When we look back at the world of work a year from now, what will we wish we had anticipated? Without a doubt, the year ahead will bring new technology, evolving employee expectations, and the ongoing consequences of political and global events. For my team and I, our mission is to contribute to the growth of remarkable organizations. Remarkable organizations by definition, (we love a good operational definition) are exceptional and worthy of note. They demonstrate that by earning the attention and trust of their stakeholders, both within the organization (employees) and beyond (customers, shareholders, the community). And that happens through hiring and developing the right people and building a strong and thriving culture.
Now, many organizations capture attention at one moment in time, but remaining remarkable takes intention and intense effort. That's where we contribute: looking ahead to build resonant solutions and provide guidance to foster the team and culture that sustains the remarkable.
The year ahead presents a broad range of challenges and opportunities, ranging from the highly technical to the most human. I'll share how AI is shaking up jobs and hiring, the growing challenge of employee disengagement, the increasing need for skill development and frequently overlooked soft skills, childcare and flexibility, and the move towards human-centric work design,. Along the way, I'll sprinkle in the science of industrial-organizational psychology to give you a well-rounded understanding of these trends. I've also included relevant videos from the past couple of years.
1. AI Evolution in Jobs and Hiring
No surprise here, artificial intelligence continues to transform the nature of work and talent acquisition in particular. This will influence both who and how we hire and how we deploy proven systems like structured interviewing and hiring assessment tools.
Early signals point to a significant reduction in job demand for positions ripe for automation. AI continues to transform roles and tasks that we long thought required human input, from writing and customer service to coding, graphic design, and engineering. Anyone who uses these tools, (see me emphatically raising my hand here) can point to clear opportunities for improvement, but AI has evolved to become a meaningful partner in idea generation as well as the completion of route tasks.
We can't overlook the influence of artificial intelligence technologies on employee attitudes. About a third of the workforce are concerned that their jobs could be eliminated, or at least significantly changed, because of AI technology. This represents a need for leadership to step up to address these concerns, and also an opportunity to transform concern into employee motivation to grow and embrace the change this new technology brings.
Within people and culture, AI will continue to transform not just how we work but who we work with. This year saw an even stronger contribution of AI to recruitment that we'll continue to see in the year ahead. Conversational chatbots gained ground and AI-driven tools, like agents, are now core to recruitment processes, from parsing resumes to highlighting candidates for job openings using skills-based criteria. This unites AI with the movement to shift away from cursory judgements based on credentials and years of experience and supports a focus on finding candidates with the greatest skill for the position. We've also seen AI recruiting agents increase the size and strength of applicant pools, providing opportunity to a greater proportion of the workforce. In 2025 we expect to see AI accelerating skill-based promotions and internal hiring. On the flip side, I expect we'll see continued pushback and questions about the validity and bias of AI assisting tools in hiring. This delivers much needed support for organizations needing to fill gaps with their own talent and apply skill-based decision-making to internal growth.
Connect with us to learn how we apply AI and tech to assessments and hiring.
Competencies and Job Redesign
Lastly, the investment we need to make in learning and development so the workforce can work effectively alongside AI technology easily gets lost in the conversation. If we're automating routine work we expect to see a rise in job redesign, a re-engineering of competencies, and a focus on how we can reskill to prepare for a future that's different than what we expected five years ago.
By automating routine tasks, employees can focus on more strategic and creative work.
This could lead to a much-needed increase in engagement and meaningful work for many touched by AI. For instance, AI scribes are allowing healthcare providers to devote their full attention to patients, rather than being distracted by computers and lessening the charting load they carry. Even in the business world, AI note-taking during meetings can foster deeper connections and relieve employees of burdensome administrative tasks.
But this means we need to prepare people in these roles with the knowledge and direction to deliver. This transformation requires a significant commitment to upskilling and reskilling employees to ensure they can work effectively alongside AI technologies. The change management and skills that AI transformation requires leads to our next key trend for year ahead: upskilling.
2. Greater focus on upskilling with an intense focus on soft skills.
By 2027, businesses predict that nearly half of workers’ core skills will be disrupted (World Economic Forum). While AI brings a lot of of this disruption, other forces—like regulation and an aging workforce and demographic shifts—will account for half of that change. That may mean both emerging and declining jobs and core skill sets.
Organizations capable of driving both the strength of the most technical skill sets, as well as the 'softest', will excel in the year ahead. Core technical skills like machine learning, and data analytics are clearly needed, as well as multi-domain skill sets like digital marketing, sales and business development, team leadership, and product management. Regardless of the industry, self-management and interpersonal skills (maybe not so aptly labeled 'soft' given how challenging they are to acquire) like emotional intelligence, adaptability, and communication equally support success in the years before us. The potential to consistently demonstrate curiosity and creativity, resilience, and influence provide the fuel needed for change management, innovation, and surviving in a competitive market. We see this as we work with organizations regularly not only to hire for these strengths, but also to support and grow them within their teams.
Investing in training that builds the interconnected constellations of technical and soft skills required while supporting learning and growth across a series of touchpoints over time will meet this challenge. In truth, we often don't require more training, but more reminders and support so we can bring what we learned into practice.
One example is the culture-driven employee and leadership development programs we've built for organizations. Soft and technical skills are grounded on cultural values and beliefs. Participants are often placed in groups based upon shared strengths and meet and learn together over time. Training over time is key to overcome the well-known challenges of behavior change and that we lose over two thirds of what we learn within just two days.
This intentional and ongoing approach to skill development ensures that employees are well-rounded and capable of navigating the unpredictable. At Corvirtus, we've been helping organizations design and implement training programs that focus on developing skills critical to achieving their mission and and vision.
3. Managing the Great Detachment especially as the labor market softens.
Quiet quitting. Bare minimum Mondays. It's not new that earning employee engagement is tough. I chat more about this in the video below (and talk about getting hiring interviews right, which can cut disengagement stemming from poor job-and-culture fit off before it starts).
There's a chill hitting the white-collar job market now targeting one group of applicants with particular force: college-educated workers, especially new graduates starting out in the workforce. Fewer professionals feel emboldened to change jobs and the lack of turnover is stalling hiring even more as companies rethink their talent needs after hiring sprees the last few years and while managing an uncertain climate.
Hiring for roles that usually require a bachelor’s degree has dropped below 2019 rates in recent months. The drop is steeper for 20-somethings, who are running into a bottleneck of entry-level openings as more established professionals stay put in the jobs they have.
So why does this matter for engagement?
More of workforce is feels stuck in the jobs they have. As the labor market cools more of the workforce is going to feel perceive a lack of options outside of current role making disengagement even more pernicious for performance and results. This lack of options drives the "Great Detachment" and the coffee badging, quiet vacationing, and then next quippy behavior we're about to hear about.
To combat disengagement, organizations need to focus on creating a positive work environment that fosters engagement and motivation. We've evolved beyond quiet quitting to an era where much of the workforce thinks critically about the value proposition of their employer. We're more open about burnout, potential lack of career growth opportunities, and inadequate recognition and rewards. This mandates offering new ways of thinking about flexible work arrangements, providing opportunities for career development, and recognizing and rewarding employees' contributions. At Corvirtus, we've been working with clients to first listen and gather data, and then implement engagement strategies that address these issues and create a motivated and productive workforce.
We're also collaborating with leaders to understand the competencies and qualities that create the potential to be engaged and measuring those during the hiring process. Do you need leaders who are willing to travel frequently? Act like owners in a start-up restaurant group geographically dispersed across a number of regions? Consistently deliver proactive service to clients or guests that's distinct from your competition? These core elements of what make your culture and strategy unique should be measured in your hiring process. In this way we expect intentionally designed hiring assessment tools will enhance the both the candidate experience and the ability of organizations to build a workforce with a strong potential for commitment, engagement, and achieving its own vision of remarkable.
4. Human-Centric Work Design
The shift towards human-centric work design is another key force shaping the workforce and organizational decision-making in 2025. We talk about our well-being, and that of those around us, much more than we did just five years ago. Take, for example, that a quarter of employees today report having regular conversations with leadership about their well-being. Most of the workforce would consider how a potential employer prioritizes the psychological well-being of their employees when considering an opportunity.
While it doesn't shine through in every moment, the workforce demands more of organizations in delivering a work environment and employee experience that supports, and doesn't restrict, our well-being and potential to flourish.
This means in the years ahead we'll see continued focus, and competitive advantage, for organizations taking data-driven steps to build employee well-being, engagement, and productivity. Human-centric work design involves rethinking traditional work structures and practices to create a more flexible, and even hospitality-focused, approach to the work environment.
RTO and Hybrid: Duck Below Water
We know one-size-fits all policies for RTO simply aren't boosting the bottom line. In fact, we expect the shifts in direction around return-to-office and decisions around hybrid and remote work might resemble a duck below water this year. What I mean is that in-office/hybrid/remote percentages will likely stay about the same despite Fortune 100 companies gaining news media attention from time to time.
What we can look forward to is a tailored approach to work arrangements, particularly by the time we hit mid-2025. Leadership regret around RTO policies is high, not surprising given how it's fallen financially short. Now, instead of forcing everyone into the same policy, we'll see more organizations tailoring in-person expectations to the unique needs of the individual. Ultimately, the human-centered focus the workforce will favor the needs of individual employees, particularly for strong performers or those with skill sets in high demand. A tailored hybrid approach gives employees the autonomy and voice to work with their employer to determine what's mutually beneficial for them and the organization. This balances flexibility to work from home, prioritizes time and financial savings while still valuing the health of the organization and maintaining opportunities for in-person collaboration that both leaders and their teams value.
Team Lunches and Childcare (not necessarily in that order!)
A human-centered focus will shape every employee touchpoint with the goal of removing obstacles blocking both productivity as well as human flourishing. Childcare coming into the picture should come as no surprise. It continues to be a significant factor affecting workforce participation, particularly for working parents with pre-school age children. It's also been a more frequent point of discussion by both politicians, the media, and major corporations.
The need for flexible and affordable childcare solutions has never been greater with a quarter of working mothers and 18 percent of working fathers actively considering part-time options or opting out of the workforce because of care concerns. Given the urgency parents are feeling, and the high percentages reconsidering their current employer, we expect this challenge to take up even greater energy this year and for the years that follow. Organizations offering support and flexibility will hold an even more meaningful competitive advantage for recruiting and retaining their workforce.
Concerns about remote and hybrid work are often peppered with the need to maximize opportunities for face-to-face team collaboration. I expect a focus on how to attract people back to the office and make the most of that time for collaboration, connection, and even just plain fun to gain attention this year. As more employers whip out the RTO card, they're betting simple moments of connection, like lunches, will lure workers back and rekindle that warm, fuzzy community vibe. Sure, some might attempt to garner engagement with free or discounted chow, but the real master plan is to whip up a routine that unites everyone. Mealtimes are a low-hanging dessert to make that happen.
Eating together is tied to increases in acceptance, trust, sense of community and even greater enjoyment. Maximizing moments these moments where we can come together as people first is a brilliant example of human-centered design as teams that share meals are more likely to perform, live their intended cultures, and stay together long-term. Not surprisingly, we're seeing a rise in start-ups and food service companies offering corporate services. Similarly, for largely hybrid and remote teams I expect that we'll see a strong focus on maximizing the same kind of moments. To use our team as an example, we all look forward to our weekly one-hour coffee-break on Zoom. I expect we'll continue to see a rise in services and attention given to methods to achieve the same connection through tech.
Accessibility and DEI backlash
A human-centered approach also means we'll see greater intensity in removing barriers and improving the employee experience for people with disabilities. Take human-centered innovations like hands-free computer operations and screen readers for the visually impaired. Greater adoption of these technologies could reshape how individuals with disabilities contribute to the workforce. This shift isn't just beneficial for impacted employees; it can lead to significant productivity gains for businesses, too. Excluding people with disabilities from the workforce can cost up to 7% of a country’s GDP, according to the World Economic Forum's 2023 report on AI and disability inclusion.
I won't ignore the elephant in the room. Recent months saw many companies—including Walmart, Lowe’s, Target, Ford, John Deere, Facebook, Harley Davidson, Jack Daniels, and Toyota—scale back DEI programs in response to activism and a new presidential administration. Anti-DEI sentiment appears to be reaching some employees, too. In a November 2024 Pew study, 23% of workers described focusing on DEI as “a bad thing” compared with 16% in 2023. Just over half of employees saw DEI as a "good thing" (52%). When we're sitting outside of our own organization and looking at business at large, and as a consumer, the majority (67%) believe it is either “very” or “somewhat” important for companies to speak out on diversity and inclusion in the workforce.
At the start of his term, President Donald Trump issued an executive order that significantly impacted DEI initiatives within the federal government which will likely exert a further chilling effect in the private sector. This order aimed to eliminate DEI programs across federal agencies and contractors, emphasizing a return to merit-based hiring and promotions.
We can hope the conversations stemming from this swing lead to stronger focus on finding agreement and building commitment across both sides. Last year we shared the value of defined competencies integrated across the organization for increasing fairness, shared commitment and belonging. Foundational work like defining and building enthusiasm around shared definitions of performance and culture can bring leaders and teams on of all perspectives of this debate together. Pushback to DEI in pursuit of pure merit may encourage companies to question and evaluate how hiring and promotion systems are valid indicators of merit and potential.
When both sides engage with one another assumptions are scrutinized and we refine and build stronger systems. This leads to addressing real concerns, not only perceived ones. The challenge lies in effectively communicating and broadcasting the true benefits of workplaces grounded in opportunity and belonging: a stronger employee value proposition and culture, increased innovation, and overall business success.
5. Evidence-Based Talent Management
While you could easily argue I'm biased, it seems clear that industrial-organizational psychology, data science, and related disciplines, will become an even stronger and necessary partner to organizations.
Employee and stakeholder attitudes and behaviors and determine the success or failure, of every decision we covered. Artificial intelligence cannot reach its intended results without change management; and we'll fall short of reaching our intended results without a shared vision and awareness of how technology influences the experience of each stakeholder group. Engagement, upskilling, and constructing a human-centered work environment, will struggle without maximizing information gathering to target barriers and act on hidden blind spots.
By adopting a planned and thoughtful approach to comprehensively understanding the multifaceted needs of your workforce, the culture, and the strategic objectives that are needed to drive business success, we can craft and implement evidence-based strategies that are precisely tuned to enhance various aspects of the workplace.
This includes boosting employee engagement by fostering a sense of belonging and purpose, increasing productivity through human-centered design, and promoting overall well-being by creating a supportive environment that addresses key needs. By acting on data-driven insights and connecting them with organizational goals, we can reach and sustain that which is remarkable in the present and the future.
Feeling like taking a trip back to early 2024? Look back at our trends from last year.
What areas are you focused on for sustaining a remarkable place to work in 2025?
