Drawing on extensive research* and discussions with global HR leaders and practitioners, their latest report highlights how organisations can prepare for the challenges and opportunities for the year ahead.
These trends offer insight into the future of work, guiding businesses through challenges related to labour shortages, employee engagement, and the integration of technology into everyday operations.
1. Reimagining talent acquisition
Up to 85.2 million jobs globally could remain unfilled by 2030 due to talent scarcity, driven by demographic shifts, skills gaps, and evolving employee expectations. To address this, businesses should adopt skills-based hiring, focusing on candidate capabilities over traditional experience. Tapping into overlooked talent pools and investing in reskilling and upskilling initiatives for current staff will be crucial in bridging the skills gap and ensuring long-term workforce stability in 2025.
2. Unleashing engagement
The employee experience will be a key factor in retaining top talent in an increasingly competitive labour market. With more than half (53%) of the workforce considering new opportunities, businesses must focus on creating a culture of trust, recognition, and personal development. Moving beyond traditional engagement surveys, leaders should embrace continuous feedback loops to better understand and meet team needs. Personalised employee benefits and flexible work arrangements will be critical, allowing businesses to support inclusion, empowerment, and innovation; ultimately driving higher productivity and performance.
3. Unlocking productivity
As AI reshapes the workplace, successful businesses will focus on integrating AI into daily operations to enhance, not replace, human decision-making and productivity. This year, companies must move beyond simply implementing AI tools, aiming to create a collaborative environment where employees feel supported by technology. Ethical and transparent use of AI, balanced with human intuition, will be key to developing a people-centric approach that drives productivity and collaboration.
Looking ahead to the future of work
Commenting on the Megatrends, Neil Pickering, Senior Manager HR Innovation at UKG says: “The workplace in 2025 will demand not just agility but a radical rethinking of how we approach workforce challenges. With 39% of UK workers considering changing jobs and the global skills gap still presenting barriers to productivity, organisations must prioritise both upskilling their teams and adapting to shifting employee expectations.
“AI will play a transformative role, but the emphasis must remain on human-centric solutions. Technology should support people’s abilities rather than replace them, creating a culture where trust, inclusion, and engagement thrive. Companies that can successfully integrate AI while investing in skills-based hiring, reskilling, and employee wellbeing will not only overcome labour shortages but also create workplaces that attract and retain top talent. The future belongs to organisations that invest in their greatest asset – their people.”
*Research from UKG
