5 Trending HR and Recruitment Topics in January 2025

A new year has begun, and as always, the turning of the calendar brings a wave of trend forecasts and discussions, especially around the future of work. 

So far in 2025, HR trends like digital transformation, AI coaching and new styles of hybrid work are dominating the conversation. The new year has also sparked discussions about setting goals and harnessing the ‘fresh start effect.’ 

New research from the Victorian University of Wellington demonstrates the use of AI assistants is increasing, with 85% of employees reporting AI assistants have been effective at prioritising tasks and managing emails. 

Meanwhile, research by Admiral, a UK-based financial services company, reveals that 75% of Gen Z employees are searching for secure, longer-term work — a surprising finding given their reputation for job-hopping and prioritising flexibility.

Finally, the power of narratives at work is being discussed with storytelling identified as a key tool in creating stronger employee engagement in 2025 and beyond.  

Trend 1: Forecasting what’s ahead for HR in 2025

This month brought a range of prediction pieces about what’s in store for HR in 2025. While recent years have proven the future is uncertain, experts are making their best guesses. 

We’ve rounded up six key predictions HR experts are discussing about changes that may redefine the HR and recruiting landscape this year.

1. More HR leaders to become Transformation Officers 

With AI driving department and company-wide transformations, change management and digital transformation are now prompting more HR professionals to adopt titles like ‘Transformation Officer’ or ‘Change Manager.’ These roles bridge people-focused HR strategies and broader business transformation efforts. 

2. AI coaching will bolster learning and development 

Highly personalised, AI-driven coaching that adapts to employees' real-time needs will become more commonplace. More employees will learn throughout their workday, with AI delivering coaching prompts exactly when needed. For example, in a call centre, an AI system can analyse the conversation immediately after a call, identifying areas for improvement and suggesting tailored scripts or strategies for future interactions.

3. More companies may embrace hybrid working 

While some companies are returning to the office, others are leaning into hybrid work. The term ‘Hybrid 360,’ coined by Korn Ferry, describes a work style that considers all employee needs (hence the term, ‘360’) from work-life balance, to productivity and engagement. ‘Hybrid 360’ work styles offer personalised benefits, flexible schedules, and a tailored approach to in-office and remote work. 

While there are many companies publicly calling for employees to return to the office, there are just as many continuing hybrid work. A hybrid way of working may improve workplace culture as well as attracting and retaining top talent. 

4. Global hiring dynamics set to change 

In some industries, the job market is shifting in favour of employers, with fewer vacancies and more workers willing to commit long-term. Recruiters will also have greater access to national and global talent pools. Access to larger, more diverse talent pools may mean organisations adjust their hiring process. 

5. Job searching to become more personalised 

Job ads will increasingly be marketed through multiple channels, challenging traditional job boards that fail to adapt. Candidates now expect a hyper-personalised, creative job search experience that introduces them to new roles and companies, while providing insights into those employers.

6. Grey collar jobs set to increase 

Grey-collar jobs combine technical and white-collar skills, requiring manual work and managerial abilities. They’re set to increase as industries need workers who blend technical expertise with business duties. Grey-collar jobs include logistic coordinators, IT support specialists and project managers. 

As 2025 unfolds, we will see how each of these trends evolves.  

Trend 2:  Benefitting from the ‘fresh start effect’ 

Each new year creates a phenomenon called, ‘the fresh start effect,’ where people are more motivated to make positive changes. 

Organisations can benefit from refreshed energy by setting ambitious business outcomes that get employees excited and ready for action. But, big goals aren’t much without a plan. That’s why experts also recommend pairing big dreams with strategic systems like  SMART goals. 

Overall, it’s never too late, or too early to set goals but the new year does give leaders the added advantage of the fresh start effect! 

SMART goals in action: HR case study 

SMART goals stand for specific, measurable, achievable, relevant, and time-bound objectives that help guide performance and outcomes. 

People Matters notes that in HR, SMART goals can be applied across all functions, from talent acquisition to retention and engagement. See below an example of SMART goals in action courtesy of People Matters. 

SMART retention and engagement goals 

• Increase engagement scores: Achieve a 10% improvement in Employee Engagement Survey (EES) scores within two quarters.
• Enhance communication satisfaction: Improve satisfaction with internal communication channels by 15% based on the next employee feedback survey.
• Promote professional development: Ensure 80% employee participation in at least one professional development program annually.
• Improve recognition programs: Increase employee satisfaction with recognition programs by 20% within six months.
• Reduce burnout: Decrease reported burnout incidents by 15% in the next quarter.

Strategies for success: 

• Focus on development: Provide access to workshops, mentorship, and career development programs.
• Revamp recognition programs: Create tailored recognition initiatives to celebrate employee achievements.
• Build a company culture of continuous feedback: Establish a feedback-rich environment with regular check-ins to ensure alignment and encourage ongoing development.

As shown, SMART goals are paired with strategies for success to ensure clear, actionable outcomes and measurable progress.

Trend 3: AI assistants on the rise 

A new study from the Victorian University of Wellington has revealed most workers are embracing the benefits of AI assistants in their jobs, with 85% of employees saying they have been effective at prioritising tasks and managing emails.  

AI assistants are becoming more sophisticated with advanced memory capabilities, increased emotional intelligence and their ability to integrate with other technology. 

AI assistants have the ability to transform work in every field. For example, as mentioned in Trend 1, AI coaches will be increasingly used to assist in an employee’s learning and development. 

Challenges with using AI assistants 

Despite their popularity, the Victorian University of Wellington study found that AI assistants can oversimplify complex work and create extra tasks. 

AI assistants also add another digital interaction channel for workers which can feel overwhelming. Plus, time spent improving these tools often distracts from real work. 

Privacy is another concern, with many uneasy about who might access their data, especially when some assistants have features like mood tracking.

While AI assistants are powerful productivity tools, they are not without flaws. Business leaders can use the above insights to address the challenges new technology brings and develop strategies to mitigate them. 

Trend 4: Gen Z may be ready to settle down 

New research by Admiral reveals that 75% of Gen Z employees are searching for secure, longer-term work.

The research shows nearly nine out of 10 (88%) of Generation Z employees say that when job-hunting, they prioritise finding the stability of a single employer who can provide financial security and a sense of community and belonging. 

According to the report, the average Gen Z employee wants to stay in their job for seven years, a number much higher than expected. 

The Guardian lists three reasons Gen Z may seek longer-term work. 

1. Hustle culture is exhausting, leading young workers to prioritise stability.
2. Gen Z recognises staying longer in a role can help their skills grow and develop.
3. Wellbeing matters more than the highest salary, so when they find a supportive workplace, they’re more likely to stay.

Gen Z are finding their feet 

The Admiral study challenges the stereotype of millennials and Gen Z as frequent job hoppers. The research suggests that these generational assumptions may not be accurate.

While one study isn’t enough to draw firm conclusions, it highlights that Gen Z has evolving needs. Employers can’t assume they know what this workforce wants without asking. 

Uncovering the needs and wants of your people can be achieved through tools like employee surveys. Employee survey results can uncover top priorities and actionable insights for organisations to make improvements. 

Trend 5: The power of storytelling in the workplace 

Storytelling isn’t just a creative tool — it’s a leadership strategy, and one that more HR leaders can leverage in 2025. 

As key players in setting organisational goals, driving change, and coaching leaders and managers, HR professionals can use storytelling to make a meaningful impact across these areas.

A compelling narrative around a workplace goal or change can boost team engagement and increase the likelihood of successful adoption.

For example, a not-for-profit aiming to improve staff retention could tell a story about how retaining talented team members directly impacts their ability to support vulnerable communities, tying the goal to their mission and shared purpose. 

Tips for creating narratives at work 

Strong workplace narratives should align with business goals, be transparent, and be delivered with integrity. 

Here are key strategies for creating compelling HR narratives at work:

• Map existing narratives: Understand the existing stories in your organisation. This enables you to identify which narratives can be reshaped and which are ingrained in the culture.
• Craft compelling stories: Use stories strategically to highlight the organisation's journey, challenges, and aspirations. While not the whole picture, they help shape the narrative over time.
• Communicate with empathy: Empathy fosters trust and motivates employees to align with company goals.
• Foster continuous dialogue: Open communication channels build credibility and trust, showing employees their voices matter.

By embracing storytelling, HR leaders can inspire engagement, alignment, and long-term success.

Final thought​​s

This month’s HR trends provide a snapshot of the evolving work landscape. From the rise of AI to changing generational priorities, the dynamics of how we work are shifting. 

However, some things haven’t changed, such as the power of strong storytelling and the importance of setting ambitious goals tied to practical strategies.Overall, as the year progresses, we will continue to see technology reshape the workplace, with emerging work styles like ‘Hybrid 360’ and more sophisticated workflows that integrate both human capability and AI automation.