The new year is here. And with its start, HR professionals everywhere are reflecting on the year gone by and getting their strategy ready for this year. With so much change in the workplace, from evolving employee expectations to new technologies, 2025 is shaping up to be a pivotal one for HR teams.
Figuring out how to navigate all these changes can feel overwhelming and knowing what strategies to implement can be hard. To help HR professionals figure out what to focus on, we sat down with Maja Lindström, CPO at Talentech and our internal expert in everything HR, to uncover the top trends and challenges HR professionals will face in the coming year. Based on her deep expertise and years of experience, Maja shared her top five predictions for 2025, highlighting where HR should focus their energy.
What are they? Let's dive in.
1) Going back to basics
We know that HR professionals, especially in small and mid-sized businesses, are stretched thin. They feel pressure to keep up with new trends, technologies, and evolving regulations. But with a lack of staff and not enough time on their hands, they can become easily overwhelmed and lose even more precious time on administrative tasks.
To survive, HR will need to shift focus back to the essentials, simplify processes and prioritize what truly matters. A series of small changes in one direction can often have a big impact and this is no different. By automating repetitive tasks and creating efficient routines, HR will be able to free up their hands. This approach will result in reduced stress and allow HR to start implementing changes, discussing goals with management and measuring results.
2) HR becomes even more data-driven – and AI-powered!
In 2025, data will become HR’s best friend and most powerful tool for making data informed decisions and showing their value to the whole organization. As HR is taking a seat in more management teams in 2025, the strategic value of HR cannot be understated – and although HR is not only about numbers, they play a big part in showcasing the value for the organization.
It’s time for HR to ensure they have access to the data they need to be able to measure impact and show their value to the business. With clear KPIs like turnover rates, time-to-fill, sick leave or number of vacancies, combined with engagement metrics such as employee satisfaction and leadership score, HR professionals will be able to drive change that impacts organizational performance. By building upon the data-driven approach, HR will take a leap forward in 2025 by using AI-powered People Ops assistants. These tools will handle routine administrative tasks, analyze data, and create suggestions to policies and action plans, freeing up time for HR professionals to focus on what truly matters, that AI can never replace: Human connections.
3) No more talent?
It is no news that the talent market is tightening, and it will be no different next year. With an aging workforce and fast technology changes, organizations will no longer be able to afford to wait for the perfect candidate to come along. Investing in current employees will therefore become essential.
Organizations will need to figure out how to engage, develop and reskill their people, and will have to become more creative when finding new talent. As a result, this focus on internal development will not only address immediate hiring needs but also drive loyalty and retention.
4) Get ready for regulations and security challenges
The online world has become less safe with security threats happening every day. And as new regulations from the EU to mitigate these threats are coming at a steady pace, this puts compliance high on the agenda, especially for HR departments.
They will be the ones playing a critical role in ensuring that companies are not only compliant but also proactive about protecting employee data and using technology responsibly in the coming years. Data privacy, ethical AI use, or even ESG related strategies – that will all be in question. It’s a lot to keep up with, but the companies that stay ahead of the curve by investing in secure systems and software will earn trust and stay competitive. Therefore, HR departments need to be equipped for this role and have a budget for up-to-date and safe systems in place.
5) Empowering teams to shine
No strategy is better than its execution. That is why user-friendliness, and accessibility will be key for managers. And HR will be the ones providing the tools and frameworks to support and empower department heads to take ownership and shine.
The best HR professionals will start thinking like product managers. How? By creating processes that prioritize the needs of both managers and employees. HR’s role will be to design experiences that are intuitive, user-friendly, and valuable. By adopting a product-focused mindset, making systems easy to use and ensuring they provide real benefits to all stakeholders, HR can drive higher engagement and compliance. And of course, HR department themselves deserve systems that are easy to use and create value for them as well.
The takeaway?
As we step into 2025, it’s exciting to see how much opportunity lies ahead for HR professionals. If you want to dive deeper into these trends and get actionable insights for the year ahead, our latest Nordic HR Report might be just right for you. It is packed with data and findings to help you navigate 2025 with confidence. Download it today and take the first step toward creating a workplace where candidates want to work, and employees love.
Remember, at the heart of every prediction is one core truth: HR is about people. So, make sure to keep this in mind at every step. Here’s to a successful and fulfilling year ahead. You’ve got this!
