3 Hot HR Trends & Actionable Steps You Can Take

As we move toward 2025, the world of work isn’t getting any simpler.

The coming year’s HR trends will involve rapid evolution of technology (particularly in AI), thoughtful and strategic succession planning as experienced employees age out of the workforce, and data-driven adaptation to the explosive emergence of new skills and changing job roles.

Here’s how you can adjust the sails to ensure your organization’s well-prepared for the challenges and opportunities ahead.

Budgeting for New, AI-Powered Tech

AI is an HR trend because it’s challenging organizations to rethink their approaches to recruitment, training, performance management and more.

In fact, the latest global AI survey by McKinsey made a significant finding: 42% of high-performing organizations that use AI reported that more than 20% of their earnings before interest and taxes was attributable to their use of non-generative, analytical AI.

If your business is like many organizations, it’s budgeting season right now — making it the perfect time to huddle with your CFO and IT leadership to strategically budget for HR technology goals that enhance decision-making and streamline processes.

When considering new technology investments, some questions they might ask include:

• What are the software licensing or subscription fees?
• Will there need to be hardware upgrades?
• Is it going to cost money to integrate with our existing systems?
• How much training is involved?
• What will the ongoing costs be for technical support and system maintenance?

It’s important to focus on solutions that offer long-term value in addition to immediate value. Look for tools that can not only automate routine tasks but also provide meaningful data analytics to drive strategic insights.

Tech-Enabled Succession Planning

Succession planning is an HR trend because workforce demographics are shifting. For example, in an episode of the “Voices of HR” podcast Joanne Taylor, vice president of operations for Clear Employer Services, called attention to an internal study by Boeing which revealed that 40% of the company’s skilled machinists were over the age of 50.

Boeing’s not the only one with a potential succession planning/skills gap problem. Check out this Bureau of Labor Statistics table to see where your industry is on the age demographic spectrum.

Preparing, training and developing your employees’ skills so they’re ready to move into future roles with new responsibilities is going to be vital.

To make succession planning proactive rather than reactive, you’ll need a tech component that provides a data-driven approach to identifying and nurturing young high-performers, as well as guided skill development. The solution you choose should be capable of offering predictive insights into employee potential and performance, as well as identifying skills gaps and development needs.

By leveraging these tools, organizations can cultivate a talent pipeline that’s equipped to navigate future HR trends.

While we have you thinking about next year’s tech budget, don’t forget to save room for learning and development tools.

Adaptive Cultures and Resilient Organizations

In a keynote speech at the SHRM 24 conference in Chicago, SHRM CEO Johnny C. Taylor highlighted that in the next 10 years, “more than 1 billion jobs — that is one-third of the jobs that we know today — will be totally transformed by technology.”

Big changes are coming and the ability to adapt quickly will be a key competitive advantage for organizations to succeed amid changing market conditions in a technologically driven business environment. Building a culture that embraces change and encourages continuous learning is vital for organizational resilience. An adaptive culture supports employees in developing the skills they need to excel, encouraging a growth mindset that benefits both the individual and the company.

Investing in technology that supports real-time feedback and personalized development is one way to nurture such a culture. By providing employees with tools that offer immediate insights and actionable growth steps, organizations can ensure that development is ongoing and aligned with both personal and company goals. This approach not only enhances employee engagement but also drives organizational success by aligning development efforts with strategic objectives.

Looking Ahead

To keep pace with HR trends and drive meaningful change, you’ll need to be open to embracing new technologies, refining succession planning strategies and developing an adaptive culture.

Staying proactive by budgeting the time and necessary funds to adopt new solutions, tools, guides and resources is crucial for keeping your organization at the forefront of innovation and growth. By continuously exploring tools and technologies, HR leaders can ensure their organizations are ready for what’s next to build a resilient, future-ready workforce that thrives in the face of change.