As we transition into the new year, it’s a smart time to pause and take stock of how your workplace has transformed over the last year and where you want it to go in 2025.
Twenty twenty-four was a year of uncertainty: A shifting economy, political tensions, and the rapid adoption of artificial intelligence (AI) have tested businesses and individuals alike. Amid these pressures, employees are seeking more than just stability—they crave connection, empathy, and purpose in their professional lives.
Here are the top five workforce trends to watch for in 2025 and how your business can get ready for everything to come in the next year.
A Focus on Human-Centric Leadership
A 2021 Harvard Business Review report revealed that 84% of employees believe empathy is crucial for effective leadership. That’s where the rise of human-centric leadership comes in. This movement, fueled by employees' growing desire for a sense of belonging, was a key workforce trend in 2024.
Research from Harvard Business School shows that organizations investing in employee-centric practices outperform their competitors financially over time, but this trend doesn’t just have financial benefits. Human-centric leadership creates a positive working culture since employees look to their workplaces for a sense of community. They’re drawn to leaders who can connect with people from diverse backgrounds, foster purpose, and support personal growth.
The Takeaway for Leaders: Empathetic, authentic, and people-oriented leadership is no longer just “nice to have” in the workplace; it is essential for fostering a culture where employees feel heard, valued, and empowered.
This shift is critical as organizations tackle challenges like remote work, mental health, and diversity initiatives. One way to get started? Focus on developing the EQ of your executive team.
The New Norm of Side Hustles
You’ve likely heard of “side hustles,” a way to earn extra money in addition to your primary job. You’re going to hear more about them in 2025; the significant rise of this trend over the past few years has given no sign of slowing down since workers’ relationships with their jobs continue to change.
Many workers are reevaluating their career trajectories because of the increasing cost of living, and people are less likely to rely on a single source of income. Looking at new options and driven by a desire for fulfillment, growth, and financial stability, the gig economy is booming. A study conducted by OnePoll found that 40% of Americans now have side hustles, with nearly half of them starting out of financial necessity.
The Takeaway for Leaders: The rise of side hustles isn’t solely about money—it reflects a deeper human need for growth, creativity, and connection. Workers want career autonomy, reflecting a broader shift towards diversifying income while developing new skills.
The Rise of Human Capital Management
According to Gallup, 51% of currently employed workers are actively looking for new jobs. A top reason for quitting a position is a lack of career development and advancement.
With the global labor market facing a shortage of skilled workers, organizations are turning to Human Capital Management (HCM) to unlock the potential of their existing workforce. HCM focuses on creating an internal job market where employees can access growth opportunities, reskill for emerging roles, and take charge of their career paths.
The global HCM market is experiencing significant growth, projected to grow from $28.86 billion in 2023 to $63.14 billion by 2032. This growth underscores the urgency for organizations to adopt strategies that prioritize their people as their greatest asset.
Leaders can capitalize on HCM market growth by adopting advanced HCM solutions that align with their organization's strategic goals, prioritizing tools that enhance employee engagement, streamline processes, and provide actionable workforce insights.
This shift is crucial as AI and automation continue to reshape industries, creating a need for reskilling and upskilling.
The Takeaway for Leaders: By investing in workforce development, companies can address talent shortages and foster a culture of innovation and adaptability.
The Multi-Generational Workforce
For the first time in history, five generations are working side by side. From Baby Boomers to Gen Z, each generation brings unique values, communication styles, and career expectations. This diversity is both an opportunity and a challenge for leaders.
The differences between generations matter, especially when it comes to communication methods. Gen X values direct communication through phone calls; Millennials can adapt to phone calls, emails, and text; while Gen Z prefers video calls or quick chat communication.
Challenges arise when management fails to meet these diverse expectations. A 2024 Gallup survey found significant gaps between how employees perceive their managers and how managers believe they’re performing.
To bridge this gap, leaders must embrace each generation's uniqueness. They can do this by seeking feedback, adapting to their teams’ behavioral styles and needs, and establishing clear lines of communication.
The Takeaway for Leaders: By understanding and addressing each group's distinct needs, organizations can create a more inclusive, collaborative environment that leverages the strengths of all generations.
Redefined Performance Management
McKinsey shared that performance management related to productivity was a focus for leaders and organizations in 2024. This trend will continue in 2025, highlighting the importance of aligning KPIs with individual motivations as remote and hybrid work models become the norm.
A recent PwC survey found that 30% of workers experienced significant job changes in the past 12 months, emphasizing the need for dynamic, personalized performance evaluations. Traditional approaches to performance management need rethinking. Traditional metrics like hours worked or rigid KPIs no longer align with today’s dynamic workplace. Instead, companies are redefining performance management to focus on engagement, outcomes, and adaptability.
AI’s growing role in the workplaces adds another layer of complexity. Tools now assist with tasks ranging from idea generation to customer support, requiring managers to develop new metrics for success. Organizations are redefining how work gets done and how success can be measured.
The Takeaway for Leaders: Instead of merely measuring output, modern performance management should focus on keeping employees engaged—striking a balance between “being bored” and “burning out.”
Leading with Confidence in 2025
As we move into the new year, leaders have an unprecedented opportunity to shape adaptive, inclusive, and resilient workplaces. By staying attuned to these five workforce trends, leaders can prioritize employee well-being, foster innovation, and drive long-term success by leading with empathy and embracing change.
If you want to prepare your leaders and employees with behavioral assessments, TTI is here to help. Connect with us to get started.
