Navigating HR Trends in 2025: Preparing for the Future of Work
Every year, there are articles telling us about predictions and transformational changes shaking the world of Human Resources, and it’s easy just to dismiss the notion that there might be something worth paying attention to. But this year – there are a few changes to the usual list.
As businesses evolve to balance advancements in technology and the value of their people, it’s important that HR teams take a proactive approach to stay competitive.
We reviewed data and insights from various sources to see what experts recommend HR teams plan for in the year ahead. We found everything from leader development to integrating and regulating Artificial Intelligence. Let’s take a look at the top 2025 trends:
1. Leader and Manager Development
“Leader and manager development remains the top priority for HR professionals globally,” reports Kristen Parisi of HR Brew.
Effective leadership has always been non-negotiable when navigating uncertain times. However, organizations need strong and informed leadership as technology reshapes workflows and the workforce develops even greater diversity with AI contributors.
HR Brew shared statistics from a recent Gartner survey that found,
- “75% of respondents said that managers are overwhelmed by changing responsibilities,
- and 70% believe leaders don’t have the necessary tools to develop leaders.”
Businesses are adjusting their leadership development strategies to make sure their people are prepared and equipped to navigate the challenges.
Leaders and managers not only help foster leadership skills for those on their team but also help set the standard for the culture by driving employee engagement, fostering innovation, and creating an environment where employees feel supported, motivated, and valued.
A strong organizational culture is a cornerstone of success, impacting all facets of an organization, from employee performance and retention to customer satisfaction.
The emphasis on leadership development reflects the ongoing challenges leaders face in navigating the complexities of rapidly changing business environments.
2. Integration of Artificial Intelligence (AI)
AI is already transforming workflows and changing the way employees function and do their jobs. Whether organizations choose to take a proactive approach to navigate these changes head-on or take a passive back seat approach – it could have a long-lasting impact.
Business Insider recently collaborated with various corporations to get their take on how AI will impact businesses over the next year. Of course, everyone has different goals and a varying approach to achieving them, but for most, the common thread seems to be finding the right balance between AI technology and their people. Here are a few insights offered by business leaders in the article, “Leaders from BCG, Infosys, AARP, and more predict how AI will transform top companies in the next 12 months”:
“Any tasks or jobs in the company that could be automated by AI will happen within the next year.” – Vice President and Chief Impact Officer, IBM
“AI is not about replacing an individual or replacing an employee but how we can amplify our productivity by using the tools.” – Service Offering Head and Head of Americas Delivery, Infosys
“It’s about adaptability. Employees are going to have to be open to continuous learning and adapting to new AI tools and technologies in their jobs. So we make sure we’re providing some kind of atmosphere and culture for being excited and energetic about learning.” – Chief HR Officer and Senior Vice President, AARP
“We have 35,000 employees, and north of 70% are active users of generative AI now. We’ve taken a full-company approach of upskilling and rolling out both custom and off-the-shelf tools, regardless of the job.” – Global People Team Chair, Boston Consulting Group
“We always have to go back to the why: What is the mission? And we have to make the mission at the company level that much more clear so that as we apply these new tools, it’s always for the sake of the mission.” – Executive Vice President of Strategy and Growth, Clear Capital
“What we’re trying to do is really keep people at the center of this transformation.” – Chief People and Culture Officer, LiveRamp
Integrating AI into HR practices can enhance decision-making, streamline processes, and improve employee experience. However, being mindful of the impact on people, ethical considerations, and transparency in processes can’t be overlooked.
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“Change is scary, especially when people aren’t informed. AI is a part of our payroll, HR, and timekeeping solutions that have been making a positive impact on businesses for decades. It can save businesses time and money while making employees’ everyday lives easier – but, it’s important for leaders to keep their people informed about software and technology changes and how it will affect them long term.” Chris Goheen, CEO of Workforce Go |
3. Organizational Culture
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“Some 97% of CHROs said they want to make changes to their organization’s culture in 2025.” HR Brew via Gartner. |
Organizational culture influences every aspect of a business, from the C Suite to the customer. All of the 2025 trends discussions that we found reference one or more aspects of culture.
A strong culture plays a big part in shaping employee engagement, performance, and retention, as well as influencing customer outcomes. Having a positive workplace culture makes employees feel valued and engaged, which leads to improved productivity and loyalty.
“The data is clear: When your employees are healthy, when they are happy, they’re going to work better,” said Carly Holm, the founder and CEO of Humani HR, in Business Insider.
Companies that build the foundation of a cohesive and supportive culture are better equipped to attract and retain top talent and deliver superior customer experiences that drive long-term loyalty and satisfaction.
Technology has become a large part of how businesses build a positive culture, catering to the digital age of mobile, self-service access and connecting people and data wherever they might be.
4. Evolution of Work Models
The traditional workforce model has been evolving since COVID, but hybrid, remote, and other flexible arrangements continue to be the norm for many – while others are opting to bring their employees back to the office.
With the gig economy and remote work shaping expectations, businesses are finding ways to support their teams while maintaining productivity. This could mean reimagining team structures, investing in technology, and improving connectivity and collaboration across physical and virtual workspaces.
Although factoring AI into the work model equation is a reality, the risks can outweigh the benefits for those who jump in prematurely.
Daron Acemoglu, an institute professor in the economics department at the Massachusetts Institute of Technology, told Business Insider that employers rushing to swap people for bots might realize that some AI tools lack the versatility of humans.
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“These models have very limited capabilities,” he said. “So if you adopt them too quickly and without enough thought, you might actually not get anything like the productivity boosts that you were expecting.” Acemoglu in Business Insider |
5. HR Technology
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“Like (55%) HR leaders reported that their technology does not currently support their business efforts.” |
As all of the previous sections point out, technology is transforming how companies plan and manage their workforce. It also plays a significant role in the entire employee lifecycle, from recruitment to retirement.
From creating and posting job requisitions to matching candidates with the skills needed to do the job, configuring onboarding checklists, and tailored learning paths to support and grow employees – integrating HR technology makes the day much simpler for HR teams and employees alike.
HR technology can save time and improve employee experience just by eliminating the paperwork, but in reality – it can do so much more. By implementing the right technology, HR can improve workforce processes from pre-hire to retirement.
As we move into 2025, HR teams are balancing the complexities of technology and innovation with the changes in workforce needs. Who you have on your team matters just as much as the technology you choose to use.
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