of 6%, many employees are actively benchmarking their compensation – and employers need to keep pace.
Strengthening employer brand
A reputation for providing fair and competitive compensation enhances employer brand, helping organisations stand out and becoming an employer of choice. Only 38% of Irish job ads currently include salary information – a significant gap given that 72% of jobseekers refuse to apply without it.
With the EU Pay Transparency Directive being transposed into Irish law by June 2026, employers that act early and commit to transparent, consistent pay communication will be better positioned to attract high-quality candidates and retain their existing staff.