11 HR Trends for 2025: Embracing Disruption

Walt Disney famously said: “Times and conditions change so rapidly that we must keep our aim constantly focused on the future.” 2025 will certainly prove to be a year of transformative change — with disruptive forces set to reshape the working world.

Written by Erik van Vulpen, Dr Dieter Veldsman, Dr Marna van der Merwe
Reviewed by Monika Nemcova
10 minutes read
As taught in the Full Academy Access
4.66 Rating

AI is omnipresent, and a diverse, complex workforce can either propel businesses forward or hold them back. Traditional tactics for managing teams just won’t cut it anymore.

To help their organizations thrive under these conditions, HR must embrace these disruptions and craft strategies that enhance technological advancements with a human touch. This year’s HR trends edition dives into how companies can harness disruption for growth, resilience, and success.

Let’s explore the 11 exciting trends we’ve identified as the best opportunities to seize in the midst of disruption.

Theme 1: Technological transformation is the new business reality

Technology and AI are no longer a future trend—they’re the current business reality, transforming how organizations function at every level. The pace of change continues to accelerate, making the effective integration of technology and AI critical for organizations to stay competitive.

This tectonic shift requires a strategic rethinking of roles, skills, and processes, prompting HR to consider how these transformations reshape the organization, workplace, and people management. Beyond adopting new tools, HR must focus on instilling a mindset of innovation, agility, and antifragility in their employees to take full advantage of these tech advancements.

1. From AI adoption to AI adaption

There’s no doubt AI is disrupting companies and industries. The accelerated adoption of generative AI (GenAI) has quickly changed how jobs and processes are performed. Employees now use AI to help them with their work (often without letting their employers know) and many worry their roles will become obsolete because of AI adoption. This uncertainty is compounded by the fact that AI is still in its infancy and evolving daily, with no clear picture of how the future of work will unfold or what the next iteration of AI will bring.

Any advice will be obsolete when the next generation of AI is released. Regulatory bodies are struggling to keep up with the realities of AI on the ground and company policies are similarly lagging behind. However, this lack of outside authority means organizations have agency over what happens next and how AI redistribution will shape innovation, productivity, and expertise.

HR has the unique opportunity to take control of these shifts as it prepares organizations for disruption through AI experimentation, rapid upskilling, job (re)design, and ensuring guardrails for safe organizational adoption.

Strategic HR insights: Understand the risks and rewards of AI
HR actions to take: Guide the workforce through the shift to AI

2. AI in HR: Overhyped or underestimated?

Despite the excitement around AI, many HR professionals haven’t integrated it into their workflows. While 34% of marketing departments regularly use GenAI, only 12% of HR departments have adopted it, and just a third of HR leaders are exploring potential GenAI use cases. This indicates that HR is potentially missing out on opportunities to become more productive and innovative in its key functions.

Low AI adoption in HR is particularly concerning, given HR’s critical role in leading this organizational change. In fact, 76% of HR professionals believe their organization risks lagging behind if it doesn’t adopt AI technology within the next 12 to 18 months.

So, what’s causing this lag? Reasons why HR may be slow to adopt AI include insufficient digital skills, uncertainty about which tools are suitable, limited resources to audit or correct AI algorithms, and a lack of clarity on AI’s potential HR benefits.

Ultimately, whether AI in HR lives up to its potential or is simply written off as overhyped will depend on how well HR departments utilize it to transform key functions, from recruitment to talent management and beyond. Will HR take the lead or fall behind?

Strategic HR insights: Lead AI practices by example
HR actions to take: Adopt an AI growth mindset

3. A tipping point for the skills mismatch

As new technologies emerge, the skills needed in the workplace are rapidly shifting, leading to a growing mismatch between current employee capabilities and future requirements. Organizations are struggling to clearly identify and anticipate the skills needed in the medium and long term, thereby failing to proactively address the skills gap. This leaves them vulnerable to decreased productivity, innovation, and competitiveness in the evolving market.

Furthermore, employers believe 44% of workers’ skills will be disrupted by 2030, and that six in 10 workers will require additional training before 2027.

Solving the skills gap is imperative for HR, as 70% of company leaders believe their organizations’ skills gap negatively impacts business performance.

Bridging such a severe skills gap requires organizations to fundamentally rethink their approach to workforce management. To succeed in these disruptive times, leaders must identify crucial skills needed both today and in the future, anticipate how to utilize these skills as work evolves, and develop more effective strategies for attracting, nurturing, and retaining talent with the right skill sets.

Time is running out and such strategies must be in place before the end of 2025 if organizations hope to avoid massive operational disruptions as a direct result of skills mismatches.

Strategic HR insights: Pivot to a genuine skills-based approach
HR actions to take: Implement skills-based hiring, upskilling and career development

4. Blue-collar and “new-collar” jobs boom

Blue-collar and “new-collar” jobs are increasingly gaining traction among today’s workforce, as demand for skilled labor in both traditional trades and high-tech sectors continues to grow.

The blue-collar job market is once again booming with opportunities, higher pay, and increased interest from younger generations, especially in artisanal and technical fields. While the tech sector was cutting jobs, manufacturing job postings went up 46%. There is a high demand for skills that require physical labor and for people who can install and repair equipment, from elevators to power plants. Due to increasing college costs and student loan debts, we can also expect to see more and more youth choosing artisanal trades.

“New-collar” jobs, which require advanced skills in high-tech areas like AI and cybersecurity but not necessarily advanced degrees, are also on the rise. These jobs provide significant opportunities for skilled workers (often blue-collar workers) who have the necessary soft skills, or mindset to learn new skills through practical experience or occupational training.

What does this mean for HR and their organizations? The rise of blue-collar and new-collar jobs presents significant opportunities to reconsider work design. It involves rethinking the way these jobs are organized, including aspects like scheduling flexibility, job responsibilities, and the physical and technological tools workers use to perform their duties.

HR must develop strategies that focus on empowering and supporting blue-collar and new-collar talent through targeted recruitment, onboarding, and talent management practices while also investing in technologies that enhance their productivity and job satisfaction.

Strategic HR insights: Level the playing field for all types of workers
HR actions to take: Attract and retain blue- and new-collar talent

Theme 2: Shifting talent dynamics

Economic uncertainties, demographic shifts, and modern societal expectations are redefining the workplace. These changes have now reached a crossroads, with new expectations and work styles emerging across the workforce. Women continue to push for true equity in the workplace, and the presence of older workers is growing. With these factors at play, organizations face both challenges and opportunities in building a resilient and motivated workforce.

Understanding why all roads have led us here will help HR adapt to these shifts. More importantly, it will help their companies get ahead of these trends in 2025 and contribute to organizational success in the years ahead.

5. The golden age of the silver worker

Whether it’s because they cannot afford to retire or don’t want to retire, workers aged 75 and up comprise the fastest-growing segment of the workforce. Yet, current HR policies and office setups often overlook employees in this age group. Organizations typically lack flexible work options, ergonomic office designs, or benefits tailored to the workers who have chosen the path of ‘unretirement’. Employer branding also tends to focus on younger talent, neglecting the value older workers can bring. Despite this, retiree-age employees are here to stay, and their presence in the workforce will only grow.

Organizations that recognize this shift have a strategic opportunity. By accommodating the needs of silver workers, they can tap into new levels of productivity, facilitate knowledge transfer, and enhance team dynamics.

Just as early adopters of pay transparency gained a competitive edge, embracing the aging workforce now can position companies to lead in 2025 and beyond. Mature workers are looking for purpose and recognition of their value. Including them in the fabric of the business means capitalizing on their skills, strengthening generational diversity, and showing aging customers you respect their lifestyles and right to dignity.

Strategic HR insights: Harness the power of an aging workforce for a competitive advantage
HR actions to take: Extend policies across five generations

6. The women’s equity effect

As we enter 2025, over 10% of Fortune 500 CEOs are women—a milestone that’s been a long time coming since the first edition of the Fortune 500 list. However, the progress of the past few years has begun slowing. Women have cracked but not shattered the glass ceiling, and considering that closing the gender equity gap would increase global GDP by a staggering 20%, there’s no reason not to push for further progress in this area.

Inflexible work practices and a lack of leadership opportunities remain critical issues. An astonishing 95% of women believe requesting flexible work will negatively affect their chances of promotion, and women hold only 28.2% of management positions globally. Employers also do not adequately address female workers’ health challenges. For instance, 67% of women who experience menopausal symptoms report a mostly negative impact on their work.

Businesses have the power to contribute to meaningful change, make a lasting impact on gender equity, and reap the significant economic and cultural benefits resulting from a more inclusive and equitable workforce.

Forward-thinking organizations are leading the charge, demonstrating that fundamental change is possible with sustained effort. For instance, Starbucks reached wage parity for its U.S. partners in 2018 and continues to work towards this goal worldwide, setting a strong example for others to follow.

Yet, despite these efforts, progress in women’s equity cannot be taken for granted. Many organizations still lag behind, and without continued work, the gains made so far could stagnate. The question remains: Will other organizations rise to the occasion and capitalize on the impact of women’s equity? While some are already doing so, others must follow in order to drive both internal progress and broader societal gains.

Strategic HR insights: Take the lead in championing women’s rights
HR actions to take: Focus on gender equity and women’s advancement

7. Looming organizational anxiety

Decreasing consumer confidence, ongoing economic uncertainty, and fears of underperformance fuel a sense of organizational anxiety—a pervasive fear that affects businesses and their employees. Fears of recession and high interest rates drive companies to pursue cost-efficient growth, which has resulted in over 135,000 job cuts in the tech sector alone. The impact of these developments trickles down to the workforce, resulting in anxiety-inducing watercooler talk.

Companies from Europe to South Korea are extending work hours to “inject a sense of crisis” into workers and managers and increase productivity. It’s working, though not in the intended way. In-office (79%) and remote (88%) workers feel pressured to prove their productivity and demonstrate their presence, exacerbating the very fears organizations are trying to quell.

Add to this a tighter job market and shrinking pay premium for job switchers, and we see the Great Resignation has given way to the Big Stay, where employees “nest” in their roles.

In 2025, the pendulum of the employer-employee relationship is expected to swing decisively back in favor of employers as economic pressures and job market uncertainties give companies more control. While this shift can stabilize businesses, it risks long-term employee disengagement if companies fail to address growing anxiety and maintain meaningful connections with their workforce.

Strategic HR insights: Balance costs with employee support
HR actions to take: Create a supportive but performance-oriented workplace

Theme 3: Tactics for the organization to thrive

The way organizations respond to disruptions in talent and technology will determine who will succeed and who will struggle in 2025. Businesses must focus on creating an adaptable, agile workplace and proactively develop strategies to anticipate future challenges and opportunities.

Effectively executing these tactics will be essential as businesses seek to harness disruption as a catalyst for innovation and growth. In adopting forward-thinking approaches, organizations can thrive by turning disruption into a driving force for reinvention.

8. HR execution is king

While strategic HR is often seen as the pinnacle of HR work, the execution of HR policies and initiatives at a tactical level is equally critical to organizational success. A brilliant strategy without effective execution is like a blueprint without builders—no matter how well-designed, its potential remains unrealized. Tactical HR teams bring strategic ideas to life, transforming them into actionable results and ensuring the success of people-related initiatives.

2025 will bring about a growing recognition that HR’s true impact is realized when strategy and execution work hand in hand to reinforce each other. Strategic HR provides direction and long-term goals, while tactical HR ensures these are implemented through well-executed policies, processes, and daily practices that resonate with employees at all levels.

Strategic HR insights: Give tactical HR the tools and support to implement key strategic goals
HR actions to take: Maximize tactical HR impact through collaboration, skills, and sufficient resources

9. The embedded HR professional

As we look toward 2025 and beyond, HR’s role will become increasingly intertwined with business units’ core operations, a shift accelerated by the pandemic’s long-term effects. This will give rise to “embedded” HR, where professionals are not just advisors but integral parts of the teams they support.

93% of CHROs regularly attend board meetings, and 43% report an increase in their interactions with the board. However, a gap persists between HR’s strategic potential and its perceived contribution to business outcomes. For example, while almost 70% of CEOs agree that HR will be more important to business in the future, 63% would like a better understanding of HR’s role and 53% say HR doesn’t provide enough input and advice.

To close this gap, the HR function must embed itself into operational processes and the day-to-day decision-making of teams, ensuring HR solutions and policies are integrated with business processes and aligned with business goals. By working closely with line managers and other leaders, HR can help drive people excellence and enhance organizational effectiveness, employee engagement, and strategic business alignment.

Strategic HR insights: Become part of the business value chain
HR actions to take: Become HR and business experts

10. The antifragile worker

Interest rate uncertainty and high inflation will continue to create volatility in the financial markets well into 2025. The constant pressure of rising living costs, along with fears of job security and financial stress, exacerbates anxiety and burnout among workers.

Mental health issues affect about 15% of working-age people worldwide. Gen Z and millennial workers are particularly vulnerable, with 40% and 35% respectively reporting frequent or constant stress and anxiety and nearly half experiencing burnout at work. This has resulted in $1 trillion in losses annually due to depression and anxiety.

The concept of antifragility can help navigate these challenges.

Unlike traditional resilience, antifragility doesn’t just withstand shocks. Rather, it actively gains strength from turmoil, capitalizing on disruptions and using challenges to grow in strength.

To create antifragile workplaces, organizations must recognize the link between wellbeing and productivity. HR must reshape workplaces to help current and future generations of employees thrive in a fast-changing world. This includes addressing social and structural factors affecting mental health, providing employees with the resources they need to succeed, building resilience, and removing barriers that prevent full participation from individuals with mental health conditions. By doing so, both employees and employers can benefit from stronger, more adaptable workforces.

Strategic HR insights: Develop a workforce that grows stronger through challenges
HR actions to take: Lay the foundations for agile, skilled workers

11. Employee engagement 2.0

Over the past 25 years, engagement has become a focal point of HR strategy and practices, but the results have been sorely lacking. Since Gallup started measuring engagement in 2000, the needle hasn’t moved despite decades of HR policies and practices. Global engagement levels remain at 23%, indicating that these approaches are failing.

Today, employees who are not engaged or actively disengaged are costing $8.8 trillion in lost productivity worldwide. If HR wants to impact engagement and drive productivity, it needs to understand the real drivers of employee engagement and inform its approach to engagement with effective, evidence-based techniques.

Strategic HR insights: Redefine engagement and what employees truly care about
HR actions to take: Equip managers and employees to do their jobs successfully

You can read about 2024 HR trends here.

Erik van Vulpen

Erik van Vulpen is the founder and Dean of AIHR. He is an expert in shaping modern HR practices by bringing technological innovations into the HR context. He receives global recognition as an HR thought leader and regularly speaks on topics like People Analytics, Digital HR, and the Future of Work.

Dr Dieter Veldsman

Chief HR Scientist
Dieter Veldsman is a former CHRO and Organizational Psychologist with over 15 years of experience across the HR value chain and lifecycle, having worked for and consulted globally with various organizations. At AIHR, he leads research initiatives and develops educational programs aimed at advancing the HR profession. Dr. Veldsman is regularly invited to speak on topics such as Strategic HR, the Future of Work, Employee Experience, and Organizational Development.

Dr Marna van der Merwe

HR Subject Matter Expert
Marna is an Organizational Psychologist with extensive experience in Human Resources, Organizational Effectiveness, and Strategic Talent Management. At AIHR, she contributes as a Subject Matter Expert, driving thought leadership and delivering insights on talent management and the evolving nature of careers. Dr. van der Merwe is a researcher, published author, and regular conference speaker, providing expertise in shaping future-forward HR practices.
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11 HR Trends for 2025: Embracing Disruption
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