As 2025 comes to a close, it’s hard not to look back and notice just how much the world of HR has been in motion.
This year revealed an incredible amount of resilience, creativity, and heart across the profession. Many of you worked quietly behind the scenes, repairing cultures that were fraying at the edges and advocating for the people who make your organizations what they are.
In many ways, 2025 didn’t just expose where workplaces struggled, it highlighted how deeply HR cares about building environments where people can genuinely thrive.
HR in 2025
Below is a look at the major themes that shaped HR in 2025, and what they mean for the year ahead.
1. AI Transformed Work (And Will Continue To)
AI didn’t just evolve this year — it traveled at light speed. As AI’s abilities grew rapidly, HR was forced to rapidly adopt new tools to speed up hiring, simplify onboarding, support performance management, and use data in smarter ways. And, depending on the industry and the company, some workforces were pushed into using AI tools – or were laid off as AI took over their jobs.
Per usual, AI was another initiative HR was thrust into without having the right information or decision-making power. According to HR Dive, 60% of executives think HR was included early in automation decisions, but only 30% of HR professionals agree.
That gap is more than a miscommunication. That means HR was asked to champion tools they didn’t choose, prepare employees for changes they didn’t fully understand, and manage culture and change management implications they didn’t get a chance to plan for (or likely execute well).
Problems With AI
New risks also emerged as, shall we say, unapproved AI adoption skyrocketed. Nearly one-third of users admit to entering sensitive information into AI tools like ChatGPT, raising serious concerns about data privacy and security, issues HR is often on the front lines of.
Meanwhile, McKinsey reports that the future of work is becoming agentic – where AI isn’t just a tool but a “digital teammate” integrated directly into workflows and processes and managed as part of the team.
To do this well, digital teammates should have KPIs and performance checks, and their manager should continue to think about how they can grow and evolve into serving the team, just like managers should think about their team members.
So HR isn’t just navigating new technology. HR is navigating:
- rapid adoption
- misaligned decision-making
- employee anxiety
- data risks, and
- a workplace where AI now plays an active role.
That’s a lot to take on and a lot of pressure for teams who are expected to lead confidently while still catching up.
TIP: AI isn’t slowing down, and HR can’t afford to take a back seat. Step into the driver’s seat by setting clear guidelines around ethics, privacy, job redesign, and cultural impact.
2. Employee Mental Health and Wellbeing Was Redefined
Employee wellbeing is no longer a perk, a program, or a feel-good initiative when there’s a little extra money to spend. It’s a core business metric, and organizations can’t afford to treat it otherwise.
According to the Mental Health at Work report, half of employees are experiencing moderate to severe burnout, depression, or anxiety. That means one out of every two people in your organization may be struggling in ways that directly impact their performance, engagement, and ability to thrive.
The demand for support isn’t slowing down, either. McKinsey reports that 84% of U.S. consumers now prioritize wellness, with younger generations pushing the trend forward. In other words, the next era of work is one where employees expect healthier, more human-centered workplaces, and they’re vocal about it.
Mental health and wellbeing are being redefined as the everyday behaviors employees experience, the expectations set, the recognition given, the communication modeled, and the leadership practiced. Mental health and wellbeing are a part of company culture, inclusivity, engagement, and employee experience.
Tip: Take a look at your systems and see where your organization is facilitating burnout with heavy workloads, inefficiencies, or toxic behavior from either clients or leaders, and address those root causes immediately.
3. DEI Shifted, Sputtered, and Survived
Another major shift we saw this year was the evolution of DEI. The conversation didn’t disappear but it definitely changed tone.
In fact, 1 in 5 companies eliminated DEI programs following political shifts, and many others quietly rebranded their efforts. Instead of “DEI,” organizations began leaning into words like culture, well-being, psychological safety, and belonging.
Even the Society for Human Resources Management (SHRM) dropped “equity” in 2024 for reasons no one seems to really understand. Some speculate it has to do with Taylor’s connection to Trump as he served in Trump’s first administration, and the recent lawsuits for discrimination aren’t helping Taylor’s reputation any. SHRM also reversed D&I to I&D, stating that focusing on inclusion will address the shortcomings of current D&I programs.
DEI Terminologies
While it does seem like organizations are stepping away from DEI, the evolution of terminology seems to be the more common option. Regardless of the label, the core human needs DEI addresses are still very much present. Employees still want and need, and employers can still provide the opportunity to:
- Feel safe speaking up
- Feel included and respected
- Experience belonging and feeling valued
- Be treated with fairness and dignity
- Offer flexible work schedules to meet various needs
- Support underrepresented groups with mentoring and coaching
- Facilitate discussions for and with people who have something to say about their experiences
These needs aren’t political, they’re universal. And they’re foundational to trust, engagement, and performance. So while the terminology may be shifting, the responsibility to create equitable, safe environments remains as important as ever given that younger generations will require it.
(If they’ve made one thing clear, they will not tolerate the work environment of the past, where work is done in exchange for pay. Those days are over. Work is done in exchange for pay, freedom, and growth.)
Tip: Even if you can’t use “dirty words” like “equity” you can still strengthen your organizational systems and expectations that promote fairness and belonging, and equip employees with practical skills to support respectful, civil workplaces.
Get a Deeper Dive. Join Our Free Webinar
These are just some of the major shifts HR leaders navigated in 2025. The reality is that the landscape is evolving quickly, and there are many more trends shaping how organizations hire, engage, support, and retain their people.
If you want to explore these insights in more depth and get practical strategies you can put into action right away, we’d love to have you join us for our upcoming free webinar, Company Culture: Addressing Current and Future Trends, on January 28th at 10am PT.
During this session, we’ll break down even more trends from 2025, look ahead at what’s coming in 2026, and discuss what HR and workplace culture leaders can actually do to respond effectively.
You’ll walk away with fresh ideas, actionable tools, and a clearer sense of how to lead your organization through whatever comes next, and it’s worth 1 SHRM PDC!
Where We Go From Here
Culture doesn’t happen by accident, and it certainly doesn’t happen overnight. It takes intention, structure, and the right partners.
As you prepare for the year ahead, you don’t have to navigate these challenges alone. This is exactly where our team comes in.
Whether you’re looking to strengthen civility, elevate leadership skills, build psychologically safe teams, or rethink culture from the inside out, our team is here to help you turn these priorities into real, sustainable change.
Together, we can create workplaces where people and organizations truly thrive.
