Future Human Resources Trends in 2025: Traditional Methods to Undergo Significant Transformation
Future Human Resources Trends in 2025: Traditional Methods to Undergo Significant Transformation
As we draw nearer to 2025, business experts bring forth their prophecies for the following year. Among the forecasts, we see the demise of return-to-work policies, the prevalence of AI taking over full-time positions for certain employees, and various trends set to reshape the workplace in 2025. I've had the pleasure of conversing with numerous business leaders who share their provocative HR predictions for 2025, discussing the extinction of antiquated policies.
Job Performance and HR Predictions for 2025
A recent study by Betterworks revealed that an astounding 69% of organizations utilize performance evaluations to gauge skill and competence. However, over half of these assessments occur only once or twice annually. According to Jamie Aitken, vice president of HR transformation at Betterworks, the custom of annual appraisals and performance-based salary revisions will lose its popularity in 2025.
Doug Dennerline, CEO of Betterworks, echoes Aitken's sentiments, expressing that performance management will undergo a radical transformation in 2025. "Progressive performance management is the new benchmark," Dennerline proclaims. "This shift will call into question the outdated notion that performance reviews are merely a compliance exercise. Instead, HR leaders will increasingly recognize them as tools to drive future outcomes—serving as strategic levers for skill development, talent retention, and organizational agility."
Aitken emphasizes the significance of data literacy for effective HR decision-making in 2025. "Annual reviews are being called into question for their inability to provide timely feedback and support the agile development and continuous improvement that employees desire," she argues. "Continuous performance enablement—characterized by ongoing feedback, flexible goal-setting, and regular check-ins—is becoming the norm, and organizations that adhere to annual reviews risk alienating employees and squandering valuable development opportunities."
Dennerline asserts that as employees crave more fulfilling workplace experiences, the narrative will evolve. "By adopting continuous, lightweight performance management systems that adapt to real-time data and employee feedback, companies will gain a competitive edge," he says. "Those clinging to 'business-as-usual' methods will find themselves lagging behind organizations that view performance as a catalyst for innovation, not a box-ticking exercise for HR compliance."
AI and HR Predictions for 2025
In the past, HR has suffered from funding shortages and lack of recognition, resulting in overwork and delayed essential processes. However, the advent of AI agents is revolutionizing this landscape, as stated by Jennifer Dulski, CEO of Rising Team. By 2025, Dulski predicts that AI assistants will become mainstream in HR, and this year will mark the onset of AI making a significant impact on people's jobs.
"Any job is susceptible to automation or replacement in the face of an AI agent," Dulski suggests. "This is true for roles like customer service, sales development reps, paralegals, production designers, junior engineers, copywriters, and so on. To maintain job security or qualify for new opportunities, individuals must learn to utilize AI. There will be plenty of jobs available for people who can effectively use AI to perform tasks more efficiently and for those in roles that require human touch and emotional intelligence."
Janghoon Lee, CTO of Redrob, anticipates that the arrival of AI will elevate HR to unprecedented heights, enabling better hiring practices. Lee asserts that AI will empower HR to enhance team productivity and efficiency. He also predicts that the 2025 workplace will be shaped by a novel breed of AI assistants, transforming how companies approach recruitment. "Visualize an AI agent sifting through your company's data and informing you, 'Given your upcoming product launches and typical attrition patterns, you'll require three senior developers by August—and here's why,'" Lee explains.
Lee highlights that these AI tools can identify patterns humans might overlook, such as recognizing that your customer support team is overstretched during certain seasons or that your data science projects are often stalled due to lacking specialized skills.
"They'll also become adept at uncovering the best talent, learning from past hiring successes and failures to pinpoint where to discover top talent and what qualities keep them engaged," Lee says. "Beyond just screening resumes, these AI tools will help companies make more astute decisions about when to hire, whom to target, and how much to pay—all while keeping an eye on budgets and business goals. While this technology is thrilling, companies will need to navigate new regulations to ensure their AI recruitment tools are fair and transparent."
Tom Keuten, senior vice president and Global Microsoft Alliance lead at Rightpoint, suggests that HR technology will prioritize human interaction. "As technological opportunities multiply, human connection through mentors and leaders will be vital for technical success," he explains. "Positive employee experiences will focus on aligning technology, human resources, and organizational objectives. Outstanding HR technology has the potential to make an employee feel that their entire work experience has been tailored just for them, enabling them to contribute, learn, and grow."
Employee Benefits and HR Predictions for 2025
"AI will assist HR teams in creating tailored and adaptable employee benefit experiences, informed by data (as 81% of HR teams report using AI daily), to provide a more cost-effective and adaptable benefit experience," states Amy Mosher, chief people officer at isolved.
Amberly Dressler, vice president of corporate marketing at isolved, notes that "72% of employees find the benefit selection process stressful, so HR teams will amplify communications around benefits and offer real-time, personalized support through AI-driven tools and human guidance."
In the HR sphere, Donna Bormann, an HR business partner at isolved, anticipates that "HR teams will enhance the flexibility in opting for health insurance coverage within the employer's plan or will offer a monetary compensation to cover alternative insurance or childcare expenses. This, interestingly, is the topmost preferred benefit among Millennials and Gen Z, with 33% and 36% preference towards childcare reimbursement respectively."
Shifting Job Market and HR Forecasts for 2025
Rick Hammell, the founder and CEO of Helios, believes that the 2024 post-election scenario will significantly impact global HR in 2025. He foresees that HR leaders need to brace themselves for an evolving job market, focusing on aspects like immigration and employee mobility. The rise of remote and hybrid work models will remain crucial, helping organizations globally to adapt to emerging norms catering to flexibility and work-life balance.
Hammell also emphasizes the integration of AI and data analysis in recruitment and talent management, enabling companies to seamlessly navigate diverse labor markets worldwide, while minimizing potential biases. Furthermore, he predicts that the commitment to diversity, equity, and inclusion will escalate, necessitating global businesses to embrace more inclusive practices that resonate with their diverse workforces.
Overall, Hammell remains hopeful about his HR predictions for 2025, concluding that "HR will play a pivotal role in implementing strategies to prosper in this era marked by political, social, and economic changes."
In light of the anticipated changes in 2025, skilled professionals may need to adapt their career strategies to focus on leadership roles where their understanding of AI and data analysis can be leveraged. With AI assistants becoming mainstream in HR, leaders who can effectively utilize these tools will be in high demand.
Furthermore, as employee benefits continue to evolve, HR professionals who are adept at implementing tailored and adaptable benefit experiences using AI will be instrumental in enhancing the overall employee experience. This shift towards data-driven HR strategies could potentially shape careers in this field for the better.