2025

Workplace
Trends
Table of
Contents

03 Executive Summary
23 Mental Health

06 2025 Workplace
Trends Overview 28 Flexible Work
Arrangements

07 36
Caregiving and
People Analytics Alternative
Benefits

12 40
Diversity,
Financial Well-being Equity, Inclusion
& Belonging

17 Artificial Intelligence
47 Conclusion

2
Executive
Summary
The world of work is set to undergo significant transformations in 2025, driven by
evolving employee needs, technological advances, and shifting economic landscapes.
This report delves into seven critical trends we identified that will shape the future
workplace and explores the challenges and opportunities in each area for HR leaders
and companies. Below are the key insights from our report that we believe will be
necessary for Human Resources leaders and their organizations in the upcoming year:

1. People Analytics and Data-Driven HR Practices

The rise of people analytics is transforming HR into a more strategic function, allowing
companies to use data to predict turnover, improve hiring processes, and enhance
employee experience. New technologies have emerged that help democratize access to
people data to improve and accelerate decision making.

Key Insight: In 2025, companies leveraging people analytics, increasingly aided by

innovation in HR technology, will gain a competitive edge by making informed decisions
that directly impact employee engagement and business performance. Using data to
inform messaging and storytelling will be a key skill for the most successful HR leaders
in 2025.

2. Employee Financial Well-being

Financial stress remains one of the top concerns for employees, influencing their mental
health, job satisfaction, and performance. Employers are introducing more robust
financial wellness programs, including earned wage access, retirement planning tools,
student loan assistance, and personalized financial coaching.

Key Insight: By providing tailored financial well-being programs, companies will help
employees build economic resilience, leading to higher job satisfaction and better
retention rates.

Additionally, a careful review of existing compensation policies is needed to ensure

fairness, equity, and market competitiveness to help strengthen employee financial
resilience.

3
3. AI Technology in the Workplace
AI is reshaping the workplace by automating routine tasks, improving recruitment
processes, enhancing employee learning and development, and much more. However,
managing the ethical implications and ensuring employees' comfort with AI tools will be
necessary for successful adoption and results in 2025.

Key Insight: Organizations that adopt AI focusing on augmenting human capabilities

rather than replacing them will create more meaningful work experiences and drive
innovation next year.

4. Employee Mental Health

The growing focus on mental health in the workplace is reshaping benefits packages
and support programs, with companies offering therapy, mental health days, and
resilience training. New approaches to employee mental health support are emerging,
offering organizations new ways to support employees where, when, and how they
need it.

Key Insight: Addressing mental health proactively, rather than reactively, will be a
critical differentiator for companies, fostering a healthier, more engaged, and productive
workforce.

5. Remote, Hybrid & Flexible Work Arrangements

As the demand from workers for flexibility continues, hybrid and remote working models
have become central to employee retention and engagement strategies. Organizations
are developing more sophisticated tools to manage distributed teams effectively while
balancing productivity, collaboration, and culture-building goals.

Key Insight: The most successful companies in 2025 will prioritize employee autonomy
and the actual value of in-person connection and collaboration, ensuring equitable
access to career growth for remote and in-office workers while emphasizing outcomes
and results for individuals and teams.

4
6. Employee Caregiving Challenges
Caregiving responsibilities are increasingly affecting workplace productivity and
employee retention. Companies are responding by offering more comprehensive
support, including flexible schedules, financial assistance, and partnerships with
caregiving services.

Key Insight: Businesses that lead empathetically by offering targeted caregiving

benefits will see stronger employee loyalty and increased productivity. As more workers
find themselves in a caregiving role, supporting this growing population in the
organization can drive engagement and retention.

7. Challenges and Opportunities with DEI Programs

Diversity, Equity, and Inclusion (DEI) programs face renewed scrutiny, with many
organizations needing help to move beyond superficial initiatives. However, when fully
integrated into company culture and leadership, DE&I programs can foster innovation
and drive long-term business success.

Key Insight: In 2025, the companies that successfully embed DE&I into their core
strategies will attract top talent, boost innovation, and improve overall business
performance. It will be necessary for leaders to have a clear vision and consistent point
of view on DEI in 2025 as organizations navigate increasingly complex environments.

Conclusion
As HR leaders and businesses navigate 2025, the opportunities to create more inclusive,
flexible, and employee-centered workplaces are immense. By embracing technological
innovation, supporting employees’ financial and caregiving needs, and leading with
empathy in areas like mental health and DE&I, companies will be well-positioned to
attract and retain top talent while fostering a culture of continuous growth and
resilience. The future of work is bright, and those who adapt swiftly and thoughtfully will
be the architects of thriving organizations.

5
Workplace
Trends
1 People Analytics

2 Financial Well-being

3 Artificial Intelligence

4 Mental Health

5 Remote, Hybrid, and Flexible Work Arrangements

6 Caregiving and Alternative Benefits

7 Diversity, Equity, Inclusion, and Belonging

6
Trend 1
People Analytics
Data-driven decision-making is essential for organizations aiming to stay competitive
and agile in today's business environment. A significant aspect of this transformation is
the rise of people analytics technologies - tools and platforms specifically designed to
analyze and manage data that impact your workforce.

People analytics involves collecting, analyzing, and interpreting employee data to

enhance organizational performance. These technologies empower leaders to make
informed choices regarding hiring, talent management, employee retention, and
productivity by utilizing advanced data analytics, machine learning, and, in some cases,
artificial intelligence (AI).

People analytics' increasing interest and significance stems from the need for leadership
to take traditionally subjective, intuition-based HR functions and transform them into
objective, data-driven functions. Companies can now address questions such as:

How long does it take to fill an empty job position?

Which employee groups have the highest turnover?
Which departments excel in performance?
How can we create and measure diversity, equity, and inclusion?
How can we retain top talent and tenured employees?

These insights allow businesses to refine their workforce strategies and ensure they
align with long-term organizational objectives.

As workforce dynamics grow more intricate - particularly in the post-pandemic

landscape with remote and hybrid work arrangements - People Analytics has become
an essential resource for organizations aiming to tackle talent management challenges.

In this report, we will delve into the current state of People

Analytics, assess their impact on work, explore the challenges
associated with their implementation, and discuss the future
outlook for these tools.

7
Current Landscape
The adoption of People Analytics has experienced significant growth in recent years, as
organizations increasingly acknowledge its potential benefits. Seventy-four percent of
respondents in Deloitte’s 2024 Global Human Capital Trends survey said it’s very or
critically important to seek better ways to measure worker performance and value
beyond traditional productivity. But change has been slow. Only 17% of respondents
said their organization is very or extremely effective at evaluating the value created by
individual workers in their organization, beyond tracking of activities or outputs.” This is
exciting because it shows that leaders are more aware than ever that analysis is needed
when making people decisions. Where we lack is having the tools to make those
analyses.

A study by McKinsey found that only about 25% of companies identify as advanced
users of people analytics, with the majority still in the early stages of adoption. Smaller
organizations often lag behind, typically due to limited resources or a lack of
understanding of how people analytics can create value. In contrast, larger enterprises
are more likely to have fully integrated analytics programs with dedicated teams that
are directly connected to C-suite decision-makers.

Top Use Cases for People Analtics

Predicting Predicting Predicting

Turnover Turnover Turnover

Nevertheless, more advanced use cases—such as forecasting future talent needs,

evaluating leadership effectiveness, and measuring the impact of learning and
development initiatives—are gaining traction as the technology continues to evolve.

8
Impact on Work
The impact of People Analytics on organizational work processes has been profound,
particularly in enhancing decision-making, talent processes, and overall people
management and development.

1. Enhancing Decision-Making
People Analytics equips HR leaders and executives with the tools necessary to make
data-driven decisions. Rather than depending on intuition or anecdotal evidence,
organizations can leverage data to inform their workforce strategies. For instance, by
examining patterns in employee turnover, businesses can pinpoint high-risk groups and
deploy targeted retention initiatives. Additionally, People Analytics tools enable
organizations to evaluate the efficacy of their diversity and inclusion programs by
monitoring metrics related to hiring, promotions, and employee engagement across
various demographic groups.

2. Optimizing Talent Processes

From hiring to performance management, People Analytics has transformed talent
processes by providing insights that streamline HR operations. In recruitment, for
instance, AI-powered analytics tools can sift through resumes and predict which
candidates are most likely to succeed in a given role. During the employee lifecycle,
organizations can use data to track performance, identify top talent, and design
personalized development plans that align with individual strengths and business
needs.

3. Improving People Management and Development

People Analytics is instrumental in facilitating employee growth and development. By
monitoring skills, competencies, and learning outcomes, organizations can create
targeted learning and development initiatives that address specific gaps within the
workforce. Furthermore, People Analytics can illuminate leadership potential and
identify future leaders, allowing HR departments to formulate succession plans and
enhance internal mobility.

4. Enhancing Employee Experience

By collecting and analyzing data on employee engagement, satisfaction, and
productivity, People Analytics allows organizations to identify factors that contribute to
a positive work environment. Whether through analyzing survey data, monitoring
workplace communication, or evaluating remote work effectiveness, these tools help HR
teams craft better employee experiences, leading to higher job satisfaction and retention
rates.

9
Challenges
1. Awareness and Understanding
One of the primary obstacles to the adoption of People Analytics is the limited
awareness and understanding among HR professionals. Many HR teams continue to
depend on conventional methods for managing employee data, often overlooking the
benefits that advanced analytics can offer. It is essential to educate HR leaders and
equip them with the skills necessary to interpret and leverage data insights effectively,
thereby maximizing the potential of these technologies.

2. HR Capability
Even with the right tools in place, organizations may struggle to leverage People
Analytics effectively due to gaps in HR capability. Data literacy within HR teams is often
limited, which can hinder the ability to generate meaningful insights from analytics
platforms. Building HR teams with both analytics expertise and business acumen is
essential for ensuring the successful application of these tools.

3. Application to Business
People Analytics must be closely aligned with overarching business objectives to
achieve effectiveness. Human Resource teams frequently encounter difficulties in
converting workforce data into actionable business insights. It is essential to integrate
People Analytics initiatives into the overall business strategy to maximize their value.

4. Security and Privacy Concerns

Given the sensitive nature of employee data, organizations must navigate significant
security and privacy challenges when implementing People Analytics. Strict data
protection regulations—such as the General Data Protection Regulation (GDPR) in
Europe—place additional pressure on companies to ensure that workforce data is
handled securely and ethically. Balancing the need for data-driven insights with the
responsibility of protecting employee privacy is a constant challenge for HR leaders.

5. Integration
Many organizations struggle with integrating People Analytics platforms with their
existing HR systems. Disparate data sources, incompatible software, and legacy
systems can complicate the process of centralizing workforce data for analysis.
Ensuring that all systems communicate effectively and that data is consistently updated
is key to successful People Analytics adoption.

10
Future Outlook
As the significance of data-driven decision-making expands, the future of People
Analytics appears bright. The tools and platforms in this field are anticipated to evolve
into more advanced versions, fueled by advancements in AI, machine learning, and
natural language processing, which will continue to unlock new functionalities.

As HR organizations become more advanced in their use of People Analytics, their

effectiveness as organizational management tools increases. In 2025, through better
understanding, more experience, and increased technological capability, organizations
will progress higher up the analytics value chain. This will facilitate moving from
descriptive analytics, to diagnostic analytics, to predictive analytics, then to prescriptive
analytics.

11
Trend 2
Financial Well-being
Employees are facing a crisis of financial well-being. According to PNC Bank’s second
annual Financial Wellness in the Workplace Report, 78% of US employers are saying
their workers are financially stressed compared to 71% in 2023. This stress impacts
various aspects of employee lives, including mental health, sleep, and self-esteem. The
weekly stress that faces a large majority of US workers is real and concerning.

There are a number of factors that are

contributing to the crisis in financial well-being.
The impact of the pandemic, where many

78%
workers initially faced job loss or a reduction in
working hours, combined with an extended
period of higher-than-average inflation,
combined to challenge worker financial health.

Personal debts, such as credit card debt and Americans live paycheck
student loans, also significantly impact employee to paycheck
financial wellness. PNC Bank’s report noted that
record credit card debt is a major contributor to
financial stress. And in the US, student loan debts
are significant. As of the second quarter of 2024,
the total outstanding student loan debt in the United States stood at over $1.74 trillion.
Many of the holders of student loan debt are early in their careers and struggling to
manage these debts while trying to grow their careers

Employees facing stress over their financial well-being are impacted at work. The stress,
pressure, and financial insecurity all contribute to reduced productivity, increased
absenteeism, and decreased mental health. Financial stress from debts often leads to
mental health issues, with 46% of people with debt also having a mental health
diagnosis. This crisis in the workforce is real, and in 2025 employers will have to both
recognize the challenge and take more proactive steps to bolster their employee’s
financial well-being – just like they have worked to improve physical and mental well-
being in recent years.

12
Current State of Financial
Well-being
There are several main challenges facing workers striving to improve their financial
well-being. First, rising costs and inflation have significantly impacted workers’ financial
well-being, with increasing costs of living, including housing, food, and healthcare being
the main contributors. This has made it difficult for many to create an emergency
savings fund or invest for the future.

Next, overall high levels of debt are negatively impacting financial wellbeing. Many
workers are burdened by high-interest credit card debt. As of 2024, the average
American household owes around $7,000 in credit card debt. Additionally, student loan
debt burdens many workers. The total outstanding student loan debt in the US is over
$1.74 trillion, affecting millions of workers who struggle with these monthly payments.

A significant portion of the workforce lives paycheck to paycheck. Plus, there is a

startling lack of emergency savings among workers. A SoFi survey found that nearly
two out of three workers feel unprepared to handle a major unexpected expense.

Overall, this data shows the significant problem

that employee financial well-being presents to
employers and highlights the importance of
developing and implementing measures to
support employee financial well-being.
Some of these measures and
opportunities for employers are
described below.

13
Employer Resources to
Support Employee
Financial Well-being
Employers can play a crucial role in enhancing their employees’ financial well-being
through various strategies and programs. As the challenges facing employees are
numerous and diverse, the most effective approaches to supporting employees will have
multiple dimensions.

Here are some effective ways to support financial wellness that can be incorporated
into an overall employee financial well-being plan and that fit into the organization’s
comprehensive total rewards and benefits programs.

Financial Education and Literacy Programs

Organizations can offer regular workshops on budgeting, saving, investing, and
managing debt. Educational resources on the subject of financial planning can also be
placed in employee portals and benefits websites.

Personalized Financial Planning

Organizations can partner with financial services partners to make available one-on-
one counseling sessions for employees. These sessions can help employees access
advice and expertise from trusted financial professionals for personalized financial
counseling. This is important for all generations in the workforce, from Gen Z to
employees about to retire

Financial Planning and Budgeting Tools

Provide employees with access to budgeting and financial planning software. Tools that
can be used on mobile and personal devices and offer employees access to savings goal
setting, debt reduction plans, and information on retirement savings can be beneficial in
increasing employee knowledge and awareness of their financial situation and reducing
uncertainty and stress.

Student Loan Repayment Assistance

Organizations can partner with third-party service providers to facilitate employee
student loan repayment assistance. These programs help manage employer
contributions to student loan repayments as well as access to management and
refinancing options.

14
Credit Counseling
Employers can offer subsidized access to service providers who help employees manage
and reduce credit card and other forms of personal debt. Emergency Savings Programs
– Employers can offer contribution assistance to employee emergency savings funds.
This helps encourage the creation of emergency savings accounts, and with matching
contributions or incentives, more employees can establish a savings cushion to protect
and prepare them for unexpected financial emergencies.

Earned Wage Access (EWA)

Earned wage access, or what is sometimes known as payroll advances allow employees
to access a portion of their earned wages before payday to avoid high-interest
traditional payday loans. Access to EWA programs has become increasingly popular for
employees, and for younger employees who are not conditioned to expect the traditional
bi-weekly payroll cycle, EWA has become an essential employer offering. More and
more employees will expect their paychecks to be on-demand and even daily in 2025.

Retirement Planning Support

The establishment of employee retirement plan support and employer financial
contribution to employee retirement savings have long been foundational elements of an
employer’s commitment to employee financial well-being. Employers must continue to
offer robust retirement savings plans, such as 401(k) with employer matching as well as
education and incentives to boost employee participation in these retirement plans.

Compensation and Incentives

The heart of employee well-being is compensation, wages, bonuses, and merit-based
rewards. Organizations should, at a minimum, ensure they are compliant with all
applicable wage and hour regulations and have systems in place to accurately account
for time worked, overtime, differentials, and paid time off. Beyond the basics of
compliance, organizations should actively evaluate compensation levels and
philosophies to align company goals with market demands and employee expectations.
Finally, organizations should consider the establishment of merit-based rewards and
bonuses to recognize and incentivize excellence and contributions.

15
Conclusion
Employee financial wellbeing has emerged as a critical issue for employers heading into
2025. The percentage of employees who are facing financial stress on a weekly or
monthly basis is substantial – as many as two-thirds of employees are only one or two
paychecks away from financial problems. Increased attention to this issue is essential
for HR leaders next year.

\By implementing a diverse set of strategies and new benefits, employers can help
alleviate financial stress, improve productivity, and enhance overall employee wellbeing.
These insights highlight the critical need for comprehensive financial wellness programs
and support systems to help workers manage their financial challenges effectively,
which will ultimately lead to employees with less overall stress, better ability to be
productive and focused, and more likely to remain with the organization.

16
Trend 3
Artificial Intelligence
The rapid pace of technological advancement in recent years has led to a seismic shift in
how businesses and industries operate. At the forefront of this transformation are
artificial intelligence (AI) and automation, two interconnected technologies that are
reshaping economies, altering the nature of work, and forcing societies to reimagine the
future of the workforce. From automating repetitive tasks to enabling machines to
"think" and make decisions, AI and automation are no longer the stuff of science fiction
but an integral part of the modern economy. While they offer unprecedented efficiency
and innovation, they also pose critical challenges, especially concerning job
displacement, ethical considerations, and the need for workers to adapt.

Definition and Overview

AI refers to the simulation of human intelligence by machines, primarily computer
systems, to perform tasks that typically require human cognitive functions such as
learning, problem-solving, reasoning, and decision-making. AI systems can range from
narrow AI, which is designed for specific tasks (e.g., chatbots or recommendation
systems), to general AI, which aims to replicate human cognitive abilities more broadly.

Automation, on the other hand, refers to the use of machines, robots, or software to
perform tasks without human intervention. While automation has been a staple of
industries since the advent of machines, it has evolved dramatically in recent decades,
powered by advances in AI, machine learning, and robotics. Automation now extends
beyond the simple mechanical processes of assembly lines and into complex decision-
making systems in industries such as finance, healthcare, and logistics.

AI and automation are closely linked, as AI technologies increasingly power automation

systems, enabling them to perform more complex, adaptive tasks that go beyond pre-
programmed instructions. As AI becomes more sophisticated, the potential applications
of automation expand, leading to a growing integration of both technologies in
everyday business operations

17
Technological Advances
Recent technological advances have accelerated the adoption and impact of AI and
automation across sectors. One major development is the increased capability of
machine learning (ML) algorithms. ML enables machines to learn from data and improve
their performance over time without needing to be explicitly programmed for each task.
Deep learning, a subset of ML, has further enhanced the ability of AI systems to process
vast amounts of unstructured data such as images, video, and natural language.

Another breakthrough is the development of natural language processing (NLP), which

allows machines to understand, interpret, and generate human language. This has led
to the rise of more intuitive AI-powered chatbots, virtual assistants, and tools capable of
performing complex tasks like sentiment analysis or even drafting written content.

In the realm of automation, advances in robotics have played a crucial role, particularly
in industries such as manufacturing and logistics. Collaborative robots or "cobots" are
designed to work alongside humans in a shared workspace, boosting productivity while
reducing physical strain on workers. Meanwhile, autonomous vehicles and drones
powered by AI are transforming sectors like transportation, delivery services, and even
emergency response.

The increasing computational power available to AI systems, coupled with the growing
availability of big data, has also been critical in driving forward innovation in AI and
automation. Cloud computing and edge computing have made it possible to store,
process, and analyze large data sets in real-time, enabling more efficient and responsive
automation systems.

18
Impact on Jobs
The integration of AI and automation into various industries has inevitably led to
concerns about its impact on employment. According to numerous studies, certain jobs
that involve routine or repetitive tasks are at a high risk of being automated. Jobs in
sectors such as manufacturing, retail, and administrative support are particularly
vulnerable, as AI-driven machines and software can perform these tasks more quickly
and efficiently than human workers.

For example, automated checkout systems in retail stores have already reduced the
demand for cashiers, while robotic process automation (RPA) is replacing clerical tasks
in accounting and administrative roles. In the manufacturing sector, industrial robots are
taking over many of the labor-intensive jobs previously done by humans, raising
concerns about job losses in these fields.

However, while AI and automation may displace some jobs, they are also creating new
roles, many of which did not exist just a few years ago. The rise of AI has led to a surge
in demand for data scientists, AI specialists, and machine learning engineers, who are
responsible for developing and managing AI systems. Moreover, automation
technologies require constant monitoring, maintenance, and optimization, generating
roles for technicians, engineers, and managers skilled in working with AI-powered
systems.

The nature of work is also changing. As machines take over routine tasks, human
workers are shifting toward roles that require higher-level cognitive abilities, creativity,
and emotional intelligence. This is especially true in fields such as healthcare, education,
and customer service, where human empathy and decision-making are difficult to
replicate with AI.

The shift toward automation has also underscored the need for reskilling and upskilling.
To remain competitive in the job market, workers must learn new skills that complement
automated systems, such as data analysis, machine learning, or AI ethics. Governments,
companies, and educational institutions are increasingly recognizing the importance of
investing in training programs that can help workers transition to new roles and
industries.

19
Industries Transformed
The transformative power of AI and automation is already visible across several
industries and job categories. In customer service, for instance, AI-powered chatbots
and virtual assistants are becoming standard tools for handling routine inquiries and
providing support. These tools offer instant responses and can handle multiple queries
simultaneously, significantly improving efficiency and customer satisfaction. Companies
like Amazon and Google have developed sophisticated AI-driven customer service
platforms that can engage in natural conversations with users, reducing the need for
human agents in basic support roles.

In manufacturing, automation has long played a central role, but advancements in AI

and robotics are enabling factories to become even more efficient. Smart manufacturing
technologies allow machines to communicate with each other, optimize production
processes, and predict equipment failures before they occur. This not only reduces
downtime but also enhances quality control and minimizes waste.

The healthcare sector has seen a surge in AI applications, from diagnostic tools to
robotic-assisted surgery. AI-powered algorithms can analyze medical data, such as X-
rays or MRIs, and identify patterns that may be invisible to the human eye, leading to
faster and more accurate diagnoses. Automation also helps to streamline administrative
tasks in hospitals, such as scheduling, billing, and patient record management.

Logistics and supply chain management have similarly benefited from automation, with
AI-powered systems optimizing inventory levels, predicting demand, and automating
transportation logistics. Autonomous vehicles and drones are beginning to play a role in
delivering goods, while AI-powered software is improving warehouse management and
order fulfillment.

20
Ethical Considerations
The rise of AI and automation brings with it a host of ethical considerations. One of the
most pressing concerns is the potential for AI to exacerbate social inequalities. If certain
sectors and jobs are more vulnerable to automation, there is a risk that large portions of
the workforce, particularly low-skilled workers, could be left behind. This highlights the
importance of ensuring that the benefits of AI and automation are distributed equitably
and that opportunities for reskilling and upskilling are made available to all.

Data privacy and security are also significant concerns, as AI systems often rely on vast
amounts of personal data to function effectively. The collection and use of this data
raise questions about how it is stored, who has access to it, and how it can be protected
from misuse.

Another ethical dilemma is the potential for AI to perpetuate bias. AI systems learn from
the data they are trained on, and if that data contains biases, the AI can replicate or
even amplify those biases in its decision-making processes.

This is particularly concerning in sectors like hiring, lending, and law enforcement, where
biased AI systems could have real-world consequences for individuals' lives.

As a result of these concerns, there is a growing debate around the need for regulation
and oversight of AI and automation technologies. Governments and organizations are
beginning to establish frameworks to ensure that AI is developed and deployed
responsibly, with an emphasis on transparency, accountability, and fairness.

21
Future Outlook
Looking ahead, AI and automation are poised to continue transforming industries and
reshaping the workforce. In the near term, we can expect to see even more widespread
adoption of AI-powered tools in sectors such as healthcare, finance, and education,
where automation can enhance efficiency and deliver personalized experiences.

In the longer term, the development of more advanced AI, including general AI, could
lead to even more profound changes. While this could unlock new levels of productivity
and innovation, it also raises fundamental questions about the future role of human
workers and the need for new social safety nets in an increasingly automated world.

Ultimately, the future of AI and automation will depend on how societies choose to
harness these technologies. By focusing on reskilling, ethical governance, and equitable
distribution of benefits, it is possible to ensure that AI and automation drive positive
change for all.

22
Trend 4
Mental Health
In 2025, mental health will continue to be a critical component of workplace well-being
and productivity, with organizations recognizing it as both an ethical responsibility and
a strategic advantage.

1 in 5
US adults live with
a mental illness

Source: National Institute of Mental Health

While the number of individuals with a diagnosed mental illness is high, individuals with
poor general mental health is even higher. These issues include a person’s social,
emotional, and psychological well-being in the moment. This can be affected by mental
exhaustion, fatigue, grief, work burnout, stress, finances and more.

Organizations that recognize and look for ways to improve their employee’s mental
well-being will actively serve their entire workforce community. Providing a culture of
openness, vulnerability, and human connection will not only help those suffering from a
mental health issue at the moment but also serve as a safe environment for those who
may not be ready yet to disclose their mental health status.

Prioritizing mental health in the workplace fosters a culture of inclusivity and resilience,
which is essential for sustaining high performance and a positive workplace culture. The
importance of providing mental health support cannot be overstated, as it directly
impacts every employee. Let’s explore the key areas in which mental health values are
expected to shape the workplace in the coming year.

23
Workplace Culture and
Inclusivity
Fostering a supportive and open culture where mental health is openly discussed and
prioritized creates an environment where employees feel safe to express their needs and
concerns. This can be achieved by offering a variety of mental health care options
through EAPs, alternative wellness programs, and/or mental health days. But simply
offering these options is not enough. Organizations must also cultivate a supportive
culture that encourages open conversations, reduces stigma, and integrates mental
health support into daily practices. Options such as providing regular check-ins with
employees about their mental well-being and resources for stress management allow
the organization to keep ahead of potential disruptions.

Creating a more inclusive workplace by respecting the diverse mental health needs of
their workforce, organizations will be better positioned to reach their goals. Ensuring
that all employees feel valued, supported, and able to contribute their best work not only
improves individual well-being but also strengthens organizational resilience and
performance.

Productivity and Employee

Well-being
Understanding the link between mental health and productivity reveals how supporting
mental well-being enhances focus, creativity, and overall job satisfaction. Well-being is
not just about physical health. Psychology Today says, “well-being is the experience of
health, happiness, and prosperity.” Based on this definition, employees with a sense of
purpose can be more connected to their organization, allowing greater productivity.

Prioritizing mental well-being not only helps the employee, but it helps the organization
too. According to the World Health Organization, an estimated 12 billion workday days
are lost every year globally to depression and anxiety at a cost of 1 trillion US$ per year
in lost productivity.

24
Burnout Prevention and
Resilience
Addressing the growing issue of burnout and promoting resilience-building initiatives is
crucial. By helping employees manage stress and maintain a healthy work-life balance,
organizations demonstrate their commitment to supporting and caring for their
workforce. In recent years, burnout has become increasingly prevalent, affecting
employees of all levels and across all industries. Some factors that contribute to burnout
include increased workloads, blurred work-life boundaries (with the increase in remote
and hybrid work), lack of support or insufficient resources, and a negative workplace
culture.

According to the National Institute of Mental Health,

“Employees who are less comfortable talking about their
mental health at work are more likely to report feeling
burnout and their mental health suffering because of work.”

Building resilience among your workforce will help employees cope with stress and
recover from setbacks. Organizations that promote open communication among all
employees offer support without fear of stigma or retaliation. Training resources on
stress management, mindfulness, and coping strategies should be available to the
workforce. Support employees in taking regular breaks as well as utilizing their PTO to
recharge.

25
Access to Diverse Mental
Health Resources
Mental health exists on a spectrum and it’s imperative that every employee has access
to the type of mental health resources they need. This might include access to
counseling services, flexible work arrangements, mental health days, stress
management workshops, mindfulness training, or alternative mental health solutions. All
resources should be accessible and confidential.

By providing a variety of options, employers acknowledge that mental health needs are
unique to each individual and can change over time

Leadership and Training

Leaders have a crucial role in setting the tone for mental health support. Training
managers to recognize and respond effectively to mental health concerns will foster a
culture of openness and care that prioritizes employee well-being. This proactive
approach empowers leaders to make an impact on their teams every day. There is a
significant gap in leadership development and training around mental health support.
Leaders who are ill-equipped to support their teams effectively can lead to missed
opportunities for early intervention, increased stress among their teams, and a culture
where mental health issues remain stigmatized.

Implementing comprehensive mental health training can bridge this gap, equipping
leaders with the tools to initiate these crucial conversations. Building trust through
personal vulnerability opens the workplace conversation where everyone feels valued
and important.

3 in 10
senior-level staff have
received workplace
training on how to talk
about mental health in
the workplace

Source: National Institute of Mental Health 26

Long-term Impact and
Sustainability
The benefits of ensuring the mental well-being of your employees are far-reaching.
Improved productivity Improved employee retention
Reduced absenteeism Enhanced creativity
Higher employee engagement Positive company culture
Cost savings on health issues

Conclusion
Prioritizing mental health is recognized as a critical component of workplace well-being
and productivity in 2025. Organizations are not just talking the talk, but walking the
walk - creating a supportive and inclusive workplace culture. When people feel better,
the whole company thrives.

27
Trend 5
Remote, Hybrid, and
Flexible Work Models
Of all the massive disruptions to the workplace caused by the events of the pandemic,
perhaps the one that continues to impact and drive human resources leaders’ agendas
heading into 2025 is remote and, increasingly, hybrid and flexible working models.

The debates, research, and at times heated discussions around remote, in-person, and
hybrid working models among organizational and human resources leaders, and their
employees, have seemingly raged on much past the effects of the pandemic, and
continue to be a source of tension in many organizations. In more recent months, many
organizations and leaders have intensified their calls and ramped up pressure for
employees to perform more of their work in-person, while others reiterate their
commitments to remote, hybrid, and more flexible approaches. How HR leaders and
their executive colleagues navigate the myriad issues surrounding hybrid working –
employee productivity, work/life balance, real estate costs, impact on recruiting and
retention and more – will remain a dominant workplace trend in 2025.

28
Historical Context
Leading remote and hybrid working researchers have noted that the pandemic
disruptions dramatically accelerated remote working trends. While remote working was
rising, it was only slowly, and just prior to the onset of the pandemic in early 2020, only
an estimated 6-7% of working days were conducted remotely (among workers whose
jobs could reasonably be conducted remotely).

The widespread shutdown of workplace facilities, local stay-at-home orders, the need
for working parents to care for children who were suddenly at home as most schools
closed for in-person instruction for some period, and even individual employee
reluctance to return to workplaces combined to rapidly increase working from home
rates to just over 61% of working days in early 2020.

From the early 2020 remote working peak, the percentage of days worked from home
began to slowly but steadily decline as more workplaces and schools re-opened,
lockdowns and stay-at-home orders expired, and fueled by the general and widespread
availability of effective vaccines and post-COVID treatments, more organizations began
to encourage and even require more in-person working.

Current State
Recently, several high-profile companies in technology, finance, professional services,
and others have renewed or even increased the in-person working requirements for
office-based workers. The reasons behind these so-called “Return to Office” (RTO)
mandates are generally explained or justified by one or more of the following elements:

Improved Collaboration and Teamwork

Many leaders feel that people collaborate more effectively when they can “see” and
interact with each other. Many important non-verbal clues and communication are lost
when colleagues are not in the same physical space. And in hybrid environments, team
members working remotely can feel excluded from interactions and decision-making
processes.

Building or Maintaining Organizational Culture

Since most organizations started out as “in-person” operating models, and their unique
organizational culture was developed in that context, it’s believed by many that the
best, (or only), way to maintain, sustain, and strengthen culture is through in-person
working, collaborating, and interacting.

29
Onboarding, Training, and Mentoring
There has been a clear trend in many organizations, even ones that have continued to
embrace hybrid and even remote working, that some specific employee journey
elements benefit greatly from in-person gathering and co-location of teams. New
employee onboarding has been called an essential activity that many leaders see
greatly enhanced by in-person execution. Connecting new hires to the organization,
helping them learn about organizational culture, connecting with colleagues and
mentors, and feeling part of the team all seem improved when conducted via in-person
settings.

Enhanced Innovation and “Water Cooler Moments”

Some organizations will attest, without empirical data, that innovative thinking and
serendipitous moments of innovation can only happen in person when colleagues cross
paths in the workplace outside of formal meeting settings. These informal encounters
and conversations have been much more challenging to replicate in remote and virtual
working environments.

Improved Productivity
Some leaders firmly believe remote and hybrid workers are more likely to slack off since
they are out of sight (literally). Old-fashioned management and supervision methods
guide many leaders to think that workers have to be physically present to be productive
and effectively managed. This “feeling” is not backed up by research, and most studies
of remote and hybrid working environments indicate that employees are at least as
productive, if not more productive, in these models than in entirely in-person working
environments.

Finally, in-person working “feels” right to leaders. Most built their careers working in
person; it is essentially all they know, and they are less comfortable leading and
managing a remote team. Often, organizations have not provided managers and
leaders with specific training, resources, and tools to help them effectively manage and
lead in remote and hybrid environments.

However, after navigating the pandemic era and adapting and embracing the benefits
of working less often in person, many employees are understandably reluctant to return
to the “old ways,” as in-person working is usually seen. Numerous published studies
show that employees prefer hybrid working arrangements and feel their outputs and
productivity are enhanced by more flexible working arrangements.

30
Benefits and Challenges
for Employees
Hybrid working arrangements and models offer several benefits for organizations and
their employees. For employees, the primary benefits from hybrid work fall into three
groups: Improved Work/Life Balance, Reduction in Commuting Time and Costs, and,
most importantly, Enhanced Autonomy and Control over their work. Let’s examine each
type of benefit and its impact on employees.

Improved Work/Life Balance

Forbes highlights that remote work can blur work-life boundaries, leading to potential
burnout. However, it also offers significant flexibility, particularly valued by employees
with caregiving responsibilities. For example, parents can be more available for school-
aged children and their activities while balancing their work responsibilities.

Reduced Commuting Time and Costs

Estimates show that commuting costs on an annual basis range from, on average,
$5,000 - $8,500 per worker. Hybrid and remote working significantly reduce the time
spent on commuting and employee out-of-pocket expenses.

Enhanced Autonomy and Control

Having control and a level of autonomy over how, where, and when work gets done can
benefit employees in terms of their productivity and job satisfaction. Hybrid and flexible
working allows employees to organize and structure their work in ways that can lead to
more efficient and productive work outcomes. Additionally, research has also shown
that employees with higher levels of autonomy reported better overall well-being and
job satisfaction.

31
Benefits and Challenges
for Employers
Similarly, hybrid working arrangements have been shown to drive several significant
benefits for organizations. Key areas of benefit for organizations include cost savings,
increased productivity, access to a broader talent pool, and improved employee
retention. Breaking each of these areas down, we see clear benefits and improved
business outcomes for the organization.

Cost Savings
Reducing organizational costs has clearly benefited from the increased adoption of
hybrid and remote working arrangements. Some of the types of cost savings that can be
realized from the adoption of hybrid work arrangements include:
Real estate – Hybrid schedules can reduce the amount of office space and locations
needed to be operated, potentially reducing costs
Utilities – Operation of fewer and smaller work locations drives reductions in utilities
and other office overhead costs
Commuting Subsidies – Firms that offer employee subsidies or stipends for
commuting and parking can see these costs reduced
Office Supplies and Equipment – Hybrid arrangements with fewer employees in
work locations should drive reduced overall costs for office supplies, furniture, and
equipment needed for operations
Facility Management - Hybrid working will lead to reduced costs for cleaning,
security, and other facilities management services.

Estimates on total employer cost savings from the adoption of hybrid working schedules
vary widely. Much depends on how many employees are affected by the schedule, the
amount of expected in-person work, and the specific facilities cost basis experienced by
the organization; however, some data has indicated that cost savings as high as 40 –
50% can be reached. While cost savings alone should not be the driver for hybrid
working, it can provide a beneficial outcome.

Increased Productivity
The productivity debate centered around how and where employees are more
productive, in-person at company locations or working more flexibly, is contentious and
ongoing. Studies have shown that remote work can increase productivity by at least 5%.
But even without the ability to directly connect productivity improvements to hybrid
work schedules, it has been shown that most employees would choose to work hybrid
over working full-time in person, as it enhances overall job satisfaction and well-being. It
is, therefore, reasonable to expect some productivity improvements from more satisfied
and healthier employees. 32
Access to a Broader Talent Pool
Experience from the largely fully remote working arrangements showed that
organizations could benefit from the much wider talent pool compared to in-person
work or hybrid working schemes. Relying only on a talent pool physically living within
reasonable commuting distance from specific work locations places significant
limitations on any organization's ability to find the best-fit talent for their roles. While
hybrid working generally offers flexibility to workers, it does not meaningfully broaden
the talent pool, as some in-person work, usually two or more days a week, places the
same physical limitations as complete in-person work. The only incremental benefit of
hybrid working is to include workers who may be unwilling or unable to commit to full-
time in-person work but would be amenable to a hybrid work schedule.

Improved Employee Retention

It's anecdotally true that hybrid and flexible working arrangements, in which a large
majority of workers prefer entirely in-person work, would lead to improved retention and
overall satisfaction. However, in addition to that somewhat intuitively obvious
conclusion, data backs up the argument that hybrid work enhances retention. The
above-mentioned Stanford study also shows that in a large, controlled study of hybrid
work, resignations fell by 33% among workers who shifted from working full-time in the
office to working a hybrid schedule.

33
Key Considerations
Research has provided HR leaders and organizations with an emerging set of operating
principles and leading practices to consider when developing, implementing, and
managing a hybrid working model. The following are key elements that HR and
business leaders should evaluate when setting working arrangements and the
expectations and principles that will guide them.

Management Styles
Are the organization’s leaders and managers receptive to alternative working
arrangements? Do you have the necessary training to make managers successful in
hybrid environments?

Productivity
If worries about productivity are expressed, does the organization have relevant data
and measurable outcomes to understand the impact of hybrid and remote working on
productivity?

Employee Work/Life Balance

Are there challenges with overwork, burnout, and consequent employee attrition? Could
more flexible working arrangements be one way to make meaningful improvements in
the overall lives of employees?

Collaboration/Technology
Does your organization have preferences and expectations for collaborative work, and
do you have the best set of technologies to support collaborative efforts? Where can you
improve to make remote and hybrid working most effective for employees and teams?

Onboarding
One of the more common complaints of remote working is that new employee
onboarding is less successful when conducted remotely. When adopting remote and
hybrid working arrangements, HR leaders should carefully evaluate new hire
onboarding processes, expectations, and desired outcomes to ensure that the optimal
mix of in-person and remote activities are executed.

Organizational Culture
Building and maintaining a strong company culture and a sense of connection among
employees can be challenging. It is important for HR leaders to carefully monitor and
actively support their distinct culture, norms, expectations, and artifacts when
employees are not regularly or typically gathering in person in the same location.
34
Future Outlook
Moving forward, one of the primary challenges for HR leaders will be to understand how
different working models will work best for their organizations and for their employees.
More than four years after the COVID-19 pandemic dramatically increased the pace of
adoption of remote and hybrid working, it’s clear that, despite some organizations’
attempts to mandate employees back to the office full-time, hybrid work arrangements
are here to stay.

Organizations that will lead into 2025 and beyond will be the ones that most
successfully navigate the new world of work, post-pandemic, and for many
organizations, that will mean hybrid working. For many, the key to becoming a
successful hybrid company will be to identify key jobs and tasks, determine what the
drivers of productivity and performance are for each, then consider which arrangements
would serve them best, and engage employees in the design process. The Future of
(Most) Work is Hybrid. We now know much more about how to make it work for
everyone.

35
Trend 6
Caregiving and
Alternative Benefits
With millions of workers wrestling with caregiving responsibilities, HR must understand
key issues and available benefits and resources. Caregiving is the activity of providing
for the care of another person who is young, old, sick, or disabled (having an illness,
injury, or condition that makes it difficult for them to do some things that other people
do), either as a family member or friend, or as a job.

Historical Context
Caregiving in the United States has undergone significant changes over the past 50
years, reflecting broader societal shifts and evolving family dynamics. In the 1970s and
1980s, caregiving was largely an invisible job, often unrecognized by organizations,
government policymakers, and healthcare professionals. Most caregiving responsibilities
fell to women who most often provided care for their children or other family members
with little external support.

Caregiving in the United States has undergone significant changes over the past 50
years, reflecting broader societal shifts and evolving family dynamics. In the 1970s and
1980s, caregiving was largely an invisible job, often unrecognized by organizations,
government policymakers, and healthcare professionals. Most caregiving responsibilities
fell to women who most often provided care for their children or other family members
with little external support.

By the decade of the 2010s, more technological solutions had been developed to help
caregivers manage their tasks, find access to services and support, and even provide
remote monitoring capabilities. But despite more awareness and support for caregivers,
the challenges have continued to mount, and with so many US workers also providing
care, organizations and leaders must continue to address these issues.

36
Current State
In the United States today, over 53 million adults are family caregivers. These
caregivers assist with daily activities, medical tasks, and other responsibilities, often
devoting over 20 hours per week to caregiving— equivalent to a part-time job.

Additional analysis of the state of caregiving shows that the combined pressures of
work and caregiving are creating a crisis for many American workers, with updated
AARP data from 2023 revealing that 67% of working caregivers struggle to balance
their job responsibilities with caregiving duties. This has led to some caregivers reducing
work hours, turning down promotions, or even leaving the workforce entirely. These
challenges are exacerbated by inflation and a need for employer support, particularly for
those providing care to adults rather than children.

Caregiving responsibilities vary across the type of care being provided but are generally
broken down into three main categories – childcare, elder care, and other adult care
(primarily for persons with disabilities).

The breakdown of caregivers in the U.S. by the type of care they provide is as follows:

Childcare: A significant portion of caregivers in the U.S. are parents or guardians

caring for minor children. According to data from the Bureau of Labor Statistics,
approximately 33% of U.S. households with children under 18 include someone who
provides childcare. Many of these caregivers also juggle work responsibilities, with
some studies indicating that about 35-40% of all U.S. workers are involved in
childcare, either directly or indirectly.
Elder Care: Elder care represents a substantial and growing segment of caregiving.
The 2023 AARP report estimates that approximately 34 million Americans are
providing care for an older adult, typically a parent or grandparent. These caregivers
often help with activities of daily living, medical tasks, and emotional support. The
number of people providing elder care is expected to increase as the U.S. population
ages.
Care for Adults with Disabilities: This group includes individuals who care for family
members or others with physical or intellectual disabilities who require assistance
with daily activities. This form of caregiving is particularly demanding, with many
caregivers providing over 20 hours of care per week.

37
Employee Challenges and
Benefits
The prevalence and growth of employee caregiving demands on workers is creating a
crisis of sorts among working Americans. Increasingly, workers are looking to their
employers and their employer-sponsored benefits programs to provide additional
resources and support for caregiving. For example, regarding childcare, the KinderCare
Parent Confidence Report 2023 states that 69% of workers ranked childcare benefits in
the Top 5 of all benefits in their total compensation packages.

Additionally, according to the Bureau of Labor Statistics, approximately 37.1 million

families are providing unpaid eldercare, and they’re spending at least 4 hours a day
doing so, making this challenge for many mid-career workers particularly important.
What’s more, a Deloitte survey from 2022 found that 75% of Baby Boomers and 68% of
Gen X workers would prefer to stay with an employer that offers robust elder care
benefits.

To meet these challenges, and to help employees with their caregiving responsibilities,
several technology and services providers have established programs and resources
that are designed for employers to incorporate into their overall employee benefits
offerings. Employers should review local and national services to see what may work
best in supporting employees with enhanced benefit programs that include these
services.

38
Future Outlook
One of the lasting effects of the pandemic era on the workplace has been the
reevaluation and reassessment of the role of work in our lives, and the increasing
importance of integrating all aspects of our lives – work and our life outside of work. For
millions of US workers, the most important and challenging element of our non-working
lives are caregiving roles and responsibilities. Whether it is providing care for minor
children, aging parents or other relatives, or persons working to overcome and manage
disabilities, caregiving has become an essential part of life for millions of working adults.

Organizations in 2025 and moving forward will need to focus on meeting the needs of
their caregivers, with flexible work schedules, enhanced paid time off and parental
leave, employee assistance programs, employee resource groups, specific benefits for
caregivers, and more inclusive policies that meet employee needs and expectations. We
expect that organizations more responsive to the needs of their employee caregivers will
be positioned to better compete for talent, generate more employee commitment and
loyalty, and ultimately, better job satisfaction, engagement, and performance.

39
Trend 7
Diversity, Equity,
Inclusion, & Belonging
In recent years, Diversity, Equity, Inclusion, and Belonging (DEIB) programs have become
a focal point for organizations aiming to foster more inclusive workplaces. Despite this
momentum, many companies are still struggling to move beyond superficial initiatives
that fail to make a lasting impact.

In 2025, the organizations that successfully embed DEIB into their core strategies will
stand out, attracting top talent, fostering innovation, and improving overall business
performance. Leaders who have a clear, consistent vision and point of view on DEIB will
be better positioned to navigate increasingly complex global business environments.

Diversity

Belonging

Equity

Inclusion

Belonging emerges here Diversity, Equity, and Inclusion come together

40
Current State of DEIB
Programs
Throughout 2024, DEIB has become a popular topic of organizations, and only
sometimes for great cause. Many are falling short when attempting to integrate DEIB
programs into their culture and operations fully. Companies that provide a surface-level
effort, utilizing only one-off training, special hires, or other single initiatives, may check a
box but fail to address the root causes of inequity or promote sustainable inclusivity
within the workforce.

Employees are growing increasingly critical of how DEIB is handled where they work,
demanding a genuine commitment to diversity and equity rather than performative or
political gestures. DEIB practitioners also feel further pressure on their decisions from
outside political and social groups. In 2024, many companies have backed away from
their original DEIB plans in the face of increased online pressure.

To effectively navigate how to proceed with a DEIB plan, companies need to move
beyond mere representation and toward creating environments where all individuals
feel a sense of belonging and have equitable access to all opportunities.

41
Business Case for DEIB
The value of embedding DEIB into an organization’s culture extends far beyond fulfilling
ethical obligations. Prioritizing diversity and inclusion enhances innovation and creativity
throughout the team, leveraging a variety of perspectives and talents. A diverse
workforce brings together individuals with different backgrounds, experiences, and
viewpoints, facilitating better decision-making, product development vision, better
responsiveness to a diverse customer base, increased creativity, and a more agile
response to market changes.

A comprehensive DEIB culture is a key differentiator in the competitive talent market.

Top candidates seek employers that demonstrate a genuine commitment to inclusivity,
and companies that can provide such environments are more likely to attract and retain
high-caliber talent.

Diverse teams are more likely to attract a broader pool of candidates. This is particularly
true for younger generations, with 74% of millennial employees believing their
organization is more innovative when it has a culture of inclusion, according to research
from Deloitte.

42
Trends Shaping DEIB in
2025
Several key trends will shape the future of all DEIB initiatives. Organizations that can
stay ahead of these trends will be better equipped to meet the needs of their employees
and customers, remain competitive in their markets, and be better positioned to attract
and retain diverse talent.

Leadership Accountability
Leaders play a crucial role in setting the standards for DEIB and fostering an inclusive
workplace culture that makes all employees feel valued and respected. Leaders should
be accountable to DEIB goals by making visible and tangible commitments to DEIB,
building trust and safety throughout the organization, maintaining personal
accountability in their decisions and actions, and investing company resources towards
DEIB efforts.

Evolving Definitions of Equity

The concept of equity has evolved significantly over time. Historically, equity was often
seen as a principle aimed at general fairness in decision-making. However, the term has
expanded in recent years to encompass broader concepts, including addressing
structural barriers and ensuring equal opportunities for all individuals. This modern
interpretation of equity focuses on creating conditions where everyone in the
organization can thrive, regardless of their background or identity.

Technology and DEIB

Numerous HR technology solutions have been developed or enhanced to support an
organization’s DEIB programs and efforts. Recruitment platforms can now use AI
technology to scan candidate profiles and conduct virtual interviews, reducing human
bias in the hiring process. Other technologies help an organization analyze
compensation data for pay disparities and can make recommendations to organizations
to ensure pay equity regardless of employee gender, race, or other factors. Finally, many
HR technologies have developed analytics to help companies understand trends and
examine potential disparities in opportunities and outcomes across their workforce.
These tools can provide early warnings of potential problems where additional research
and remediation may be needed.

43
Intersectionality and Inclusion
Intersectionality is a framework for understanding how various aspects of a person’s
identity—such as race, gender, sexual orientation, disability, and more—intersect and
interact to create unique experiences of discrimination and privilege. Intersectionality
helps companies recognize that employees are not defined by a single identity. By
considering intersectionality, companies can better understand and address the unique
challenges faced by employees who belong to multiple marginalized groups. This can
lead to more effective diversity and inclusion strategies.

Key Metrics for 2025

To determine the effectiveness of an organization’s DEIB success, key metrics need to
go beyond surface-level numbers. The most impactful organizations will measure not
just how many underrepresented individuals they have hired but also how included and
engaged their employees feel and the potential impact that DEIB initiatives have on
organizational outcomes. Some key metrics that organizations should monitor include:

Employee Engagement and Satisfaction

Conducting regular employee surveys to measure feelings of inclusion, belonging, and
overall job satisfaction. Lower levels of engagement and satisfaction among diverse
employees could indicate the lack of a positive and inclusive workplace culture. This
metric can reveal how well the organization supports its diverse workforce.

Representation at All Levels

Tracking the percentage of employees from various demographic groups (e.g., gender,
race, ethnicity, age) at different levels of the organization. These metrics help assess the
general diversity in the organization and highlight instances of underrepresentation.

Retention and Promotion Rates

Monitoring the retention and promotion rates of employees from various demographic
groups and comparing them to the overall retention rate and promotion progression
rates. High turnover rates among specific groups may indicate issues with inclusivity or
workplace culture. Lagging promotion rates could indicate whether issues arise at
specific career steps in the employee journey.

44
IPay Equity Scorecard
Conducting pay audits to compare compensation across different demographic groups
for similar roles and publishing results to key stakeholders. This metric identifies any pay
disparities that need to be addressed.

Innovation and Market Success

Finally, organizations should begin to track and assess progress on important DEIB
measures like representation and progression against business outcomes like new
product innovation, market share, customer satisfaction, and other essential business
metrics. Ultimately, the success of DEIB initiatives will be measured by the business
success they help deliver.

Challenges
In 2025, organizations will face several challenges in their DEIB programs. First,
leadership support still needs to be addressed. Many organizations need more backing
from top management, which is crucial for the success of DEIB initiatives. Next, DEIB
efforts often need more support in measuring progress. Without clear metrics, assessing
progress and making data-driven decisions is challenging.

For many organizations, there are insufficient budgets and resources allocated to DEIB.
Many organizations need to budget more financial and human resources to effectively
implement and sustain DEIB programs long enough for them to be effective and
impactful. Finally, the previously mentioned external challenges from some conservative
activists will challenge leaders and organizations and may actively apply pressure to
force a reduction of DEIB efforts. Leaders who make DEIB a priority will have to stand
firm in 2025 in the face of these pressure campaigns.

45
Future Outlook
While DEIB programs are under increasing scrutiny and are even facing external
pressure and criticism, most organizations remain committed to the fundamental
principles that are the foundation of DEIB programs. To improve their DEIB efforts in
2025, organizations can consider the following strategies:

Emphasize Leadership Commitment

Ensure that leaders are visibly committed to DEIB by setting clear goals, communicating
the importance of these initiatives, and holding themselves accountable.

Establish Data-Driven Approaches

Implement robust systems for tracking and measuring DEIB metrics. This can include
regular surveys, diversity audits, and analytics to identify areas for improvement.

Prioritize an Inclusive Culture

Foster an inclusive culture by promoting open dialogue, encouraging diverse
perspectives, and providing training on unconscious bias and inclusive behaviors.

Support Employee Resource Groups (ERGs)

Support ERGs that provide a platform for underrepresented groups to share their
experiences and contribute to the organization’s DEIB strategy and goals.

Create Flexible Policies

Implement flexible work policies that accommodate diverse needs, such as remote work
options, flexible hours, and support for work-life balance across the organization.

By addressing these challenges and implementing these strategies, organizations can

create a more inclusive and equitable workplace, even amidst external pressures.

46
Conclusion
As we look ahead to 2025, the trends shaping the future of work are driven by evolving
employee expectations, rapid advancements in technology, and a growing emphasis on
holistic well-being. Companies that embrace these changes with agility and a human-
centered approach will be well-positioned to thrive.

From navigating the complexities of hybrid work and caregiving responsibilities to

leveraging AI and people analytics for strategic advantage, HR leaders will play a
pivotal role in shaping work environments that prioritize flexibility, inclusion, and mental
health. Organizations that foster a culture of empathy, innovation, and inclusivity will
enhance employee engagement and drive business performance in an increasingly
competitive landscape.

As the world of work continues to evolve, staying responsive to these emerging trends
will be key to building sustainable success in the years ahead. We at Lanteria are
excited and optimistic about the world of work in 2025, and we hope that you and your
organizations continue to thrive in the new year.

Diversity

47
Stay a step ahead in

2025
with an HR platform
that works your way!

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