2024 has been an interesting year for HR with the rise of AI, the ongoing battle of hybrid and remote working, the continuing need for strategies around employee wellbeing, skills-based hiring, continued focus on DE&I, automation and trials for 4 day weeks. We also had a new Government who have made changes to employment law legislation.
Let’s look at these trends in a bit more depth.
AI has become a big talking point over the last 12 months and there has been an increase in its use. For example, applicants are using AI to generate CV’s and job applications. AI technology is being used in HR departments to filter job applicants, which increases efficiency and removes human bias. However, AI is still in the learning stage and is not without its drawbacks. For now, it is only as good as the information it has been given. There are also question marks over the ethics of using AI and it has its own bias which needs to be overcome. This is sure to be a growing trend as we move into 2025 and AI tools improve, it will undoubtably support HR teams but guidance and training will need to be robust to harness its potential.
Hybrid and flexible working continued to be a talking point and whilst employees are keen to continue to work from home, employers are mandating a return to the office. The traditional 9-5 is no longer in favour with flexibility increasingly desired, to balance the demands of home life with working. Leadership styles have needed to evolve to accommodate disparate working styles with an emphasis on trust and outcome based performance over micro-management. Employee output is more important than the amount of hours sat at a desk. Although, there have been trials with a number of companies implementing a 4 day week and, although the trials were successful, it remains to be seen whether this will be more widely accepted by businesses.
Employee wellbeing has taken a central role and although originally designed to encourage employees to move and consider the effects on physical health it has evolved to include other areas. Mental health issues have become a growing concern as businesses have seen an increase in employee absence due to stress, employee burnout becoming more prevalent and anxiety and depression on the rise. Mental health absence is the number one cause for absence. Many employers have taken steps to support employees, training mental health first aiders and normalising the conversation around mental health. Financial wellbeing has also been added to the agenda with the cost of living crisis and dealing with concerns about debt and pensions. Organisations have recognised that supporting employees in this way improves employee engagement, retention, absence levels and productivity.
Skills over qualifications has become key focusing on adaptability and problem solving, moving away from traditional questioning around previous experience and looking at attitude and willingness to develop. Retaining top talent by investing in continuous learning has been essential for businesses.
Diversity, Equity and Inclusion has still been a focus with businesses understanding the need for transparency and fairness in all practices. Authenticity and measurable outcomes are needed rather than symbolic gestures, moving away from standalone programs to be integrated into daily business operations.
Top priorities for 2025
Financial wellbeing will continue to be a priority as the cost of living crisis and the impact to household finances continues. Employers should consider the financial implications of a return to work. Hybrid and remote working have reduced household expenditure for many and this should be factored in if businesses are mandating a return to the office. Mental health will also continue to be concern and mental health days are likely to be implemented by businesses recognising the need to address high absence.
AI is here to stay and employees will be worried about the impact this may have on their job roles. Technology and automation is not a new concept in the workplace however, employers should recognise how AI can assist employees in the workplace and take the opportunity to involve and upskill their workforce as AI starts to play a bigger role in our day to day lives.
Redunancies and or restructuring is likely to increase in 2025. Employers need to make sure they understand the impact on remaining employees, not just the unsettling effect that redundancies create but also burnout and disengagement if remaining employees are expected to increase their workloads. Burnout, skills shortages and culture of disgruntlement needs to be monitored.
Many of the new legislative changes will come into effect over the coming months, businesses should start preparing now to ensure compliance with new laws. In addition there is likely to be increased obligations around gender pay gap reporting and equality action plans.
Culture, employer brand and authenticity should be high on the agenda for business. Employees are more demanding, expecting good and ethical practices from the company. Employees want clear job accountabilities, career development and useful benefits. Culture is more than free tea and a pool table in the breakout room.
2025 will be a busy time for HR professionals, if you need support get in touch for a chat about how I can help you and your businesses in 2025 with HR, limited retainer packages for ongoing support still available, need help with adhoc issues or need to implement an HR project or train managers get in touch at bev@bdhr.co.uk.
