3 workforce trend categories: technology, people-centric practices, and compliance

2025 Workforce Trends

Shaping the Future of Workforce Management

Your business is unique as are your company’s needs. That doesn’t mean your business won’t be affected by the trends in business and HR management. Understanding and finding ways to incorporate these trends in your day-to-day helps you maintain a competitive advantage, attract top talent, and ensure your business is running smoothly.

What is shaping HR in 2025? There are 11 trends it’s worth keeping up with.

1.     AI in Work Processes

AI is useful in:

  • recruitment
  • employee analytics
  • training and development
  • workflow automation
  • talent planning, and
  • many other HR functions

Using AI tools can help to streamline processes, increase accuracy, and save time.

It’s not just large companies taking advantage of AI tools. At least 25% of small businesses also use AI in some capacity. Another 42% of businesses are considering implementing AI tools into their business processes.

Whether it’s automating resume screening, monitoring employee performance and engagement, automating customized training schedules, reducing time in repetitive tasks, or helping to predict future workforce needs, businesses of all sizes have become more open to the possibilities responsible AI use can provide.

To incorporate AI in your business processes, it’s best to start small. Focus on one area and optimize your use there before moving on to other processes.

Make sure to evaluate the available tools carefully. Just as not all employees are a perfect fit, neither are all AI tools. Do your research and find the tools that best meet your company needs.

It’s also important to make sure your team is trained in how to use these tools to their best advantage. This includes ensuring they understand how to use AI ethically.

2.     Data-Driven Decision Processes

Depending on how you analyze and apply it, data can be a powerful decision-making tool. The insights your data provides can help you

  • Improve efficiency
  • Predict trends, and
  • Reduce risks

Taking advantage of the information available to you can triple the effectiveness of the decisions your company makes.

Your company data can help you find answers to important questions such as what’s causing employee turnover; what will your future hiring needs be; What are your workforce demographics and what biases might exist in the workplace.

Make sure you have the tools necessary to compile your data in one place. Set clear goals for what insights you want to gain and what questions you want to answer. Ensure that your leadership team knows how to use the tools in place and understands how to interpret the data for the best insights.

3.     Employee Wellness Programs

Employee wellness has been at the forefront for many years, yet research shows little improvement in employee well-being. This has led many to consider a more holistic approach to employee wellness programs, integrating wellness into their culture and processes.

Employees are 4 times more likely to be engaged at work if they feel their leaders care about their well-being. This can take the form of stress management strategies incorporated into work schedules; providing stipends to encourage employees to stay active; or going beyond physical health to provide financial literacy programs to help employees manage their finances.

To determine the well-being needs of your employees, ask them. Consider how to incorporate their biggest needs into your daily processes, such as stipends or direct access to resources. Make well-being a cultural norm, incorporating these resources for employee wellness into your company policies.

4.     Hybrid and Flexible Work Programs

Despite the ongoing debate on social media, remote work is a part of the business world. Full-time, in-office work has decreased by 6% over the past year.

Flexible work schedules have continued to increase since 2020. In fact, the majority of U.S. workers prioritize flexible work settings when looking for a job. If you are willing to embrace hybrid work, you can increase employee morale and reduce overhead costs.

Regularly assess your work models to make sure they are working for both you and your employees. If you are ready to make the move to hybrid models, make sure your team has the tools they need to stay connected even when not in the office. Set clear policies and guidelines for hybrid work to ensure everyone remains aligned and productive from wherever they work.

5.     Focus on Employee Experience

If you want your employees to remain productive and engaged, it’s important to make sure they feel valued and supported. Replacing a disgruntled employee can cost an additional 6 to 9 months of the employee’s salary on top of the regular wages.

Companies with a positive work experience can increase profits by up to 23%. Ensure a positive employee experience through regular check-ins.

Make sure you listen to employee feedback and recognize employees for their accomplishments. Make sure employees have advancement opportunities in your company.

Set up clear career paths based on your mutual needs that show they have the option to advance. Encourage work-life balance through hybrid work options and respecting their personal time.

2025 HR trends infographic

6.     Workplace Upskilling and Reskilling

Many previously sought-after skills are becoming obsolete with technological advances. These same advances have created a demand for new skills you can help employees attain.

44% of employee skills will need to be updated to meet these changing demands. This means it’s necessary to provide opportunities for continuous learning for your employees.

Provide training options that are current and relevant to your employees’ current and desired roles. Conduct a skills assessment to identify any skills gaps and future skill needs.

Find a trusted partner to offer targeted upskilling programs to meet employee needs. Make sure the training options are designed to meet the individual learning needs of your employees.

7.     Leadership and Management Development

Leadership development is another important training need. Only 12% of companies are set up to fill leadership roles internally, yet promoting internally is the most cost-effective way to fill leadership roles.

To ensure you are ready to fill future leadership roles, you need to prepare future leaders now. Don’t wait to train a promising leader for when a management role opens up.

Set up training and mentorship programs to prepare your most promising employees for success in management positions. Prepare current and future managers to review and incorporate emerging technologies to meet your company’s needs. Provide training in those often overlooked but important soft skills that help managers better communicate with their teams.

Start with identifying your potential leaders. Work with them to provide personalized development plans for the future. Offer training options for current and future leaders focused on

  • Technology
  • Communication, and
  • Decision-making skills

Set up mentorship programs to guide employees into leadership roles.

8.     Focus on Company Culture

Your company culture shapes employee engagement, productivity, and loyalty. A positive company culture requires clear and open communication about company goals and values. It also requires accountability at all levels.

Define your company’s core values and incorporate these values into all company processes. Recognize employees who align with these values. Hold everyone accountable for representing the company culture, from leadership down.

9.     Strategic Workforce Management

Workforce planning isn’t just about your current needs, but your future needs. You don’t have to be a fortune-teller, but you do need to have the tools in place to analyze your company’s future workforce needs to balance short and long-term goals.

Analyze industry trends and market demands to consider future workforce needs. When planning, keep in mind that anything can happen.

Set up contingency plans to prepare for economic uncertainty or surges in growth. Regularly review and adjust workforce strategies to keep up with your needs.

10.     Pay  Equity and Transparency

9 states have pay transparency laws in place, and another 5 states will be adopting transparency laws in 2025. These pay transparency laws have led many companies to review their pay scales and update them to show more pay equity.

Clear pay policies can help companies standardize job postings and attract top talent. To set clear policies, conduct an annual pay equity audit to address any disparities. Update all job postings to include salary ranges, even in states with no mandates, to maintain consistency.

11.     Prepare for I-9 Audits

Fines and penalties for I-9 issues are increasing, as are I-9 audits. Immigration issues are a top priority for the incoming administration. Businesses need to make sure their I-9 forms are in order to prepare for future scrutiny.

Perform internal audits to ensure I-9 forms are in order. Train your teams on proper documentation practices and review common errors.

Meet 2025 HR Needs

2025 HR trends are focused on technology, employee-centered practices, and compliance. Are you ready to meet these needs?

If you need help analyzing your HR processes or with implementing new tools to keep up with your business needs, contact HR Service, Inc. to discuss how we can help you review and adjust your HR infrastructure to keep up with shifting needs.

 

Written by: Penny Clark

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