The 6 HR trends to look out for in 2025 in summary:
- With the world of work experiencing transformative changes in 2025, there’ll be a shifting focus on DE&I initiatives, as well as steps to combat rising ‘pleasanteeism’.
- Also, AI will start make its presence felt in all areas of people operations, and people and payroll pros must be prepared for upcoming legislative changes.
- Retention and upskilling strategies will also be two areas people professionals must focus on over the course of 2025.
As we step into 2025, the world of work is evolving faster than ever before.
From ground-breaking technologies to innovative workplace practices (AI, anyone?), the HR landscape is set to undergo potentially seismic transformations over the next 12 months. In this blog, our HR & Wellbeing Manager Kim Holdroyd, dives into the top HR trends that she believes are poised to shape the way we work, engage, and thrive in the coming year.
So, grab a mulled wine and get ready to explore the 6 HR trends that will – potentially – redefine the future of human resources and people management over the next 12 months.
The 6 HR Trends of 2025 to look out for….
A shifting focus on Diversity, Equity, and Inclusion (DE&I)
There’s been a perception over the course of the year that emphasis on DE&I initiatives are diminishing. We’ve seen plenty of big companies – although primarily in the United States – rolling back on their DE&I strategies and openly stating a renewed focus on more ‘bottom line’ activities are required. Consequently, DE&I budgets are being reportedly being slashed whilst many c-suite business leaders are perceiving it as a minimal priority.
All that means it’s likely there’ll be reduced spending on those types of projects and potentially a regression in gender balance at senior levels. So, the big question here is: will DE&I really a priority for people professionals in 2025?
Analysis
While DE&I remains a stated priority for many organisations, the simple fact of the matter is well-publicised economic pressures and competing business objectives may lead to decreased investment in these areas. Reports indicate that some companies are reallocating resources, potentially impacting the progress made in achieving gender parity and broader inclusivity at higher organisational tiers.
This trend raises concerns about the fragility of recent DE&I gains. For example, research has shown that diverse leadership teams drive innovation and profitability. Scaling back efforts now could harm not just the inclusivity of workplaces but also the broader business case for diversity. Also, employees and consumers increasingly expect organisations to align their actions with their stated values. So, a failure to sustain DE&I momentum could erode vital trust and loyalty… both bad for business.
Personally, I believe organisations must resist the temptation to view DE&I as expendable. Instead, more innovative approaches, such as embedding inclusivity into broader organisational goals or leveraging HR technology to sustain progress, can help ensure that these critical efforts remain central to their strategies. The question isn’t whether businesses can afford to invest in DE&I – it’s really whether they can afford not to.
A rise in ‘Pleasanteeism’
People professionals have had to contend with a lot of HR trends with ‘isms’ in their names over the past few years: ‘resenteesim’ and ‘presenteesim’ being two of the more notable examples. However, I believe we’ll see the rise of a more curious ‘ism’ in in 2025 – so called ‘Pleasanteeism’.
‘Pleasanteeism’ refers to employees feeling compelled to project positivity and wellbeing at work, even when experiencing stress or dissatisfaction. Log into LinkedIn and you’ll often see this type of projection: such as posts from people preaching ‘the grind’, how everyone’s always happy at the business, or even companies themselves saying how dedicated they are to their employees’ own mental & physical wellbeing. But dig a little deeper (on Glassdoor for example) and the realities of life at a company may actually be very different.
When employees regularly rave about how fantastic work is on social media, you might feel tempted to take their words at face value. However, this phenomenon can mask serious underlying issues such as burnout and disengagement, making it challenging for HR teams to address employee wellbeing effectively.
So, I believe the next twelve months will see a focus on recognising the signs and mitigating the effects of Pleasanteeism. It will be crucial for fostering a genuine and supportive workplace culture, especially if there are challenges on the horizon… which leads nicely onto…
An enhanced focus on retention
The ongoing skills and labour shortages aren’t going to go away any time soon, and I think many businesses – across a wide spectrum of industries – are finding it increasingly difficult to get the right people they need at the right time. It’s also the case that the increasing cost of hiring and surging employment costs are having a knock-on effect with recruitment budgets.
So, focusing on retention will be an HR trend for some years to come! In 2025, though, we’ll see the beginnings of more concerted efforts in delivering more cost-effective retention initiatives that are not purely pay or monetarily focused. Central to these will be offering career development opportunities, flexible working arrangements, and enhanced benefits to maintain not just a committed workforce, but satisfied ones, too.
Adapting to evolving employment laws
2024 saw the beginning of some big changes to the way we all work. The UK is undergoing significant employment law reforms, including the introduction of the Employment Rights Bill, changes to National Insurance (NI) contributions and legislation related to AI usage and data privacy… and these are all things which people and payroll professionals must get to grips with very quickly.
Both HR and payroll professionals must stay informed about those legislative changes to ensure compliance and assess their impact on organisational operations. For instance, the proposed increase in employer NI contributions could lead to higher employment costs, influencing hiring decisions and wage structures. Additionally, this includes understanding new regulations surrounding AI in recruitment and adapting policies accordingly.
However, regardless of whether all the changes proposed in the new Employment Law Bill come to pass, HR & payroll pros must be ready to adapt quickly, and be ready for potentially challenging conditions.
Integration of Artificial Intelligence (AI) in HR processes
I couldn’t talk about upcoming trends without addressing the spectre of artificial intelligence! After all, it does seem like everywhere you look, AI is making its presence felt. You only had to visit one of the big HR events – like Festival of Work or the HR Tech Show – to see how it’s now making waves in the world of HR and payroll; and I think 2025 is the year it’ll start to become embedded in every aspect of people operations.
It’s worth noting, though, that AI – in more rudimentary forms – has been common for some time now. Automation tools which feature in systems like Cezanne, for example, have already been streamlining many a dull, repetitive task for hard working people pros. However, more sophisticated versions of AI will start to become more widespread in areas such as recruitment, performance evaluations, and employee engagement.
Of course, implementing AI-driven systems can enhance efficiency by automating repetitive tasks and providing data-driven insights. But, it’s crucial to address potential biases in AI algorithms and ensure transparency in AI-driven decisions. For instance, experts have flagged that AI tools can perpetuate existing biases if organisations fail to manage them effectively. It’s crucial, then, to ensure that Human Resources retains its focus on the ‘human’ element, rather than relying solely on technology.
Emphasis on continuous learning and upskilling
The last big HR trend of 2025 I believe will be an emphasis on the continuous learning and upskilling of workforces. This is because the rapid pace of technological advancement – across virtually every aspect of work – necessitates ongoing employee development to keep skills current. Plus, it ensures employees have the necessary skills to make use of future technologies.
That means people professionals should facilitate continuous learning opportunities, such as training programmes, mentoring, or on-the-job training, to help employees adapt to new technologies and methodologies. This approach not only enhances individual performance, but also contributes to ongoing organisational agility.
Kim Holdroyd
HR & Wellbeing Manager
Kim Holdroyd has an MSc in HRM and is passionate about all things HR and people operations, specialising in the employee life cycle, company culture, and employee empowerment. Her career background has been spent with various industries, including technology start-ups, gaming software, and recruitment.
