As we embark on another year, we are optimistic about technological developments and improvements to existing processes in the HR domain. In this article, we examine all the trends and predictions available on the internet for Human Resources, Talent Acquisition, HR Tech, and Hybrid Work in 2025.
HR Prediction #1. Advancements in HR Technology
Advancements in AI are driving significant growth in HR technology, impacting areas like analytics and recruitment. To stay competitive, experts recommend upgrading your ATS and CRM platforms to fully leverage the potential of your current HR tech stack. Balancing innovation with cost efficiency by cutting back on unnecessary tools is also crucial for organizations navigating this evolving landscape.
HR Prediction #2. Increased Focus on Employee Well-being and Mental Health
Given the latest employee wellness statistics indicating that workplace wellness is blooming, we can expect a significant rise in companies prioritizing staff mental health in 2025. This may include offering mental health resources, flexible work arrangements, and employee assistance programs promoting work-life balance. The goal will be to create a workplace environment that supports employees' overall health and happiness.
HR Prediction #3. Skills-Based Hiring and Development
The World Economic Forum's latest Future of Jobs Report found that by 2030, workers can expect two-fifths (39%) of their existing skill sets to be transformed or become outdated. To prepare for this, organizations are likely to shift from the traditional focus on degrees and qualifications toward skills-based hiring and development. This trend prioritizes candidates with specific skills needed for a job, regardless of their educational background. And according to expert predictions, that seems to be the right move.
Embracing skills-based hiring not only broadens the talent pool and signals a commitment to social advancement but also can move the needle in measurable ways. In fact, non-degreed hires have a 20% increase in retention than their college-educated counterparts, a study says. Consequently, we can also expect increased investment in employee training and development programs to equip employees with the necessary skills for success.
HR Prediction #4. Emphasis on Diversity, Equity, and Inclusion
Diversity, equity, and inclusion (DEI) recruitment initiatives have seen both setbacks and advancements recently. Despite fluctuations in progress, 78% of employees still value DEI. Consequently, companies neglecting DEI risk losing top talent, and the future of HR emphasizing diverse and inclusive efforts isn’t so far away.
To promote fairness and consistency, companies are adopting structured recruitment and candidate selection processes and using diversity recruitment tools that mitigate hiring bias. Inclusive onboarding and mentorship programs are also critical to attracting and retaining diverse talent.
HR Prediction #5. Rise of Hybrid Work
Owl Labs' latest report predicts that 2025 will be the year that hybrid work becomes the dominant model, as the “full return” to the office has not been successful. The data shows a 6% decrease in full-time office work and a 57% increase in remote roles year-over-year and indicates that by the end of 2025, the “3-2” hybrid model (three days in the office, two remote) will become the dominant structure.
Companies are expected to adopt hybrid work policies that allow employees to work from anywhere, at least some of the time. This shift will require HR to develop new strategies for managing remote teams, maintaining employee engagement, and ensuring productivity.
HR Prediction #6. Gig Economy and Contingent Workforce
A 2025 survey from TaxAct just revealed that 92% of Americans believe more people will be working side hustles. This signals that the gig economy is expected to grow, leading to a larger contingent workforce. Companies may increasingly rely on freelancer management systems to efficiently meet their staffing needs. This trend will require HR to develop new strategies for managing and engaging contingent workers.
HR Prediction #7. A Focus on Employee Experience
Recent statistics paint a grim picture of employee engagement, with 4.8 million fewer U.S. employees engaged in their work in early 2024. This represents the lowest recorded engagement levels since 2013. Given the established correlation between employee engagement and organizational success – with highly engaged workforces experiencing a 23% increase in profitability, a 14% increase in overall productivity, an 18% increase in productive sales, 81% lower absenteeism rates, and a 66% increase in employee well-being – prioritizing the employee experience will be a crucial strategy for HR in 2025.
This translates to a need for organizations to proactively invest in strategies that bolster employee engagement, satisfaction, and loyalty. Potential strategies may include offering talent development opportunities, recognizing and rewarding employee contributions, and cultivating a strong sense of belonging within the organization.
HR Prediction #8. Ethical and Responsible AI in HR
As the use of AI in HR becomes more widespread and interest in AI recruitment tools rises, organizations will need to focus on ensuring AI is used compliantly and ethically. This includes implementing guidelines for AI use in HR, monitoring AI systems to prevent bias, and being transparent with employees about how AI is used in HR decision-making.
Industry leaders Mark Feffer, Founding Editor of Workforce AI, and Paul Carney, Founder of Perpeta, share real-world examples of how HR teams are leveraging AI to revolutionize their workflows. Watch the recording for practical insight on how AI improves productivity and outcomes in hiring and everyday HR efforts.
We love testing and finding cutting-edge recruitment software and HR technologies that are user-friendly, well-priced, and actually helpful for TAs and HR leaders. See even more HR tech trends and resources we recommend below:
- Best AI Recruiting Tools
- Top Recruiting and HR Chatbots
- How HR Goes From AI Adoption to Full Integration
- Understanding AI in HR, Think of It Like a Consultant
- A Complete Guide on How AI is Used in Recruitment
- The 5 Clever Ways to Use ChatGPT in HR
- AI’s Place in TA: Building the Recruiting Team of the Future
This article was edited by Anh Nguyen.
