Last year, we noted a “ workplace revolution” was probably on the way. While 2024 experienced much of that revolution, the culmination will likely be in 2025. AI has already had a significant impact in the workplace, and more change will surely come.

The demand that American workers return to the office continues despite technological advancements that make working from home more secure and easier than ever.

America’s employees are not happy. Gallup calls the current “shift” workers are experiencing the “ Great Detachment.” According to Gallup, “For employers, this means that while turnover numbers may have slowed, employee productivity concerns and future talent loss are hidden organizational risks.” And it adds that when employees feel detached from their jobs, they are indifferent or resistant to workplace change.

I spoke to human resources and workplace experts for this article to find out how small businesses can continue to win the workplace revolution.

Workplace and Hiring Predictions for 2025

Hiring Trends

The Consolidation of Employee Acquisition and Management Functions

There is a lot in store for the HR industry in 2025. Talent acquisition and management functions will continue consolidating, driving greater efficiency and alignment. Internal talent marketplaces will gain traction as organizations prioritize internal mobility, supported by the mainstream adoption of skill taxonomies from platforms like Workday and other HCM (human capital management) providers.

Generative AI will become a standard tool for creating hiring content, including job descriptions, interview questions, assessments, and pre-screens. Data will remain a critical asset, with businesses leveraging it to drive decisions. Finally, AI-driven streamlined hiring processes will increasingly outpace traditional validated processes as speed and efficiency become paramount in securing top talent.
—Dr. Nathan Mondragon, Chief Innovation Officer, HireVue

How Can Small Businesses Attract Corporate Refugees?

Talent recruitment and retention may continue to be an issue in 2025. With the ongoing talent shortage, small businesses could continue to benefit from workers leaving larger corporations seeking better work-life balance. Small businesses already have an advantage, as more employees move from big companies to small ones than the other way around.

We predict this trend could continue as small businesses can offer flexible work arrangements, greater opportunities for responsibility and growth, and the ability to be more agile to [unhappy corporate workers]. However, the competition for talent will remain fierce, and small businesses will need to embrace more creative recruitment strategies as many still rely heavily on word-of-mouth referrals. Notably, 38% of small businesses don’t use digital tools for recruitment.
—Tyler Peterson, Head of Professional Risks, Hiscox USA

Are You Relying Too Much on Referrals?

The over-reliance on referrals is a trend I’d like to see businesses evolve from. Referrals are great because they allow us to hire a more or less “known quantity,” but they don’t do much to diversify the talent pool. It also means that you’re hiring people who may not challenge the team as much as if you brought in an outsider/someone you haven’t worked with before.
—Sibyl McCarley, Chief People Officer, HireVue

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