HR trends for 2025: What businesses should be aware of this year  

2024 was an eventful year, with new employment laws and a change of government, as well as rapidly accelerating AI technology, all playing a role in the changing HR landscape. How will these developments play out in 2025? Digital staffing platform Coople has put together a list of key trends that will be important for HR managers to consider in the year to come.  

Flexibility remaining essential: 

Companies that offer flexible working arrangements may be the ones that are attracting the top talent. While some companies are mandating a return to the office, WFH and hybrid working models remain highly attractive to employees, even outpacing salary when it comes to job selection. Arrangements like flexi-time, compressed hours and job sharing also allow workers to shape their roles to suit their needs. 

Four-day work week and compressed week:  

The Labour party has shared plans to make it easier for workers to opt for a ‘compressed week’, in which they would work the same number of hours but spread across four days rather than five.  

There is also growing discussion about four-day work weeks that do not involve compressed hours. The 4 Day Week Campaign has announced plans for further trials in 2025, encouraging companies to sign up for the scheme and see how a shorter working week affects their business. In 2023, the campaign shared that 71% of the companies involved in the first pilot said it reduced staff burnout, and sick days also reduced by 65%. 

Integrating AI: 

2024 was a major year for AI, with using this technology becoming a key skill in many roles when it was not previously a consideration. Hiring managers and recruiters across many new industries will now be looking for AI proficiency when looking for permanent, temporary or freelance staff.  

One of AI’s great strengths is automating tasks to save staff time. It has a role to play in the hiring process itself, scheduling interviews and managing calendars, but also as an ATS or applicant tracking system. As AI improves, these systems will only get better at identifying the most suitable candidates for a role compared to the job description. 

More options for working parents: 

It seems likely that the government will bring in more policies to help working parents, including greater access to flexible working, and a right to paternity leave and unpaid parental leave from day one. From late 2025, all children under 5 will be entitled to 15 hours a week of free childcare, meaning that working parents will receive extra support to remain in the workplace, or enter it again after time away. If this means more working parents entering the workforce, businesses will need to be mindful of their needs, helping them fit their work around their family life. 

Inclusivity for all abilities: 

Inclusivity is key in building a dynamic and diverse workplace. With 25% of the global workforce reporting mental or physical health conditions, it's more important than ever that companies adapt their workplace to support the needs of all workers. Employers have a responsibility to make reasonable adjustments under the Equality Act 2010, removing barriers to ensure workers with disabilities, or physical or mental health conditions are able to work comfortably. A workplace that is diverse and inclusive can attract top talent from every demographic, which can help drive innovation and growth.  

Focus on health and wellbeing:  

One major HR trend for 2025 might be health and well being. Benefits like health insurance and wellbeing days off that are separate to annual leave are becoming increasingly common.  

The Health and Safety Executive (HSE) and Labour Force Survey (LFS) released in November 2023 indicates that 17.1 million working days are lost a year due to work-related stress, depression or anxiety. This is one reason why businesses might wish to implement a policy that encourages employees to take time off to benefit their mental health. 

Workers might be turning to flexible or temporary work for their wellbeing. A 2024 survey from the Recruitment and Employment Confederation (REC) showed that reasons for choosing flexible work included managing a health condition, and cutting down unmanageable workloads.  

Purpose driven workplaces: 

Another HR trend in 2025 might be a push towards a purpose driven workplace. This involves creating a work environment where employees feel connected to their work and the company's mission. A purpose driven workplace aims to provide meaningful opportunities for their employees, which can help them feel more involved in their company. 

Adopting a purpose-driven work culture can help employees feel more connected to their work and the company, which might lead to a happier and positive work environment. 

Rufus Hood, Country Manager UK at Coople, comments: “Businesses in 2025 should be aware of changing employment laws – for instance, we have already seen updates to the law on how businesses must distribute tips to their employees. While the Employment Rights Bill was shared in October last year, many of the new policies will take effect next year in 2026. Businesses that get a head start and begin preparing for these changes will put themselves in a good position

“While there has been a great deal of discussion around AI as a creative tool, its potential as an administrative tool that helps businesses save time should not be overlooked. In the HR world, this technology can help make it easier to hire the perfect candidate, automatically schedule meetings, or perform data analysis to help you understand your team’s performance.”