5 HR Trends in 2025

According to ADP, the following trends are likely to have an impact on HR in 2025: 

1. Generative AI continues to revolutionize HR, jobs and the workplace 

The key is maintaining control of its use and learning how to use it – not necessarily an easy task because of its complexity – especially for small employers. Look for increased governmental regulation/oversight in this area. 

2. Skills have emerged as a strong indicator of employee success 

This is as opposed to education and/or experience and is because of the shortage of skilled employees. Assisting employees to develop skills is becoming increasingly important. 

3. Talent is becoming more geographically dispersed 

Approximately one-third of workers are now working remotely, producing both broader talent pools and increased management challenges.  

4. Pay equity and pay transparency remain business priorities as gaps persist 

Twenty state, local and/or territorial governments have passed or are considering laws to remedy (in their perception) pay inequities. 

5. Multiple wage-and-hour developments are giving employers pause 

Overtime compensation rules and tax changes are giving rise to challenges in this area.