Top HR Trends for Workplace Excellence in 2025
Do you want to learn about the top HR trends for 2023? You’ve come to the right place.
The world changes continuously. Several factors, such as technological innovations, economic challenges, and political and social upheaval, drive these changes.
These changes, in turn, create forces that affect individuals, businesses, and human society.
Lack of awareness about coming changes and trends leaves us at the mercy of forces outside our control.
Awareness of these changes and trends helps us make decisions that ensure growth and success.
Global changes and trends also affect the world of HR. Knowing about HR trends allows HR leaders to plan, prepare, and take appropriate action.
Now let’s look at the key HR trends for 2025.
HR Trends for 2025
Many trends are relevant to the HR industry. This article lists the top HR trends in 2025, including the rise of algorithmic HR, upskilling, and a return to the office.
1. Return to the Office
2022 saw a major push by several large companies to get workers back into the office, which continued into 2023.
Let’s look at some recent statistics.
What the Data Says
- Citigroup: In March 2022, the organization asked vaccinated employees to spend at least two days a week in the office.
- Apple: In August 2022, senior leaders asked employees to start spending at least three days a week in the office.
- Amazon: CEO Andy Jassy issued a mandate in Feb 2023 asking employees to work from the office at least three days a week, starting May 1st.
What Does This Mean?
Leaders cite several reasons for asking workers to return to the office:
- Collaboration: In-person meetings create energy that acts as a catalyst for new and innovative ideas.
- Learning: People learn faster and more effectively through in-person meetings and discussions than communicating via messaging tools.
- Connection: It’s easier for team members to connect with people they meet every day, which helps teams work together to solve complicated problems effectively.
- Culture: Leaders believe an on-site environment is most effective for producing a positive and nourishing company culture.
Business leaders believe working from the office leads to higher productivity. Even though employees at several organizations objected to these proposed changes, more and more companies now require employees to spend significantly more time in the office.
We expect this trend to continue and pick up steam with time. Remote work will not end, but companies will continue to push for a return to the office.
What Can You Do?
During Covid, employees got used to the flexibility provided by remote work. However, for companies, it’s the bottom line that matters. There is no doubt working from the office brings several benefits, such as improved communication, collaboration, and productivity.
Having said that, HR professionals must analyze their company’s goals and objectives and strategize accordingly.
2. Employee Wellbeing
Record inflation and interest rates, bank failures, the war in Ukraine, layoffs, supply chain disruptions, and climate change. These interconnected and complex crises are affecting not only the global economy but also the health and mental well-being of people worldwide.
What the Data Says
- According to the American Psychological Association’s 2022 Work and Well-being Survey
- 71% of Americans are concerned about compensation not keeping up with inflation.
- 39% believe their work environment harms mental health.
- 60% reported workday stress due to employee monitoring.
- Tech giants, including Google, Salesforce, Amazon, Microsoft, and several small startups, laid off thousands of employees in 2023. As of March 2023, the running total is in excess of 160,000.
What Does This Mean?
These are challenging times. Due to the interconnected nature of the global economy, local events have global repercussions. Even though Covid-related stress has diminished considerably, people now face new problems and challenges.
Societal, economic, and political challenges have a significant impact on employee mental health. Organizations see and perceive these challenges and will focus on programs that provide total well-being for their employees.
What Can You Do?
You can focus on initiatives to help your employees during these difficult times:
- Use a proactive and holistic approach focusing on mental, physical, and financial well-being.
- Provide opportunities for discussion to help employees work through challenges without judgment or consequences.
- Use trained experts, such as trauma counselors, to coach employees on how to manage workplace conflict.
3. Skills-Based Hiring
The early 2000s were marked by degree inflation, a trend that saw companies adding degree requirements to jobs that previously did not require degrees.
However, this trend has reversed, and companies now prefer hiring based on skills and competencies.
What the Data Says
- According to the Harvard Business Review
- A survey of 50 million jobs posted between 2018 and 2020 showed that employers are resetting job requirements.
- Employers reduced degree requirements for 46% of middle-skill positions and 31% for high-skill positions.
- A supply-demand imbalance partly drives the change: Covid was a significant health crisis that led to a shortage of skilled workers.
- The change is also driven in part by employers who value experience over academic qualifications
- According to TestGorilla’s The State of Skills-Based Hiring 2022 report
- 76% of employers use skills-based hiring during recruitment
- 55% of employers use role-specific skills tests
What Does This Mean?
The shift to skills-based hiring offers benefits for employers and candidates: employers can access a larger talent pool, and candidates can apply for roles and positions that were previously inaccessible.
The trend is most evident in professions such as software engineering and computer support, where professionals do not require a degree to perform their jobs.
What Can You Do?
Every company has different needs. There is no denying that a degree is mandatory for some positions, such as finance and professional services. There is also no denying that recruitment processes at many companies use outdated assumptions.
By reviewing the process you use for creating job descriptions and assessing candidates, you can create a win-win situation: you can fill positions easily, and candidates without degrees can pursue attractive career pathways.
Check our certified HR courses to learn more about developing and implementing a strategic HR management plan. Master HR management and how to get the best out of your employees.
4. Hybrid Learning
Many corporations built brick-and-mortar corporate academies to develop leaders and provide functional learning opportunities.
Today leaders value delivering learning opportunities closer to where the work happens. Hybrid, or blended learning, enables them to do just that.
What the Data Says
- GE is closing its renowned corporate academy in Crotonville.
- According to Technavio’s Corporate Blended Learning Market Report
- Growth in the corporate blended learning market is estimated to have a CAGR of 12.68% between 2022 and 2027.
- 47% of this growth will originate in North America.
- 85% of traditional classroom training cost is taken up by delivery (instructor time, travel, etc.). Businesses can save 50% to 70% of this cost through e-learning.
What Does This Mean?
The remote working model existed before Covid, but the health crisis drove it into the mainstream. Today it is an acceptable way of working and a preferred method for many companies and employees.
Technological innovations drive paradigm changes that were unthinkable a few years ago.
E-learning existed before Covid, but the only option companies could use effectively during the lockdowns that prevailed for the better two years (early 2020 to late 2021).
Today companies are rethinking the role of traditional corporate academies. According to research conducted by Executive Networks in collaboration with NovoEd, almost 60% of learning leaders believe hybrid work and learning will drive a re-think of the traditional corporate academy.
What Can You Do?
Today, HR departments have multiple options for corporate learning: you can deliver in-person training, select from a wide range of e-learning options, or use a combination of the two.
Evaluate your needs and choose the method that suits your organization’s short-term and long-term goals.
5. Rise of Algorithmic HR
HR teams can save time and resources using algorithms and AI to automate many repetitive tasks. At the same time, delegating repetitive tasks to algorithms allows HR teams to focus on more complex and demanding tasks.
What the Data Says
- According to Executive Networks’ CHRO of the Future report, 90% of CHROs report that digital automation workers, or bots, will be part of the workforce composition in 2025.
- According to PWC’s Artificial Intelligence in HR report, 40% of the HR functions of international companies are currently using AI-applications.
- Around 600 startups are working on innovating in HR and digital technology.
- 100 startups are working on the use of AI in HR.
What Does This Mean?
Businesses are always looking for ways to improve productivity and drive down costs.
Automation and AI can help HR departments process large quantities of data and provide insights for better decision-making. Automation also reduces unfair bias present in the recruitment process.
Additional examples of HR automation and its benefits are:
- Automation helps HR teams sort through many applications and find the best candidates. Automated processes help keep relevant materials organized and available.
- Using software for employee onboarding allows HR teams to ensure new hires receive the same documents, get important notifications, and provide access to information.
- HR teams and employees can use software to easily compare different employee benefits plans and choose the best one.
What Can You Do?
There is no denying the benefits of automation. At the same time, several risks are associated with using technology.
Software and AI are susceptible to the biases present in data sets. Low-quality data will provide distorted and erroneous insights. Therefore, you must obtain high-quality data to benefit from automation and AI.
A common trend for businesses concerned about brand image is adopting technology because it’s the “in thing.” However, software and AI-based tools are expensive and require time to set up and integrate into business processes. Therefore, you must ensure that your business receives a return on investment. Evaluate your requirements and select the tools and technology that satisfy your needs and provide a fair return on investment.
6. Upskilling
Your organization may be making significant progress today. But is it equipped to handle the requirements of the future?
One way to meet new challenges and goals of the future is through costly recruitment strategies. A better way is to upskill your existing workforce.
What the Data Says
- According to the World Economic Forum
- More than 50% of all global employees must reskill or upskill by 2025 to keep up with changing job requirements.
- Upskilling initiatives can create 5.3 million new jobs and boost global GDP by $6.5 trillion by 2030.
- According to PWC’s 23rd Annual Global CEO Survey, 93% of global CEOs implementing upskilling programs saw increased productivity.
- Upskilling costs less than hiring new candidates: according to the Association for Talent Development, the cost of upskilling is about $1300, compared to $4425 for hiring a new candidate as per the WEF.
- Upskilling increases retention rates: 94% of employees prefer to stay with companies that invest in their careers.
What Does This Mean?
Change is the only constant. New technologies and social and economic disorders disrupt our business and put jobs and businesses at stake.
These challenges also create an abundance of new opportunities. However, only the forward-looking can see the opportunities and benefit from them.
Upskilling is a viable strategy for meeting today’s and tomorrow’s challenges.
For companies with an existing workforce, it offers multiple benefits, including increased employee retention, positive employee experience, and higher employee engagement and loyalty.
What Can You Do?
Follow these steps to upskill your team effectively:
- Audit your current skills base: The first step is to identify the skills present in your existing workforce. You can then identify skills to phase out and skills you need today and in the future.
- Identify needed skills: Take role descriptions and competencies into consideration here.
- Develop business goals and objectives: Develop a comprehensive business plan to help you forecast how your employees’ collective skills will achieve company goals.
- Monitor progress: Regularly update your strategy to add emerging skills and phase out obsolete ones.
7. Diversity, Equity, and Inclusion (DEI)
The focus on DEI is driven by several factors, including increased awareness of the business benefits of DEI and a growing demand from customers and stakeholders for organizations to demonstrate their commitment to DEI.
What the Data Says
- According to research conducted by the Boston Consulting Group
- 75% of respondents reported diversity is gaining momentum in their organizations.
- A strong and statistically significant correlation exists between management team diversity and overall innovation.
- Companies with above-average diversity scores report 45% average innovation revenue, compared to 26% for companies with below-average diversity scores.
- According to Gartner, 75% of organizations with a diverse and inclusive decision-making team will surpass their financial targets.
- According to Glassdoor, 76% of employees and job seekers see a diverse workforce as an important factor when evaluating companies and job offers.
What Does This Mean?
Despite DEI’s business benefits, research also shows that employees consider it a divisive issue. Research by HBR reports 42% of employees consider DEI divisive, which can reduce employee engagement, inclusion, and trust.
To counter this tendency and maintain momentum, organizations must equip HR and other departments with strategies and tools that engage employees and address this pushback before it becomes a major source of concern.
What Can You Do?
Here are concrete strategies you can use to promote DEI in the workplace:
- Training: Train employees on topics related to diversity, inclusion, and unconscious bias to help raise awareness, improve understanding, and promote a more inclusive workplace culture.
- Recruitment: Attract and retain a diverse talent pool by implementing fair and inclusive recruitment and hiring practices, such as removing discriminatory language from job descriptions, expanding recruiting sources, and using diverse hiring panels.
- Policies and procedures: You can promote a more inclusive workplace culture by implementing flexible policies and practices that accommodate diverse needs and preferences, such as flexible work arrangements, parental leave, and religious accommodations.
- Goals and objectives: You can also set diversity and inclusion goals and hold your organization accountable by tracking progress and regularly reporting results. This helps create a culture of transparency and continuous improvement, reinforcing the importance of diversity, inclusion, and belonging as core values of the organization.
Conclusion
2023 brings several new challenges for HR professionals. At the same time, it brings immense opportunities for HR.
Understanding current challenges and implementing effective strategies for dealing with them gives HR practitioners the ability to face future challenges with courage and forbearance.
In addition to dealing with unexpected challenges, learning about modern HR trends and taking steps to benefit from these trends gives HR professionals the unique opportunity to improve the employee experience and contribute to business growth and success.
If you are new to human resources and are looking to break into an HR role, we recommend taking our HR Certification Courses, where you will learn how to build your skillset in human resources, build your human resources network, craft a great HR resume, and create a successful job search strategy.
