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The HR 2025 Outlook

Bridging Gaps, Building Futures

A roadmap for HR leaders to embrace AI, skills-focused hiring, and multigenerational teams, balancing technology with human connection to shape agile and inclusive workplaces.

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Driving change: HR Outlook 2025 unveiled


The workplace is evolving, that’s a fact. HR leaders are navigating a dynamic environment shaped by technological breakthroughs, evolving employee expectations, and a workforce that spans multiple generations.

Generative AI is sparking interest for its potential to reshape workflows, yet many leaders remain cautious, citing concerns about ethics, transparency, and workforce preparedness. Meanwhile, the shift toward skills-based hiring reflects the growing emphasis on adaptability and creativity over traditional qualifications. Adding to this complexity is the challenge of managing multigenerational teams, where leaders must harmonize differing priorities and work styles. 

Based on extensive research—including interviews with global senior HR leaders and millions of employee survey insights — EngageRocket HR Outlook 2025 examines these key trends reshaping the world of work. The report provides clear strategies to enable organizations to adopt AI responsibly, equip leaders to manage generational diversity effectively, and address the shifting demands of modern workplaces. 

Preview of insights from the HR 2025 Outlook

 

Number 1-1

While employees ride the AI hype, leaders are more cautious on organisation-wide adoption

  • Adoption Gap: While 75% of global knowledge workers use AI, leaders lacks a plan and vision to go from individual impact to applying AI to the bottom line. They hesitate due to concerns about ethics, transparency, ROI, and workforce impact. (Microsoft, 2024)
  • HR’s Role: HR must lead AI adoption through proactive change management, aligning innovation with ethical standards and workforce resilience. 

Number 2

Focus on skills as they evolve faster than credentials in our rapidly changing environment 

  • Skills Over Credentials: Companies are prioritizing skills like AI proficiency and adaptability over traditional degrees to meet rapidly evolving workplace demands (Randstad, 2024).​
  • Dynamic Workforce Development: Organizations are equipping employees with both technical and human-centric skills, ensuring readiness for emerging technologies and leadership challenges.
  • Future-Ready Hiring: Approaches like “fit-for-role” assessments align capabilities with future needs, focusing on adaptability and strategic alignment rather than past performance.

Number 3

Empowering Gen X leaders (43 to 58 years old in 2024) to lead a multigenerational workforce 

  • Gen X as Bridging Leaders: Positioned between Gen Z and Baby Boomers, Gen X leaders are pivotal in addressing generational expectations and fostering collaboration across a multigenerational workforce (Gartner, 2024).​
  • Tailored Leadership Development: Organizations are investing in mentorship and training programs to close leadership gaps, enable cross-generational learning, and align leadership strategies with business goals (PwC, 2024).​
  • Technology and Inclusion: Leveraging AI and automation helps leaders focus on strategic planning and team development, ensuring an adaptive and inclusive approach to future workforce dynamics ​

 

Hear what industry leaders say

Dorothy Yiu-2

“2025 marks a turning point where HR is no longer just adapting to change — it’s driving it. With GenAI redefining workflows, skills becoming the new currency, and generational diversity shaping workplace dynamics, HR leaders are uniquely positioned to lead this transformation."

Dorothy Yiu
CEO & Co-founder at EngageRocket

Vanessa Teo

"Another important aspect of diversity is the generational gaps. How do we get people to blend in? Being the older one who is the expert in Gen AI shouldn’t be that unusual. At the same time, learning from a younger person about something they know better than I do should also not be unusual. So how do we create that?"

Dr. Fermin Diez
C-Suite Leader, Board Director, HR Consultant, Professor, Author

Vanessa Teo

"When we think about the future of work, helping employees become future-ready is essential. While technical skills are important, the human-centric skills—like communication, coaching, and leadership — will never go away."

Vanessa Teo
Senior Vice President, Global Human Resources

Mask Group (10)

"AI as a means to enhance output by a seasoned practitioner is a fantastic use, but in the hands of someone inexperienced, it could be dangerous. Leaders need to understand both its potential and its limitations."

Ankur Sawhney
Group People & Culture Director, 7-Eleven, DFI Retail Group

Jayaram Philkana Bio

“It represents opportunities for humans to then figure out how do we add value. Every single technology shift that has happened in the past 20 to 25 years, which was supposed to be a job killer, actually shifted the skills we need rather than eliminating jobs entirely.”

 

Jayaram Philkana
Chief Human Resources Officer, Indorama

Dr. Yvonne Tan

"By embracing ethical AI adoption, focusing on evolving skills, and bridging a diverse workforce, we can transform challenges into strategic advantages. It’s about making deliberate choices that empowers employees which will ultimately drive growth."

 

Dr. Yvonne Tan
 Head of Product & People Science at EngageRocket

Get your copy of The HR 2025 Outlook

 

Page 1  Page 2

In this guide, you will find:

  • The driving forces behind the evolution of today’s workplace, including technological breakthroughs and multigenerational dynamics.
  • The key trends reshaping work, from generative AI and skills-based hiring to the growing emphasis on adaptability and creativity.
  • Action recommendations for HR leaders to adapt and succeed in an evolving workplace.

 

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