For leaders worldwide, 2025 will be a year of responding to a steady drumbeat of talent, compliance and technology trends. From developments in generative artificial intelligence (AI), skill-building and employee well-being to laws and regulations surrounding AI, pay transparency, overtime and what counts as work time, 2025 will be a journey of acclimation as leaders adapt to one of the most complex business environments in world history. An open mind, an interest in expanding one’s knowledge, interpersonal and relational abilities and a willingness to adjust to work’s inconstancy will be critical skills to prioritize in the coming year.
The end of the COVID-19 pandemic was not the end of seismic workplace change. Leaders have since experienced the rise of generative AI, the back-and-forth of a still-uncertain labor market, the workforce swing toward better pay, benefits and work-life balance, the decision of whether to return to the office and the pressure of legal and regulatory changes impacting how workers are classified, paid and protected.
In many ways, work is more human than ever, as each new talent expectation, breakneck technological advancement and shifting compliance priority pushes leaders to reprioritize their people and target their experience.
As you explore this guide, discovering trends, considerations and solutions to employ now and throughout the year, know that it’s one piece of a larger workforce puzzle. You’ll gain insights to inform critical decisions and foster a human-first culture, but those insights need your action to effect change.
Generative AI is affecting employer-candidate interactions
Creating a human-centric experience remains a key focus
Access to generative AI can profoundly shift hiring practices for many organizations. Most workers (85%) believe AI will impact their jobs in the next two to three years,¹ and recruiters and hiring managers are no exception. Those with access to generative AI could experience a dramatic change in what they spend time on and how they do talent acquisition, if they have not already. Sifting through candidate résumés could be accelerated, job descriptions could be written with automation, human biases in screening could be reduced and interview scheduling could become more dynamic and automated. The list of possibilities is long.
What’s more, as HR technologies integrate generative AI, recruitment and candidate platforms may come with built-in generative AI tools. These additions could help recruiters and hiring managers navigate their candidate pools quicker and easier. Perhaps there’s a button for “write my job description” or “compare these two résumés.” Regardless of how the technology is used, it will impact hiring practices.
While using generative AI to assist in talent acquisition can save recruiters and hiring managers time and effort, organizations that want to provide a best-in-class process that supports everyone must keep a human in the loop. Human oversight helps maintain essential personal connections within the candidate experience, and when it comes to screening and decision making, recruiters and hiring managers could better identify top talent than if they were to use generative AI alone. Generative AI doesn’t “know” that sometimes the best candidate for a job doesn’t always have the “perfect” résumé. Human oversight is important to ensure organizations don’t spend valuable time and money on mis-hires or accidentally turn their candidates away due to impersonal experiences. Human oversight is also critical to ensure biases don’t make their way into the hiring process, which may be a legal concern, depending on the location. Later in the guide, we address the importance of complying with AI laws that impact talent acquisition.
Addressing generative AI’s effects on employer-candidate interactions
The employee experience and well-being are ongoing business priorities
Personalization can help employees feel cared for at work
Creating a positive employee experience has surged in popularity in recent years, and for good reason. But what exactly is the employee experience, and how can employers create a good one that helps their employees feel cared for?
The employee experience is what employees see, hear, think and feel about an organization. It can affect employee morale, brand reputation and customer and client experiences. The employee experience starts with candidates and extends through their time at an organization.
Employees who feel cared for by their employer are 92% more likely to feel engaged at work, 65% more likely to be loyal and 56% more likely to be productive at work.² Since the business case for a positive employee experience can feel overwhelming, employers have started asking how to enhance their employee experience. The answer starts with a question: “What is important to my employees?”
Since asking each employee what’s important to them will yield many different answers, the best answer is personalization.
Personalization enhances the employee experience. Examples include customizing tasks to speak to each employee’s unique skills or strengths, emailing announcements from a human leader rather than an automated bot and frequent one-on-one meetings with a direct manager. Additionally, how individual employees are personally recognized and appreciated by their managers goes a long way in helping employees know that they are valued. These are just a few things that can help employees feel cared for.
Stress, burnout, mental health and well-being are also key concerns for employees today. 43% of employees report feeling the impact of burnout and poorer mental health, with 80% reporting that burnout and mental health have hindered their work performance and affected them emotionally and psychologically. Stress, poor mental health and burnout can erode worker satisfaction. Yet there’s a 29% care delivery gap between employees who say they were impacted by burnout and poor mental health and those who say their employer demonstrated care during times of poor mental health and burnout.³ One-on-one meetings with a direct manager can help address these issues. During these meetings, managers can facilitate open communication, prioritize flexibility where possible and provide employees with resources. Managers can also help employees supervise workloads by prioritizing the most important tasks and setting realistic expectations to ensure employees are not overloaded and burnt out.
Addressing the employee experience and well-being
Skills have emerged as a strong indicator of employee success
A skills-based approach can be a profound workforce investment
In today’s complex job market, skills are quickly rising to the top of priority lists for employers and employees, but what does this new focus really mean?
A skills-based approach to talent shifts the focus of hiring and development from traditional qualifications, such as degrees and industry experience, to the actual skills people bring. This approach can help leaders identify the best match for a role, based on a person’s strengths and abilities, regardless of how their skills were acquired.
As younger generations evaluate traditional education’s rising costs and deferred financial gains, the uptick in workers looking to advance themselves through boot camps or certificate programs should come as no surprise.
Most high school and college-aged individuals (75%) between the ages of 18 and 20 say they are interested in exploring vocational schools that offer paid on-the-job training.⁴ Additionally, the fact that some public, private and government organizations are dropping degree requirements for select roles demonstrates a shift toward hiring for skills.
To add to the shifting educational landscape, enrollment of bachelor’s degree students fell by 3.6%, while associate’s degree enrollment fell by 15.9% between 2019 and spring 2024. Vocational enrollment rose by 4.6% during the same period.⁵ As employers look to fill gaps, leaders should consider upskilling and reskilling — building an employee’s skills for the same role versus building an employee’s skills for a different role — as possible paths forward.
Not only does skills-based hiring align with the evolving needs of the workplace, where adaptability, problem-solving and collaboration are increasingly valued, but it’s also proving to be more effective for organizations. Most companies (90%) using a skills-based hiring method report reducing their mis-hires, and 94% agree that skills-based hiring is more predictive of on-the-job success than résumés.⁶
Adopting a skills-based approach to talent is more than an innovative hiring strategy; it is a profound investment in your organization’s most valuable asset: your people.
Addressing skills
1. ADP Research, Today at Work: Remote work hits home, 2024
2. MetLife, MetLife’s 2023 annual U.S. Employee Benefit Trends Study, 2023
3. MetLife, MetLife’s 2024 annual U.S. Employee Benefit Trends Study, 2024
4. Jobber, Jobber’s Blue-Collar Report: Gen Z and Uncertain Future of the Trades, 2023
5. ADP Research, Today at Work: Labor market liftoff, 2024
6. TestGorilla, The State of Skills-Based Hiring 2024, 2024
Article top image credit: stock.adobe.com/Maskot