Human Resources
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7
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At Xref, we closely monitor the latest developments in HR and recruiting
This year has been defined by trends reshaping the industry from the rise of generative AI, to the introduction of ‘right to disconnect’ laws and the growing focus on employee wellness.
In this blog, we highlight 10 key trends from 2024 that are set to influence the HR and recruiting landscape in 2025 and beyond.
In January (see: Trend 1), we discussed the rising popularity of Generative AI (GenAI) and how it may impact leadership strategies and organisational plans.
According to Morgan Stanley, GenAI technologies will likely affect a quarter of all occupations today, rising to 44% within three years.
Over the year, we have discussed different use cases for GenAI including strategic planning, recruiting (See: Trend 5 from October 2024) and day-to-day HR tasks.
The challenge for managers and leaders lies in discovering how they will use GenAI with their teams. Overall, managers must get better at finding problems to solve and learn how to create efficient workflows that include both human and digital workers.
Leaders should be aware of the below considerations when determining exactly how to use GenAI:
GenAI can help teams work better. The challenge for leaders is ensuring AI-powered tools are used both effectively and responsibly.
In February (see: Trend 2), we discussed the importance of intergenerational inclusion, and in September (see: Trend 5), we shared tips for leading a multigenerational workforce.
Workplaces are beginning to span six generations: from the octogenarians of the Silent Generation to the teenagers of Generation Alpha pursuing their first jobs.
Intergenerational inclusion involves bringing employees of different age groups together to share skills, ideas, and experiences, fostering a more inclusive workplace.
Intergenerational inclusion has the potential to deliver significant productivity gains, while divides and conflicts between different generations can impact an organisation’s success.
HR leaders can promote intergenerational inclusion by:
By embracing these strategies, leaders can effectively bridge generational divides and create a more inclusive and productive workplace for everyone.
In March (see: Trend 5), we reported on the growing popularity of mental health days which can help employees navigate life’s stressors and take fewer sick days.
Research by Vitality revealed Britons are losing at least one day of work a week because of mental health problems.
Additionally, a report by Calm Business revealed 7 in 10 US employees said their mental health stayed the same or worsened in the past year.
While mental health or wellness days are not a cure-all, they can provide much-needed leeway for employees who are struggling.
As a result, more companies are reviewing their policies to provide extra paid time off. FutureBrand provides employees with a quarterly mental health day called a "healthie". IKEA Canada offers 12 annual wellness days to full-time employees and 8 to part-time staff.
This year, experts have also discussed the following wellness topics:
In 2025, more organisations will likely prioritise wellness, recognising that healthier employees are more productive and foster a stronger work culture.
In April (see: Trend 3), we explored corporate alumni programs and their benefits for recruiting.
Alumni programs are formal efforts by an organisation to foster ongoing relationships with former employees for networking, mentorship, recruitment, and brand advocacy. They are particularly beneficial for recruiters due to the rise in boomerang employees (employees who return to a previous employer).
According to recent data by Reveliolabs, the number of boomerang employees has increased by approximately 30% between 2018 and 2023, growing from 2.6% to 3.4%.
The rise of boomerang employees underscores the importance of creating a positive post-employment experience.
Large companies like Starbucks, Mckinsey and SAP utilise alumni programs. But, corporate alumni programs don’t need to be complex and companies of any size can create them.
For expert tips on creating a corporate alumni program, see these articles by the World Economic Forum and Harvard Business Review.
In May (see Trend 3), we discussed the necessity of job titles in today’s working world.
Those in favour of job titles point to their ability to provide role clarity, signal long-term career prospects, and reflect company culture.
Job titles also have practical benefits like boosting search engine optimisation and attracting attention with fewer words. Sharing a vacancy on social media without a compelling job title might fail to attract attention.
Those questioning the validity of job titles point to a habit of individuals and companies to inflate titles.
Inflated titles may not accurately reflect what an employee does day-to-day. As a result, some organisations are rejecting job titles and focusing on recognising employees for their skills, capabilities, and experiences.
However, these companies are in the minority. According to Fuel50 research, 64% of HR leaders have no intention of removing job titles anytime soon.
The job title debate reflects a broader trend of experts critically examining traditional work practices. This year, experts were also rethinking performance reviews (see Trend 4 from February 2024) and office designs (see Trend 2 from September 2024).
In June (see: Trend 1), World Environment Day sparked discussions about the green skills gap.
The green skills gap refers to the shortage of necessary skills and expertise required to support sustainability initiatives across industries. Skills include carbon accounting, energy engineering, and sustainability education.
LinkedIn's 2024 Green Skills Report reveals demand for green skills increased by 11.6% in just one year, while supply grew by only 5.6%. Data scientists predict that the pool of green talent must – at a minimum – double by 2050 to keep pace with projected demand.
A simple way HR teams can prepare for the growing green skills gap is to begin creating green jobs and nurturing talent with skill adjacencies (related skills that build on each other).
Skills that may increase workers’ chances of successfully transitioning into green jobs include STEM and public administration skills.
2025 will likely see more discussions about the green skills gap with experts discussing strategies for upskilling and cross-skilling (see: Trend 2 from January 2024) and internal mobility (see: Trend 5 from February 2024).
In July (see: Trend 2), the right to disconnect became a hot topic as Australia became the latest country to enact legislation around employee-employer communication.
The ‘right to disconnect’ is a workplace law that allows employees to disconnect from work-related communications such as emails or messages during non-work hours.
Unlike similar 'right to disconnect' laws in France and Canada, Australian laws permit employers to contact employees—via messages, emails, or other communications—at any time.
However, employees are allowed to decline reading or responding to such communications outside their working hours, provided their refusal is not deemed unreasonable.
'Right to disconnect' laws target the growing problems of overconnectedness and over-availability as lines between work and home blur.
The downside of overconnectness is negative physical and mental health and damaged productivity (see: Trend 1 from September 2024).
Organisations will benefit from understanding the reasons behind the ‘right to disconnect’ laws, even if legislation does not exist in their operating regions.
In September (see: Trend 3), we discussed the importance of upskilling managers with HR skills.
New data from esphr revealed that 61% of HR professionals believe that if line managers handled employee relations more efficiently, it would free up time for broader strategic HR initiatives.
Similarly, a report from Unmind showed 2 in 5 employees do not think their manager has had enough training and that 40% of managers say their organisation doesn’t provide enough training to manage teams effectively.
Findings from both reports highlight a clear opportunity for HR teams to empower managers with improved skills to handle employee relations issues effectively.
HR can upskill managers by facilitating training in communication, employee relations and building psychological safety (see: Trend 3).
HR leaders can also help managers become aware of the unique needs of different demographics (see: Trend 2 from June 2024).
By equipping managers with essential leadership skills, HR can play a pivotal role in fostering effective leadership and enhancing overall workplace success.
In October, the topic of ‘green flag’ bosses came into the spotlight.
Supportive managers, also known as ‘green flag’ bosses, help employees feel valued, fostering a positive work environment that enhances productivity and job satisfaction.
Owl Labs 2024 State of Hybrid Work report reveals that 92% of employees indicated that a supportive manager is the most important factor in their work experience, following compensation at 94%.
Green flag boss traits include:
Overall, a ‘green flag’ boss fosters trust, respect, and collaboration, ensuring employees feel valued and supported.
In November (see: Trend 4), discussions about wellness centered on physical activity.
Recent studies have shown workplace wellness programs can be a valuable strategy to promote physical activity among employees.
ASICS Global State of Mind Study 2024 revealed it only takes 15 minutes and 9 seconds to achieve a mental uplift from exercise.
The research prompted ASICS to start a 'desk break' experiment which called on employees to step away from their desks for 15 minutes a day. In the UK, the ASICS HR team took things a step further by embedding the right to a 15-minute desk break into employee contracts.
Prioritising employee wellbeing is both a health and safety necessity and a smart business move, with 83% of employees considering leaving employers lacking focus on wellbeing, and wellness programs boosting thriving rates from 53% to 69%.
Leaders can encourage exercise at work by encouraging 15-minute desk breaks and generally normalising breaks and movement. A strong example set by senior leaders also helps create healthier work cultures.
This year saw key themes like GenAI, employee wellness, and sustainability take centre stage, alongside rethinking workplace norms like job titles and performance reviews.
Looking ahead to 2025, we can expect continued focus on GenAI reshaping organisations, rethinking work models, and sustainability, with companies hiring for green skills and assessing environmental and social responsibilities, including AI's role.
As we navigate these shifts, balancing technological advancements with a commitment to people will be essential.
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