HR Trends for 2025: Preparing for the Future

Hello, California business owners! As we all get closer to another thriving business year, it’s very important that you stay updated on the latest and evolving HR trends in California. Human Resources continues to evolve rapidly due to technological advancements, changing workforce dynamics, and emerging business practices. 

The employee experience has always been a priority, but it has extended far beyond its traditional boundaries since the COVID-19 pandemic. According to Gallup, highly engaged employees have the ability to drive 21% greater profitability for businesses. That said, more companies are implementing programs that emphasize employee wellbeing, wellness, and work life balance. 

Examples include:

• Hybrid/flexible schedules
• Smoking cessation programs
• Mental health support
• Employee Assistance Programs (EAP)
• Health screenings
• On-site fitness facilities
• Healthier food options
• Wellness challenges
  

We are living in the peak of AI, with all industries integrating it into their systems. Artificial Intelligence (AI) and automation is being utilized more and more in HR aspects like recruitment, onboarding, employee engagement, and performance management. For instance, AI platforms can help gauge employee sentiment through surveys and feedback analysis. AI can also help in anticipating the needs and behaviors of employees, allowing employers to offer more holistic management solutions. 

However, this does not come without risks. AI handles a multitude of sensitive data. In fact, starting January 1, 2025, The California Consumer Privacy Act (CCPA) will include AI-generated systems that store or process personal information under its definition of “personal information”. This means that AI should be regulated and used with compliance.

Here are some examples of how AI is used in HR today:

The shift towards remote work has expanded immensely. Reports show that approximately 36.2 million Americans will be working remotely, which is an 87% increase from pre-pandemic levels. This also represents nearly a quarter of the U.S. workforce. 

More studies have also shown that remote workers are more productive than their in-office counterparts. It also contributes to cost-savings on both parties. Employees will save more time and money from transportation and businesses may also reduce overhead costs. 

If you’re looking into building or shifting to a remote work structure, our team can help you with everything you need to thrive, including a comprehensive plan of remote work policies and the best communication and collaboration tools to maintain productivity for your business. 

Traditionally, employers have focused on hiring candidates based on professional experience and education. However, in recent years, many have shifted toward a skills-based approach, prioritizing abilities and potential over credentials. 

Instead of seeking new hires, some employers are also investing in upskilling their existing workforce and strengthening their existing talent pool. According to the World Economic Forum's Future of Jobs Report, 50% of employees would need reskilling by 2025 due to the rising demand and implementation of automation.

DEI will remain a priority in years to come as companies strive to foster more inclusive workplaces. This involves fair pay practices, transparent promotion criteria, and support for career development. Struggling to implement a stringent company culture? Contact us today for a FREE assessment.