Everything about Human Resources has changed progressively in the past two years – remote or hybrid working models, global recruitment, remote onboarding, and increased dependency on technology. Many of these strategies were already in practice before, but the pandemic made them mainstream.
Besides adjusting to the shift, HRs globally faced unprecedented challenges such as the Great Resignation, increased cases of employee burnout and mental health problems, and issues pertaining to employee engagement and retention. As we step into the third year of the pandemic, organizations have learned and experimented with different HR strategies.
Although the top priorities of HR will continue to be reshaped or evolve continuously, one thing’s for sure: they will be people-focused and business-oriented.
Here’s a list of HR strategies or trends that we can see or continue to see in the year 2025.
Employee Well-Being and Mental Health
In 2025, employee well-being and mental health remain at the heart of HR strategy, but now, AI is a significant driver in shaping these initiatives. Over the last few years, well-being has transitioned from a ‘good-to-have’ to a ‘must-have,’ becoming an integral part of HR strategies that drive both engagement and productivity. As work and personal boundaries continue to blur with hybrid and remote work models, challenges like stress, burnout, anxiety, and isolation have become even more prevalent.
The post-pandemic era has accelerated the adoption of AI-driven solutions to address these challenges. AI tools are now essential for personalizing well-being support, from mental health apps that offer real-time coaching to AI-powered surveys that detect early signs of burnout.
During the pandemic, many organizations prioritized investments in well-being and mental health initiatives. In a survey of 52 HRs by Gartner in 2020, they found that:
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- 94% of organizations made substantial investments in well-being programs.
- 85% increased support for mental health-related benefits.
- 50% extended additional support for physical well-being.
- 38% enhanced support for financial wellness.
- The survey also highlighted that employees who utilized these benefits experienced a 23% improvement in mental health and a 17% boost in physical health. However, despite these efforts, only 40% of employees actively engaged with the available benefits.
As we move further into 2025, organizations need to ensure not just the presence of well-being and mental health programs but also active utilization. Achieving this requires integrating these initiatives into core HR strategies and aligning them with broader business goals.
It will not only help in improving employee retention and engagement, but will also result in improved productivity, focus, and morale.
P.S. Employers have become more empathetic and understanding towards their employees in the pandemic era.
Work-Life Balance
Work-life balance is crucial for all, and with the pandemic, it has gained more prominence.
Those who could manage to switch off their screens after working from 9 to 5 are great! But for others, as mentioned before, office and non-office hours got convoluted. This being said, some recognized that they work best sporadically in their highly productive hours.
Nevertheless, on a larger scale, the struggle to maintain the work-life balance while working from home has been real. It is something that HRs need to keep in mind while developing effective HR strategies in 2025.
For some, work-life balance means spending time with family; for others, it means indulging in personal development or self-care. Having a work-life balance gives employees a sense of satisfaction and fulfillment. Additionally, it helps in reducing stress and fatigue. Ultimately, employees who are able to maintain a synergistic relationship between work and life, are more productive, engaged, and look forward to work every day.
Hybrid Work Will Continue To Grow And The Rise Of Metaverse
In a recent survey by Accenture, it was found that 83% of employees prefer working in a hybrid setup, and 63% of organizations have already adopted the “productivity anywhere” workforce model.
Globally, the last two years saw eminent changes in the way everyone worked. Hybrid work has now become the well-accepted norm in organizations and is here to stay.
Hybrid work benefits both the employer and the employees. It has given employees the flexibility to work from anywhere and have a better work-life balance. On the other hand, it has reduced employee overhead costs, office maintenance, and logistics.
In 2025, we would not be surprised if hybrid work transitions into the metaverse and meetings and other activities happen. HRs must re-imagine what the post-pandemic world will look like and re-design and innovate HR strategies. They need to focus on creating a fair and just workplace where nobody feels alienated or disconnected because of the place they work.
Irrespective of where they are working, everyone should have access to the right set of tools to collaborate and communicate effectively with each other. Slack, Google Hangouts, Zoom, and numerous other tools are available in the market to help your hybrid workplace stay connected.
Upskilling and Reskilling for Competitive Edge and Internal Mobility
Upskilling and reskilling of employees have always been a key part of core HR strategies. In the pandemic world, it has become more important now than ever. It is not only beneficial for the employees, but the organizations too.
Employees get to build upon their existing skills learn a new skill that helps them grow in their current job role or try out different job roles in the same organization. Access to various EdTech platforms such as Coursera, Udemy, and edX can help your employees with the reskilling and upskilling process.
Also Read: Upskilling and Reskilling: Prepare Employees For The Future
Skilling initiatives are a sign to the employees that organizations have their best interests in mind. It makes them feel valued and important when organizations invest in them. It improves employee engagement and employee retention and helps build a continuous culture of learning in the organization.
On the other hand, organizations are able to close the gap in job demands from within instead of searching outside. It helps them save costs in terms of time and money. In these uncertain times, reskilling and upskilling your employees helps in building a resilient workforce ready for the future. It is a win-win situation for both the organization and the employees.
Creating A Diverse And Inclusive Workforce
A recent survey by Glassdoor highlights that 80% of Asians, 70% of Latinos, 62% of men, 89% of black respondents, and 72 % of women prefer a diverse culture for work.
The above-mentioned survey clearly highlights the importance of diversity and inclusion in the workplace. Organizations in the past have worked towards promoting D&I, but now is the time to make it a core part of HR strategy, if it has not been until now.
Organizations must focus on giving equal chances to everyone irrespective of their age, gender, sexual orientation, nationality, educational background, ethnicity, race, political beliefs, etc. With this, organizations would have a bigger talent pool with different skills, capabilities, and experiences. It promotes innovation and teamwork and helps in improving employee engagement and retention.
Example: Currently, the workforce has people working from Gen Z, Millennials, Gen X, and Boomers. Organizations that have relaxed the criteria for age-based hiring will have a workforce where employees can learn from each other based on their experiences. While boomers can share industry knowledge and their experiences with others, at the same time, they themselves can bridge their digital gap.
Also Read: 6 DEI Best Practices to Adopt in 2025
HR Tech Software And Tools
With a global workforce, it is almost close to impossible for the HR team to manage them physically. So the use of HR tech tools and software will be on the rise. Josh Bersin, an industry expert in HR tech, estimates the global market for HR Technology Solutions to be around $400 billion. This number is going to only increase over time. A key part of HR strategy should be to include tools in their day-to-day work that streamline the employee management process. From onboarding to performance management, everything has become virtual due to the pandemic.
Frequently Asked Questions
Q.1. What are HR Strategies?
A. HR Strategies are strategies created by the Human Resources department in collaboration with the leadership team to achieve organizational or business goals by maximum utilization of resources.
Q.2. What are HR Trends?
A. HR trends are changes or trends taking place in the field of human resource management or HR. It affects employee management, engagement, turnover, and retention. So they must respond to these changes and plan accordingly.
Q.3. Which trends will shape HR in the next 5 years?
A. HR trends should keep on evolving and reshaping with the needs of the organization. But here are some common trends that we might continue to see:
- Focus on employee well-being and mental health
- Work-Life Balance
- Adopting Hybrid Work and Metaverse
- Upskilling and Reskilling Employees
- Creating a Diversified and Inclusive Workforce
- HR Tech Software And Tools
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