As we approach 2025, the employment landscape continues to evolve at an unprecedented pace. Businesses must adapt to emerging trends to remain competitive and meet the shifting expectations of a dynamic workforce. From upskilling and flexible work arrangements to the transformative power of artificial intelligence and an emphasis on employee experience, the coming year presents both challenges and opportunities. By staying ahead of these employment trends, businesses can not only attract top talent but also build resilient and innovative organizations. In this article, our employment experts at Dahl Consulting (DAHL) share more about the top five employment trends to have on your radar in the new year!
1. The Rise of Upskilling: Preparing Your Workforce for the Future
As technological advancements continue to evolve, the demand for new skills in the workplace is increasing. In order to keep pace with these rapid changes, employers will need to prioritize upskilling their workforce. Offering training programs, workshops, and continuous learning opportunities will be essential in equipping employees with the necessary skills to excel in their roles.
Investing in upskilling not only enhances employee capabilities but also boosts morale and job satisfaction. When employees feel that their employer is invested in their development, they are more likely to stay committed and motivated. This, in turn, can lead to increased productivity and a more innovative workplace.
Additionally, employees are increasingly seeking companies that offer upskilling and growth opportunities. In a recent Gallup study, 71% of surveyed workers said that job training and development opportunities increased their job satisfaction, and 61% stated that upskilling opportunities are one of the top reasons they remain at their current employer. If your organization is looking to attract and retain top talent, providing upskilling opportunities is a key component.
2. Embracing Flexibility: The Norm for Work Arrangements
Although return-to-office (RTO) mandates have risen over the past year, hybrid work arrangements (as opposed to fully remote) will likely remain the norm. According to Rob Sadow, CEO of a research platform called Flex Index, requirements from US employers for strictly in-office work should only increase slightly, from 33% to about 50%. The majority of companies in the US (nearly 70%) still offer some form of remote work, plus RTO mandates have decreased recently. This points to flexible work being here to stay in the coming year.
It is important to note the value of flexible work arrangements for talent. In 2025, flexibility in work arrangements will be a standard expectation among job seekers. This includes remote work options, flexible hours, and hybrid models that allow employees to balance their professional and personal lives more effectively.
Employers who embrace flexible work arrangements can attract a broader talent pool, including those who may have been previously excluded due to rigid work schedules. Additionally, flexibility can lead to higher employee satisfaction and retention rates, as workers appreciate the ability to tailor their work environment and schedule to their individual needs.
3. Artificial Intelligence: Transforming Recruitment and Operations
Artificial Intelligence (AI) is set to revolutionize how businesses recruit and operate. In recruitment, AI can streamline the hiring process by quickly sifting through resumes, identifying the best candidates, and even conducting initial interviews using chatbots. This not only saves time but also reduces the risk of human bias in hiring decisions. This technology can be fully integrated with applicant tracking systems (ATS) to further streamline the hiring process and expedite the time to hire.
Beyond recruitment, AI can enhance various operational processes within a company. From automating repetitive tasks to providing data-driven insights for decision-making, AI enables businesses to operate more efficiently and effectively. Companies that have yet to adopt AI in 2025 are in the minority, with the latest report from McKinsey’s Global Survey finding that 65% of those surveyed reported that their company is regularly using generative AI. This underscores the importance of employers staying updated with AI advancements and integrating these technologies into their business strategies to stay competitive.
As AI continues to advance, it is important to still maintain the human element throughout your organization. This includes building personal connections, nurturing the candidate and employee experience, and prioritizing building a positive company culture.
4. Navigating the Challenges of Skills-Based Hiring
While skills-based hiring has become increasingly popular, it comes with its own set of challenges. Employers may struggle to accurately assess candidates’ skills, especially for roles that require a blend of technical and soft skills. Traditional hiring methods, such as relying on resumes and interviews, may not fully capture a candidate’s capabilities.
Despite many companies moving toward skills-based hiring in 2024, many fell short when it came to actually putting this into practice. According to research conducted by Harvard Business Review, for every 100 job postings, less than four individuals without degrees were actually hired. In order to truly embrace skills-based hiring and navigate the aforementioned challenges, employers should adopt tools and assessments specifically designed to evaluate skills. Partnering with educational institutions and industry organizations to create standardized skill assessments could also be beneficial. Additionally, employers should consider a more holistic approach to hiring, looking at a candidate’s potential for growth and adaptability.
5. Enhancing the Employee Experience & Building Company Culture
Employee experience has always been an important workplace factor, but in 2025, fostering an exceptional employee experience will be integral to attracting and retaining top talent. Employees are increasingly prioritizing workplaces that not only offer competitive benefits but also provide a positive, inclusive, and engaging environment where they feel genuinely valued.
Creating a strong company culture starts with prioritizing the employee experience. Employers should focus on initiatives that promote diversity, collaboration, and belonging. Employee recognition programs, robust wellness benefits, and opportunities for meaningful social interaction can significantly boost morale and engagement. Transparent communication and responsive leadership that actively incorporates employee feedback build trust and a sense of shared purpose.
When employees feel supported and empowered to thrive, they are more likely to remain loyal, perform at their best, and contribute to the company’s ongoing success. A culture that centers on the employee experience doesn’t just attract top talent—it creates a workforce that drives innovation and growth.
Adopting a People-centered Approach in 2025
The key employment trends of 2025 highlight the importance of adaptability, innovation, and a people-centered approach. Employers who invest in their workforce through upskilling, flexibility, advanced technologies, and a strong focus on company culture will be well-positioned to thrive. By embracing these workplace changes, businesses can create environments where employees are motivated, engaged, and equipped to succeed, ensuring long-term growth and a competitive advantage in an ever-changing job market.
Looking to set your organization up for success in the new year? Partner with the employment experts at Dahl Consulting for comprehensive workforce solutions. Contact us today!