HR in 2025: 5 Trends to Look Out For

Jan 23

blog/hr-in-2025-5-trends-to-look-out-for

2025-01-22

Dayforce’s 15th Annual Pulse of Talent survey is out, and the insights are a good indication of what to expect in 2025 for not only Dayforce users, but for HR technology, workplace culture, and shifting employee expectations key to success.

Here are five critical trends that HR leaders should anticipate and prepare for.

1. A Strong Culture is Key

A strong company culture will be one of the most important drivers of business success.

Organizations with strong cultures are five times more likely to experience significant revenue growth, yet 35% of employees feel their employers aren’t actively improving culture.

Moreover, 7 in 10 workers have turned down a job due to poor cultural fit, with that number rising to 75% among those under 34.

Closing the culture gap

Closing the perception gap between leadership and employees is essential.

While 84% of executives believe their companies are improving culture, only 49% of workers agree.

To address this, businesses need to focus on transparent communication, authentic values, and investments that genuinely resonate with employees.

2. AI’s Impact on HR

AI began to play a pivotal role in HR strategies in 2024, and will likely continue to do so in 2025.

For example, utilizing AI in workforce planning has numerous benefits for businesses, with AI having the potential to play a pivotal role, including the ability to gain smarter insights from data analytics.

Whether optimizing recruitment, enhancing talent acquisition processes, or streamlining onboarding, AI can play a pivotal role in driving efficiency and improving outcomes.

However, its adoption isn’t without challenges.

While 72% of executives believe AI positively impacts company culture, only 31% of employees share this view.

Similarly, executives are 48% more likely than employees to feel AI is used responsibly within their organizations.

Getting value out of AI

Organizations need to demystify AI through education and transparency, ensuring employees understand its purpose and benefits.

Demonstrating how AI can streamline decision-making, personalize learning, and enhance efficiency will help build trust and acceptance across all levels.

3. Flexibility Leads to Workplace Satisfaction

Flexibility continues to be a top priority for employees, ranking just below pay in job importance.

However, workers are 20% more likely than executives to report a lack of flexibility, with 28% saying their employer doesn’t offer any flexibility at all.

Making flexibility work for everyone:

Companies that offer meaningful options—such as flexible hours, hybrid work models, and autonomy over tasks—will attract and retain top talent.

Flexibility isn’t just a perk; it’s a business imperative in today’s landscape.

4. Employee Well-Being Needs Targeted Investments

Burnout remains widespread, with 78% of employees reporting symptoms in the past year.

Despite this, many workers feel their current benefits fail to meet their needs.

Executives and HR leaders rate benefits highly, but only 42% of workers agree.

Prioritizing well-being that employees actually need

HR teams must prioritize holistic well-being initiatives, including mental health support, financial wellness programs, and stress management tools.

Clear communication about benefits will also ensure employees understand and utilize the support available to them.

5. Learning and Development Opportunities Impact Retention

Employees increasingly value career growth, yet workers are 41% less likely than executives to see a clear career path at their organization.

Additionally, only 4% of employees report having access to AI-powered job recommendations compared to 32% of executives.

Building careers vs filling roles

HR leaders should invest in accessible learning platforms, self-paced courses, and AI-driven career tools.

Providing defined growth opportunities and aligning them with employees’ career aspirations will improve retention and future-proof organizations for evolving workforce needs.

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Key Takeaways

HR in 2025 will revolve around balancing technological innovation with the human aspects of work.

Businesses that prioritize culture, flexibility, well-being, and growth opportunities while addressing employee concerns will position themselves for success.

The future of HR isn’t just about processes—it’s about people.

Organizations that invest in culture, transparency, flexibility, well-being, and learning will not only retain top talent but also position themselves as industry leaders.

Notes on Data and Survey Methodology

Dayforce’s 15th Annual Pulse of Talent survey included 9,489 respondents
All respondents were 18 and older
At the time and date of the survey, all respondents worked at companies with at least 100 employees across Australia, Canada, Germany, Japan, Malaysia, New Zealand, Singapore, the United Kingdom, and the United States