In less than a month, 2025 will be here, and the new year will bring a mix of challenges and exciting opportunities for organizations. From the rise of AI and automation to the growing emphasis on employee well-being and flexible work models, the work environment continues to evolve and be redefined.
So, what can we expect to see in the workplace next year—and how will it impact both employees and businesses?
1. Using AI to Enhance Productivity
Given that AI is expected to see an annual growth rate of 36.6% from 2023 to 2030, according to a 2023 study by PwC, it’s no surprise that businesses are embracing this technology. As leaders better understand the benefits of AI, they will begin to use it strategically to upskill employees and improve productivity and efficiency. Most importantly, AI can take over mindless, repetitive tasks—allowing employees to focus more on strategic brainstorming, higher-level thinking, and creative innovation.
Employees will explore the many ways AI can be used in their work while adding their own skills to make the work relevant and applicable to their industry. In 2024, Gallup found that only one in 10 employees use AI “weekly”—this number is expected to rise over the next year.
2. Make Remote Work More Engaging With Virtual Reality
While most US workers cannot do their jobs from home and many organizations want their employees to spend more time in the office, the number of remote employees continues to be a strong trend across the US. According to Pew Research, about 41% of those employees with job roles that can be done remotely are working a hybrid schedule and are remote for at least some hours weekly. With remote work likely to stick around for the foreseeable future, companies are seeking innovative ways to create stronger connections with their teams. In 2025, virtual reality (VR) could transform the concept of “the office” by providing shared digital spaces. Imagine being part of a virtual office where you can interact with your team as if you’re together in the same room.
VR can create immersive environments that strengthen connections in ways traditional Zoom and Microsoft Teams video calls cannot. It reduces isolation while enabling interactive training, personalized workspaces, and stress-relief tools, making remote work more engaging, dynamic, and effective.
3. A Real Commitment to Environmentally Friendly Practices
Environmental sustainability must remain a priority, and companies must commit to reducing their carbon footprints. In 2025, this effort will likely go beyond a simple checkbox—it will inform policy and decision-making at the highest levels of the business. This could take the form of evolving office practices, such as energy-efficient buildings, waste reduction programs, accountability when needed, and acknowledgment of customer expectations.
While this has long been a business focus, creating a lasting impact requires long-term dedication.
4. Skills-Based Hiring
More than ever, companies are recognizing the value of skills-based hiring rather than solely recruiting new hires with four-year university degrees. A 2023 report by TestGorilla, a pre-employment testing platform, found that 73% of businesses surveyed were using some form of skills-based hiring, and this is expected to increase.
Many organizations are reducing their reliance on degree requirements for job applicants, focusing on practical competencies instead. This allows employers to fill roles based on demonstrated experience and expertise rather than formal educational credentials. This shift, particularly in tech and creative sectors, widens the talent pool and opens doors to talented individuals who might have been overlooked in the past.
5. Prioritizing Support for Employee Mental Health and Well-Being
Mental health support in the workplace will continue to be a priority in 2025. As companies recognize the real toll of burnout and stress, they are expected to invest more heavily in well-being programs that address mental, physical, and emotional health. These programs may include mental health days, flexible working arrangements, and access to therapy or coaching services. In 2025, we expect to see digital platforms making well-being support more accessible for employees and managers trained to recognize signs of stress early on. This holistic approach will help employers treat employees as whole individuals.
These 2025 trends point to a workplace equipped to handle the challenges of modern society while remaining adaptable to the demands of an ever-evolving work environment. By embracing innovative practices and prioritizing well-being, organizations can build resilient environments where employees and businesses succeed.