HR Experts Weigh In: 2024 Trends and 2025 Predictions You Need To Know
The world of work has seen some big changes in the last few years, and 2024 was no different. From the way people work to the way they get paid, companies have had to adapt to a lot of new challenges and opportunities.
As we head into 2025, it’s a good time to look back at the key data and insights from 2024 and what they can tell us about the future of HR. But first, let’s hear some hot takes on what’s in store for us from some of the top voices in HR today:
HR Tech and In-Office Experiences Will Evolve
In 2025, I predict we’ll see a continuation of trying to get the HR tech stack right as products incorporate more AI capabilities. This evolution will not only streamline processes but also enhance the precision and reliability of data-driven decision-making. As AI and improved technologies continue to refine data cleaning and access, HR professionals will have more robust tools at their disposal to make informed, strategic choices.
Also, the landscape of work modes will continue to evolve, with some employers doubling down on in-office “make the commute worth it” experiences. These efforts will focus on creating engaging and valuable in-person environments to attract and retain top talent. The goal will be to create an environment where employees feel engaged, supported, and inspired, whether they are working from home, the office, or a blend of both.
Wende Smith | Head of People Operations | BambooHR
Employee Happiness Will Improve
My prediction for 2025: After several years of declining trends, we’ll see employee happiness continue to improve. As people increasingly seek stability and security, and as industries adapt to more consistent work arrangements—whether in-person, remote, or hybrid—we can expect the lingering effects of the post-pandemic period to gradually diminish.
Brad Rencher | CEO | BambooHR
Gen Z Will Flatten Corporate America
By 2035, the growing influence of Gen Z's emphasis on open dialogue and collaborative relationships will push companies toward flatter organizational structures. These shifts will foster more frequent, meaningful interactions between frontline workers and leadership.
AI will play a pivotal role by automating administrative tasks and streamlining communication, enabling workers to focus on strategic, human-centric challenges. However, this transition will require careful management of AI integration and support for all generations to adapt to evolving roles and collaboration styles.
Brian Crofts | CPO | BambooHR
To see how we got here, let’s take a closer look at some of the most interesting data points from BambooHR’s 2024 reports on some of the most pressing HR topics, including:
- RTO (return to office)
- Hiring trends
- Compensation
- Employee happiness
The Green Status Effect and the Hidden Hope for Turnover
When RTO mandates started rolling in, we at BambooHR got curious. We surveyed over 1,000 employees and HR leaders about what people think of RTO policies and their work mode preferences. Here’s the scoop:
- The truth behind RTO mandates: One of the most striking findings from our Return to Office Report was the silent hope for voluntary turnover following the implementation of RTO policies.
- A significant number of those in the C-suite and HR admitted to this, with 25% of VP and C-suite executives and 18% of HR professionals revealing they saw RTO mandates as a potential way to shed some employees. For some, RTO policies served as a (maybe not so) discreet form of layoffs.
- The Green Status Effect: Another compelling insight was the prevalence of the "Green Status Effect." This phenomenon reflects the pressure employees felt to demonstrate productivity, regardless of their work location.
- A staggering 79% of in-office workers and 88% of remote workers reported feeling this pressure. For remote workers, this often manifests as maintaining a constant online presence, with 64% admitting to this, even when they're not actively engaged in work tasks.
- In the office, the Green Status Effect takes a different form. Here, 37% of in-office workers reported actively socializing and moving around the office to be seen by colleagues and superiors.
Compensation Disparities and Financial Struggles
Our compensation data from 2024 highlighted several concerning trends and disparities. Here are some of the most notable findings:
- Gender pay gap persists: 64% of men received a salary increase in the past year, compared to 55% of women. Moreover, men received nearly double the average raise percentage (4.8%) compared to women (2.7%). This stark disparity underscores the ongoing gender pay gap and the need for continued efforts to address it.
- Stagnant wages and declining raises: For the second year in a row, 2 in 5 salaried workers (40%) haven't received a salary increase in the last 12 months. For those who did get a raise, the average increase was a modest 3.6%, marking a continued decline from 4.6% in 2023 and 6.2% in 2022—a 42% decrease over two years.
- Employees struggle to make ends meet: Half of the employees surveyed (50%) reported struggling to make ends meet. This sobering statistic highlights the importance of fair compensation and the role it plays in employees' overall well-being and job satisfaction.
- Disconnect between senior employees and individual contributors: 56% of individual contributors expressed frustration with senior employees' attitudes around money, citing a lack of understanding about what having a typical wage is like. This is underscored by the fact that over half (55%) of employees think their company’s CEO is overpaid, though a fourth (27%) admit to not actually knowing what the CEO’s salary is.
Workforce Dynamics
Next, let’s take a look at the HR trends and workforce insights that made an impact in 2024. Each month, BambooHR releases a Workforce Insights Report that’s chock-full of data that can give us a good idea of what the workforce is up to. Here are some of the most interesting findings from the past year:
- August turnover spikes: August 2024 witnessed the highest turnover rates of the year, with global rates at 2.9% and US rates at 3.2%. Factors such as seasonal industry shifts and post-vacation work realities contributed to this spike, affecting industries like education and restaurant, food, and beverage.
- October review surge: In October, many organizations conduct peer and manager reviews, a practice that aligns with the typical review season. From October 2023 to October 2024, there was a 10% increase in total reviews globally, with a 37% rise from September to October 2024.
Challenges and Recovery in Employee Happiness
BambooHR’s quarterly Employee Happiness Index report provides a comprehensive overview of the highs and lows of employees’ experience, using data from over 60,000 unique employees. This index offers valuable insights into the factors influencing employee morale across various industries. Here are the key trends and pivotal moments that shaped employee happiness in 2024:
- May downturn: In May 2024, the Employee Happiness Index recorded a four-year low in employee happiness, influenced by economic pressures, inflation, and workplace transitions. This downturn was particularly severe in sectors like technology, healthcare, and finance.
- Q3 rebound: However, the third quarter saw a significant rebound in employee happiness, with the Employee Net Promoter Score (eNPS)* climbing to an average of 36, a 3% increase from the previous quarter. This improvement was most notable in the travel and hospitality, finance, and healthcare industries. Larger companies, particularly those with over 500 employees, also experienced an atypical surge in happiness with a 20% increase from Q2.
Check out our other reports:
Spotlight on Q3: The Unexpected Rebound in Employee Happiness
2024 December Workforce Insights
The Great Pay Divide: Compensation Trends for 2025
*Net Promoter, NPS, and the NPS-related emoticons are registered U.S. trademarks, and NetPromoter Score and Net Promoter System are service marks, of Bain & Company, Inc., NICE Systems, Inc. and Fred Reichheld.