Navigating HR Trends for 2025

Jan 6

What Every Leader Should Know

The HR landscape is evolving faster than ever. With economic shifts, the rise of AI, and a workforce demanding flexibility, HR and organizational leaders have full plates. Industry leaders are coming out with their key trends and focus areas shaping workplaces in 2025 and sharing practical insights on how to stay ahead. We checked out Gartner’s Top HR Focus Areas for 2025 and Mercer’s Three HR trends for 2025: How to navigate the future with confidence, and compiled a summary of what the year may bring.

The End of the Great Resignation: Time to Double Down on Retention

The post-pandemic hiring frenzy is behind us. Employee turnover is stabilizing, and the job market is cooling down. Employers are feeling more confident in managing turnover than they have in the past four years.

So, now what? Retention. But how? Companies are focusing on upskilling their teams and providing increased flexibility to motivate and retain. Flexibility is the real game changer: think compressed hours, part-time options, and hybrid work models. In fact, many employees would trade a 10% pay hike for better flexibility. Benefits beyond paychecks matter more than ever.

It’s time to manage by outcomes, not just office hours, and empower teams to balance their collective needs accordingly.

AI’s Big Moment: From Experimentation to Everyday Use

Generative AI has been the buzzword of 2023 and 2024, and it’s about to get real. Many organizations have been using AI and reporting increased productivity, and 98% of organizations say they plan to be on the AI train by 2025. For HR, this means helping teams adapt to large-scale applications such as AI-driven workflows and using AI to enhance everything from recruitment, onboarding, and training, down to smaller daily things like writing emails.

Even when IT is leading an organization’s AI strategy, HR’s role in managing the use and impacts of AI is crucial. HR leaders need to be proactive by staying informed on new developments and legislation, collaborating with IT, exploring AI vendors, and identifying, educating, and leveraging in-house AI champions. This isn’t just about efficiency; it’s about transforming how people work.

HR leaders who embrace AI will not only streamline processes but also boost their strategic impact.

The Shift to a Skill-Powered Future

The days of rigid job descriptions are fading. Upskilling and reskilling are no longer optional. Companies are hiring for skills and capabilities, not just titles. And, as AI reshapes jobs, 46% of employers see AI-related skill shortages as a top threat, while 53% of employees look to their organizations for upskilling opportunities.

Forward thinking organizations will fill talent gaps and foster loyalty and engagement by rewarding employees for developing new skills that meet rising organizational needs.

Leadership Development: Preparing Managers for What’s Next

Leadership is always a top priority, but now it’s critical. Gartner’s research reveals that 75% of HR leaders believe managers are overwhelmed, and 70% feel current programs don’t prepare leaders for the future.

What can we do? Embed continuous development in day-to-day work; create roles and projects that equip managers to navigate complexity and inspire their teams amid constant change, on-the-job. Focus on practical learning delivered in highly engaging ways. In addition to comprehensive off-site programs, think bite-sized opportunities for learning with peers.

Leadership development that equips leaders with skills and behaviours to tackle tomorrow’s challenges is a critical ingredient in highly successful organizations.

Culture Alignment: Walking the Talk

Organizational culture is the backbone of the employee experience. Yet, 57% of HR leaders feel managers don’t enforce cultural values, and over half say leaders lack accountability.

To bridge the gap, HR teams must clearly define the behaviours that embody cultural values and hold leaders accountable for modeling them. Cultivating respectful workplaces through intentional initiatives – and involving all levels of leaders - can help achieve a truly healthy organizational culture.

A strong, healthy culture doesn’t just happen, it’s built through consistent actions and is reinforced at every level.

Tackling Change Fatigue

Change is exhausting, and it’s hitting employees and leaders hard. With 73% of HR leaders reporting change fatigue, it’s clear that mandates to change “or else” won’t cut it. Leaders must empower employees to take ownership of transformations and build strong change management skills across teams. Internal champions can play a huge role here; they can be your secret weapons for smoother transitions and more engaged teams.

By fostering a sense of ownership and collaboration, organizations can transform change fatigue into a culture of resilience and adaptability.

Optimizing HR Tech

HR technology has massive potential, but many organizations aren’t fully tapping into it to positively affect the employee experience. Over half of HR leaders say their tools don’t meet evolving needs, and many struggle to measure the ROI. The fix? Invest in user-friendly, innovative solutions, like generative AI, that streamline processes and improve decision-making.

The implementation of new tools isn’t an overnight fix; only when organizations focus on the long-term value of technology, rather than quick wins, will its impact on the employee experience be felt.

2025: A Year of Opportunity

The overall landscape of responsibilities looks quite different than it did just a few years ago. Economic shifts, the rise of AI, and a workforce demanding flexibility have resulted, in many cases, in an overwhelming number of critical initiatives falling under the purview of HR. HR leaders are at the heart of navigating shifts in any organization, having great influence on the ability to keep up and manage big changes successfully. Staying on top of trends and remaining agile in responding to them is critical to the ongoing effectiveness of HR teams.

Cenera has specialized teams in all areas of Human Resources, including the ones mentioned here. If you’d like to talk about how we can help you, your team, or your organization with the things filling your plate in 2025, we’d be happy to talk: cenera.ca/contact-us.

Joan Dunlop

With a powerful combination of privacy and information management expertise, Joan is an engaging speaker, dynamic motivator, and trusted advisor. Known for her infectious enthusiasm, Joan makes access and privacy legislation accessible, understandable and engaging. She is skilled at clarifying obligations, balancing protection of personal information with the need for transparency and access. A Partner with Cenera, Joan leads teams in Privacy and Information Management, a path inspired by her work administering the Alberta Freedom of Information and Protection of Privacy (FOIP) Act for a large public body. She provides advisory services, conducts Gaps and Privacy Impact Assessments, leads training and is a self-proclaimed policy geek. Joan’s background and experience also positioned her well to lead Cenera’s Workplace Investigations (WI) Practice. She created Cenera’s WI process, trains and supervises the Investigation Team, and leads workplace investigations for public and private sector organizations of all sizes. Joan holds a BA in Political Science from the University of Regina, a law degree from the University of Saskatchewan, and is a certified Master of the Canadian Institute of Access and Privacy Professionals. She is passionate about community work, frequently volunteering with Canadian Blood Services, The United Way of Calgary, Rotary International (Calgary South) and the Canadian Diabetes Association (Calgary Chapter).