HR has come a long way in the last ten years, with a lot of big changes happening in workplaces around the world. But despite the changes we’ve already seen, HR trends won’t slow down in 2025. Technology will play a big role in how HR teams approach different operations next year, with AI, data-driven analytics and remote working set to feature.
The biggest HR trends in 2025
Here are some of the biggest HR trends you’re likely to see in 2025, and technology will play a big role.
Data-driven HR practices
In 2025, data will be more important than ever for HR teams. Using analytics, HR teams will have access to data and the ability to make informed decisions based on that data related to talent acquisition, employee engagement and workforce planning. By using data-driven insights, companies will better understand employee needs, projected turnover and workforce performance. Strategies can then be put in place to improve what already exists. Companies that can make data a key part of their HR strategy will be in a better position to improve business results and employee satisfaction.
The rise of remote work and hybrid work
As the pandemic and quarantine restrictions have forced many people to work from home, there has been a steady increase in the number of employees interested in remote and hybrid work. Since then, remote and hybrid work has stalled, and many companies have not returned to a full-time in-person workforce. It is important that HR departments support this change to ensure remote, hybrid and flexible working is successful. To support a remote workforce, HR professionals need to give employees the tools they need to collaborate virtually, maintain clear communication, and ensure remote employees have the same access to career development opportunities as in-person employees.
HR focused on employees
The labor market is becoming more and more competitive, and top talents have an increasing number of employers and roles to choose from. To ensure that candidates are interested in what the company has to offer, HR will need to focus on creating a positive work environment that focuses on the needs, wants and preferences of employees. This shift is already happening, and many companies are focused on improving the employee experience in the workplace. Instead of focusing exclusively on compensation and financial rewards, well-being, engagement and job satisfaction are also prioritized. This will include providing flexible working conditions, supporting mental health and promoting an inclusive culture. Companies that can create environments where employees feel valued and supported will have an advantage when it comes to retaining talent and improving productivity.
Meeting the workforce needs of Generation Z
In 2025, many Gen Zers will enter the workforce, and HR teams must evolve to make sure the unique needs of this generation are effectively met. Generation Z is a generation that values work that aligns with their personal values, such as sustainability and social impact. To attract and retain these candidates, companies will need to provide opportunities for growth, meaningful work and a strong sense of purpose. Companies that prioritize the needs and wants of Generation Z will find it easier to build strong relationships, engaging them as long-term employees.
Get more from human resources with artificial intelligence (AI)
Artificial intelligence has slowly made its way into HR in recent years, but 2025 is when things will really take off, especially when it comes to recruiting, employee management and decision-making. HR teams will gradually rely more and more on artificial intelligence tools, which will allow them to automate time-consuming tasks and free up time to focus on other things. This includes candidate screening, onboarding and payroll management; all this can take up a large part of the day, and all can be automated with the help of AI systems. With AI, it’s much easier to make data-driven decisions, which will help HR professionals see workforce trends, performance and engagement, and make decisions based on that information.
Prioritizing work-life balance with a four-day work week
Work-life balance has become a top priority for both employees and employers, and that won’t change as we move into 2025. Four-day work weeks are becoming increasingly popular, and more workplaces are likely to give this approach a shot, as a way to improve employee well-being while maintaining productivity. Businesses are looking for ways to offer employees more flexibility, and the four-day work week provides just that. For HR, this will require a careful approach to balancing workload and employee expectations to ensure successful implementation.
A new way to handle employee benefits
Many employees accept a job based on the benefits offered; it’s a way to separate two very similar jobs, where employee benefits are what often influence their vote. But employee expectations are changing rapidly and workplace benefits in 2025 must reflect this. Rather than simply focusing on standard benefits—such as health insurance and retirement packages—employee benefits should include physical, mental and financial well-being of employees. Many employees are looking for flexible work options, mental health services and professional development opportunities, and their offerings help employers stand out. As younger generations look for employee benefits that align with their values and the job market becomes increasingly competitive, employee benefits need to take a holistic approach to keep employees happy.
Sign up for our newsletter to find out the latest news from business advice.
