AIHR HR Trends Report 2025 PDF

Executive Summary HR Trends Report 2025 From AI Adoption to AI Adaption Looming Organizational Anxiety AI in HR: Overhyped or Underestimated? HR Execution is King A Tipping Point for the Skills Mismatch The Embedded HR Professional Blue-Collar and “New-Collar” Jobs Bloom The Antifragile Worker The Golden Age of the Silver Worker Employee Engagement 2.0 The Women’s Equity Effect INTRODUCTION Embracing Disruption Walt Disney famously said: “Times and We conducted hundreds of hours of conditions change so rapidly that we must research, surfacing three themes - and the keep our aim constantly focused on the 11 underlying trends - that will impact future.” Human Resource Management in 2025. 2025 will be a year of transformative These insights will help you turn disruption change — with disruptive forces set to into a driving force for innovation and reshape the world of work. reinvention. Technology and AI are now the business Wishing you growth, resilience, and success! reality transforming how organizations function at every level. Shifting talent dynamics create both challenges and opportunities to build a resilient and motivated workforce. Erik van Vulpen The tactics organizations use to respond to Founder of AIHR disruptions in talent and technology will determine who will succeed and who will struggle in 2025. To help their organizations thrive under these conditions, HR must embrace these Dieter Veldsman disruptions and craft strategies that Chief Scientist, HR & OD at AIHR enhance technological advancements with a human touch. 2 EXECUTIVE SUMMARY 11 HR trends for 2025 Theme 1 Page 4. 1. From AI Adoption to AI Adaption 3. A Tipping Point for the Skills Mismatch Love it or hate it, AI is everywhere, and it’s putting HR AI is massively impacting how we work, yet most in a tough spot to balance cost efﬁciency with organizations struggle to identify the critical skills workforce anxiety over AI disruption. needed to cope with this change. Page 5. Page 9. 2. AI in HR: Overhyped or Underestimated? 4. Blue-Collar and “New-Collar” Jobs Bloom While HR is expected to lead the AI technological GenZ is opting for the security of skilled, blue collar work transformation, it fails to enable its own AI uptake, while emerging high-tech ﬁelds l are giving rise to 'new sacriﬁcing its full potential. collar' jobs. Page 7. Page 11. Theme 2 Page 13. 5. The Golden Age of the Silver Worker 7. Looming Organizational Anxiety Increasing life expectancy and low birth rates makes Everyone in the company is feeling the stress of an the over seventy-ﬁve population the fastest-growing uncertain future, and watercooler talk is triggering workforce segment. “the big stay”. Page 14. Page 18. 6. The Women’s Equity Effect Closing the gender equity gap would increase GDP and bring stability to a faltering economy, yet women continue to face unique challenges at work. Page 16. Theme 3 Page 20. 8. HR Execution is King 10. The Antifragile Worker Strategic HR is often seen as the pinnacle of HR work, Organizations are fostering growth through challenge, but smart execution of HR policies and initiatives is with HR at the helm of pivotal efforts like upskilling, equally critical to organizational success. reskilling, and continuous learning. Page 21. Page 25. 9. The Embedded HR Professional 11. Employee Engagement 2.0 HR teams are actively participating in business A back-to-basics approach shows promise for solutions rather than pushing HR solutions to the declining employee engagement after a decade of business, creating productivity gains. policy and investment failed to move the needle. Page 23. Page 27. 3 Theme 1 Technological transformation is the business reality Technology and AI are no longer a future trend—it’s the current business reality, transforming how organizations function at every level. The pace of change continues to accelerate, making the effective integration of technology and AI critical for organizations to stay competitive. This tectonic shift requires a strategic rethinking of roles, skills, and processes, prompting HR to consider how these transformations reshape the organization, workplace, and people management. Beyond adopting new tools, HR must focus on instilling a mindset of innovation, agility, and antifragility in their employees to take full advantage of these tech advancements. Trends Trend 1: From AI Adoption to AI Adaption Trend 2: AI in HR: Overhyped or Underestimated? Trend 3: A Tipping Point for the Skills Mismatch Trend 4: Blue-Collar and “New-Collar” Jobs Bloom 4 Trend 1 From AI Adoption to AI Adaption There’s untapped value in AI to increase employee productivity. A recent study showed that BCG consultants achieved a 40% increase in their quality of work by using ChatGPT. To unlock these gains, employees need the conﬁdence to explore its potential without fear of mistakes. AI technostress Balancing interests The accelerated adoption of generative AI (GenAI)– As a result, HR is pulled in multiple directions as it and resulting integration into everyday work manages the organizational need for cost efﬁciency processes– has quickly changed how jobs are with workforce anxiety. HR has the opportunity to be performed. Regulatory bodies are struggling to keep the expert in the room. Leading edge HR teams are up with the realities of AI on the ground and taking control enabling the organization to achieve company policies are similarly lagging behind. AI readiness and adapt to unavoidable technological Employees worry their roles will become obsolete shifts. because of AI adoption. 5 Trend 1 Key takeaway: Guide the workforce through the shift to AI Encourage experimentation and training Offering comprehensive training boosts skills and Meta’s AI investments coincide reassures employees that AI is meant to augment with layoffs their work and productivity. Robust training and Meta cut about 25% of jobs while increasing upskilling helps allay fears so employees adapt and spending on AI infrastructure by $10 billion. thrive in AI-enhanced roles. This includes HR Headlines highlighting layoffs linked to AI are professionals improving their own understanding of driving the fear of job displacement. AI and its impact on work so it can continue to support employees and the business. The BYOAI phenomenon Establish an AI strategy AI usage is already prevalent across Although 79% of leaders agree that AI adoption is organizations — three in four knowledge critical to remain competitive, 60% admit their workers now use AI at work, with 78% company lacks a vision and plan to implement it. bringing their own AI without any ofﬁcial Spearhead the creation of a clear AI strategy and guidance or oversight. collaborate with leadership to align it with company goals. Thi should include transparent communication about AI’s role, potential, and impact on jobs. Create governance systems Guardrails ensure safe organizational adaptation and help employees to shift their view of AI from threat to growth tool. Ensure responsible AI use by creating playbooks that define accessibility, set boundaries, and provide guidance on how to make– and monitor– AI-driven decisions. This helps employees view AI as an asset rather than a threat. 6 Trend 2 AI in HR: Overhyped or Underestimated? HR is missing key opportunities to improve efﬁciency and effectiveness with AI. Traditionally rooted in compliance and risk management to protect the organization from biased decision-making, legal liabilities, and data breaches, this has also slowed the adoption of new technologies. AI adoption lag Unblocking AI HR professionals haven't integrated AI into their AI has the potential to transform key functions, from workflows. While 34% of marketing departments recruitment to talent management and beyond. Low regularly use GenAI, only 12% of HR departments AI adoption in HR is concerning given HR’s role in have adopted it, and just a third of HR leaders are leading this organizational change. Addressing AI exploring potential GenAI use cases. adoption blockers like insufﬁcient digital skills, uncertainty about which tools are suitable, and a lack of clarity on AI's potential beneﬁts are critical. The state of AI in HR 76% 41% of HR professionals fear falling of HR professionals have behind if their organization does the competencies to keep not adopt AI tech the next up with HR digital 12-18 months. transformation. Source: Gartner Source: AIHR 7 Trend 2 Key takeaway: Lead AI practices by example Adopt an AI Growth Mindset Monitor AI performance Develop competence and conﬁdence through In order to understand the effectiveness of AI hands-on learning and practical experience. Start technologies in enhancing productivity and practically integrating GenAI into work and develop a decision-making, it’s critical to analyze performance mindset of experimentation that uses AI to solve and outcomes to ensure the technology meets problems and make decisions with a human expert in productivity and quality benchmarks. Regular the loop. assessments and adjustments optimize AI applications for an increasingly wider array of tasks Develop a risk framework and maintain alignment with organizational goals. It’s important to recognize that avoiding AI is a risk. HR teams leveraging risk management expertise establish strong AI governance. Use a risk framework for AI adoption in HR that offers a clear roadmap for safe and effective use, identify key areas where AI can enhance operations, prioritize ethical considerations, and form a cross-functional committee with experts in AI, HR, and legal to evaluate tools and establish best practices. 8 Trend 3 A Tipping Point for the Skills Mismatch Employers believe 44% of workers’ skills will be disrupted by 2030, and that six in 10 workers will require additional training before 2027. Solving the skills gap is imperative for HR as 70% of company leaders see the skills gap at their company negatively impacting business performance. New standards The skills needed in the workplace are rapidly shifting as new technology emerges. Organizations are struggling to clearly identify and anticipate the skills needed in the medium and long term. This leaves them vulnerable to decreased productivity, innovation, and competitiveness in the evolving market. A widening gap AI is reshaping labor markets and 60% of jobs will be automated or augmented. Bridging such a severe skills gap requires organizations to fundamentally rethink their approach to workforce management. Strategies must be in place before the end of 2025 if organizations hope to avoid massive operational disruptions as a direct result of skills mismatches. ‟ Prioritizing training investments where they will yield the highest returns achieves rapid progress.. 9 Trend 3 Key takeaway: Pivot to a genuine skills-based approach Identify core skills gaps Integrate technology solutions and implement talent marketplaces Collaborate with the business to deﬁne and forecast skill requirements based on industry trends and Underpin strategies developed to close the skills gap technological advancements. Create a detailed skills with technology. AI and automation can standardize taxonomy to identify both current and future skill skills taxonomies, infer skills from job roles and requirements that drive success in each role. This training, help maintain an up-to-date skills inventory, taxonomy will serve as the foundation for all talent and identify emerging gaps and training needs. management practices, helping HR align workforce Talent marketplaces offer an immediate solution to capabilities with evolving business needs. address skills gaps by enabling flexible work models and skills-based internal mobility. Acquire, develop, and deploy the right skills Establish development opportunities and hiring practices that address skills gaps. Prioritize training Competence vs. credentials investments where they will yield the quickest results There is a four-fold increase in job ads without and highest returns. Align talent acquisition, degree requirements. But only one in 700 hires development, and performance management with annually is actually a ‘skills-based’ hire. your skills-based approach. Allocate and redeploy employees to different roles or projects as needed, Talent marketplace reality and help employees explore new career paths. Despite 40% of executives believing AI will drive growth, only 26% of companies use talent marketplaces. 10 Trend 4 Blue-Collar and “New-Collar” Jobs Bloom Younger workers are prioritizing job stability, fair pay, and upskilling opportunities over new technology disrupted jobs. Gen Z, for example, increasingly favors stable sectors like government and healthcare for jobs with security, purpose, and are less likely to experience layoffs. Blue collar is back New collar explained The blue-collar job market is once again booming with "New-collar" jobs require advanced skills in opportunities, higher pay, and increased interest from high-tech areas like AI and cybersecurity but not younger generations. While the tech sector cut jobs, necessarily advanced degrees. These jobs provide manufacturing job postings went up 46%. There is a signiﬁcant opportunities for skilled workers who high demand for skilled physical labor from have the necessary soft skills, or mindset to learn manufacturing to sanitation and construction. new skills through practical experience or occupational training. 11 Trend 4 Key takeaway: Level the playing ﬁeld for all types of workers Rethink job deﬁnitions and Improve employee experience requirements Implementing accessible tools for training, A strategic workforce plan accommodating these performance management, and career development shifts focuses on skills-based hiring. Adapt job boosts engagement, productivity, and skills descriptions for skills rather than traditional growth—key elements of talent attraction and qualiﬁcations. Rethink how work is deﬁned and what retention. This is especially important for deskless the job requirements are. Skills-based hiring practices workers, who lack access to resources and feel tap into a broader talent pool by focusing on practical disconnected from advancement opportunities. skills over degrees, creating opportunities for those overlooked by traditional hiring. Fix the fundamentals Redeﬁne the employee value proposition (EVP) to reflect changing priorities. Blue- and new-collar roles are vital to infrastructure and customer-facing A shift toward trades operations, but compensation often doesn’t reflect Due to increasing college costs and student their value. Reevaluating the measurement of job loan debts, we expect to see more and more worth, fair wages, overtime pay, improved beneﬁts youth choosing artisanal trades. and flexible working conditions will level the playing ﬁeld, fostering long-term retention. Overlooked, under-resourced Deskless workers make up 80% of the global workforce, yet they receive only 1% of business software spending, lack sufﬁcient training, and have limited growth opportunities. 12 Theme 2 Shifting talent dynamics Economic uncertainties, demographic shifts, and modern societal expectations are redeﬁning the workplace. These changes have now reached a crossroads, with new expectations and work styles emerging across the workforce. Women continue to push for true equity in the workplace, and the presence of older workers is growing. With these factors at play, organizations face both challenges and opportunities in building a resilient and motivated workforce. Understanding why all roads have led us here will help HR adapt to these shifts. More importantly, it will help their companies get ahead of these trends in 2025 and contribute to organizational success in the years ahead. Trends Trend 5: The Golden Age of the Silver Worker Trend 6: The Women’s Equity Effect Trend 7: Looming Organizational Anxiety 13 Trend 5 The Golden Age of the Silver Worker Workers aged 75 and up comprise the fastest-growing segment of the workforce. In fact, workforce productivity improves when companies have a mix of ages and experience levels and employers hiring older workers say that they consistently match or exceed the performance of younger hires. Staying longer Whether it’s because they cannot afford to retire or don’t want to retire, retiree-age employees are here ‟ to stay, and their presence in the workforce will only grow. Mature workers are looking for purpose and Multi-generational recognition of their value. Organizations that recognize this shift have a strategic opportunity. teams accomplish tasks more Accomplishing more Silver workers bring new levels of productivity, homogenous groups facilitate knowledge transfer, and enhance team struggle with. dynamics. Nike recently rehired Tom Peddie—a veteran executive who retired in 2020 with 30 years at the company– with the goal of restoring retail relationships and turning slumping sales around. 14 Trend 5 Key takeaway: Harness the power of an aging workforce for competitive advantage Acknowledge older workers play Removing barriers to work vital roles Unlock aging workers' potential by creating inclusive Nike is just one example of how older workers offer workplace cultures that value older employee invaluable expertise and leadership, especially during contributions. Offer beneﬁts and perks that address periods of transformation. Implement mentoring the diverse needs of employees at every career programs and knowledge sharing initiatives to stage, like comprehensive health plans, part-time encourage intergenerational collaboration, help bridge roles, project-based work, and phased retirement skills gaps, and support the ongoing development of plans. In addition, continuous learning programs organizational capabilities. help older workers stay competitive. Extend policies across ﬁve generations Flexible work options and ergonomic ofﬁce designs and accommodations tailored to ‘unretired’ workers integrate older employees into the fabric of the business. Revisit employer branding to be age The missing piece of DEIB inclusive, reflecting the values of older workers and strategies the meaning and impact of their work to combat Only 8% of organizations include age as part ageism and strengthen generational diversity of their Diversity, Equity, Inclusion and throughout the organization. Belonging (DEIB) strategy. A new model for engagement A ‘micro-goal’ program can match retirees’ skills with short-term projects or community initiatives, keeping them engaged and contributing. 15 Trend 6 The Women’s Equity Effect Closing the gender equity gap would increase global GDP by a staggering 20%. Yet persistent issues like inflexible work practices, inadequate recognition of menstrual and menopausal health challenges, fewer leadership opportunities, and pay inequity continue to hinder progress. Gender diversity pays Women’s experience at work Companies in the top quartile for gender diversity are 39% more likely to ﬁnancially outperform their competition. This requires measurable goals for gender diversity, especially within leadership where women represent only 10% of Fortune 500 CEOs and 28.2% of management positions globally. 95% Gender reality today Inflexible work practices and a lack of leadership of women believe requesting opportunities remain critical issues. 95% of women flexible work will negatively believe requesting flexible work will negatively affect impact promotion opportunities their chances of promotion and 67% of women who Source: Deloitte experience menopausal symptoms report a negative impact on their work. 16 Trend 6 Key takeaway: Take the lead to champion women’s rights Support women’s advancement Foster equal opportunities Building a gender-diverse workforce requires Cultural transformation is essential for women to ambitious, sustained investment. Create targeted thrive at every level of the organization. Regularly leadership development programs and promotion review talent pipelines and address gender frameworks that help women advance into leadership imbalances. Revise performance reviews to remove roles. Establish KPIs to track progress and hold subjective criteria for objective standards. leadership accountable for gender diversity goals, Leadership must champion gender-blind and including transparent progress reports to show transparent recruitment, advancement, genuine commitment to gender equity. and compensation. Remove structural barriers Ensure flexible work arrangements, and establish and normalize return-to-work programs for women after caregiving breaks. Offer resources like menstrual Wage parity pioneer leave, menopausal leave, and fertility assistance while Starbucks demonstrates gender equity can ensuring women feel empowered to use them without be reached. It achieved wage parity for its fear of stigma. Confront underlying perceptions that U.S. partners in 2018 and continues to work limit women like unconscious bias and career towards this goal worldwide. penalties for care taking. Over the Glass Cliff For many women, promotion to leadership happens in a time of crisis and leads to the Glass Cliff, with shorter, more stressful, and heavily scrutinized tenure. 17 Trend 7 Looming Organizational Anxiety Jittery CEOs are eager to please Wall Street and their boards, bringing immense pressure and risk to their companies. Decreasing consumer conﬁdence, ongoing economic uncertainty, and underperformance fears fuel pervasive concerns that affect businesses and their employees. Everyone is anxious Poorly managed layoffs are harming organizational performance. Companies are extending work hours to ‟ "inject a sense of crisis" into workers and increase productivity. Add a tight job market and shrinking pay Employer-employee for job switchers, and we see the Great Resignation has given way to the Big Stay. relationships are An employer’s market expected to swing The employer-employee relationship is expected to back in favor of swing decisively back in favor of employers as economic pressures and job market uncertainties employers. give companies more control. The risk? Long-term employee disengagement if companies Source: AIHR fail to maintain meaningful connections with their workforce. 18 Trend 7 Key takeaway: Balance costs with employee support Implement people-centric work policies Strike a balance between creating a lean, The performance paradox cost-efﬁcient workforce and preserving employee morale and the unique culture that deﬁnes success. 79% of in-ofﬁce workers and 88% of remote Develop policies for positive work conditions, such as workers feel they must use performative fair wages, reasonable hours, and job security. Offer tactics to show they are working. programs that support physical, mental, and ﬁnancial health to build resilience and help employees cope The layoff landscape with uncertainty and change. Fears of recession and high interest rates drive companies to pursue cost-efﬁcient Reward performance growth, resulting in over 135,000 job cuts in Establish a culture that rewards performance using a the tech sector alone. fair and transparent performance evaluation system to measure progress. Invest in high-performing employees through upskilling, reskilling, and development programs. Provide transparent communication Promote clear communication through accessible communication channels to keep employees informed about company performance and future plans. Creating open forums where employees can voice concerns and ask questions without fear of repercussion reinforces trust. 19 Theme 3 Tactics for the organization to thrive The way organizations respond to disruptions in talent and technology will determine who will succeed and who will struggle in 2025. Businesses must focus on creating an adaptable, agile workplace and proactively develop strategies to anticipate future challenges and opportunities. Effectively executing these tactics will be essential as businesses seek to harness disruption as a catalyst for innovation and growth. In adopting forward-thinking approaches, organizations can thrive by turning disruption into a driving force for reinvention. Trends Trend 8: HR Execution is King Trend 9: The Embedded HR Professional Trend 10: The Antifragile Worker Trend 11: Employee Engagement 2.0 20 Trend 8 HR Execution is King Strategic HR is often seen as the pinnacle of HR work. But the tactical execution of HR policies and initiatives is equally critical to organizational success. Tactical HR teams bring strategic ideas to life, transform them into actionable results, and ensure the success of people-related initiatives. When execution goes wrong Great execution draws little attention and tactical HR drives business outcomes. But when execution is ‟ poor, it shows. Uber’s failure to address sexual harassment in 2017 led to signiﬁcant damage to the HR’s true impact is company culture, the CEO's subsequent departure, and several public reputation scandals. realized when strategy The year of great execution and execution work 2025 is the year HR’s true impact is realized when strategy and execution work hand in hand. Strategic hand-in-hand to HR provides direction and long-term goals, while tactical HR ensures these are implemented through reinforce each other. well-executed policies, processes, and daily practices that resonate with employees at all levels. 21 Trend 8 Key takeaway: Give tactical HR the tools and support to implement key strategic goals Promote cross-functional collaboration Build T-shaped competencies Reshape the narrative around tactical HR. Encourage Develop HR professionals with deep expertise in one teamwork across HR specializations, such as talent area combined with a broad understanding of related acquisition, employee relations, and learning and HR functions and the overall business. This results in development to break down silos and create tactical HR professionals who are able to facilitate solutions that address complex challenges. An collaboration with stakeholders outside of the HR integrated approach creates cohesive people function. This means combining business acumen, practices across the employee life cycle, resulting in digital agility, data literacy, people advocacy and less fragmented HR service delivery. executional excellence with specialist competencies. Resource tactical HR teams effectively Broadcom merger backﬁres Ensure tactical HR teams have the necessary resources, including time, headcount, software tools, Broadcom’s merger–and subsequent and budget. Adequate stafﬁng allows teams to poorly managed policy shifts and manage workloads effectively, while the right layoffs–led to employee dissatisfaction and technology streamlines different HR processes and operation disruption, contributing to a procedures. With a sufﬁcient budget, HR can $600M revenue drop. successfully execute key projects and address business needs swiftly. Chatbots drive efﬁciency Boston Consulting Group cites balanced human and AI strategy boosts HR productivity by 30% and dramatically improves self-service capabilities. 22 Trend 9 The Embedded HR Professional CHROs are regularly attend board meetings, and 43% report an increase in their interactions with the board. In addition, CEOs agree that HR will be more important to business in the future. 2025 is the year HR is going beyond advisor to an integral part of the team they support. Unrealized potential Driving excellence A gap persists between HR’s strategic potential and HR's role is increasingly intertwined with business its perceived contribution to business outcomes. To units' core operations. By embedding in operational close this gap, we are seeing a rise in HR teams processes and the day-to-day decision-making of actively participating in business solutions rather than teams, HR is ensuring solutions and policies are pushing HR solutions to the business. integrated with business processes and aligned with business goals. HR as an integral part of business 93% 70% of CHROs regularly of CEOs agree that HR will attend board be more important to meetings. business in the future Source: Spencer Stuart Source: Personio 23 Trend 9 Key takeaway: Become part of the business value chain Upskill beyond core HR skills Clearly deﬁne roles and responsibilities Effective upskilling means develop T-shaped HR Establish a new working relationship with line professionals who possess both deep expertise in management and delineate the responsibilities of speciﬁc HR areas and a broad understanding of line managers versus HR. Ensure people business operations, culture, and data. This blend of management remains a core responsibility of skills will allow them to create tailored, managers, with HR providing support and guidance people-centric solutions that align with rather than taking over these tasks. organizational goals and drive business By working closely with line managers and other performance. Implementing cross-department leaders, HR can help drive people excellence and rotations facilitate ﬁrst-hand experience in various enhance organizational effectiveness, employee aspects of the business. engagement, and strategic business alignment. Move away from generic HR programs Intentionally break down silos between HR and business by collaborating with managers. Tailored initiatives that meet the unique needs of different Responsibility shift departments or business units and data-driven 55% of CHROs want to shift decision-making insights that empower leaders to make informed power in HR processes to line managers. decisions develop strategic partnering relationships rather than order taking as a support function. Misaligned perceptions 80% of C-suite members believe their managers are able to manage employee relations issues, but only 40% of HR managers share that view. 24 Trend 10 The Antifragile Worker Constant change, overwork, economic uncertainty, high cost of living, and job insecurity is taxing employees who are exhausted and stressed. Antifragility is rising to the top as the answer to develop a workforce that grows stronger through challenges. Antifragility gains traction The concept of antifragility can help navigate these challenges. Unlike traditional resilience, antifragility ‟ doesn’t withstand shocks. Rather, it actively gains strength from turmoil, capitalizing on disruptions and HR must reshape using challenges to grow in strength. workplaces to help Antifragility as a workforce strategy current and future Antifragility addresses social and structural factors turning adversity into an opportunity for growth. HR is generations thrive in a implementing antifragility strategies, and the goal is an environment in which growth and adaptability are fast-changing world. prioritized, empowering employees to thrive throughout their careers. 25 Trend 10 Key takeaway: Develop a workforce that grows stronger through challenges Upskill beyond technical skills Encourage healthy work life Focus on developing employees’ soft skills like boundaries adaptability, emotional intelligence, collaboration, To create antifragile workplaces, organizations problem-solving, and a growth mindset to support must recognize the link between wellbeing and long-term employability. Equip employees to productivity. Stress and burnout at work result in anticipate future challenges through scenario depression and anxiety, costing $1 trillion in planning and encourage risk-taking and active losses. Provide your employees with the space to experimentation through cross-functional projects recharge and maintain their productivity and and innovation labs. antifragility over the long term. Re-evaluate performance and foster a safe environment for innovation Organizations that promote a culture where failure is seen as a learning opportunity will encourage rapid A growing workplace crisis iteration. Create a safe space for risk-taking, More than four in 10 people report feeling incentivize resilience, recognize continuous learning, burned out at work. and reward innovation instead of just traditional outputs. This creates an environment where Employee satisfaction declines employees feel safe to experiment, take calculated Only 43% of workers say their organizations risks, and learn from failures. Some examples are have left them better off than when they innovation labs, pilot projects, and cross-functional started. team collaborations. 26 Trend 11 Employee Engagement 2.0 Over the past 25 years, engagement has become a focal point of HR strategy. Since Gallup started measuring engagement in 2000, the needle hasn’t moved. Global engagement levels remain at 23% despite decades of HR policies, best practices, and billions in investments. Driving engagement The value of engagement If HR wants to impact engagement and productivity, it needs to understand the drivers of employee engagement and inform its approach. Highly engaged employees are three times more likely to feel heard at work (92%) than their highly disengaged counterparts (30%). 92% Meaningful changes However, surveys alone don't make employees feel of highly engaged employees heard—seeing meaningful changes based on their feel heard at work feedback does. Making impactful changes based on employee feedback is still not the norm, and 86% of employees believe their organization doesn’t hear everyone fairly or equally. 27 Trend 11 Key takeaway: Redeﬁne engagement and what employees truly care about Support managers with development Communicate transparently and and automation promptly Line managers face numerous challenges, from Fully understanding, validating, and improving the heavy workloads to insufﬁcient resources and employee experience within an organization keeps budget constraints causing difﬁculty engaging their employees connected and committed. Adopt a teams. Equip managers with targeted development deliberate employee listening strategy to uncover programs that enhance their leadership and genuine insights. A robust employee listening people-management skills. Provide them with tools strategy includes various feedback channels, such to streamline administrative tasks, freeing up as stay and exit interviews. Redesign the employee time they can dedicate to coaching and value proposition (EVP) accordingly and implement employee engagement. policies that ensure it's truly reflected in employees' experiences. Design balanced roles and clarify contributions Employees see through superﬁcial perks. Address the deeper, structural issues that impact engagement, like fair pay, safe working conditions, The high price of disengagement and clear expectations. Clearly deﬁne roles with Disengaged employees are costing $8.8 trillion in manageable tasks aligned with the employee’s lost productivity worldwide. skills and the organization's needs, and benchmark them against competitors. Guarantee Managers make or break teams individual contributors understand their contribution Gallup data shows that 70% of team engagement to the overall organizational strategy and goals to variance is determined solely by the manager. boost motivation. 28 AIHR | Academy to Innovate HR HR teams are only as successful as their skills are relevant. With engaging in-depth training and resources, AIHR helps HR teams become better at what they do and drive more business value. Learn more at AIHR.com COPYRIGHT © 2024 AIHR. All rights reserved. This publication may not be reproduced or transmitted in any form by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AIHR.

AIHR HR Trends Report 2025 PDF

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