{"id":14668,"date":"2025-04-01T19:01:10","date_gmt":"2025-04-01T19:01:10","guid":{"rendered":"https:\/\/insulation.org\/io\/?post_type=articles&p=14668"},"modified":"2025-04-24T19:28:04","modified_gmt":"2025-04-24T19:28:04","slug":"7-trends-that-will-shape-hr-in-2025","status":"publish","type":"articles","link":"https:\/\/insulation.org\/io\/articles\/7-trends-that-will-shape-hr-in-2025\/","title":{"rendered":"7 Trends that Will Shape HR in 2025"},"content":{"rendered":"
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From building a culture of civility to upskilling en masse, here\u2019s what human resources (HR) professionals can anticipate in 2025.<\/span><\/h3>\n

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The world of work is changing at a staggering pace. From changes in talent acquisition practices to the rise in people analytics, to the can\u2019t-be-talked-about-enough impact of artificial intelligence (AI), 2025 is sure to be a year of new opportunities and new challenges driven by the need for the workforce to be increasingly flexible and skilled to meet market demands. With that in mind, the Society for Human Resource Management (SHRM) experts shared their insights on seven major trends that are likely to impact HR in the year ahead.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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Skills over Degrees<\/span><\/h2>\n

Momentum is surging around skills-based hiring, which is the idea that workers\u2019 skills and capabilities matter more than their educational background or work history. Focusing on what employees can do\u2014not where or how they learned to do it\u2014widens the talent pool, helps solve skills shortages, and boosts retention, says Justin Ladner, Senior Labor Economist at SHRM.<\/p>\n

The practice is catching on quickly: In 2024, 81% of employers practiced skills-based hiring, up from 73% in 2023 and just 56% in 2022, according to research from TestGorilla,1 <\/sup>a talent assessment platform.<\/p>\n

\u201cThe ongoing labor shortage provides a strong incentive for firms to search for ways to expand their ability to recruit and retain workers,\u201d Ladner says.<\/p>\n

Disruptive events such as the pandemic and the subsequent labor shortages, as well as the rise of AI, have taught employers that an adaptable workforce is one of the most critical ingredients in future-proofing an organization.<\/p>\n

Therefore, says SHRM Chief Human Resources Officer (CHRO) Jim Link, SHRM-SCP, companies are seeking employees who are persuasive, open to learning, and able to communicate well.<\/p>\n

\u201cWe used to think about [business] sustainability in terms of things,\u201d Link says. \u201cGoing forward, we\u2019re going to think that way about people. Do we have the right people with the right skills and enough workforce numbers for today and tomorrow?\u201d<\/p>\n

Some employers will also continue to rethink college degree requirements for certain roles. An analysis by Indeed found the number of job postings requiring at least a 4-year degree fell to 17.8% in January 2024, compared with 20.4% in 2019.2 <\/sup>Of employers who eliminated degree requirements for some roles, 73% said they had successfully hired one or more candidates who previously would not have qualified, SHRM\u2019s 2024 Talent Trends research reveals.3<\/sup><\/p>\n

Do we have the right people with the right skills and enough workforce numbers for today and tomorrow?<\/strong><\/span><\/h3>\n

Jim Link, SHRM Chief Human Resources Officer<\/strong><\/span><\/h3>\n<\/div>\n<\/div><\/div><\/div><\/div>
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Evolving Skills, Thriving Workforces<\/span><\/h2>\n

The need for updated skills in the workplace is accelerating\u2014so quickly, in fact, that new employees may need more training even before they\u2019ve finished onboarding, says James Atkinson, Vice President, Thought Leadership, at SHRM.<\/p>\n

Technology is driving this quickening pace of upskilling and reskilling. Quite simply, in a world where AI exists, employees\u2019 skills can\u2019t remain static. In fact, 83% of HR leaders believe upskilling will be essential for workers to remain competitive in a job market shaped by AI, SHRM data shows.4<\/sup><\/p>\n

As more organizations pursue AI, machine learning, and other advanced technology, they are taking stock of their employees\u2019 skills and trying to \u201cmatch that, as best they can, to what their future needs are likely to be,\u201d Link says.<\/p>\n

Additionally, Atkinson says, employers are realizing the importance of determining how employees can work with technology in a role that\u2019s being transformed, or one that\u2019s just emerging. Organizational growth and employee expectations will also continue to drive upskilling and reskilling.<\/p>\n

\u201cThe fact that customers are more demanding means companies increasingly need to develop new products, and employees need to be more productive to keep up,\u201d Atkinson says.<\/p>\n

Employees are equally eager to stay competitive by updating their skills. According to a 2024 PwC survey, almost half of employees say that having opportunities to learn new skills is a key consideration when deciding whether to change employers.5 <\/sup>\u201cThis need for these workers to stay at the top of their game coincides with organizations\u2019 needs to pull in that talent,\u201d Atkinson says.<\/p>\n

There\u2019s more to explore and implement. While a majority of employers plan to upskill or reskill employees, according to a 2024 Express Employment Professionals\u2013Harris Poll survey,6 <\/sup>just 29% of organizations have taken proactive measures to train and upskill employees who work alongside AI, SHRM research finds.7<\/sup><\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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People Analytics Shaping the Future<\/span><\/h2>\n

In a still-tight talent market, organizations must find smart, effective ways to encourage long-term employee loyalty. A potential solution is people analytics,8 <\/sup>the science of using data on employee performance, skills, engagement, and sentiment to predict and shape the future of the workforce.<\/p>\n

People analytics can reveal a variety of insights.9 <\/sup>Combing through employee engagement survey data, for example, can help companies determine employee morale or recurring reasons for departure or turnover. People analytics can also identify potential learning and development opportunities, such as skills gaps that may hinder forward momentum.<\/p>\n

Link also sees people analytics as an opportunity for employers to provide interventions such as mental health resources before such issues become a crisis.<\/p>\n

Currently, HR professionals most commonly use people analytics to assess employee retention and turnover (82%) and for recruitment, interviewing, and hiring (71%), according to the report The Use of People Analytics in Human Resources<\/em> (SHRM, 2023).10 <\/sup>Some organizations also use AI to identify potential high-performing employees using profiles based on past successful employees. That way, Atkinson says, \u201cThey can focus on retaining those employees and helping them grow and thrive.\u201d<\/p>\n

Going forward, Atkinson expects more employers to use people data for predictive modeling around workplace planning. \u201cIt\u2019s not where a lot of organizations are right now, but it\u2019s an exciting opportunity for the future,\u201d he says.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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The Concerning Rise of Incivility<\/span><\/h2>\n

If the world seems less courteous or empathetic lately, you\u2019re not imagining it. SHRM launched its civility campaign11 <\/sup>in 2024 precisely because of \u201crising concerns about an incivility in society that\u2019s bubbling up and overflowing into the workforce,\u201d Atkinson says.<\/p>\n

The SHRM Q3 2024 Civility Index survey of more than 1,600 U.S. workers, conducted August 27 \u2013 September 4, 2024, proved these concerns to be well-founded.12 <\/sup>Workers said they experience 190 million acts of incivility per day, 58% of which happen in the workplace. The biggest drivers of incivility were:<\/p>\n