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Navigating 2025: Top 5 Q&A on the Future of Work

ExtensisHR6 minute read
Business professional pondering something and standing in front of a chalkboard with many questions marks written on it

Quick look: As the year unfolds, new workforce trends are already making an impact—raising important questions about how to adapt and strategize accordingly. Here, we address five common questions ranging from AI-driven cybersecurity concerns to communicating with a multigenerational talent pool. For deeper insights backed by industry leaders, be sure to download the ExtensisHR 2025 HR Trends Report here.

 

The world of work is changing faster than ever. Artificial intelligence (AI) is now involved in daily tasks, employee expectations have deepened, and adapting to and preparing for change and uncertainty is increasingly important.

Human resource (HR) leaders play a fundamental role in navigating these workplace trends and naturally develop questions along the way. Below, explore five common inquiries, from AI’s impact on workplace policies to how managers can guide their teams through ambiguity.

These insights are a preview of ExtensisHR’s 2025 HR Trends Report, which may be downloaded by clicking here and features commentary from the following subject matter experts:

Question 1: How does AI affect HR policies?

A: It’s become clear that AI will transform roles, not replace them. As such, the onus is on HR teams to train their workforce on how AI can create growth opportunities and empower them to work smarter.

While AI has the potential to enhance productivity, it also comes with risk. Business leaders must determine what data can and cannot be entered into AI platforms by employees, and develop and communicate clear policies accordingly.

AI may also result in more frequent and dangerous cyberattacks, highlighting the critical need for employers to administer cybersecurity training, implement cyber risk management plans, and obtain suitable cyber insurance and liability coverage.

“Every AI initiative must begin with an emphasis on building digital, and specifically, AI literacy across the organization. Employees and executives alike should understand AI on a conceptual and business level, be able to identify its opportunities, and have a level of comfort with its risks.” — Samrah Kazmi, Chief Innovation Officer, RESRG

Question 2: How can we help our staff feel more financially empowered?

A: Life has undeniably become more expensive. Per the PwC 2023 Employee Financial Wellness Survey, 44% of workers believed inflation had a major or severe impact on their financial situation during the prior year.

Due to this trend, many employees now look to their companies to provide them with financial wellness tools, from the standard 401(k) to emerging perks like tuition reimbursement, student loan repayment, and personal finance training. In fact, over three-quarters of workers say they’re more likely to be attracted to companies that care more about their financial well-being.

“While much emphasis has been on building retirement savings, there is now a focus on decumulation—helping retirees manage their savings as they withdraw funds in retirement. Offering solutions like guaranteed income options can help retirees avoid outliving their savings.” — Dan Toomey, Director of 401(k) Programs, ExtensisHR

Question 3: What’s the best way for leaders to guide teams during times of uncertainty?

A. When news of market changes and layoffs speckles headlines, some workers may feel uneasy, heightened anxiety, or face increased workloads.

This is a crucial time for their managers to lead with empathy and optimism, reiterating the company’s vision, mission, and outlook. This reassurance, coupled with actionable strategies, demonstrates that leadership is focused on future success and can help ease employees’ worries.

“Empathy means understanding the feelings of others, but it doesn’t come at the cost of expectations or deliverables. Build a culture in your organization where workers feel comfortable asking questions and sharing vulnerabilities and their managers engage in candid performance building conversations. Empathy should be the cornerstone of meaningful feedback.” — Susan Russo, Principal, Susan Russo HR LLC

Question 4: How can I effectively create a succession pipeline?

A: Many employees are staying put, holding onto job security in an uncertain economic landscape. However, the job market will eventually open back up, leading to increased movement and competition for top talent.

To avoid productivity gaps, skill shortages, and overall inefficiencies, HR leaders should proactively establish career ladders and lattices to help employees progress within the organization. While career ladders embody a traditional, linear career progression, career lattices are more flexible and symbolize staff moving laterally, diagonally, up, or down across different roles and departments. Together, the two increase employee engagement and retention and produce a well-rounded pipeline.

“Encourage employees to embrace change and develop adaptability. This includes providing opportunities for cross-functional projects, mentoring, and knowledge sharing.” — Sandra DiNuzzo, Vice President of People, CQ fluency

Question 5: The workforce includes more generations than ever before; what do we need to know to attract, engage, and retain such a wide scope of employees?

A. Today’s labor pool includes five generations of talent: The Silent Generation, Baby Boomers, Generation X, Millennials, and Generation Z.

Adapting a workplace to suit the needs of an increasingly diverse staff involves everything from understanding various communication preferences to personalizing employee benefits packages.

Business leaders can utilize anonymous surveys, suggestion boxes, or digital feedback platforms to get an accurate reading of what their unique workforce favors. This feedback can then be used to guide meaningful change.

“When you ask for employee feedback on their experience they’ll provide you with rich data—perhaps so many suggestions that you might be overwhelmed! Sort through the ‘noise’ for the top three signals that will make the biggest difference for the most people across the employee population.” — Peter Phelan, The Culture Doctor, Founder & CEO, ValuesCulture

PEOs: A steady HR partner in a sea of industry changes

Adapting to the future of work doesn’t have to feel like traveling uncharted territory. Small- and medium-sized business (SMB) leaders often wear many hats, leading them to rely on a professional employer organization (PEO) to stay updated on evolving HR trends.

PEOs are a type of HR outsourcing provider that help SMBs manage critical functions like HR administration, employee benefits, payroll, compliance, and more. For instance, ExtensisHR provides access to:

  • SHRM-Certified HR Managers who guide customers in continuously enhancing their policies to drive organizational success
  • Fortune 500-level employee benefits, including a range of financial wellness plans and tools
  • A robust learning and development platform to grow your staff’s skill sets and in-house expertise
  • A comprehensive Employer Protection Program, including an information protection plan and optional cyber liability insurance
  • 15Five, a top employee engagement and performance management platform facilitating employee surveys, check-ins, one-on-one meetings, and more

Want to dive deeper into how work is transforming? Download the 2025 HR Trends Report using the form below, or learn more about how a PEO can help you thrive this year and beyond.

Download your copy of the 2025 HR Trends Report

Discover key industry developments shaping today’s workforce to guide your HR strategy in 2025 and beyond.

 

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