HR Trends for 2025

In 1849 French writer Jean-Baptiste Alphonse Karr said, “plus ça change, plus c’est la même chose” which translates to “the more things change, the more they stay the same.” The same may be said about HR trends for 2025 – they aren’t that different from the last few years. 

Hiring and Retaining Good Employees Will Continue to Be Difficult

After a period of high unemployment during the COVID pandemic (14.8%), today fewer people are looking for work (4.1%). The length of time that employees stay with one company has also decreased, from an average tenure of 5 years to 3.9 years in 2024. According to career.io, “The average tenure of a Millennial in the workplace is 2.75 years, and Gen Z has an average tenure of 2 years and 3 months.” 

Employees Still Want Flexible Work Schedules and Opportunities to Work Remotely

Unless the job requires in-person, direct customer service that can only be performed during traditional business hours (8 a.m. to 5 p.m.), employers need to re-think how and where employees perform job duties. To balance this freedom, the company needs strong policies and procedures to control and monitor the employee’s work.

Compensation and Benefits Still Need to Be Competitive Within Your Community and Industry

In November, a federal court struck down the 2024 Overtime Rule which would have increased the salary threshold for the Fair Labor Standards Act (FLSA) overtime exemption to $58,656 effective January 1, 2025. This means that the salary threshold for overtime has been rolled back to $35,568 and that any employee making less than this must be paid overtime whenever they work more than 40 hours in a workweek.

However, the Department of Labor has appealed this ruling so employers need to monitor this situation closely. In the meantime, businesses need to consider whether they are paying managers, supervisors and “professionals” (who meet the FLSA definition) fairly when they are required to work in excess of 40 hours during a workweek.

Diversity, Equity and Inclusion (DEI) Will Still Be Important in the Workplace

…Even if these initiatives are rolled back by the federal government. According to USA Facts, “The nation’s non-white population has almost doubled over the past four decades, growing from about 24% of the population in 1990 to over 40% in 2023.” This means that your workforce is also becoming, or going to become, more diverse, bringing new ideas and skills to your business. Pay equity means that all people with the same skills and experience should be paid the same. Inclusiveness means revising your policies to reflect the different cultures represented by your employees.

Artificial Intelligence (AI) Is Changing the Workplace

According to ProsPlusCons, AI can increase efficiency and productivity, reduce costs through automation, improve customer service, streamline the recruiting and hiring process, increase workplace safety, and much more. It’s time to rethink how your company operates and consider ways that AI can help with profitability.

An HR Professional Can Help You With All of Your Human Resource Needs

From hiring the right employees, running background checks, creating employee handbooks that include anti-harassment policies and procedures, and so much more, Next Level Solutions can work with you to provide the services that you need to run your business.

For more information about our accounting and human resource services, contact Next Level Solutions at info@nextlevelsol.net or (225) 330-8347.