The workplace has seen some seismic shifts in the last few years, and 2025 is shaping up to continue these trends. Whether you’re an employee, manager, or small business owner, understanding these changes can help you stay ahead of the curve. Let’s break down four key trends that are set to shape the workplace in 2025 and how you can prepare for them.
1. Flexible Work Models Are Still in High Demand
Remember when working from home felt like a temporary fix? Not anymore. Remote and hybrid work have become permanent fixtures in many industries, and employees continue to push for even greater flexibility. According to recent data at WFHresearch.org in the US 28% of paid work days were Work From Home. This is a 5x increase from pre-pandemic days, meaning the “Work from Home” trend that soared during the pandemic is a trend that is here to stay in some form.
Why? It’s simple: flexibility equals better work-life balance. A recent study found that 52% of employees say work-life balance is their top priority. Hybrid models, which mix in-office and remote work, are especially popular. The idea here is that happier employees will result in employees who are more invested in their work and maintain quality output.
However, some companies are resisting this shift, mandating employees to return to the office. According to the KPMG 2024 CEO Outlook survey, over 80% of CEOs are pushing for a full return to office (RTO), which is a significant increase from 2023. The top reasons cited for the return to office are better collaboration, fostering workplace culture that relies a lot on informal communication, and skill and performance mentoring. These mandates are often met with backlash, especially from senior employees who value their autonomy, and younger employees who have taken the work from home flexibility option as a “new norm”.
What to watch for in 2025: Companies are still going to be using flexibility as their “dangling carrot” to entice current and future employees, and this flexibility will come in different forms such as hybrid schedules, remote work and even four-day work-weeks. The goal of course is to offer flexibility without losing productivity. Employees will find this desire to keep them happy as a leverage tool to negotiate for a work option that best fits their lifestyle.
2. Artificial Intelligence Will Become Even More Integrated
Artificial intelligence (AI) has already transformed how we work, but in 2025, its impact will go deeper. Think beyond chatbots and automated scheduling tools—AI is now helping businesses make strategic decisions, streamline hiring, and even optimize compensation strategies.
There are many that fear of course that AI is going to replace them. The Google search “Is my Job Safe” or some version of “Will AI steal my job” has exploded in recent months, with numerous articles and even websites dedicated to the topic. But here’s the thing: AI isn’t replacing humans any time soon, at least not completely. As one article put it, “it might take your job, but not your career”. What this means is that some of your tasks might be automated with AI, but that will free your time to focus your talents in other areas that still require the human touch.
Basically, it’s augmenting our capabilities. For example, tools that analyze job market data can help HR departments craft fair compensation packages faster than ever. That said, employees and managers alike need to understand AI’s role and its limitations. The human touch is still irreplaceable, especially in areas like creativity, leadership, and emotional intelligence.
What to watch for in 2025: Companies that strike a balance—using AI to enhance decision-making while still valuing human input—will have a competitive edge. For individuals, staying ahead means learning how to use these tools effectively, whether you’re in HR, marketing, or operations.
3. Skills-Based Hiring Is Replacing the Old “Degree-Required” Norm
For years, job descriptions have started with, “Bachelor’s degree required.” But that’s changing. Skills-based hiring—where companies prioritize what you can do over where you went to school—is gaining traction.
There are a number of reasons for this shift. Removing the degree requirements has expanded the talent pool for potential employers. This is going hand in hand with data from a 2023 poll conducted by the Wall Street Journal that found that 56% of the 1,000 people polled felt that a college degree was no longer a good investment. (This is significantly higher than 40% of those polled in 2017.) With fewer people considering a college degree, many good candidates for certain jobs will fall into the degree-less category. Open minded hiring teams will benefit from looking beyond those candidates with degrees. According to Indeed.com each year more and more jobs are being posted that are not degree-required, so this is definitely a trend we will likely see expanding.
This new trend does pose a set of different challenges. For example knowing exactly which skills are essential to the job as well as deciding whether or not a degree is necessary. Interviewers will also need to be trained on how to determine a person’s capabilities, rather than the typical hallmarks of education and experience. While these are not ultimately roadblocks, it does mean that it requires a change in mindset from “old school” practices.
What to watch for in 2025: Job seekers, now’s the time to focus on showcasing your skills—think certifications, portfolios, or even LinkedIn endorsements. For businesses, this trend opens up a new world of talent, especially when combined with flexible hiring practices.
4. Strategies for Employee Retention Will Be More Important Than Ever
Keeping employees happy has always been important, but in 2025, it could make or break a company. High turnover is expensive and disruptive, and employees now have more options than ever. And with many top business trend forecasters predicting a wave of “rage quitting” , it is more important than ever for employers to be proactive in their employee retention efforts.
What are workers looking for? Clear career paths, opportunities to learn and grow, and a sense of purpose. People don’t want to feel like just another cog in the machine. At the same time, the concept of “quiet quitting” (a 2022 buzz word for employee disengagement) is evolving into something more positive: intentional engagement. For the last few years we’ve heard a lot about the “customer experience”, and in 2025 for companies to increase employee retention, they will need to focus on an “employee experience”.
A few strategies companies can consider is first and foremost to listen to the pain points regarding a better work-life balance. Younger hires are less likely to take a job that doesn’t offer a satisfactory work-life balance and are more likely to quit over this issue than previous generations. The second strategy is a personalized management approach that can address the diverse needs of a company’s workforce. It isn’t just about offering chair yoga sessions, but about understanding the specific needs of their workers. In 2025 it will be about prioritizing employee wellbeing, and companies that adopt this approach will not only see higher retention rates, but productivity growth. It’s a no-brainer that employees that are satisfied with their job and their work environment produce quality work.
What to watch for in 2025: Managers need to focus on personalized management while also addressing the demand for greater work-/life balance. If you’re an employee, look for companies that invest in their people. And if you’re running a business, remember: retention strategies are just as critical as recruitment.
Preparing for 2025: What Can You Do Today?
Change is inevitable, but it doesn’t have to be overwhelming. Understanding these trends—flexible work, AI integration, skills-based hiring, and employee retention—can help you plan for the future. Whether you’re adapting your own career path or rethinking how your business operates, the key is to stay informed and proactive.