10 HR Trends to Look Out for in 2025

Trend 1: Revisiting – and Removing – DEI policies

DEI has become a controversial topic in the last few years and became even more hotly debated during our 2024 Presidential election. Over the past year, we saw many companies publicly distance themselves from the DEI stances they took in 2020 and 2021. Some high-profile companies like Ford, Harley-Davidson, Lowes, and Molson Coors have canceled their policies entirely. These public displays of DEI backlash have invited companies nationwide to evaluate their specific DEI policies, practices, and even their DEI spend, absent the scrutiny this might have caused a few years ago. While it’s good practice to review any policy annually, Flex HR encourages leaders to think carefully about their company cultures and organizational needs if they’re considering making broadscale changes to existing DEI policies. DEI is not a one-size-fits-all approach, and here to help navigate this tricky topic.

 

 

Trend 2: The “Return-to-Office” Push

The days of promoting 100% remote work arrangements seem to be behind us as more employers ask their employees to return to the office. There has been a notable uptick in companies purchasing new office space and/or renewing leases on existing space, proving that a focus on in-person work is the new norm. Flex HR predicts that a “hybrid” model will be the most adopted approach, mirroring more of what we saw pre-Covid when working remotely was the exception and not the norm. We are seeing that most companies are requiring three to four days in the office as the most popular approach. Is your company moving to a hybrid work model? Check out Flex HR’s recommendation for ensuring productivity when implementing a hybrid work schedule.

 

Trend 3: Immersive Online Working

Companies are introduced to new technologies regularly, but perhaps none more transformative than newly immersive technology made for the workplace. For those companies that are planning to maintain a remote workforce, or who more likely will move to a hybrid model, immersive technology like augmented reality (AR) can serve as a way to bring people together in a virtual fashion by putting digital representations of objects into an employee’s physical space. According to The Atlantic, “AR has quickly evolved from a laboratory experiment to a staple in pop culture, entertainment, and media, and 67 percent of organizations are considering incorporating it into their procedures.” AR has the potential to revolutionize how remote colleagues collaborate, be that while working from home, or working in offices in different parts of the country – or even the world. It can also help support digital nomadism, allowing employees and contractors to travel and/or live anywhere, while still maintaining a cohesive company culture. As always, HR leaders need to be sure to incorporate AR guidelines into their policies to safeguard the workplace.

 

Trend 4: The Four-Day Work Week

What was once a fantasy has now become a noble pursuit by companies looking to beat burnout and retain talent. The concept of the four-day workweek has gained traction in Australia, Europe, and Japan, and is starting to gain attention in the US. According to KPMG’s 2024 U.S. CEO Outlook Pulse Survey, 30% of CEOs are “exploring new organization-wide work schedule shifts such as 4-day or 4.5-day workweek.” This exploration marks a shift in how we think about productivity, employee burnout, and talent retention in a hyper-competitive market.

 

Trend 5: A Renewed Focus on Wellness

Today’s workers, specifically the incoming Gen Z class of workers, have higher expectations – and higher standards – for what a positive work environment looks like. In order to accommodate, companies are focusing more on wellness, working to reduce burnout, and fostering greater connection among colleagues. This might look like providing expanded mental health benefits, developing a meaningful wellness program, or connecting employees to their purpose at the company. While our older generations may have “lived to work”, our younger generations “work to live”, and the sooner companies can accept this shift in perspective, the better off they’ll be.

 

Trend 6: Embracing the Gig Economy

The gig economy, or a system of freelancers and contractors that companies can hire for short-term or temporary work, is growing. Americans are increasingly choosing to either move completely from traditional W2 positions, or to supplement their full-time work with “side hustles”, making gig workers more available than ever. Organizations are turning to gig workers to create more flexible and agile workforces, especially during times when budgets are tight. This shift also allows employers to tap into specialized skillsets without the long-term commitment and financial burden of hiring full-time employees.

On the contrary, organizations are cracking down on their full-time staff to ensure they are solely devoting their time and efforts to where they work. That said, companies should be thoughtful about when to use contractors instead of full-time employees, and the compliance considerations of doing so. Flex HR can help you make these decisions to best support your business.

 

Trend 7: AI and HR

The robots are coming! In fact, they’re already here, and according to KPMG, CEOs nationwide are expecting to rapidly advance their use and deployment of Generative AI over the next 12-18 months. Generative AI, or generative artificial intelligence, can create new content, like text, audio files, or imagery, based on large amounts of data on which these systems have been trained.  GenAI can be a cost-effective and time-saving resource, but it’s not without its issues. In addition to security and compliance concerns, many employees are reluctant to embrace the use of AI for fear that it could impact their jobs. This is something HR will need to manage as AI technology advances, balancing the need for human oversight with the efficiency and scalability of AI. Many corporations have already adapted AI parameters that are outlined in their handbooks, and this is a trend we see expanding.

 

Trend 8: Reskilling and Upskilling

With the advancement of technology like AI comes the need to both reskill and upskill an existing workforce. When it comes to AI, human-machine synergy is critical. As it stands today, AI is still a new technology that isn’t always 100% accurate, or 100% ethical. Flex HR recommends utilizing AI to augment our work, instead of utilizing it to replace human thought and decision. Reskilling a workforce to properly engage with and oversee AI will be an important organizational initiative in 2025, requiring significant education and training to achieve this synergy.

In addition to reskilling, companies are also focusing more on upskilling their workforces. In an effort to retain both rising and top talent, providing opportunities for continuous learning is key. Committing to and investing in learning and development by creating training programs targeted to advance the skills of existing employees will not only support the retention of critical talent but prevent companies from having to invest as many resources in hiring external talent to fill specialized roles.

 

Trend 9: The New-Collar Worker

Given the tight labor market, many employers are becoming more flexible with their hiring requirements, specifically when it comes to the need for a college degree. KPMG found that 70% of CEOs plan to drop or have dropped college degree requirements for some jobs. This new approach has been referred to “new-collar”. With new-collar professions, employees develop their skills without traditional four-year college degrees and take educational paths such as community college, certification programs or internships. Depending on the role, these employees might be self-taught. Embracing new-collar roles can greatly expand a candidate pool but will require adequate on-the-job training to ensure success.

 

Trend 10: Outsourcing HR functions

An increasing number of companies are outsourcing their HR function to leading HR companies like Flex HR. Outsourced HR can be a beneficial model for companies of all sizes – small companies who do not have the resources to invest in full-time HR, or companies who are expanding their footprint and need an agile HR setup. Flex HR’s founder and CHRO Jim Cichanski shares, “The founding concept of Flex HR is to take the human resources burden that so many small, mid and large sized business owners and managers feel regularly and turn that into a feeling of confidence knowing that their HR is being properly handled and thriving under the guidance of Flex HR.” If you’re interested in outsourcing your HR function to a reliable, knowledgeable, and engaged partner, reach out to Flex HR today!

 

HR is bound to evolve even further in 2025 as new concepts, technologies, and policies are introduced. Managing the ever-changing requirements of HR is an important job that requires the expertise of an experienced partner. The Flex HR team can help in anticipating and managing your 2025 HR needs, serving as that resource for you. Reach out to us today!