This past year, we’ve witnessed a lot of change; both in our industry, and the world around us. Admittedly, not all change is for the better, but change itself is inevitable, and much of it is necessary for driving growth and innovation. Within the Human Resources industry, it’s imperative that we evolve to reflect an organization’s current values and effectively shape work culture.
Now that we’re about halfway through the year, let’s take a look at a few major HR trends for 2025 and how they’re shaping the workplace.
AI’s Influence on HR
In the year 2025, artificial intelligence is everywhere, and HR is not excluded from that. AI is infiltrating industries across the board, and it seems we’re just at the beginning of this technological revolution. AI is trending in the HR industry, with the rise of platforms being utilized to ask questions and tools to write procedures, policies, or even consult for legal advice.
While AI technology is here to improve the HR experience, don’t put your full trust in it just yet. With anything as new as the use of AI, it hasn’t been around long enough to be tested and proven. This doesn’t mean it won’t get there someday, likely sooner than later, but for now—proceed with caution. Taking into account factors such as accuracy and reliability is essential to ensuring your organization is compliant with HR policies and practices, especially when using it as a tool for workplace laws and regulations. At the end of the day, AI is a tool. It can’t take the human side of HR into account.
CEO and Co-Founder of FullStack PEO, Dawn Lively-Jenkins, explains, “These [AI] are all going to be very helpful someday, but at this exact point in time, they are not quite tested and proven yet. It will certainly get there very quickly, I completely believe in the pace of technology, but right this second, it’s not quite there yet.”
Skill-based Hiring and Accelerated Skill Learning
Organizations are seeing a shift in the hiring process. We’re now seeing skill-based hiring trending compared to a previous preference for educational background or work experience. While this approach isn’t applicable for every industry, for many, it’s widening the hiring pool and increasing employee retention.
Along with this, internal hiring and skill learning within the organization have been accelerating. Investing in professional development and employee skills has proven to be beneficial for organizations—increasing retention and productivity, and overall being a cost-effective solution.
A Focus on the People
This year, we’re experiencing a continuing trend in employee wellbeing and mental health. Organizations are prioritizing a work-life balance for their staff—and for good reason. These initiatives prevent burnout, build a positive company culture, and boost employee satisfaction.
HR leaders are implementing initiatives to foster a culture that values and supports mental health. Whether that’s offering wellness programs or health and wellness stipends, focusing on wellbeing is becoming a priority for hiring and retaining top talent.
Outsource HR with a PEO Stay up to date with HR trends that build employee satisfaction and retention in the workplace by outsourcing a PEO to handle administrative operations. To learn more, reach out to start a conversation about your organization’s HR needs. We’d love to chat about how we can help you support your people so you can focus on business outcomes.