As we look ahead to 2025, the world of work is undergoing significant transformations. From the rapid evolution of generative artificial intelligence (AI) to the continued emphasis on employee well-being and the growing importance of skills-based hiring, employers are navigating shifting priorities. ADP’s newly released 2025 HR Trends guide offers valuable insights for employers to stay ahead of these changes and support their people while driving business growth.
Key HR Trends for 2025
1. Employee Experience and Well-being Take Center Stage
Employee well-being remains a top business priority. As remote work and advanced technology enable multiple ways of communication, the blurred lines between work and personal life can increase stress. To foster better well-being, leaders must encourage employees to set boundaries, offering more balance and, in turn, enhancing overall productivity.
- Jason Delserro, Chief Talent Acquisition Officer, ADP, emphasizes that setting clear boundaries between work and life is crucial for reducing stress and improving well-being.
2. The Rise of Skills-Based Hiring
Skills are emerging as a major indicator of employee success. Employers are urged to focus on the skills and experiences that candidates bring to the table, whether from previous roles, military service, or volunteer work. Reevaluating the language used in job postings- such as questioning the need for a “degree preferred” requirement can help in making more inclusive, skills-focused hiring decisions.
- Tiffany Davis, Chief Inclusion and Diversity Officer, ADP, advises employers to assess whether a degree is truly required for a position or if it can be substituted by skills and experience.
3. Navigating New Laws Surrounding AI in Employment
With the increasing use of AI in hiring and employment decisions, new laws are emerging to regulate AI development and its implementation. Employers need to stay informed about these regulations to ensure compliance and use AI responsibly within their organizations.
- Jason Albert, Global Chief Privacy Officer, ADP, encourages employers to keep a close watch on legislative changes related to AI and adjust their practices accordingly.
4. Pay Equity and Transparency Remain Business Imperatives
Pay equity and transparency continue to be crucial for building trust with employees. Employers are encouraged to regularly monitor their pay data and benchmark salaries to ensure equity. Effective communication about pay issues can help enhance employee relationships and promote transparency.
- Meryl Gutterman, Senior Counsel, ADP, highlights the importance of addressing pay equity issues and communicating openly with employees about compensation.
5. Generative AI Revolutionizes HR and Workforce Operations
Generative AI is poised to revolutionize HR processes, enhancing productivity and efficiency across organizations. While smaller businesses (1-49 employees) may not yet fully realize its potential, those with larger teams (50+ employees) are already exploring its applications in HR. Generative AI can automate tasks, improve decision-making, and enhance the employee experience.
- Naomi Lariviere, Chief Product Owner at ADP, notes that while smaller companies may not fully utilize AI yet, larger firms are tapping into its power, particularly in data analysis and decision-making.
6. Expanding Skills to Leverage Emerging Technologies
Skills are essential for defining success in the workforce, especially as emerging technologies continue to shape industries. HR teams must rethink how they capture, communicate, and implement skills across all HR processes, from hiring to promotion. This focus on skills will help organizations align their workforce with the demands of a rapidly changing market.
- Amin Venjara, Chief Data Officer, ADP, emphasizes that embedding skills into HR processes is crucial for creating value and ensuring long-term success in an evolving workforce.
As we approach 2025, HR leaders must stay ahead of key trends that will shape the future of work. By focusing on employee well-being, embracing skills-based hiring, navigating AI regulations, ensuring pay transparency, and leveraging emerging technologies like generative AI, employers can build a workforce that thrives in the evolving landscape.
For more detailed insights and resources, visit ADP’s HR Trends 2025.
