HR leaders predict how recruitment challenges, investments in employee well-being, and the incoming presidential administration will impact the way people work in 2025.
By Maggie Mancini
2024 was a year of uncertainty. With The Great Resignation in the rearview mirror, organizations dealt with slower than usual turnover and a renewed focus on employee well-being amid productivity woes and burnout. Gen Z has continued to make its mark on the workforce, and businesses have braced for ongoing workforce shifts as baby boomers reach retirement. As companies prepare for the new year, HR leaders expect even more change still to come. Here are four trends that eight experts are anticipating in 2025.
TREND ONE: Attracting and retaining talent will be a top challenge as uncertainty continues to rattle the labor market. Voluntary quits declined in 2024, with employees opting to stay with their employers instead of returning to the job market. The reason? Delayed resignations amid concerns about job security, says John Staines, managing partner and global HR practice leader at DHR Global.
“As the economy steadily improves and uncertainty wanes, more jobs will become available and employees will be willing to take more risks,” he says. “Company leaders will then especially need to develop purposeful strategies to engage top talent.”
A recent article from Gallup highlights a growing discontent among employees who—despite their dissatisfaction—choose to remain with their current employers due to perceived risks associated with job changes, says Karen Cosentino, chief people officer at Barge Design Solutions.
“Inflation and uncertainty in the job market are keeping employees put, discouraging movement,” Cosentino says. “The job market has cooled, and interest rates are still high, creating a sense of vulnerability. To counter this, organizations should consider prioritizing deeper engagement and creating opportunities for growth to maintain satisfaction and long-term retention.”
By utilizing social media and branding to promote the organization’s values, focusing on quality of hire, and building a talent pipeline, HR can help improve recruitment and retention in 2025, she explains.
With organizations pushing for RTO mandates in 2025, HR will be tasked with supporting the flexibility and balance that employees are looking for. To do this, HR should consider these strategies.
- Implement hybrid options and flexible schedules. “Allow employees to split time between the office and remote work, giving them control over their schedules while meeting RTO requirements,” says Sabra Sciolaro, chief people officer at Firstup. Implementing a “core day” model, where employees are expected to be in the office on the same days each week, can help strike a balance.
- Provide on-site perks. Childcare, wellness programs, and quiet zones can help make in-person work more appealing and supportive of employees’ needs, Sciolaro says.
- Encourage outcomes over hours. “Focus on productivity and results rather than rigid schedules, empowering employees to achieve goals in ways that fit their unique circumstances,” Sciolaro says.
- Redefine work-life balance. Work-life balance is about providing support to help employees thrive. “HR leaders can champion initiatives like meeting-free afternoons, asynchronous options, or offering time off for personal needs,” Sciolaro says.
TREND TWO: The best employers will make work less chaotic and provide comprehensive well-being support for employees. “Wellness and mental health have become instrumental in attracting and retaining the new workforce, and employee burnout has become a central focus of that,” Staines says. Research from DHR Global finds that the top drivers of burnout include long hours (58%), overwhelming workloads (35%), and lack of work-life balance (34%).
Misalignment on what being “on track” truly means has also contributed, explains Annie Osinski, vice president of HR at Inclusively. “Misaligned expectations can lead to confusion, frustration, and disengagement, as employees may feel they are falling short without clear direction. It’s crucial for organizations to clearly define their top priorities and ensure these goals are consistently communicated at all levels.”
By giving employees the tools to succeed—like flexible hours, extra time to complete tasks, or ergonomic equipment, for example—HR leaders can address burnout and support employees, Osinski says.
While Gen Z is expressing greater feelings of burnout (87%) than boomers (57%) and millennials (85%), burnout is a reality across all ages of workers, Staines says. HR leaders must develop programs to address burnout—perhaps allowing employees to take a time-out and return to work—or employees will find a way to deal with it themselves, often with resignations.
“Looking at the big picture, what spurs chaos in the workplace is lack of organization, processes and communication,” says Yvonne Chu, HR manager at CaptivateIQ. “Implementing strategies that give this sense of clarity, recognition, and a sense of purpose, workplaces will see chaos reduce, and morale improve.”
HR leaders can leverage these strategies to stave off stress and improve morale.
- Connect employees to the company’s mission. “Defined goals, ensuring employees understand what’s expected of them and how their work contributes to broader organizational objectives, helps reduce confusion and focus efforts,” Osinski says.
- Streamline employee communications. “Instead of relying solely on email, which often misses deskless workers, (organizations) should adopt mobile-friendly, intuitive platforms that centralize company updates and resources,” Sciolaro says. “If organizations fail to streamline communication, it can leave employees feeling lost, overwhelmed, or out of the loop, worsening morale and engagement.”
- Adopt incentive compensation management (ICM) solutions. Research has shown that recognition and rewards have a positive impact on employee satisfaction. “ICM technologies streamline how goals and rewards are communicated, ensuring employees understand their expectations and feel valued for their contributions,” Chu says. “By linking incentives to specific, achievable outcomes, organizations give employees a sense of control and motivation, reducing any uncertainty and stress.”
“I think we have to acknowledge that there are legitimate generational differences in goals, motivations, desired work-life balance, and needed supports,” says Lori Knowles, chief human resources officer at Memorial Hermann Health System. “A one-size-fits-all approach to employee support and engagement won’t work.”
Knowles explains that modern medicine, for example, is highly individualized. The same should be true for the healthcare workforce that delivers that medicine. Early career employees have different needs, goals, and challenges than someone who is midway through their career, and employers must offer individualized, flexible programs.
PwC finds that 74% report demographic shifts as a key factor for the future of work.
TREND THREE: Values-based leadership will become a key differentiator in organizational efforts to recruit and retain talent. Employee retention is a relationship—and the key to any relationship involves trust, mutual respect, and aligned values, says Erin McAuley, chief people officer at Springline Advisory. “Values-based leadership is about being values-centric with every decision. Leading with soul isn’t about being nice or giving employees everything they’ve asked for. It’s about making decisions that align with your core values, even when those decisions are difficult or unpopular.”
Here are some ways that HR can cultivate values-based decision-making across their organizations.
- Start early. Select candidates who align with the company’s mission, as it sets the foundation for a values-driven culture, Osinski says. “Promoting inclusivity, meeting employees’ needs, and offering accommodations are all essential to creating an environment where values are upheld at every level,” she says.
- Invest in recognition. Regularly reiterate values, recognize those who exhibit them, and incentivize others to do the same, Osinski says. “This approach not only motivates employees but also helps to encourage the behaviors that promote and align with the company’s mission and vision.”
- Integrate values into leadership policies. “Leaders should model behaviors that reflect the organization’s values and use those programs as a compass in decision-making, even during tough or complex situations,” Sciolaro says.
- Create a culture of accountability. Employees need safe spaces to voice concerns when decisions don’t align with organizational values, Sciolaro says.
- Model values that others should follow. “We design systems, processes, programs, and behaviors that we ask others to follow yet don’t role model ourselves,” McAuley says. “As HR leaders, we must be the first and best adopters. We must eat our own home cooking.”
It’s important for HR to integrate values-based leadership into every aspect of the employee lifecycle, McAuley says. Leaders can do this by utilizing assessments to help employees articulate the company’s values and how they embody them in their work.
“Even if wages are high, people want to feel proud of their work and their employer,” says Josh Bersin, global industry analyst and CEO of The Josh Bersin Company. “So, every leader has to think about their personal and company values, communicate them, and behave in line with them.”
TREND FOUR: HR will need to keep an eye on the regulatory shifts of a new presidential administration while addressing the impacts of political differences on employee engagement. As the U.S. prepares for a new presidential administration, HR will need to adjust as well. On the regulatory front, the incoming administration has promised significant changes to a myriad of labor and employment laws, including stricter immigration standards, a potential rollback of diversity, equity, and inclusion (DEI) policies on the EEOC, and a proposal to eliminate taxes on tips.
“Employees may have differing reactions to political changes based on their personal beliefs and circumstances,” Sciolaro says. “HR can play a pivotal role in reinforcing respect and inclusivity in the workplace, especially as discussions about the new administration may arise. Offering training on respectful communication and emphasizing company values can help maintain a positive and supportive work environment.”
HR can take this opportunity to reinforce respect and inclusivity in the workplace by offering training on respectful communication and emphasizing core company values, Sciolaro says.
Research from DHR Global finds 61% of workers agree that changes in their country’s political environment make them less engaged and more distracted at work. Disengagement due to a polarized political environment is just one of many changes that have reshaped the workforce in recent years, Staines says.
Given the increased polarization of American politics, the workplace may not be the most effective space for political conversations, Bersin says. “About half of the U.S. voted for each candidate, so most companies have lots of people with conflicting political positions. The best position for HR is to advise leaders to avoid political discussions and encourage employees to have those conversations outside of work.”
