2025 is poised to usher in significant shifts in how human resources professionals source and manage talent. While your HR team doesn’t have to hop on every bandwagon that rolls by, it does need to embrace the trends with staying power. Here are seven essential HR trends that you need to watch in 2025:

1. Bridging the Skills Gap

According to Forbes, 87% of businesses already know they have a skills gap or anticipate developing one over the next few years. In response, many human resources professionals are prioritizing upskilling and reskilling in 2025. These efforts focus on nurturing existing employees and preparing them to step into new, more advanced roles.

The bottom line is that there’s not enough talent to go around. This means your business needs to cultivate its own. Doing so is the most viable option for narrowing the skills gap. 

2. Leveraging HR Technology for the Future

The right technology can revolutionize your HR processes. In 2025, more businesses will adopt AI-driven tools, automation solutions, and human capital management (HCM) platforms. 

Not sure where to start with your own technology investments? Begin by adopting an integrated HCM like isolved. A great HCM will lay the groundwork for other HR tools and help you obtain a holistic view of your human resources workflows. With isolved, you can simplify payroll, benefits, and employee management. 

3. The Rise of Boomerang Workers

A boomerang worker is someone who worked for your business, left, and then came back. Harvard Business Review reports that over 25% of all “new” hires are boomerang workers. 

As long as someone leaves the company in good standing, welcome them back if they decide to return. Boomerang workers bring the value of external experience coupled with a familiarity with your organization’s culture and processes. They can usually step right in and begin contributing to the company’s success. 

4. Crisis Strategy as a Necessity

The last few years have shown the importance of being prepared for the unexpected. Human resources must develop a robust crisis management plan so it can support business continuity in the event of a catastrophe. 

Work with the C-suite to identify critical HR functions and address those processes in your crisis strategy. Look behind the scope of human resources and consider how your HR team can support other key departments in the event of an emergency. The plan should include mental health support for employees during crises, contingency plans to mitigate disruptions, and clear communication protocols. 

5. Moving from Brainstorming to Decisive Action

The human resources department has become a strategic partner for the executive suite. If you want your HR team to embrace that role, it needs to move beyond brainstorming and start taking decisive action. What does that look like? You can get started by:

• Setting clear, actionable goals for each initiative
• Using data to track progress and adjust as needed
• Collaborating with other key departments and the C-suite

By focusing on becoming more accountable for the success of the organization, your HR team can make tangible contributions as a strategic asset. 

6. Fractional HR Professionals

Fractional human resources professionals work for a business either part-time or on a project-by-project basis. This outsourcing strategy can be cost-effective and efficient for small to mid-sized businesses.

AssetHR offers a variety of scalable HR outsourcing solutions for small to mid-sized clients. Our team can assist with everything from payroll admin to recruiting and benefits offerings.

 

7. Focusing on Employee Engagement 

According to Gallup, only 33% of U.S. employees were engaged in 2023. Many HR teams are investing in strategies to foster meaningful connections with workers in response to ongoing concerns about employee disengagement. 

Low engagement levels can lead to poor retention and decreased productivity. Conversely, high engagement can improve retention and morale. HR plays a key role in fixing engagement issues and creating a culture that employees are excited to be a part of. 

Level Up Your Human Resources Team With AssetHR

Ready to move your human resources department into the future? Connect with AssetHR to explore the technologies and strategies that best align with your long-term growth goals. Our consultative approach puts your human resources team in a position to thrive in 2025 while simultaneously creating a more engaging work environment.