The workplace is changing at a fast pace, largely due to evolving worker expectations and rapid technological transformation. Employee expectations include flexible work schedules, value-driven employers, and benefits that go beyond the usual and address whole-person wellness. AI and automation in the workplace are starting to transform every part of business operations.
With all of these changes, it becomes difficult for HR leaders to keep the wheels turning on time and with accuracy. Learn more about the trends taking shape in 2025 and how you can get ahead of them.
Technology: AI and Automation
Advances in AI and automation are reshaping job roles and workflows across industries, but employees are still wary. A 2024 Work Trend Index Annual Report from Microsoft and LinkedIn shows 75% of surveyed workers are using AI for their work in some capacity. Yet 60% of leaders worry their organization’s leadership lacks a plan and vision to implement AI.
While AI, particularly generative AI, increases productivity, there are ethical considerations around its use. And without an AI policy in place, employees are using their favorite AI tool and keeping it under wraps. This shadow AI usage presents significant risks for organizations, from data security to consistency in work quality. To combat this, organizations should develop comprehensive AI governance frameworks that address AI challenges while maximizing benefits.
Once a policy is in place, shift gears to focus on training and upskilling employees on responsible AI use to boost their productivity. Organizations that take a proactive approach to AI integration — balancing governance, upskilling, and ethical considerations — will be better positioned to harness the full potential of automation while building employee trust.
Flexible Work Models
From remote and hybrid work to compressed schedules (four-day workweeks) or flexible start times, employees search for flexible work arrangements. In a recent survey from The Conference Board, 65% of U.S. workers said the non-salary compensation element they find most important is workplace flexibility.
While not every workplace has the ability to go remote, you can make small changes that promote work-life balance for your team. For example, consider a self-scheduling platform that allows workers to trade shifts.
For those companies that already offer remote work, ensure managers are properly trained to lead a team remotely. Data shows 70% of managers don’t receive specialized training on leading remote teams. These leads to inefficiencies and a lack of engagement among employees. Companies should invest in leadership development to empower their managers to effectively motivate and oversee reports.
Employee Experience and Well-Being
Mental health and wellness have become central to workplace strategy. Organizations recognize that supporting employee well-being directly impacts productivity, innovation, and retention. And employees have come to see it as a critical benefit. In a 2024 National Alliance on Mental Illness Workplace Mental Health Poll, 92% of respondents say mental healthcare coverage is important to creating a positive workplace culture.
In addition to mental health programs, workplace wellness trends like fitness programs, healthy meal options, and access to financial planning mindfulness apps are gaining popularity. Companies offering these perks are better positioned to improve employee satisfaction and attract top talent.
Diversity, Equity, and Inclusion (DEI)
While DEI initiatives are still crucial in 2025, they face challenges, with many states rolling back or banning DEI programs. HR leaders should focus on compliance and data when it comes to DEI, ensuring they have numbers to back up their programs.
Successful organizations are moving beyond treating DEI as a standalone program to create comprehensive strategies that integrate inclusion into daily operations. This includes structured mentorship programs open to all employees, professional development opportunities with transparent selection criteria, employee resource groups focused on career advancement, and diversity training.
Sustainable, Ecofriendly Workplaces
Workers, especially Millennials and Gen Z, want workplaces to reflect their value and take action on sustainability and social issues. In fact, a Qualtrics survey shows 54% of U.S. employees would be willing to take a pay cut to work at a company with better values, while 56% wouldn’t even consider a job at a company that has values misaligned with theirs.
And while many issues are divisive, sustainability efforts are something most people agree on and a good place to show your commitment. Businesses can start by adopting green office practices, reducing energy consumption, and investing in renewable resources. Engaging employees in sustainability initiatives, like recycling programs or tree-planting drives, reinforces the organization’s dedication to environmental stewardship. Taking these steps not only builds trust with employees, but also positions the company as a leader in corporate responsibility and sustainable workplaces.
Prepare for the Future
Workforce changes are coming, whether HR departments like it or not. While you can’t control technology advances or changing employee expectations, you can control how you prepare. Organizations that get ahead of the trends in the workplace will find success in an evolving marketplace.
To meet the moment and prepare for the future, check out our new guide to rethinking traditional HR practices: The HR Blueprint for Talent and Technology in 2025. The free guide provides insight into:
- Launching a successful return-to-work program
- Using innovative scheduling to provide employee flexibility
- Building a recognition-rich culture
- Embracing AI as an HR enabler
- And much more!
Get the guide now.