
As we embrace the challenges and transformations anticipated in 2025, businesses are swiftly adapting to become more resilient and forward-thinking. Among key trends set to shape this evolution are the tight labor market, the changing dynamics of remote work, and the ramifications of a renewed focus on diversification and inclusion within the workplace.
In the face of a stabilizing job market, companies are cautiously recalibrating their approach to employee compensation. Indeed economist Cory Stahle described the cooling off of pay bumps as "pretty dramatic," suggesting that the days of significant raises for switching employers are, for the moment, behind us. This perspective was echoed in a report by The Phoenix Business Journal, which noted heightened caution amid the current economic climate. Yet, the decline in remote work flexibility is making waves, as giants such as Amazon and UPS shift their employees back to in-person models, a move that only 17% of CEOs seem to advocate as the standard for the coming three years, according to a recent KPMG CEO Outlook Survey covered by the same source.
With such uncertainty brought on by changes to employment structures, it is imperative to note the interplay between a company's financial responsibilities and the needs of its workforce. Health care benefits, a traditional cornerstone of employee retention, are expected to increase by 5.8% on average according to Mercer, in a detail highlighted by The Phoenix Business Journal. It is evident that businesses must find a sustainable method to balance these escalating costs with the demand for competitive benefit packages.
Looming deadlines for operating system updates present another challenge, as pointed out by Sal Sferlazza, CEO of NinjaOne, who observed, "If organisations don't update their operating systems now, they’ll be running on unsupported systems come next October." This urgent call to refresh both hardware and software was detailed in an interview with Dynamic Business.
Moreover, 2025 could mark a pivotal year for diversity, equity, and inclusion as companies strive to grapple with backlash and litigation risks, aiming for inclusion while steering clear from quota-based systems—a strategy firms are consistently reevaluating, according to experts cited by The Phoenix Business Journal.
Finally, the explosive growth of AI remains a potent force, offering both opportunities and risks as businesses to fully leverage this technology. Companies must perform a careful balancing act, ensuring their utilization of AI in human resource functions is both fair and efficient, stressed Stacie Haller from ResumeBuilder. AI's potential, alongside the employment and operational shifts within the landscape, indicates a year that will force businesses to not only adapt but also to proactively shape their future against a backdrop of ever-changing market dynamics and technological advancements.