What’s Next in HR? Top 10 Workplace Trends for 2025

As technology and the modern workplace continue to evolve, the field of Human Resources is guaranteed to see more changes in 2025. Traditional workplace norms went out the window with the pandemic, and this might be as close as we get to any kind of “new normal.” Here are the top ten HR trends for 2025:

1 – Continuing the HR + AI Revolution

With every new year, HR + AI is one of the most talked about HR trends. Generative artificial intelligence (AI) is as powerful as it is controversial. Even if you’ve told employees not to use AI tools, some are probably still using it to draft emails and other documents.

Take back the initiative and take advantage of generative AI for HR. As artificial intelligence gradually becomes a requirement for businesses to stay competitive, your staff will need to develop AI job skills to future-proof their careers.

2 – Focusing More on Skills During Hiring

These days, college degrees shouldn’t be your top priority in recruiting, and years upon years of experience may not be either. Spend more time evaluating which skills are necessary for open roles–and how much can be quickly learned on the job.

Check out these recruiting and hiring tips to ensure you make the right hire every time. 

3 – Expanding Your Talent Pool

Considering the current pushback against DEI terminology, hiring practices are under intense scrutiny. Nevertheless, the underlying principles of DEI are still as relevant as ever. Which parts of your community and service area remain underrepresented in your company? Help your teams adapt, innovate, and overcome by bringing in a wider range of perspectives.

4 – More Focus on Pay Equity & Pay Transparency

There’s no reason to expect a federal mandate anytime soon, but more than a dozen states passed pay transparency laws in 2023 and 2024. Find out how your HR department should prepare for pay transparency. Start by identifying and addressing any wage gaps across your workforce. Even without new regulations, employers cannot legally prevent workers from voluntarily comparing their wages and identifying disparities.

Learn more about modern recruiting—from DEI to untapped talent pools.

5 – Changing Wage and Hour Rules & Regulations

Income tax breaks and other changes will continue to stir up complications in payroll. Changes to overtime rules were recently vacated, but it’s unclear exactly how the next administration will proceed. A few politicians and districts are advocating for a 32-hour workweek. More federal and state legislators have talked about eliminating taxes on tips and overtime.

More of a HR mainstay, as opposed to an HR trend, but needless to say, anything can happen and HR better be paying attention.

6 – Future-Proofing Careers with Reskilling And Upskilling

Training isn’t just about making your workforce more productive–upskilling also boosts retention and employee purpose. As technology like AI takes over some of the labor-intensive work, advanced training can empower workers to continue growing in their careers.

It’s okay if career paths involve more lateral moves than vertical promotions, especially if workers worry about their past roles becoming obsolete. Workers should strive to future-proof their careers by developing various skills to succeed and thrive in the era of AI technology.

7 – Continued Shift to Human-Centric Leadership + Experience

As human-AI cooperation becomes more important in business, HR professionals need to use a human-first approach with recruiting and hiring. Business leaders need to get back to the basics–building human connections with colleagues–not treating employees like interchangeable parts in a machine.

Does your company project a human-first approach to HR? Discover how HR technology can improve your HR functions by empowering your employees.

8 – Hybrid Work Proves Better than Return to Office

An important HR trend for several years now, the debate over where employees should work continues in 2025. After the pandemic-era boom in remote work, even Zoom brought its employees back to working in-person. Employers know that return to office mandates are unpopular with staff. Roughly a quarter of business leaders said they saw harsher RTO mandates as a way to promote voluntary turnover. Companies that care about retention as well as productivity should create a hybrid work environment. 

9 – Emphasis on Employee Well-Being + Mental Health

Compliance has gotten more complicated since the Affordable Care Act, but employers can take the initiative to go further in supporting their workers. Happy and healthy employees are more productive and less likely to jump ship without notice. Initiatives such as Employee Assistance Programs (EAPs) and flexible scheduling support workers’ mental health. 

10 – The Rise of People Analytics

Automatic reporting provides HR data for faster analysis of complex trends. Leverage employee feedback and other metrics for new levels of insight into your workforce:

• Workforce planning: Develop workers for leadership and satisfying careers
• Employee engagement: Learn how to motivate and inspire your staff
• Performance metrics: Beyond individual KPIs, compare teams and trends
• Hiring and retention: What makes new hires want to stay for the long term?

Discover how Netchex can help your stay on top of HR trends for 2025 and beyond: