Nebel Crowhurst
With 2025 approaching much faster than many of us would like to admit, attention has well and truly turned toward the employee experience trends that we can expect to see over the next 12 months.
Anticipating and staying on top of changes across the industry allows HR leaders to make data-driven decisions that help attract, engage, appreciate and retain the best talent. And while the world of HR and employee experience is as ever-changing as it is nuanced, one thing is for certain – 2025 is going to be a big year.
Here are five key trends that you need to be aware of in this pivotal year:
1. Integrating AI into HR
2025 is set to be a game-changing year when it comes to the use of generative AI in HR. Earlier in 2024, 49% of HR managers said the need to explore how AI can benefit HR had increased in priority. That percentage is likely to continue rising rapidly in 2025 as HR teams are under even more pressure to “do more with less”.
In the UK alone, around 7 million employees are already using AI at work, and 72% of leaders say organisational trust in AI has significantly increased since it first came onto the scene in late 2022. Whatever way we look at it, AI is going to continue revolutionising practices and processes in 2025.
From automating routine tasks – like scheduling payroll or screening resumes – to analysing data and providing key insights, the full scope of how AI will save HR teams both time and money is yet to be discovered.
A core area of focus for HR leaders in 2025 must be the safe and ethical use of AI within their organisations. Things like introducing employee guidelines and policies around AI usage and prioritising data governance to ensure integrated AI cannot access sensitive HR data will become even more critical.
Whether we get on board or not, AI adoption is going to increase both inside and outside of the workplace through 2025 and beyond. To remain relevant and stay ahead of the curve, it’s important for HR leaders to proactively remedy fears by helping wider teams understand that AI is here to empower and enable people, not to replace them. Effectively and ethically incorporating AI into the workplace can significantly enhance the employee experience, and it’s being widely predicted to ‘go mainstream’ in 2025.
2. Becoming an employer of choice
While this has been a focus for many for a while now, becoming an “employer of choice” will be even more essential in 2025 and the years to come.
A continued focus on building inclusive company cultures and enhancing the employee experience has led to more structurally diverse workforces, comprising a blend of full and part-time employees, contingent workers and digital workers. The remote and global workforce has been well and truly embraced, and many employers will continue to reap the benefits of having access to top talent right around the world throughout 2025.
But flexible working arrangements are just the tip of the iceberg. To become a true employer of choice in such a competitive market, HR leaders must focus on the ways they can increase engagement and retention within their existing workforces. And all of our research points to employee appreciation as the crucial driver of success.
The Appreciation Index found that fostering a genuine culture of appreciation boosted productivity, performance and employee engagement while also improving motivation and team relationships. Employee appreciation is not only about what somebody does, but who they are. And it offers huge untapped potential for business success in 2025.
3. Meeting the needs of a multigenerational workforce
It was widely reported over the last year that, for the first time in history, there are four generations of employees in the majority of UK workplaces.
A report from the Work Foundation at Lancaster University found that 73% of business leaders in the UK have multiple generations in their workforce, with people born in the 1950s working alongside people born in the 2000s. And with Generation Z climbing the ranks rapidly, HR leaders are facing a notable shift in the way they need to think about engagement and motivation in 2025.
Despite our research highlighting a clear divide between generations in terms of their needs and expectations, many employers are yet to implement age-appropriate benefits, policies or support mechanisms to meet these needs. To put it bluntly, organisations that continue failing to meet the needs and expectations of the multigenerational workforce will fall behind in 2025.
This means developing an EVP that is tailored to the different generations in the workforce, including thinking strategically about things like ‘pick and mix’ benefits options and generation-inclusive policies.
4. Reshaping recognition & reward
Taking a personalised approached to recognition & reward will also become more commonplace going forward. Just as every person is different, everyone one of your employees will have a different preference when it comes to being recognised and rewarded for their efforts and achievements. Some will relish the visibility of public recognition, whilst others would prefer a private note of thanks from their manager.
When commemorating events and landmarks in your employees' lives, and even rewarding them, we need to move beyond simply acknowledging work anniversaries and birthdays. Whether it's getting married, buying a home or completing a professional qualification, everyone's milestone moments will look different, but it's our job to recognise and reward these to show our people how we appreciate them for who they are, not just what they do.
5. Prioritising wellbeing during uncertainty
Throughout 2025, employee wellbeing will remain a core area of focus for HR as economic and political uncertainty continues to soar, both at home and overseas.
Our research highlights that although 63% of HR managers say mental health and wellbeing has increased in priority over the last few years, 36% of employees still feel frequently stressed, and 4 in 10 say workplace concerns have negatively impacted their wellbeing.
In 2025, we predict that HR leaders will turn towards a more holistic approach to wellbeing, which encourages us all to think in a far broader sense and consider how our employees’ total needs can be met.
A holistic wellbeing model incorporates a wide range of offerings and benefits that bolster mental, physical, and financial health, all while promoting a supportive culture that allows employees to thrive. And pulling everything together in a unified Wellbeing Centre will become even more valuable as employers continue to increase their levels of support during challenging times.
The future of HR in 2025
While there’s no doubt that 2025 will bring new challenges, the opportunities for forward-thinking HR leaders to get ahead of the curve and make a real positive impact are immense.
Organisations that prioritise holistic wellbeing, leverage the power of employee appreciation, and address the needs of their multigenerational workforces will build strong brands as employers of choice. And the proactive use of AI will enable them to achieve all of that, with less.
If you’re looking for any help in developing an effective EVP or an all-encompassing holistic wellbeing model, get in touch with our friendly team of employee experience experts.
