5 HR strategies to lead the future of work in 2025 

HR is at a pivotal moment, with AI transforming jobs, skills gaps widening, and workplace expectations evolving at speed. 

To stay ahead, HR leaders must understand and embrace the trends shaping the future of work, ensuring their organisations are ready for what’s next. 

In this article, we share 5 HR strategies and series of actionable tips for tackling these trends and helping your people navigate the road ahead. 

Focus on these trends with our practical advice to build a resilient, adaptable, and people-centred organisation. 

1. AI in the workplace: Drive change, keep humanity 

AI is changing HR and offering ways to improve recruitment, workforce management, employee development, and more.  

From automated hiring tools to predictive analytics that optimise workforce planning, AI offers interesting directions for efficiency and innovation.  

A new workplace model is emerging: the blended workforce, where AI tools act as a torch, shining new ways to tackle problems for employees looking to drive productivity. 

However, its success hinges on a critical balance—making the best of tech while maintaining trust, ethical governance, and a people-first approach. 

Key actions HR leaders must take 

Build trust through ethical AI governance 

• Use diverse, representative datasets to avoid bias. AI systems are only as good as the data that trains them. 
• Put in place frameworks for fairness, transparency, and compliance. 
• Make sure employees and stakeholders understand how and why AI systems arrive at decisions.  
• Ensure this explainability (why AI decisions are made) in sensitive areas such as recruitment or redundancy. 

Maintain human oversight 

• Critical HR decisions—such as hiring, redundancy selection, and promotions—benefit from human oversight to ensure fairness, accountability and context.  
• Humans can help ensure fairness and accountability, especially when decisions face legal or ethical scrutiny. 

Adopt AI for “good work” 

• AI should augment, not replace, human work. 
• AI should improve roles by eliminating repetitive tasks, freeing time for meaningful, human-centred work. 
• Prioritise roles that are meaningful and people centred. 
• Use AI to create equitable opportunities, not deepen inequalities—especially in hiring or performance evaluations. 

Prepare for regulation 

• Stay informed on global legislation such as the EU AI Bill as well as UK AI governance resources. 
• Take an active role in shaping ethical AI practices by developing clear guidelines and supporting training with AI tools. 
• Work with legal and IT teams to ensure transparency, governance and fairness. 

Prepare for the blended workforce 

• Invest in essential human skills such as adaptability, resilience, and critical thinking. 
• Prioritise training programmes that empower employees to thrive alongside AI. 
• Ensure seamless integration of AI tools into workflows, creating environments where humans and AI complement each other’s strengths. 

2. Skills and productivity: Solve the growth puzzle 

Skills shortages, which result in unfilled vacancies and productivity losses, are estimated to cost the UK economy £6.3 billion annually. 

The workforce is at a critical crossroads. As tech accelerates and job roles evolve, skills gaps continue to widen.  

According to the World Economic Forum’s Future of Jobs Report, 60% of the workforce will require reskilling or upskilling to remain relevant over the next five years. 

Unlocking performance requires a laser focus on developing people and removing systemic barriers to growth. 

Without proactive skills development, you risk falling behind in innovation and competitiveness. 

You must take a strategic, long-term approach to upskilling rather than relying on short-term fixes to bridge capability gaps. 

Line managers are the backbone of work productivity. They set the tone for teams, identify barriers to performance, and nurture growth.  

Yet, many line managers are undertrained for this pivotal role, lacking the tools and skills to lead their teams effectively. 

Key actions HR leaders can take 

Close critical skills gaps 

• Invest in targeted reskilling and upskilling programmes. 
• Continually evaluate workforce skills to identify gaps and anticipate future needs. 
• Offer training programmes aligned with both employee aspirations and business goals. 

Empower line managers 

• Equip managers to support growth mindsets and provide psychologically safe environments. 
• Train them to hold open, adult-to-adult conversations about development and wellbeing. 
• Build a culture where continuous learning is the norm, encouraging employees to change and take new opportunities. 

Address productivity barriers 

• Put in place tools and policies to prevent burnout, ensuring manageable and sustainable workloads. 
• Empower teams with flexibility—whether in schedules, remote work options, or adaptive working environments—to boost focus and output. 

Track return on investment on skills initiatives 

• Measure progress to ensure tangible performance improvements. 

3. Employee experience: Beyond yoga and fruit bowls 

Employee experience isn’t only about perks such as free snacks, yoga classes, or flashy office spaces.  

While those can improve the workplace environment, they don’t address the deeper needs of today’s workforce.  

In the UK, Hays research highlights that employees are most engaged and productive when their roles align with a clear organisational mission and purpose.  

Providing meaningful benefits—such as flexible working arrangements and mental health resources—supports employees at work and in their broader lives.  

Relieving financial stress is a critical area that directly impacts employee wellbeing and productivity.  

Research highlights that financial insecurity is strongly linked to poor mental and physical health, particularly among lower-income workers. 

Creating meaningful employee experiences needs a focus on engagement, value, and holistic support that makes people feel seen, heard, and motivated to perform their best. 

And what are the benefits of a solid employee experience?

• A strong employee experience is a strategic imperative if you want to see higher productivity where engaged employees will outperform disengaged employees. 
• Employees who feel valued are far less likely to leave, reducing costly turnover. 
• Delivering a positive, tailored, consistent employee experience is critical to attracting and retaining top talent. 

Key actions HR leaders can take 

Design impactful benefits 

• Consider whether empowering people to balance personal and professional responsibilities through adaptable working hours could work for your organisation. 
• Consider offering hybrid and remote work to accommodate diverse lifestyles and preferences. 
• Provide tools such as salary-linked savings, financial literacy training, and personalised benefits to alleviate financial stress among employees. 
• Focus on benefits that genuinely improve employees’ lives, such as childcare support, mental health resources, or reskilling opportunities. 

Support through line managers 

• Train managers to prioritise flexibility, autonomy, and trust. Encourage flexible work, manageable workloads, and healthy boundaries. 
• Foster psychological safety to encourage honest conversations about workloads and wellbeing. 
• Equip managers with the skills to deliver open, constructive development conversations focusing on employee skill sets, aspirations, and opportunities. 

Move beyond perks 

• Reassess wellness initiatives to ensure they deliver genuine value and return on investment. 
• Consider offering comprehensive support, including stress management resources, burnout prevention initiatives, and open conversations about mental health beyond basic counselling. 

4. Navigating change: Lead through uncertainty 

From rapid tech advancements and shifting workforce expectations to legislative changes, modern business is in a constant state of transformation.  

Part of the HR function’s role is to support organisations in navigating uncertainty, reducing disruption, and building workforce resilience as much as possible. Retaining talent, maintaining growth, and remaining competitive will undoubtedly help. 

Again, remember that your line managers will have a significant role in helping employees adapt to change. 

As the bridge between leadership and teams, they must be equipped to lead with clarity, empathy, and confidence. 

Key actions HR leaders can take 

Equip line managers to lead change 

• Equip line managers with training and tools to deliver consistent, empathetic communication while supporting team resilience and engagement. 
• Encourage managers to communicate, support morale, and celebrate small wins. 
• Give managers the power to proactively address employee concerns, offer flexibility, and provide tailored work solutions. 

Prioritise communication 

• Keep employees informed about key organisational developments to prevent speculation and misinformation. 
• Hold regular company meetings, Q&A sessions, and feedback surveys to ensure inclusive and transparent communication. 

Stay agile with legislation 

• Monitor and adapt to legislation changes such as the outcomes of the UK Employment Rights Bill to remain compliant and supportive. 
• Work closely with legal and compliance teams to adapt processes, policies, and contracts accordingly. 
• Provide clear guidance on new regulations to ensure understanding and compliance. 

5. Leading responsibly: Ethical and inclusive leadership 

Today, ethical leadership is essential.  

Leaders must balance delivering business results with their duty of care to employees—ensuring fairness, inclusion, and wellbeing.  

This isn’t just the right thing to do; it’s good for business. Prioritising diverse recruitment pipelines can significantly enhance business performance.  

Research shows that companies with higher gender diversity are 25% more likely to achieve above-average profitability. 

Diverse teams drive innovation, and employees who feel supported are more engaged, productive, and loyal.  

As tech advancements and workforce expectations evolve, ethical leadership helps organisations stay resilient, create trust, and build the skills needed for future success. 

Make people-centred decisions 

When making changes—such as job restructuring or technology adoption—consider the human impact and take measures to mitigate disruption.  

This builds trust and employee engagement, and reduces resistance to change, ensuring smoother transitions and better long-term outcomes. 

Champion transparency 

Prioritise clear, honest communication. Being transparent about challenges, decisions, and outcomes builds trust and credibility with your employees and stakeholders. 

Address external pressures and don’t backslide 

Global issues ask for an agile leadership that is fair and responsible. 

Economic uncertainty in recent years has deprioritised many diversity, equity, and inclusion (DEI) initiatives, with some organisations scaling back spending and sidelining promises made during times of stability. 

Rebuilding trust 

Recommit to DEI as a non-negotiable priority, not just during stable times but especially in moments of change and challenge. 

Ethical leadership is about consistent action, ensuring DEI is embedded in decision-making processes, policies, and culture and not treated as a standalone initiative. 

Key actions HR leaders can take 

Embed DEI into leadership 

• Train leaders to prioritise DEI as a core leadership skill. Make equity, diversity and inclusion integral to decision-making and team management.
• Link performance reviews to DEI progress to keep leaders focused on meaningful change. 
• Match the metrics with qualitative assessments and long-term goals to avoid superficial behaviours and ensure they reflect your organisation’s values. 

Balance business needs with fairness 

• Create policies that balance performance with employee wellbeing.  
• Review hiring processes to ensure they align with DEI policies and promote equity at every stage.  
• Evaluate job descriptions, application procedures, and interview formats to identify and eliminate potential biases. 
• Train hiring managers on unconscious bias and equitable decision-making.  
• Provide tools and resources to help managers make fair, consistent, and informed hiring decisions. 
• Audit progression and restructuring practices to confirm they are transparent, merit-based, and bias-free.  
• Review promotion criteria, evaluations, and redundancy processes to ensure fairness and inclusion. 

Ensure ethical transitions 

• Work with leaders to create people-focused strategies during AI and role changes to build trust and maintain morale.  

Redesign recruitment for fairness 

• Audit your hiring practices to identify and remove bias and ensure they are transparent, equitable, and inclusive. 
• Prioritise diverse recruitment pipelines to drive long-term representation. 

Foster trust through transparency 

• Set clear expectations for ethical leadership behaviours. 
• Work with your organisation’s leaders to develop a framework for ethical leadership they can own and champion. 
• Foster open communication to build trust and hold leadership accountable. 
• Implement tools such as employee surveys, which allow individuals to share feedback anonymously. 
• Use 360-degree feedback systems to create a structured approach for evaluating leaders from multiple perspectives. 

Final thoughts 

The workplace of 2025 presents a powerful opportunity. 

By ethically embracing AI, addressing the skills gap, and prioritising employee experience, you can build something that keeps people at the heart of every decision. 

The future of work is here, but it’s still about people first.  

“Studies have shown that employees want managers who are engaged, who are coaches versus supervisors,” says Marjorie Powell, chief human resource officer at AARP. 

Start by focusing on one key area—whether embedding DEI, managing AI, or enhancing employee experience—and build momentum toward a thriving, people-first workplace.