5 HR Trends for 2025
HR faced numerous disruptive challenges in 2024, from riots and a general election to the formation of a new Labour government and the most significant overhaul of employment legislation in over a decade. As we look ahead to 2025, here are five key HR trends to watch, along with the legal considerations employers should be aware of.
1. BUILDING RESILIENCE
Building workforce resilience will be a key HR trend as organisations navigate economic uncertainty, technological advancements, and evolving workplace dynamics. Resilience extends beyond individual wellbeing to include organisational adaptability and a culture that supports employees in managing change. Many HR teams are seeking training in emotional intelligence, stress management, and problem-solving, while fostering supportive environments through mental health resources, flexible work, and transparent communication.
Legal Watchout:
Under the Health and Safety at Work Act 1974, employers have a legal duty to protect the physical and mental health of their employees. This includes identifying and addressing issues such as stress and anxiety in the workplace. Additionally, under the Equality Act 2010, mental health conditions may be classified as disabilities, requiring reasonable adjustments. Employers must ensure that any sensitive mental health information is handled confidentially and in compliance with data protection laws, such as GDPR.
Failure to comply in these areas may expose employers to legal risks, so HR should integrate legal training into resilience programs, ensuring managers understand their obligations
2. PREPARING FOR CHANGE: TRANSFORMATIVE LEGISLATION REFORMS
The Labour government’s legislative agenda promises sweeping changes to employment law, and at our recent breakfast workshop we encouraged HR professionals to start preparations immediately.
Legal watch-out:
Although some elements of the Employment Rights Bills will not take effect until 2026, there will be lots of upskilling and training required to ensure businesses are not leaving themselves vulnerable to legal liability. Starford offers training and support across a wide range of key topics, including the duty to prevent sexual harassment, managing performance during probations periods, and understanding the new law around zero hours contracts.
HR leaders should also ensure their existing policies will not breach the new legal changes by conducting contract reviews, pay structures, and company systems, and amending any potential breaches as quickly as possible.
3. REDUNDANCIES AND RESTRUCTURING: A TOUGH REALITY
Economic pressures stemming from the national minimum wage increases and changes to national insurance contributions set to take effect in April may compel businesses to make difficult decisions, and 2025 could see a rise in redundancies and restructuring.
Legal watch-out
Restructuring may become a common strategy for businesses aiming to ease financial pressure or boost operational efficiency, but HR must be sure their processes are robust, fair, and legally compliant to avoid facing unfair dismissal claims.
Leadership teams should also be aware of the impact that any redundancy or restructuring programme has on their remaining workforce. Burnout and employee disengagement for those remaining is an often-overlooked risk but can pose real challenges. To minimise these risks, carefully plan around communications and thoughtful allocation of residual duties.
4. AI: COMPLEMENTING, NOT REPLACING, HR
AI will play a larger role in recruitment and HR processes in 2025, but it will not replace human interaction. AI will help to streamline some hiring processes, but the core of candidate-employer relationships will remain grounded in human interaction.
Legal watch-out
With new regulations like the Digital Information Smart Data Bill on the horizon, HR leaders will need to balance innovation with compliance and ethical use of AI tools. One key concern is how AI can perpetuate or amplify existing biases if the systems are trained on biased data. For example, recruitment algorithms might favour candidates from majority groups if historical hiring data reflects systemic bias. HR teams should avoid discrimination cases by educating employees on the ethical use of AI and collaborate with technology experts to find the right solutions for their organisation.
5. CULTIVATING FUTURE LEADERS
In 2025, HR will prioritise leadership development programs that focus on building skills such as emotional intelligence, strategic thinking, and adaptability. These training programmes aim to nurture leaders who can manage and inspire diverse teams, boost employee engagement, handle crises, and drive meaningful change in a constantly evolving landscape.
Legal watch-out
A critical consideration in leadership development is ensuring that training and promotion opportunities are equitable and avoid any bias in the selection or training processes. Discriminatory practices, whether intentional or unintentional, could expose the organisation to discrimination claims based on protected characteristics such as age, gender, race, or disability. HR should address these risks by conducting regular audits of the development process to ensure they are transparent, inclusive, and compliant with equality laws.
Sources: People Management, People HR, Employment Law Review
Starford People & Legal provides expert employment law services, people consultancy, and training to help businesses navigate these key HR trends in 2025. From building resilience and leadership training to preparing for legislative changes or managing a restructure process, we will collaborate with you to find tailored solutions that ensure legal compliance while fostering a productive and supportive workplace culture. To find out more about how Starford can support your organisation, get in touch with our team via hello@starfordlegalhr.com
At Starford’s flagship Making Life Work conference this September, our key theme will be Building & Maintaining Resilience - stay tuned for speaker announcements and more event details coming soon!