From digital tools to workplace wellbeing, experts predict key trends shaping the Human Resources industry 

The HR industry saw a range of different trends throughout 2024, from stalling salaries to increased tech spending. A key focus has been on flexible working policies – with over 40% of UK employees still regularly working from home, businesses have pushed harder than ever for return-to-office mandates over productivity concerns. 

Productivity is expected to be a huge focus in 2025… organisations will look to unlock gains through innovation 

AI has also been a key talking point of the industry, with up to 75% of workers stating their concern that the technology could replace entire roles; despite most organisations already using generative AI in some form. These are likely to continue to be some of the most significant challenges for the HR industry as we move through 2025.  

A technology-led approach 

It’s no secret that investing in the right technology can be the key to business success. Mark Williams, Managing Director EMEA at WorkJam, highlights how “all businesses should be prioritising the employee experience of their frontline workers by taking a technology-led approach to their workforce management. Investing in a digital frontline workplace app will provide a single tool for managers to offer flexibility when it comes to shifts and supply training opportunities for employees looking to progress whilst making compliance processes smooth and easy to manage when tackling health and safety issues.” 

He continues: “It also puts employees in the driving seat, enabling them to control their schedules, swap their shifts and pick up additional work, eradicating fears of inconvenient schedules, losing out on shifts and inconsistent pay… Using technology to open direct lines of communication with frontline workers has an empowering and engaging effect. Winning companies will go a step further by using technology to intertwine employee experience, customer experience, user experience and multiexperience to greatly impact each other.” 

Similarly, Mark Wilson, Technology and Innovation Director at Node4, discusses the importance of a technology-led approach, stating that businesses should “prioritise cost-effective, scalable technology solutions and find ways to boost productivity. In the current economic climate, many businesses are focused on maintaining stability and avoiding setbacks, but staying competitive still requires a proactive approach to emerging technologies and market trends.   

“Over the next 12 months, there will be increasing pressure on IT departments to deliver business outcomes and not just add more technology to their existing stack,” Wilson continues. “Every piece of technology should have a specific purpose and role in delivering those outcomes. Productivity is expected to be a huge focus in 2025. With national and organisational imperatives to not just do more with less, but to create a robust, sustainable and thriving business environment that benefits everyone, organisations will be looking to unlock productivity gains through innovative solutions that create long term value – not just cost reduction.” 

Managing mental health 

Mental health is an ever-important topic in today’s society and will certainly be under increased scrutiny in 2025, particularly due to the tumultuous economic times we have seen in recent months. As emphasised by Bruce Martin, CEO at Tax Systems, “Tough economic times can have a huge impact on employees’ mental health, which can actually increase costs to businesses in the long term. Communication is essential – during uncertain times, this can provide reassurance and clarity that can bridge a lot of problems and worries. It has been a debate since Covid and over the next 12 months we will see many more businesses mandate a return to the office in some capacity. I personally don’t believe this is the right approach.” 

He adds: “We shouldn’t be going backwards from the progress made during Covid. Flexible working is crucial for employee wellbeing and enabling a positive work-life balance… My advice is to find the right balance – know your business drivers, set clear objectives, and be cost-efficient; but don’t lose sight of the human element.” 

Lindsay Gallard, Chief People Officer at Six Degrees, agrees that it is important not to overlook employee wellbeing. He recognises  that “there can often be an ‘out of sight, out of mind’ mindset when it comes to mental health, so this absolutely must be addressed going forward if we are to provide proper support to employees. Remote working often brings with it greater instances of people working alone, which can lead to feelings of isolation. Additionally, wage growth is slowing and organisations are continuing to feel limited in terms of spending capability, so financial troubles can also contribute to worsening mental health of employees who may be feeling the effect of the ongoing cost of living crisis.”  

He emphasises the need for organisations to proactively mitigate these issues, as “it is directly linked to their productivity, and therefore the performance of the company overall”. 

There are a number of factors that can contribute to improved wellbeing at work. Ed Creasey, Vice-President of Solution Engineering at Calabrio, delves into these factors, citing recent research into European contact centres which revealed that “70% would recommend the job to a friend and 64% say that they are proud to work in a contact centre. It also revealed a flexibility within the working environment that didn’t exist before the Covid pandemic. 36% of respondents chose the job because of the flexible hours it offered, 67% feel that management cares about their work-life balance, and 77% can take breaks after difficult customer interactions.” 

Creasey goes on to say: “Agent wellbeing should continue to be a priority as we move into 2025, where the use of AI to handle the basic customer request will grow, and agents will be faced with a growing proportion of complex and emotional interactions.” 

The impact of AI 

Another topic on everyone’s lips is AI – irrespective of the industry or sector, this rapidly developing technology is beginning to be more widely implemented. One way in which AI can be utilised is to enhance customer experiences. Katya Buratovich, Senior Manager, Implementation at LearnUpon, explains that “with artificial intelligence and automation, a stronger emphasis will be placed on highly personalised learning tracks that are tailored to each customer’s needs as they progress through a platform, service or offering. This will change the support needed for direct interactions, making customer education more scalable. It also allows for greater consultation and strategy, similar to what in-person sessions can offer, to enhance retention. 

“Today’s customer education needs to be relevant to customers’ worlds,” she adds, “However, this personalisation should be coupled with high-quality touchpoints and seamless experiences. Together, this will help drive focus and retention.” 

Martha Delehanty, Chief People Officer at Commvault, advocates how “GenAI opportunities like linking a prospective candidate’s LinkedIn profile with a company’s job description will assist recruiters with personalised outreach messages. The AI-assisted InMail functionality in LinkedIn Recruiter is already showing an increased acceptance rate (nearly double our templated messages) and this is just the beginning.” 

Following on from this, she states that “in the coming year we will also see changes well beyond resume screening, to include helping organisations predict cultural fit, forecast employee engagement, and enhance retention strategies. Companies that integrate AI thoughtfully in HR will lean heavily into soft skills and streamlining the work to be more efficient and effective.” 

Clearly, the HR industry will face many changes and hurdles as we continue to navigate through an ever-changing social and economic landscape in 2025. Whether this be steering through the in-office versus working from home debate, or managing the implementation of AI technology, there are a lot of perspectives to take into consideration. Making the right decisions within HR is vitally important for business success, and will boost both employee and customer satisfaction.