New data shows pensions and health insurance remain cornerstones of workplace packages but early career employees report weaker access as hybrid working becomes standard.
Ireland’s employers are continuing to rely on traditional financial benefits to attract and retain staff, even as younger workers say they are less likely to receive core protections, according to new research from Morgan McKinley.
The firm’s Ireland 2026 Benefits Guide draws on responses from more than 1,200 employers and employees across 32 sectors. It identifies a more established and deliberate approach to benefits design, yet finds that a significant share of workers feel they are still not receiving what they need.
“The Irish benefits market is no longer defined by how many benefits an employer can list. It is defined by whether those benefits are accessible, understood and aligned with what employees actually value”
Morgan McKinley said 68% of employees consider their benefits package important for loyalty, although 38% believe what they receive is below market level.
Strong employer confidence contrasts with weaker employee sentiment, pointing to a persistent mismatch between what organisations think they offer and what staff say they experience.
Battle of the benefits
Trayc Keevans, Morgan McKinley’s global FDI director, said the value of a benefits package is now defined by its accessibility and clarity rather than its length. “The Irish benefits market is no longer defined by how many benefits an employer can list. It is defined by whether those benefits are accessible, understood and aligned with what employees actually value,” she said.
“Hybrid working has effectively become a fundamental expectation in many parts of the market”
The report finds that pensions, bonuses and health insurance remain the most common benefits across the labour market. Ninety per cent of employees surveyed said they were enrolled in an employer pension scheme. However, younger and early‑career workers were far less likely to report access to pensions and private health insurance than older colleagues.
Keevans said the pattern raises structural questions for the labour market. “The benefits employees value most for long‑term security, particularly pensions and health insurance, are not always reaching people early enough in their careers. In a market shaped by an ageing population and by Lifetime Community Rating in health insurance, that is a strategic issue for employers, not just a design detail,” she said.
Hybrid working has now settled into a baseline expectation in many parts of the economy, with almost one in three employees ranking it as among their most important benefits. Most employers now offer hybrid arrangements, although sectoral differences remain.
By contrast, childcare support is described as “almost non‑existent.” Just over 2% of employees said they had access to employer‑supported childcare, a figure that has barely shifted since 2021 despite rising living costs for working families.
The research also identifies a wide perception gap for several high‑value benefits such as income protection, learning and development and enhanced leave. In these categories, employers report offering certain supports at far higher rates than employees report receiving them. In some cases the difference reaches 40%, suggesting communication, eligibility and awareness all play a role in shaping how benefits are understood.
Benefits competitiveness continues to vary sharply between industries. Financial services, life sciences, technology, legal and telecommunications were judged to offer the strongest overall packages, with a broad mix of financial, wellbeing and flexibility supports. Life sciences in particular offers a notably balanced set, including pensions for 84% of employees, bonuses for 83% and health insurance for 86%.
Family‑friendly benefits show mixed progress. Enhanced maternity pay is becoming more common, but supports for childcare, adoption and fertility remain limited. The report notes that cost‑of‑living supports are relatively weak when compared with longer‑term financial benefits.
Keevans said employers now face a challenge in ensuring that what they offer is understood. “Many employers believe they are offering competitive benefits, but a substantial share of employees do not experience those benefits in the same way. That gap weakens the return on investment and should prompt organisations to look not only at what is on paper, but at eligibility, visibility and take‑up,” she said.
She added that the shift to hybrid working shows how quickly employers can adapt when market expectations change.
“Hybrid working has effectively become a fundamental expectation in many parts of the market. By contrast, childcare support remains exceptionally underdeveloped. That tells us a lot about where employers have adapted quickly and where the market still has a long way to go.”
Top image: Trayc Keevans, Morgan McKinley’s global FDI director
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