From new pay transparency reporting requirements, to the importance of worker well-being, and the role AI will play in shaping almost everything, human resources professionals and the organizations they support will face a number of new opportunities and challenges in 2025.
According a recent report from ADP, the following 10 trends and priorities will influence the way we work next year.
1. Generative AI will affect employer-candidate interactions
Despite the increasingly connected and digital nature of many work environments, human connection remains critical to culture. While AI tools will continue to support many human resources and recruitment functions, ADP suggests workplaces have people overseeing any automated candidate-screening processes, and ensuring that job candidate experiences aren’t too impersonal.
2. Employee experience and well-being are business priorities
Employees who feel cared for are 92 per cent more likely to feel engaged at work, according to ADP’s report. Additionally, 65 per cent say they are more likely to be loyal and another 56 per cent report they are more likely to be productive. This data makes the case for curating positive employee experiences in the workplace, such as prioritizing personal connections, or aligning tasks with an employee’s skillset.
3. Skills are a strong indicator of employee success
Taking a skills-based approach to talent places more attention on the skills brought by a candidate or employee, rather than on their experience, education or other traditional qualifications. This can help leaders fill gaps in their organization’s skills matrix. “Adopting a skills-based approach to talent is more than an innovative hiring strategy,” says ADP.
4. Talent is becoming more geographically dispersed
“The rise of remote work has enabled organizations to hire talent that would not have traditionally been available in their local areas,” writes ADP. While undoubtably a benefit in many respects, this trend may result in greater complexity for organizations. One issue is how to engage remote workers and ensure they have access to the same opportunities as in-person employees; another is that a dispersed workforce can expose an employer to obligations in multiple jurisdictions.
5. New laws limit how AI is used in employment decisions
Some countries and U.S. states are passing laws that aim to regulate AI in order to protect employees, a trend worth monitoring in 2025.
6. Pay equity and transparency remain priorities as gaps persist
The importance of resolving any compensation discrepancies that function as barriers to fairness is a priority that will remain in 2025, according to ADP. This would include compliance with B.C.’s Pay Transparency Act, which became law in 2023 and requires B.C. employers to meet requirements to help close the gender pay gap.
7. Multiple wage-and-hour developments give employers pause
Depending on the jurisdiction, legislation will require corporate leaders to reconsider pay, tax and timekeeping obligations.
8. Generative AI continues to revolutionize everything
Tech advancements and tools will help power the efforts of various workplace teams and functions, including recruitment, benefits, compensation, customer care, compliance and people analytics, says ADP. Expect to see AI supporting the creation of job descriptions, payroll processing, customer service tasks and more.
9. Firms look to expand skills AI-related skillsets
According to ADP, employers say they intend to upskill or reskill employees to close the generative AI skills gap that may exist in their organization. The rise of AI-powered tools has made skills training in this area a business imperative.
10. Well-being tech helps firms humanize the employee experience
The employee experience will remain a key trend. More than two-thirds (69 per cent) of employees feel their company is responsible for ensuring their mental well-being, and 71 per cent of large and mid-sized firms say mental health counselling is “very or extremely important to attracting and retaining talent,” according to ADP.
