5 Trending HR and Recruitment Topics in February 2025

This month, we explore why some companies are shifting focus from Diversity, Equity, and Inclusion (DEI) to Merit, Excellence, and Intelligence (MEI).

In HR compliance, the topic of conversation this month in Australia has been about the criminalisation of wage theft, increasing employer responsibilities. 

New reports show that while some employees are languishing at work, others are thriving—highlighting opportunities for HR to bridge the gap. Plus, fresh data from LinkedIn and Xref Engage reveals what candidates and employees want in 2025. 

Finally, learning and development (L&D) is emerging as a key strategy for retention. 

Here’s a rundown of each of these trends.

Trend 1: What is MEI? 

Merit, Excellence, and Intelligence (MEI) has been gaining attention, with some companies shifting focus from Diversity and Inclusion (DEI) initiatives to MEI-based systems. But what exactly is MEI?

MEI prioritises merit, excellence, and intelligence in hiring, promotions, and team dynamics, emphasising individual skills, performance, and capabilities.

According to some commentators, MEI differs from DEI, which focuses on creating diverse and inclusive workplaces. MEI emphasises personal achievement, competence, and individualism.

Currently, the debate is framed as DEI vs. MEI, but some commentators suggest certain MEI goals align with DEI initiatives. From this perspective, the two systems need not be at odds.

The BEAM Framework

In response to the growing discussions on MEI and DEI, the Society for Human Resource Management (SHRM) introduced the BEAM framework (Belonging Enhanced by Access Through Merit). BEAM focuses on merit, skills, and inclusion to build stronger, more diverse teams through fair, objective methods.

Leaders reviewing inclusion practices can follow the BEAM framework by answering five questions:

1. Anti-exclusion: Are opportunities open to all, regardless of sex, race, or other protected status?
2. Access for all: Does the program provide opportunities based on merit and skills?
3. Merit-driven: Does the program select individuals based on qualifications while accommodating medical and religious needs?
4. Unbiased information: Is the program’s availability communicated to ensure open participation?
5. Skills-first optimisation: Does the program offer opportunities to develop relevant skills and experience?

The discussions surrounding MEI and DEI will continue to evolve, with frameworks like BEAM offering a structured approach to integrating both merit and inclusion in organisational practices.

Trend 2: Wage theft criminalised in Australia 

On January 1, 2025, intentionally underpaying employees became a criminal offence in Australia, with penalties including fines and imprisonment. The new law aims to combat wage theft and promote fairer treatment of workers. The Australian Government has stated that employers who deliberately underpay staff could face criminal charges, while honest mistakes won’t lead to prosecution. 

Small businesses can follow the Voluntary Small Business Wage Compliance Code (Code). Adhering to the Code ensures the Fair Work Ombudsman won’t refer them for criminal prosecution.

HR’s role in compliance

Australia’s new wage theft laws show that compliance is a business-wide priority. While each country has its own laws, organisations globally benefit from staying ahead on compliance. 

HR leaders, responsible for recruiting, onboarding, and policy management, are uniquely positioned to lead in creating compliance systems. Key steps include bringing experts across an organisation together to:

1. Audit payroll processes: Review systems for risks like data entry errors or delays in wage processing. Ensure tax compliance and benefits are managed.
2. Transition to a unified platform: Centralise HR, payroll, and finance functions to reduce errors and improve collaboration.
3. Automate workflows: Automate tasks like wage calculations and tax withholdings to reduce errors and boost efficiency.
4. Strengthen team collaboration: Improve communication and accountability between HR and finance teams to prevent errors.
5. Invest in training: Ensure HR and payroll teams stay updated on the latest regulations with regular training.

Overall, HR leaders have the power to help businesses prioritise compliance by implementing robust systems, fostering collaboration, and ensuring teams are prepared to navigate evolving regulations effectively, no matter the jurisdiction.

Trend 3: Languishing vs flourishing at work 

A new study by Be Well Co reveals that 1 in 5 workers are languishing at work. On the plus side, the same report shows that 2 in 5 workers are reportedly flourishing at work. 

In this case, languishing refers to a state of joyless stagnation, emptiness, and low well-being, without the symptoms of mental illness. At work, it can manifest as feeling low levels of enthusiasm and energy. People who feel they are languishing are twice as likely to experience burnout. 

On the opposite end, people who are flourishing experience energy and enthusiasm at work. They are motivated and satisfied with their working relationships. 

A recent report by DHR Global, a global executive search and talent advisory firm, also reveals a mix of engaged and burnt-out employees. On the positive side, their data shows that 47% of employees are extremely engaged. At the same time, 27% report feeling moderately burnt out and 17% report feeling very burnt out.

Helping more employees flourish 

How can HR teams keep flourishing and highly engaged employees happy while also supporting those who are languishing or burnt out? We share some tips below. 

Keeping employees engaged: 

• Offer reward and recognition: Appreciated employees are more engaged.
• Provide growth opportunities: Encourage new projects, mentorship, and upskilling to keep employees energised.
• Foster creativity: Give employees space to innovate.
• Invest in their future: Support career growth through learning initiatives and long-term development.

Helping languishing employees recover:  

• Encourage work-life balance: Offer flexible work options to help employees manage their personal and professional life.
• Provide wellness programs: Support mental, physical, and professional well-being with wellness initiatives.
• Bridge talent gaps: Add skilled team members or interim staff to reduce pressure and maintain growth.
• Promote professional growth: Invest in learning opportunities and emerging technologies to boost engagement and productivity.

Overall, supporting work-life balance, wellness, and professional growth is key to helping employees thrive, reduce burnout, and boost long-term success.

Trend 4: What candidates and employees want in 2025 

Recent research from LinkedIn reveals what candidates are prioritising in 2025.  

LinkedIn’s study, What Candidates Want 2025 (based on 76,723 responses), reveals a candidate’s top three priorities are: 

1. Compensation (62%)
2. Work-life balance (49%)
3. Flexible work arrangements (44%)

Data also reveals more candidates are seeking challenging, impactful work (+2.5%) and a collaborative culture (+1.9%) compared to previous years, 

Perhaps one of the biggest insights is that a candidate’s top priorities can change according to industry. For example, HR leaders are 25% more likely than other people to prioritise an inclusive workplace. On the other hand, engineering candidates are 25% more likely to prioritise innovative projects. 

Hiring teams can use data like this to craft more tailored job descriptions and tweak recruiting processes to suit candidate interests. 

What about employees? 

It’s one thing to attract and hire a candidate and another thing to retain them as an employee. 

Xref Engage’s report, Employee Voice Report 2025, analysed data from over 40,000 employee engagement surveys to discover what employees thought about their organisation’s strengths and areas for improvement. 

The data showed that across the board, employees perceived their organisation's top three growth areas to be:

1. Communication: 28% of staff reported challenges with effective coordination and information sharing.
2. Resource allocation: 21% highlighted the need for better staffing levels to manage workloads.
3. Training and career development: 20% seek more relevant training programs and clearer career pathways.

HR teams can use this data to review their employee engagement strategies in 2025 and beyond. 

We also encourage HR and recruiting professionals to read the full Employee Voice Report to discover what employees recognise as their organisation’s strengths (hint: community and customer focus stands out) and to explore specific industry trends. 

Trend 5: L&D for stronger retention 

This month, career experts are discussing how learning and development (L&D) can be used to drive stronger retention. 

With AI revolutionising the way we work, upskilling and reskilling have never been more critical. L&D programs are no longer just a nice-to-have. They are a key driver of employee satisfaction, organisational success, and long-term retention. Companies that prioritise continuous learning signal a commitment to employee growth, fostering engagement, loyalty, and stronger team performance.

The renewed focus on L&D aligns with the Employee Voice Report 2025 data from Trend 4, which highlights employees’ desire for more relevant training programs and clearer career pathways.

Using GenAI

The advent of GenAI has made L&D more crucial, while also transforming how education is delivered in the workplace. Here are four ways GenAI is transforming workplace learning: 

1. Personalised learning: AI analyses employee data to recommend tailored content, adapt learning paths, and provide instant feedback.
2. Automated content creation: AI generates training materials, updates content automatically, and translates for multilingual teams.
3. Enhanced engagement: AI-powered chatbots, adaptive simulations, and gamification make learning interactive and motivating.
4. Measuring impact: AI tracks learner progress, predicts future training needs, and links L&D outcomes to business performance.

By leveraging AI, organisations can create smarter, more effective L&D programs that drive retention and growth.

Final thoughts 

In conclusion, as companies move from DEI to MEI, understanding the balance between merit and inclusion will be essential for HR leaders striving to build diverse, high-performing teams.

Meanwhile, wage theft criminalisation in Australia underscores the growing importance of compliance, urging HR departments to implement robust systems. 

Addressing employee well-being remains a priority, with strategies like work-life balance and professional development helping to bridge the gap between employees who are flourishing and those languishing at work. 

Finally, investing in L&D, especially through the use of GenAI, will be crucial for retaining top talent and driving long-term success.