The future of work and the workforce as a whole has undergone major shifts in recent years, and 2025 is expected to be no different. As employees and employers prepare for the New Year, business leaders are making predictions about workplace trends. In 2023, I wrote in Forbes.com about the hottest workplace trend heading into 2024—the “invasion” of Artificial Intelligence (AI). AI literacy continues to dominate the workplace predictions for 2025, along with other trends like mental health and workforce management.
Predictions About AI Literacy
1- A major investment in AI-literacy. “Even if workplaces haven’t purchased GenAI tools yet for their employees, people will use these tools in their personal life and employers will have to offer some upskilling to deal with misinformation, IP loss protection and other potential threats to the business,” according to Vijay Pendakur, author of The Alchemy of Talent.
2- Integration of AI in HR processes. “AI transforms HR functions by automating routine tasks and providing data-driven insights,” Paul Wolfe, CHRO at Indeed, told me by email. “HR leaders should invest in AI technologies to enhance efficiency and support strategic decision-making.”
3- Balancing technology and growth in HR. Cheryl Swirnow, Founder of CMS Consultants, predicts that as AI transforms HR in 2025, it’s essential to balance efficiency with the human connection that fosters employee trust and engagement. “While AI streamlines processes, adaptable upskilling programs are essential to help employees thrive in evolving roles,” Swirnow explains. “By blending technology with personal growth, HR can create a dynamic, future-ready workplace.”
Predictions About Mental Health
4- Employee well-being and mental health. “Prioritizing employee well-being is essential for maintaining engagement and productivity,” Wolfe says. “Implementing programs that support mental health and promote a healthy work-life balance can lead to a more resilient workforce.”
5- Beyond traditional EAPs. Swirnow notes that traditional Employee Assistance Programs often fall short in addressing complex mental health needs—especially during the winter months. “Organizations will shift to personalized mental health initiatives that integrate holistic wellness and cater to diverse workforce needs,” she predicts.
Predictions About Workforce Management
6- Workforce classification and compliance. “As companies hire globally and tap into the gig economy, proper classification of employees versus contractors will become a critical focus,” Swirnow notes. “Misclassifying workers can lead to significant legal and financial penalties, especially as labor laws vary widely across countries. Many companies will need HR’s guidance on these distinctions as they expand their workforce models.”
7- Workforce as a community of skills. Lucy Beaumont, manager and leader for SHL, believes that companies will view their workforce as a community of skills in 2025 instead of as static job roles. “This perspective allows organizations to harness and deploy skills fluidly, meeting dynamic business needs while supporting employee growth,” Beaumont points out. “To do this, organizations will need to create skill-based ecosystems where talent can be matched with opportunities seamlessly.”
8- Investments in teams. “Teams are where the magic happens and organizations are beginning to take notice and create performance incentives for teams, team-level annual assessment, and even onboarding for whole teams,” declares Pendakur. “Team will shift from being a noun into a verb and teaming will become part of the way we talk about work.”
9- Global talent pool and workforce culture. “Many companies across industries like marketing, direct-to-consumer (D2C) goods and financial services are increasingly tapping into global talent pools,” Swirnow insists. “As such, HR will be expected to focus on cultivating inclusive cultures within diverse regions. A major focus will be on aligning handbooks and policies that reflect varied cultural norms and expectations, serving employees consistent experience, culture and support.”
10- Continued rise of employees with side-hustles. Pendakur points out that fractional work, direct to consumer branding, and new social media tools have opened up space for millennials and Gen Z to develop viable secondary income streams, and employers will have to navigate what this means for employer brand, legacy notions of “loyalty” and potentially losing some part of your workforce to entrepreneurship.
11- Documentation and performance management. Swirnow underscores that clear documentation is a key area of focus, especially for smaller companies navigating performance management and employee relations. “Proper documentation processes not only help companies stay compliant with employment laws but also ensure fairness in managing performance issues,” she states. “This trend could lead HR to creating accessible documentation processes and training managers on effective communication.”
12- Return to office. Wolfe believes that 2025 will be the year employers mandate that employees come to the office a certain number of days per week. “We have already seen this with Amazon (five days) and Starbucks (three days—which has been the request but now they will enforce it),” he predicts.
13- Beaumont believes skills that focus on sustainability will emerge as a trend for next year. “As companies face mounting pressure to adopt sustainable practices, leadership development programs are incorporating skills like systems thinking, responsible innovation and environmental awareness,” she explains. “This trend could push the industry to redefine high-potential traits for future leaders.”
14- Regulatory changes post-election. Swirnow predicts that there could be policy changes at the federal level that impact workforce regulations. “Employers will need to be prepared to adapt to new policies that could affect hiring practices, benefits and workforce management,” she concludes.
In today’s rapidly-evolving company cultures, trends like AI literacy, mental health and workforce management are among the many workplace predictions for 2025 that will impact our workdays in the New Year.