HR professionals know more than most just how quickly business environments change. Workplace norms are always in flux, but the pandemic accelerated the need for HR strategies to evolve more quickly than in years past. 

We’ve compiled a list of trends that could impact your HR strategies in 2024 and 2025. If you want to remain competitive in the workplace, you may need to adopt some new and innovative solutions to address these changes.

Generational Shifts  

It's estimated that by 2025, millennials will make up 75% of the labor force. As millennials take over the workforce and move into leadership positions, HR departments are seeing some of the following trends in how the younger generation thinks:

• Authority is earned not given.
  Seniority is less important to millennial leaders than some other traits. In fact, a third of millennials believe that within 10 years, the CEO role will be no longer relevant in its current format. Motivation, innovation, emotional intelligence, and leadership style are now weighted more heavily when determining who to reward or advance.
• Business structures are flattening.
  In general, younger generations are moving away from traditional hierarchical business structures. As they take over leadership positions, they may begin shifting their organizations to honor teamwork and shared decision-making over hierarchy.
• Talent can come from atypical sources.
  Millennials tend to be open minded when it comes to hiring. Many will happily consider candidates with atypical job experiences as long as they have the attributes and skillset needed for the position.
• They seek meaningful work.
  Millennial leaders want to work with organizations whose values and ethics align with their own, and they may turn down job offers from companies whose values are misaligned.  

New Technology

New hires — which tend to be of the Gen Z generation — are often seen as “digital natives” to hiring managers. They grew up using tech and are primed to spearhead the implementation of new systems and applications in the workplace. While some baby boomers and Gen X are similarly open to new technologies, younger hires have an inherent understanding of tech that can benefit organizations.

Hybrid Work

Remote work is out; hybrid work is in. Most employees aren’t interested in working full-time from home. They tend to value work arrangements that let them split their time between home and the office. And employment trends show that businesses are listening. Some estimates report that more than half of all companies across a wide range of industries have adopted some sort of hybrid work environment. 

How HR Strategies May Need to Change

The workplace trends we’ve been seeing are almost certainly going to require you to tweak your HR strategies. Not only should you review your company’s hiring and onboarding process, but you should also think about how to support your employees’ changing values and elevate your company’s culture.

• Engage the new generation.
  The workers that you’re hiring have unique experiences, goals, and priorities. Learn what your hires are looking for and see if you can meet their needs.
  
• Embrace new technology, but do so safely.
  New technology may improve workplace efficiencies but comes with its own set of problems. Consider artificial intelligence for a moment. If you adopt AI technologies in the workplace, a few questions you’ll need to answer are:
  • Will AI-generated outputs be traceable to certain employees?
  • Will AI change performance expectations?
  • How can managers track employee use of AI?
  • Will older generations feel pushed out of the workforce if more emphasis is placed on harnessing AI?

• Reevaluate work arrangements.
  Offering hybrid work options may make current employees happy and make your business more appealing to new hires, but it presents some of the following HR challenges:
  • Proximity Bias — Leaders have the tendency to favor employees who work from the office over those who work remotely.
  • Communication Challenges — The informal discussions that occur after the cameras have been turned off are often just as important as the meeting itself. Figure out how you can keep at-home workers in the loop and avoid feelings of isolation.
  • The HR/Employee Relationship — If your remote workers want to meet with HR, can they do so discreetly?
  • Training & Development — The current onboarding system likely won’t work with a new hire working remotely.