As an HR leader, spring is an excellent time to gear up for changes to the regulatory landscape and take inventory of what you can improve in your organization. It’s vital to ensure you’re current on the latest HR trends and consider how you might implement the ones that could benefit your organization.
From new technologies to a focus on employee experience and well-being, there’s a lot to take inventory of. Here is a glimpse of what is unfolding for HR leaders in 2025 and how companies can adapt this year.
Trend 1: New and Growing Technologies in HR
Gartner reports that less than a quarter of HR leaders are currently maximizing the business value of their technology. In 2025 and beyond, HR leaders will look toward new technologies to streamline operations, enhance productivity, and achieve business objectives.
In order to accomplish this goal, it will be crucial to lean into artificial intelligence and automation. AI-driven software can evaluate talent, identify skills and pay gaps, analyze workforce data, augment employee self-service functions, and deliver strategic insights to drive decision-making.
Though these features can streamline repetitive tasks and make room for more strategic work, measuring the return on investment of technology purchases will become increasingly important. Proving a positive ROI can help garner support from senior leadership and justify continued investment.
Trend 2: The Increasing Importance of Employee Experience
Employee experience, an employee’s overall perception of their workplace, directly impacts key business metrics, such as engagement, retention, and innovation. Yet, surveys indicate that few workplaces are getting it right.
Gallup data suggests that half of employees are seeking new employment. Because engagement is a direct response to experience, organizations also miss out on higher productivity and profitability. Additionally, poor employee experience can impact your ability to attract new talent in a competitive landscape.
To improve the employee experience, HR leaders must build a positive culture that fosters inclusivity, open communication, and collaboration. Employee recognition is also critical to the experience, as authentic praise and timely rewards remind employees that you value their contribution to organizational success.
Trend 3: The Growing Focus on Mental Health and Well-Being
Employee well-being has suffered dramatically due to staffing shortages that increase workloads for all employees. Political and economic tensions have also begun to impact employees’ everyday lives.
Gallup data shows that 41% of employees are stressed, one in five are lonely, one-quarter experience burnout often, and only a third are thriving in their overall well-being.
Poor overall well-being can negatively impact an employee’s work, making it challenging for them to stay engaged and feel a sense of professional efficacy. Consequently, 51% of employers offer a wellness program. These may encompass any number or types of initiatives, including:
- Fitness programs
- Health screenings
- Smoking cessation
- Gym memberships
- Mental health app subscriptions
- Access to coaching or counseling
Ultimately, these HR trends aim to help employees maintain their health so they can do their best work. Consider how you can show a return on investment for the wellness program you put in place by developing key metrics that are meaningful to your senior leadership team and CFO.
Trend 4: The Rise of Flexible Work Policies and Hybrid Models
Surveys show that 89% of Gen Z graduates consider flexible work important or essential when deciding on a job offer. This is because it facilitates work-life balance, which 70% of those graduates say is critical to their definitions of career success.
As baby boomers retire and the age of the workforce continues to skew younger, flexible work policies and hybrid models will only become more vital to attracting top talent.
As you develop yours, it’s important to stay current on remote work regulations, communicate expectations clearly, and ensure you have the proper time-tracking and data privacy tools in place.
Trend 5: Shifting Legislation Designed to Benefit Employees
In 2025, federal and state government agencies are looking to empower the workforce with key legislative updates. For example:
- 21 states are increasing the minimum wage
- Five states will institute wage transparency laws
- Many states have introduced laws governing the use of AI in hiring practices
Additionally, a number of laws remain in limbo, including the Department of Labor’s rule increasing minimum salary thresholds for overtime pay exemptions. In any case, HR leaders must work to understand those laws that have already taken effect, adjust policies and best practices as necessary, and have contingency plans in case appeals are successful.
2025: A Year of New Challenges and Growth for HR Leaders
This year, HR leaders will be challenged to find ways to be more efficient while figuring out how to help employees slow down and take care of their mental health. Though there will be hurdles, the effort can lead to higher retention, productivity, and performance.
As you implement these HR trends, keeping your eye on compliance is crucial. Whether it’s making accommodations for those with mental health conditions or granting more paid time off, VirgilHR’s automated platform can help you stay up to date on the latest regulations and reduce compliance risks. Schedule a demo today to see how our automated tool can help you craft policies that prioritize your workforce while keeping your organization safe.
