As the end of another year creeps closer, we should start looking to the coming year and understand what may be ahead of HR teams in 2025.
The world of work has undergone significant changes over the last few years, and the next 12 months are shaping up to be no exception. For HR professionals, the future presents a mix of challenges and opportunities as organisations adapt to new technologies, a shift in employee expectations, and more.
So, what trends should HR teams be focusing on as they prepare for the year ahead? From the rise of AI in recruitment to workplace sustainability, here’s what we think will be some of the top HR trends for 2025.
AI (artificial intelligence) is quickly becoming a key player in almost all business areas – especially recruitment. As we move into 2025, AI tools will be able to do more than simply screening CVs (which is currently the primary use case within hiring).
These technologies are being enhanced to take them to the level of analysing and forecasting candidate behaviours and even predicting an individual’s job performance if they were to be hired.
This increased AI assistance means HR teams will be able to spend less time on manual processes and feel more confident in making the best hiring choices to build diverse, talented teams that align with their company’s values.
67% of professionals believe AI will play a key role in talent hiring strategies by 2025 but, as we adapt to such a change, it’s important to remember that AI isn’t here to replace humans – it’s here to aid us in making smarter, more informed decisions.
Employee wellbeing isn’t just a “nice-to-have” anymore. In 2025, businesses will need to step up their game by offering robust mental health support which can also include financial wellness programmes and employee assistance programmes (EAPs).
Organisations that genuinely prioritise employee wellbeing will reap the benefits of engagement, productivity, and retention. It’s all about creating a workplace where people feel supported, not just when issues arise, but as the daily norm.
Unfortunately, only 55% of employees at a typical UK workplace feel that their organisation genuinely prioritises wellbeing, showing a clear need for employers to introduce (or revisit) initiatives to change this.
Hybrid work is evolving yet again. In 2025, the concept of ‘workplace fluidity’ is likely to take centre stage. This idea goes beyond location and simply splitting time between home and the office. Employees now increasingly expect complete flexibility in when and how they work, too.
As such, workplace fluidity prioritises adaptability, empowering employees to work in ways that align with their roles, tasks, and personal circumstances in a more flexible way than the traditional idea of a rigid, 50/50 work-life balance which doesn’t always work for everyone.
For example, having the ability to step away from work slightly earlier to spend time with family and pick it up again later into the evening. For HR, this means rethinking things from scheduling and rosters to performance metrics (including measuring output) and communication tools for effective collaboration.
Companies that embrace this shift and invest in the right tools to support this collaboration will find it easier to attract and retain top talent as we move into 2025 – with research by International Workplace Group revealing that almost all HR executives (95%) surveyed regard hybrid working as an effective recruitment tool.
The employee experience will be one of the biggest factors for HR in 2025. Employee Experience Platforms (EXP) are set to play a key role, providing personalised solutions for everything from onboarding to professional development.
These platforms make it easier for employees to access the resources they need all in one place, while also giving HR teams valuable insights into engagement and satisfaction levels.
Employee self-service (ESS) comes under this umbrella – a system that empowers employees to manage their HR-related information and tasks online (including requesting annual leave and enrolling in benefits) usually via an intuitive app. This ability leads to increased efficiency and accuracy and ultimately, happier teams.
And as we know well enough by now, the happier your employees are, the greater their engagement, productivity, and output produced. Research shows that high employee engagement means 23% greater profitability. So, if employee experience platforms haven’t yet been high on your priority list, you might want to rethink that as we go into 2025.
As automation and AI take on more routine tasks, the demand for human skills such as creativity and emotional intelligence will likely skyrocket. For organisations, upskilling and reskilling their workforce to include this expertise will be essential.
Many executives already understand this, with a recent IBM survey showing they estimate that 40% of their workforce will need to reskill as a result of implementing AI and automation over the next three years.
HR teams should focus on creating a culture of continuous learning, possibly recommending a minimum time of continuous professional development (CPD) each year. They could also offer accessible training programmes – such as eLearning – that help employees adapt to ongoing workplace changes and the technological advancements of the future of work.
Sustainability isn’t just about products and supply chains, it’s about how we work too. In 2025, HR will be leading the charge on eco-friendly practices, from green office spaces to carbon-neutral travel policies.
This isn’t just a trend; it’s a reflection of employees’ growing expectations. For many, working for a company that prioritises sustainability is just as important as salary or benefits.
This is demonstrated in a 2024 survey conducted by Hiring Trends Index, which found that 62% of HR decision makers have seen an increase in questions about environmental sustainability from candidates during the interview process.
We hope you found this round-up of HR trends for 2025 useful. Want some support with your HR policies, processes, or tasks as we head into 2025? Speak to a member of our team today to find out how Vero HR can help keep you ahead as we enter the new year.