Key HR challenges for 2025: Balancing strategy and empathy

As we move into 2025 I believe we will undoubtedly face a balancing act: expanding our strategic influence in the boardroom while maintaining the human touch that defines our work. With HR’s role increasingly focused on shaping business strategy and navigating the incoming revised Employment Rights Bill, juggling all these additional demands will take a toll on our time and will impact on the way we operate. And with these extra demands on our roles there’s a risk that the business and commercial objectives could overshadow employee well-being. Yet the true value of HR lies in  employee wellbeing, so maintaining trust and transparency will be essential to ensure employees feel supported, even as we push forward with business objectives.

Navigating the Employment Rights Bill: Legal compliance in focus

The added responsibilities from this new legislation will significantly challenge the HR department in the coming years, as it will require changes to our current processes and an increased focus on legal compliance. HR will need to work closely with legal counsel to ensure alignment with the new bill's requirements.

Building inclusive cultures in agile and contingent workforces

Another key area of focus for me, and many others in my position, will be adapting to the rise of agile, contingent workforces. As temporary and project-based roles become more common we will need to foster a culture that resonates across both permanent and transient employees. For me, this means creating a strong connection to the company’s mission from day one, regardless of an employee’s tenure. To achieve this I believe we must eliminate the “them and us” mentality and treat temporary staff as valued members of our teams who can fully engage with our core values. By building this cohesive environment surely we can keep all employees, regardless of employment type, motivated and connected.

Onboarding for the future: How to connect with all employees

To integrate contingent workers effectively we will need to go beyond traditional onboarding by creating a unified experience that immerses all employees, permanent and temporary alike, in our culture and values. This involves ensuring that all employees, regardless of their contract type, feel equally accountable to our shared standards. Technology can play a critical role here, helping facilitate communication and collaboration between contingent and permanent teams. By using digital tools thoughtfully we can streamline onboarding, foster teamwork and keep temporary workers connected to our organisational goals.

Enhancing engagement with rewards and recognition for all staff

Involving contingent employees in feedback, rewards and recognition programmes is essential. When temporary staff feel appreciated and connected to the company’s achievements they are more likely to contribute their best work, bringing fresh perspectives and new ideas that benefit the entire organisation. This inclusive approach not only enhances morale but also creates a flexible, loyal talent pool that supports agility and scalability in a competitive market. In 2025, I believe that  HR’s role will be to ensure that the values shaping the company culture resonate with everyone and fosters a true sense of belonging across all employment types.

Embracing AI in the workplace

As in the past few years AI will continue to become increasingly central to the workplace and HR leaders must be prepared to guide this transition. AI offers the potential to boost productivity by automating repetitive tasks, allowing employees to focus on more strategic and creative work. HR's role will be to create a culture that embraces AI as a supportive tool rather than a replacement, ensuring that employees view it as an asset to their roles. Open communication is essential, addressing concerns about job security and skill relevance to build confidence in an AI-enhanced environment.

Reskilling for an AI-enhanced future: Preparing Your workforce

Preparing for these shifts will also require a focus on reskilling and upskilling. Equipping employees to work effectively alongside AI should begin at recruitment and continue throughout their career journey. Incorporating AI discussions into recruitment, onboarding and appraisals can make it a natural part of the employee experience rather than a source of anxiety. Additionally, establishing clear AI usage guidelines will help employees use AI responsibly, enhancing rather than diminishing their work. Through careful guidance HR can make AI an ally in driving innovation, supporting collaboration and elevating each employee's value to the organisation.

Fostering resilient workplaces through inclusivity and innovation

Moving forward into the second half of this decade I’m certain that HR will continue to be the linchpin that keeps people connected to the company’s mission and values, despite the added pressure of dealing with legislation, a more diverse workforce and emerging technology. Albeit challenging, our role is to guide management and the workforce through these changes while preserving the unique, human-centric approach that defines the heart of our work. By fostering inclusivity, supporting professional growth and responsibly integrating AI we can create resilient, adaptable workplaces that thrive in the ever-changing face of the UK workforce and its management.

Jodie Ratcliffe, pictured, is HR director at Matrix Workforce Management Solutions