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HR trends: What is shaping the future of work?

Global data and regional business press sources informed this report on trends and forecasts for human resources in 2025 and beyond.

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Each year, the HR Research Scientists at SAP SuccessFactors carry out research to understand the leading HR and workforce trends facing organisations. We then share our perspectives on what HR teams should consider as they seek to help their companies anticipate and prepare for these trends. This year, we aggregated and synthesised data from 40 global and regional business press sources, which put forward 254 individual trends and predictions that were grounded in their own research and data.

Our analysis resulted in five key themes, or “meta-trends.” While our annual report always includes some pointed commentary and critique about each trend based on our expertise in psychology, this year we also drew upon our own body of original research to incorporate relevant data points and insights, resulting in a more evidence-based overall point of view.

From what’s next in AI and skills to DEI&B and hybrid, this year’s report explores what will define success for HR in the year ahead. Is your organisation adapting to the rapidly changing demands of the future of work?

What should HR focus on in 2025?

This year’s trends are at different stages of maturity and on different trajectories; therefore, the roles that HR needs to play to help organisations capitalise on these trends are often different. We have organised the trends into two sections, aligned to the dual roles HR will play in addressing them.

HR as conductor

Firstly, HR will need to act as a conductor, orchestrating a strategy and the associated change management across the business:

1. Reconnecting the disengaged employee

Levels of employee stress, burnout, and distrust of leadership are as high as they have ever been, putting many businesses at a tipping point. Exacerbated by macroeconomic and sociopolitical pressures, a state of complete employee disengagement is upon us. This disconnect goes beyond the issue of employee engagement (or disengagement); it can escalate into extreme and highly counterproductive behaviours if organisations do not act. To change direction, leaders must prioritise fulfilling their part of the “psychological contract” by understanding and meeting basic employee needs that are currently unmet, and by supporting people managers in their role as a lifeline for employees seeking support and reassurance.

2. Moving from AI hype to AI impact

Organisations’ focus on AI (including but not limited to AI in HR) is shifting from AI pilot projects to enterprise-wide rollouts, with an accompanying demand for proof of clear value and ROI. In the year ahead, organisations will focus on their key value drivers for AI, because the time to measure AI’s actual impact is now. This prioritisation can serve as a guide for businesses to choose use cases that will have strong AI adoption. However, friction between organisations’ and employees’ goals for using AI will undoubtedly arise: Leaders expect that when employees save time using AI, they will spend that extra time doing more work, but some employees feel they have earned the time back for themselves.

3. Striking a balance to advance skills

Organisations are facing increasing skills gaps due to rapid AI advancements. This year’s trends require HR to adopt new or enhanced skills-based practices, promote reskilling and upskilling by fostering stronger learning cultures and designing meaningful learning experiences, and to support employees in embracing “human skills” (critical thinking, communication, emotional intelligence, leadership, ethical judgement, and risk mitigation) as their unique differentiator compared to AI. But to truly achieve skills goals, organisations will need to think flexibly about their skills-based approach, consider making pay a part of the upskilling puzzle, and prioritise both human and technical skills. Developing AI literacy will be a crucial long-term success strategy (both for HR and the workforce as a whole).

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SAP SuccessFactors HR research

Skills-based talent management: Three key points

This report delves deeply into three key takeaways based on this year's number three HR meta-trend: Striking a Balance to Steer Skills Forward.

Download the report

HR as navigator

As always, HR will need to act as a navigator, guiding the organisation through precarious waters and circumventing obstacles to put policies into practice for the benefit of all stakeholders. But in the coming year, that role will become even more important:

4. Divesting from or doubling down on diversity, equity, inclusion, and belonging (DEI&B)

Some organisations remain committed to DEI&B goals, continuing to ask “How are we going to do this?” Others plan to divest, instead now asking “Are we going to do this?” In 2025, we shall see many organisations stay the course with their DEI&B investments (and some go even further), while others will shy away from DEI&B goals (though this will not look the same across the board). In any case, organisations taking a stand on DEI&B will allow for more and better research on the impact of DEI&B; there are certainly a lot of presumptions and predictions about how DEI&B is a causal factor in good and bad outcomes. Why not focus this year on turning this conjecture into hypotheses that can be tested and let the data speak for themselves?

5. Plugging into or pulling the plug on hybrid working

Despite a stream of high-profile return-to-office (RTO) mandates, many businesses are sticking to (and even expanding) their hybrid workplace strategies in the coming year. Now that organisations have taken a stand on where their employees will work, it’s time to see whether they achieve the outcomes they intended. In 2025, those businesses choosing the return-to-office (RTO) route will see whether their bets have paid off; while those opting for the hybrid workplace or fully remote route are expected to take it a step further, integrating autonomy as a core value in other aspects of work design.

Employee disengagement, AI, skills, DEI&B, hybrid working: These HR trends are not merely minor changes; they are fundamental workforce strategy imperatives that have a direct impact on the success of a company’s business strategy. Expect companies that recognise and embrace these trends (and the HR teams who help their companies make this happen) to reap significant and tangible benefits—in 2025 and beyond. Download the full report.

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