5 Emerging Trends in HR to Know for 2025

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Gem Siocon

With a degree in Psychology and more than 10 years of experience in digital marketing and HR, Gem Siocon writes HR and marketing articles packed with practical and actionable advice.

1. Emerging Trends in HR: Embracing Hybrid and Remote Work Models

The rise of remote and hybrid work environments has significantly impacted HR practices.

In their 2024 State of Hybrid Work, Owl Labs said many employers have been working on enhancing the remote and hybrid experience through training. Training topics include managing remote/hybrid teams (50%), holding effective hybrid meetings (49%), and using mixed real-time and asynchronous methods of communication (47%). Another 47% said their companies have increased their adoption of AI, while 46 % have increased their use of employee tracking software.

In terms of physical changes, 69% of employers have made upgrades, ranging from hiring IT staff (28%) to upgrading meeting technology (24%) and expanding collaboration/meeting spaces (16%).

For employees, 46% said they could think creatively at home, while 41% said they could focus more at work when they were at home.

Tips when creating and implementing remote and hybrid work policies

Create comprehensive remote and hybrid work policies that outline which roles are allowed for both. In your policy, specify the eligibility requirements, expectations, tools, and communication guidelines for remote work. It should also include work hours, availability, and performance metrics of hybrid and remote employees. Ensure that this policy is transparent and accessible to all employees.
Provide your remote workers with essential tools such as laptops, collaboration software, project management software, and internet access.
Train managers on leading remote teams. Train all employees on using digital tools. Establish guidelines for remote work communication, such as when to use email vs. messaging apps, expected response times, and norms for video calls. Encourage asynchronous communication for teams in different time zones or with flexible schedules.
Evaluate employees based on their output and performance and not on time rendered. To maintain the productivity of remote and hybrid workers, set clear and measurable goals.
Schedule regular meetings with remote and hybrid workers to discuss their progress, provide feedback, and address any challenges. Keep them updated with company updates, projects, and performance goals.
Ensure all remote, hybrid, or in-office employees have equal access to promotions, professional development, and critical projects. HR should monitor opportunities to ensure fairness.
Conduct employee satisfaction surveys to assess the effectiveness of remote and hybrid work arrangements. Review what’s working and address the challenges.
Stay informed on the latest remote and hybrid work developments to keep employees engaged and competitive. Include legal, tax, or regulatory requirements for remote work, especially for employees in different states or countries, to ensure compliance, such as work hours, overtime, and compensation policies.

2. Emerging Trends in HR: AI and Automation in Recruitment and HR Operations

Gartner reported that artificial intelligence will impact HR operations, service delivery, talent acquisition, learning and development, and talent management. Human resource management is interested in understanding and experimenting with emerging trends in HR such as generative AI. This can save time and effort by reducing resource-intensive processes. Thus, eliminating repetitive tasks, and even co-authoring content related to human resources. HR using AI will lead to new employee expectations about how they interact with HR and HR technology, eventually leading to employees rethinking the purpose and structure of individual HR roles and teams.

In their survey, Gartner said many HR leaders feel urgent about moving forward with artificial intelligence in the HR function. 38% of HR leaders have explored or implemented AI solutions to improve process efficiency within their organization. Meanwhile, 76% of HR leaders believe that if their organization does not adopt and implement AI solutions in the next 12 to 24 months, they could be left behind by other companies that use AI. Another 34% of HR leaders were exploring potential use cases and opportunities for generative AI.

In terms of the future, Gartner expects generative AI solutions to become one of the main emerging trends in HR, embedded in current and new HR technology providers in the next one to three years. Specifically, AI will automate recruitment processes and help talent acquisition professionals and hiring managers make informed talent decisions. For instance, an AI algorithm could predict which sourcing channels attract suitable candidates for a specific role.

Tips for implementing AI in recruitment and HR operations

Use AI-powered job description software to write and edit your job descriptions to make them more inclusive and appealing to diverse candidates. These tools can detect biases in age, gender, and race on your JD and suggest more neutral alternatives.
Use ATS-enabled platforms to screen resumes by anonymizing candidate data (e.g., removing names, gender, or photos) to ensure decisions are based solely on skills and experience.
Implement chatbots to answer candidate FAQs, schedule interviews, and update candidates on their application status. Deploy chatbots for employees to answer benefits, leave policies, and payroll queries.
Use AI-driven onboarding platforms to automate the onboarding process by answering employees’ common onboarding queries and guiding them through compliance and policy documents.
Utilize AI to create self-service HR portals where employees can update their information, apply for benefits, track time off, and request documents.
Use AI to suggest relevant courses, certifications, or development programs to employees and offer personalized learning and development paths.
AI can automate payroll processing, benefits enrollment, and other administrative tasks. AI can calculate taxes, process deductions, and ensure compliance with labor laws, reducing the workload for HR teams.
Leverage AI to analyze HR data, predict trends, and support the hiring process, promotions, and employee retention decision-making.

3. Emerging Trends in HR: Employee Well-being and Mental Health Programs

Mental health, another of the emerging trends in HR, plays a crucial role in the workplace.

In Deloitte’s Gen Z and Millennial Survey, 40% of Gen Zs and 35% of millennials say they feel stressed most of the time. Financial concerns and family welfare are significant stressors, alongside job-related factors such as long working hours and lack of recognition.

It’s good that employers are focusing on providing better workplace mental health support. Over half of Gen Zs (54%) and millennials (55%) agree their employers take the mental health of their employees seriously. More than half of Gen Zs (56%) and millennials (59%) feel comfortable speaking openly with their manager about feeling stressed or anxious.

Despite some positive changes, there is room for improvement. Only 26% of GenZers and 32% of millennials think or feel that their senior leaders do not speak about the importance of prioritizing mental health. Some organizations do not provide basic, dedicated mental health support resources, with a third of millennials (33%) and a quarter of Gen Zs (27%) saying their employer does not provide an employee assistance program or a confidential helpline.

Tips to support employee well-being

Offer health insurance that covers mental health services such as counseling, therapy, and psychiatric care.
Provide access to mental health resources, such as crisis lines. You can also offer subscriptions to mental wellness apps.
Create a psychologically safe work environment where employees feel comfortable sharing concerns or discussing their mental health without fear of judgment or repercussions.
Support a healthy work-life balance by encouraging staff to use their paid time off (PTO) fully and avoid working during their vacations. Evaluate your employee workloads and adjust them to prevent burnout.
Offer workshops on topics like stress management, mindfulness, and resilience. Provide access to wellness programs like gym memberships or fitness classes.
Support the formation of ERGs focused on mental health or well-being. These groups can provide peer support, raise awareness about mental health, and advocate for initiatives that promote work-life balance.

4. Emerging Trends in HR: Upskilling and Reskilling for the Future of Work

According to the World Economic Forum, the 2020s are becoming the decade for employee’s upskilling and career progression. This is one of the most important emerging trends in HR.

Employers believe 44% of employees’ skills will be disrupted in the next five years. Analytical skills and creative thinking remain the most important skills for workers, followed by technology literacy. Skills such as curiosity and lifelong learning, resilience, flexibility and agility, motivation and self-awareness are also essential. Systems thinking, AI and big data, talent management, and service orientation and customer service complete the top 10 growing skills.

Six in 10 workers will require training before 2027. Analytical thinking receives the highest priority for skills training, accounting for 10% of training initiatives. Creative thinking comes second, accounting for 8% of skills training priorities. AI and big data training ranks third among company-sponsored training programs and will be prioritized by 42% of surveyed companies. Development of workers’ skills in leadership and social influence (40% of companies), resilience, flexibility, and agility (32%), and curiosity and lifelong learning (30%) are also on employers’ upskilling plans. Two-thirds of companies expect enhanced cross-role mobility, increased worker satisfaction, or improved worker productivity as a result of upskilling their workforce.

Tips for upskilling and reskilling your workforce

Conduct a skills gap analysis to understand current employees’ skills and what is needed in the future. Based on the results, training programs should be developed.
Offer online courses, workshops, and on-the-job training based on industry trends and organizational goals. Align these learning activities with key business objectives such as innovation, customer service, or operational efficiency.
Prioritize reskilling employees in data analytics, artificial intelligence (AI), automation, and digital collaboration. Ensuring that all employees have digital literacy is essential for future company success.
Use AI-powered LMS and platforms to tailor learning content based on employees’ needs and learning styles.
Create internal mobility programs that develop employees’ cross-functional skills, such as job rotation programs and stretch assignments. This will prepare them for future leadership roles.
Implement mentorship and workshops that allow employees to share their knowledge and learn new skills.
Encourage employees to pursue industry-recognized certifications that will be valuable for future roles. Provide financial support or reimburse employees who enroll in external upskilling programs. Give them bonuses, certifications, or career advancement opportunities for actively participating in upskilling or reskilling programs.
Leverage AI to measure and analyze the effectiveness of upskilling and reskilling efforts. Track employee participation, progress, and the impact on performance.

5. Emerging Trends in HR: Diversity in Benefits and Compensation Packages

HR Dive’s Identity of HR survey found that non-traditional employee benefits emerged as an opportunity for employers. So, considering emerging trends in HR, non-traditional benefits are more vital than one might think.

Remote and hybrid work programs were cited as the most popular benefit, and more than half of the respondents (56%) indicated that they were part of their talent strategies because employees feel in control of their work and personal lives while improving retention. Other popular non-traditional benefits strategies include mental health or counseling benefits (36%), student loan repayment or tuition reimbursement (22%), and public transit or ridesharing benefits (14%).

Similarly, SHRM also reported top benefits and compensation trends, such as GLP-1 Drug coverage; financial health offerings (from financial budgeting help and debt repayment tools to emergency savings and student loan debt help); salary increases; mental health benefits; healthcare (integrated wellness programs, telemedicine options); pay transparency; and pensions.

Tips for developing diverse benefits and compensation packages:

Survey employees to understand what benefits they need. Ask them what benefits are the most important for them.
Implement a flexible benefits program so employees can choose their benefits. Offer various options, such as health insurance plans, wellness programs, retirement contributions, and paid time off. In your HR benefits software, analyze employee data and provide personalized benefit suggestions based on their demographics, job roles, and individual choices.
Expand your traditional benefits to cover the needs of employees of different backgrounds. For example, include floating holidays that employees can use for religious observances or personal celebrations not covered by national holidays. Add fertility treatment, surrogacy, and adoption benefits to your benefits package that are inclusive of all types of families.
Analyze the effectiveness of your benefits packages regularly. Track employee satisfaction and benefit usage and make adjustments when necessary.

HR’s Influence on Organizational Strategy

HR Departments as Strategic Partners

In the last decade, HR departments have evolved from handling administrative tasks to playing a pivotal role in strategic planning. Today, in line with the emerging trends in HR, HR managers are seen as strategic partners, contributing directly to business goals. So, this shift has been fueled by technological advancements, such as HR analytics, predictive analytics, and machine learning, which allow for smarter, data-driven decisions.

HR specialists now collaborate with leadership teams to align organizational culture with the company’s strategic vision, ensuring that employee engagement and performance management stay at the forefront. So, by adopting new ways of working, HR has become integral to driving innovation and adaptability in the modern workplace.

Linking HR to Market Adaptability

Considering these emerging trends in HR, HR’s ability to support organizational change has never been more important. Thus, with recent trends like hybrid work culture and digital transformation shaping the business world, HR departments play a key role in ensuring a smooth transition for employees. So, through effective change management, HR helps organizations stay competitive by fostering a culture of agility and innovation.

For instance, flexible work arrangements and employee assistance programs are strategic tools that improve job satisfaction and help retain top talent. A recent survey highlighted that companies with engaged employees were more adaptable to market shifts. Thus, demonstrating how HR practices directly impact market success.

Driving Innovation Through Leadership Development

HR innovations are also creating unique opportunities for companies to develop leaders who can navigate change. So, by investing in leadership development and encouraging emotional intelligence, HR helps build teams that are resilient and forward-thinking. Therefore, these efforts directly impact customer satisfaction, as engaged employees and strong leaders create a more positive employee experience, which translates to better service and product delivery.

Supporting Business Goals with HR Analytics

The rise of HR analytics has allowed HR managers to measure and improve processes like the recruitment process and employee development. Analyzing data from the previous year, HR can identify potential candidates who align with the company’s long-term goals. Similarly, data insights enable HR to refine DEI initiatives and enhance diversity training. It also helps build a healthy work environment that supports growth and creativity.

The Future of HR in Strategic Planning

As we look to the future of HR, it’s clear that HR’s role in strategic planning will only grow. So, the ability to embrace key trends like virtual reality, mobile apps, and social media ensures that HR remains at the forefront of organizational success. Therefore, by staying ahead of the latest trends and fostering open communication, HR departments can continue to be a driving force in achieving business goals.

Shout-outs:

State of Hybrid Work 2024 – Owl Labs
AI in HR: The Ultimate Guide to Implementing AI in Your HR Organization – Gartner
2024 Gen Z and Millennial Survey: Living and working with purpose in a transforming world – Deloitte
Future of Jobs Report – World Economic Forum
Why ‘nontraditional’ benefits are on the rise and how HR can make them work – HR Dive
7 Trends to Watch in Benefits and Compensation in 2024 – SHRM

December 19, 2024 by Gem Siocon in HR Content