The workplace continues to evolve, and HR professionals are navigating the challenges and opportunities that come with it. Employees are expecting more flexibility, more support for their well-being and more meaningful opportunities to grow. At the same time, businesses are navigating uncertainty, addressing skill gaps, anticipating market changes and adopting tools like artificial intelligence (AI) to stay competitive.

The trends shaping 2025 offer a chance to go beyond problem-solving. They provide an opportunity to build stronger teams, deepen engagement and create better workplaces. First, it’s important for human resources (HR) teams to understand these shifts and make a plan for the year ahead.

Here’s a look at the trends shaping the future of work and what they mean for you.

1. Burnout will continue to burn organizational productivity.

Burnout isn’t new, but it’s still one of the biggest challenges for employers in 2025. Last year, 79% of employees said they experienced burnout, according to a survey of more than 1,000 full-time employees. Luckily, they also shared what they’d like their employers to do to help address burnout:

• 62% want access to resources that help minimize burnout risks
• 48% say flexible work environments would make a difference
• 43% want policies established for after-hours work

Addressing burnout requires more than a quick fix. It’s about creating a culture that prioritizes well-being and gives employees the support they need to stay engaged and productive.

2. Flexible work environments will still be in demand.

Half of today’s workforce prefers hybrid or remote roles, making flexibility a major factor in retention and recruitment. For HR teams, the challenge is finding ways to offer this flexibility without sacrificing productivity or team connection. As more companies encourage employees back to the office, balancing these needs will only grow more complex. The key will be to create work models that support flexibility while aligning with business goals.

Staying competitive means evolving flexible work strategies. This includes establishing clear policies, investing in tools that keep remote and on-site teams connected and ensuring every employee feels valued—no matter where or how they work.

3. Competitive compensation and benefits will still drive retention.

Compensation and benefits remain among the most powerful tools for retaining talent. In 2024, one in four employees left their jobs for better benefits, signaling that many companies still aren’t meeting employee expectations. What’s more, 58% of employees say that better compensation packages—including salary and benefits—would improve their overall experience. Their most desired benefits include:

1. 401(k) matching
2. Childcare reimbursement
3. Company equity options

Companies that align their compensation strategies with employee priorities will have a significant advantage in attracting and retaining top talent.

4. Personalized learning will help close the skills gap.

Skill gaps continue to be a pressing concern, with 43% of HR leaders identifying them as a major issue. Many organizations are already addressing this through initiatives like team training, mentorship programs and career pathing, but personalized learning is expected to have the most impact.

AI-powered tools are playing a growing role in delivering these tailored learning experiences. Learning management systems (LMS) that leverage AI can offer custom learning recommendations to employees, helping them develop the skills they need to grow while aligning with organizational goals.

5. Transparency will help build trust in uncertain times.

During economic downturns, transparency becomes essential. According to 32% of HR leaders, failing to communicate openly is more damaging than cutting costs. The second biggest mistake? Reducing investments in employee experience (EX). In challenging times, retaining employees becomes even more critical, and transparency is the foundation of trust.

Economic uncertainty puts stress on employees and organizations alike. In these moments, employees look to their leaders for clear, honest communication about challenges and solutions. Transparent leadership boosts morale and keeps teams focused, even when the future feels uncertain.

6. Employers will depend more on people analytics to make better decisions.

In 2024, HR analytics was the top investment area, according to department decision-makers. From identifying high-turnover areas to tracking progress on diversity goals, people analytics give HR teams the insights they need to make strategic, informed decisions.

Looking ahead, investments in people analytics are expected to continue, especially with AI-powered analytics. These tools allow leaders to leverage historical data, identify patterns and forecast more accurately. By using analytics effectively, businesses can address challenges proactively and align workforce strategies with organizational goals.

7. AI will streamline operations and give HR more time to be strategic.

Many HR professionals are struggling to keep up with their workload. Only 9% report consistently completing their daily tasks, and 42% work outside regular hours just to stay on top of responsibilities. AI offers a solution by automating time-consuming processes and giving HR teams the space to focus on strategic initiatives.

In fact, 81% of HR professionals who use AI say it helps them manage daily tasks more efficiently. AI can support HR teams in numerous ways, from generating job ads and matching candidates to using chatbots to answer employees’ most common questions. These efficiencies free up HR to concentrate on initiatives that drive engagement, retention and organizational growth.

Why these trends matter

The trends shaping 2025 can be challenging to navigate, but they’re also opportunities to create a better workplace for your employees and organization. Addressing these shifts head-on will help you stay ahead, attract top talent and improve retention.

Download the 7 HR Trends in 2025 whitepaper for more insights and actionable advice to help you stay ahead.

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