HR in 2025: What's on the Horizon?

Some of the challenges moving into the new year are not all that different from this year. However, there are some unique developments shaping the world of HR. Some of these can help enhance the work experience and others may need more evaluation before deciding if they are right for your company.

Probably the biggest change is the growing conversation around AI.  There are so many applications of AI that can make companies more efficient, do a better job of gathering data and evaluating it, and automate tasks. It also impacts which tasks or jobs will no longer be done by a person. For some of your employees, that makes them very anxious about their own careers. For others, they see AI as an opportunity to improve either their own workflow or the effectiveness of their team.  

There are two types of AI:

Predictive AI 
This type of AI is learning and statistical analysis to look at historical data and predict future outcomes. This can be very helpful when looking at trending health data. Some other application examples help with inventory management, customer service, and product recommendations. However, predictive AI is only as good as the data it's using. It can be inaccurate if the data used to train it is biased or outdated.

Generative AI
This type of AI creates content like images, text, music, video, or software code in response to a user request. Generative AI can be used to personalize content, automate customer interactions, and generate recommendations. Currently, generative AI outputs may be inconsistent or incoherent and have been known to generate harmful or misleading content.

If your company is implementing new AI applications, it can be helpful to give more context around how it is being used and why. If employees see it as a tool that is helpful to them to be more efficient, solve problems more quickly, or even provide a way to be more collaborative, they will potentially see it as a positive. This messaging to employees can be straightforward if it’s being used for data gathering and analytics. Generative AI can seem a little scarier if employees see it replacing their jobs, particularly for content writers, creatives, or customer service professionals.  

Providing enough information in advance of implementing new AI applications and the benefits is key. There is no doubt that more AI will be used in our workplaces. With enough targeted communication and the right launch, more of your workforce will be able to adapt.

Another challenge moving into 2025 is the current skills of your workforce and what will be needed in the future. HR leaders should consider that 70% of company leaders see the skills gap in their company as negatively impacting performance.  

In order to address this fast-growing challenge, HR can rethink how their workforce is being managed.  Some of the causes for the mismatch are changes and improvements to technology, quickly shifting industry demands, procrastination in more forward-thinking workforce planning, and not enough focus on the need for quality education and training. Piloting some new initiatives around effective continuous learning can be a solution.

An emerging trend is “new collar” jobs. These are jobs that require more advanced skills in high-tech areas but don’t always require an advanced degree. This is an opportunity to look at employees who have the right soft skills or the ability to learn new skills through experience or training.  This approach can reduce some of the company’s recruiting costs and promote from within.

Other facts to consider are economic uncertainties, demographic shifts, and societal expectations that continue to redefine the approach to workplace development. These changes have created challenges and opportunities, with new expectations and work styles emerging across the workforce. Women of all backgrounds continue to push for true equity and there are more and more older workers in our organizations. With these factors at play, organizations can move into 2025 with more of a focus on building resilient and motivated employees through HR initiatives and continue to support employee health and well-being.