A surge in AI adoption, the growing demand for reskilling and for flexible working are just a few examples of the challenges that lie ahead for HR teams in 2025.
However, such challenges also signify opportunities for transformation. Indeed, recent research that we commissioned found that UK organisations are optimistic about thriving amidst change, so long as they have the right HR strategies in place.
Here we explore some of the trends our research found lie ahead for 2025 and beyond…
AI and automation adoption strategies for more success and less stress
Once thought of as purely a central support function for administrative and transactional tasks, HR has continued to gain recognition for its place in driving and achieving strategic business goals. As a result, HR teams are spinning many plates, and this is impacting job satisfaction.
Almost three quarters (73%) of senior HR professionals in the UK say they are struggling to align their strategy with rapidly changing business objectives, while also prioritising employee needs. Consequently, 39% admit they struggle with their work-life balance. This is compounded by manual processes which 48% say leaves them with feelings of burnout and decreased morale.
However, AI has the potential to support HR teams if a deliberate guidance strategy is set up. A useful AI and automation adoption strategy can prevent additional pressures placed on workloads and alleviate burnout and stress placed on employees. Taking time to identify the most time-consuming and repetitive tasks is essential.
AI can assist in breaking down routine tasks including payroll automation or document management and improve efficiency and wellbeing.
Changing behaviours across generations
Almost half (46%) of British senior HR leaders believe that welcoming Gen Z into the workplace will be a key challenge within the next two years. Furthermore, over the next three to five years 56% expect that the requirement to manage an increasingly multi-generational workforce will add complexities to their roles.
New generations entering the workplace force HR to adapt to different expectations, values and working styles. For instance, the desire for flexible working hours, autonomy in where they work, and having company values that align with their own are at the top of this generation’s priorities.
And these priorities are things that many people across the workforce might prefer, but not all may vocalise. Initiatives like return-to-office mandates are restrictive for parents and commuters so might need to be reconsidered, for example.
Cutting “time to hire” with HR automation tools
Finding the right fit for a company can take months of assessing and filtering. Our research shows 56% of HR teams are currently using AI for recruitment with candidate screening tools that also automate document creation, such as securing signatures, which help to speed up the hiring process. In 2025, senior HR leaders plan to prioritise investment into digital transformation through further automation of manual processes. But generic options will become a thing of the past, with 56% of HR professionals believing dedicated HR tools have a more significant impact on performance than generic, cross-disciplinary tools.
Almost all (99%) HR teams in the UK say they already use automation and AI tools to an extent. Unsurprisingly, in the next three to five years 63% of senior HR leaders say that AI and automation will significantly impact HR teams. However, it’s not without its challenges. 73% of HR teams struggle to adopt these tools, with 64% believing that their department is discouraged from using AI due to privacy concerns and 72% believing that cost is a significant barrier to adoption.
But as AI continues to transform workplaces, in 2025 more HR teams will proactively open communication between IT leads and company executives to develop the company’s AI policy and implementation plans. Regardless of the time intensity, AI adoption is mutually beneficial for HR teams, allowing them to get the tools they need to work efficiently and realign their focus on employee needs and programmes.
Avoiding talent gaps by reskilling and upskilling
In an ideal world, tools and software that people use at work should be user-friendly and easily accessible via smartphones and browsers. The reality is not always that simple. As AI evolves, businesses rush to learn new developments, but after a while the skills gap begins to widen.
Over the next five years, 60% of senior HR professionals identify reskilling and upskilling through new technologies as a key trend that will shape workforce operations. However, the same proportion also anticipate significant talent shortages within the next two years, highlighting the urgent need for strategic workforce development and technological integration.
Overall, to create a more sustainable talent pool, companies must prioritise reskilling and upskilling at a wide scale to avoid skills gaps that will impact company growth. If they get it right, companies can improve employee well-being, maintain competitiveness and thrive alongside technologies such as AI and automation.
Ulrich Jaenicke is the Founder and CEO of aconso. He previously worked at Siemens as an IT Consultant. Ulrich Jaenicke attended the University of Applied Siences Braunschweig/Wolfenbuettel.
