In 2025, the UK workforce will undergo rapid change as technological advances, demographic shifts and changing workplace norms will transform employer-employee dynamics.
ADP’s Report, People at Work 2024 – A Global Workforce Perspective, highlights six key areas that reflect this evolution. These include: skills and career development, confidence in skills, AI at Work, mental health, wellbeing, diversity, and flexibility.
The Employment Rights Bill will bring about significant changes in workplace standards as businesses prepare for the year 2025. The bill is designed to modernise workplaces by addressing issues such as flexibility, fairness, family rights, and freedom of trade unions. These legislative developments are in line with ADP’s broader trends, which emphasize the importance of employee well-being, skills development and responsible AI use, as well as pay transparency.
Focus on Employee Experience
Employers increasingly prioritize the employee experience to improve engagement and productivity. It includes strategies for managing workloads, reducing stress, and communicating with employees.
Businesses continue to place a high priority on employee wellbeing, exploring new ways to support mental health and set realistic expectations for their employees. ADP reports that stress levels are down, but the support systems have not improved. This is a major area of improvement.
Workforce agenda dominated by AI and skills
The development of skills is critical to employee success. Employers increasingly focus on hiring based on skills, rather than qualifications. As businesses adapt to changing job roles and responsibilities, upskilling and recertification are essential.
Generative AI further revolutionises the workplace through efficiency and innovation. Employers should balance technological advances with human expertise to ensure AI tools complement rather than replace the human role. To foster innovation, organisations are encouraged to give employees the chance to test generative AI within controlled environments.
Transparency and Pay Equity
Transparency and pay equity are still global priorities. Employers face increasing pressures to analyze pay gaps, adhere to evolving legislation and provide greater transparency about salary information. Addressing these issues proactively can help organisations align themselves with legal requirements, and increase employee satisfaction and trust.
Legislative Developments and Compliance
New laws that govern AI’s use will likely influence employment decisions as AI continues to impact workplace technologies. These regulations must be followed by organisations to ensure that AI is used responsibly in HR functions, such as hiring and performance evaluations. It is important to monitor legislative changes in order to maintain compliance and trust.
Skills for Emerging Technologies
The rise of generative AI shows that businesses need to focus more on developing their skills. Organisations are now required to equip employees with the skills they need to be able work with new technologies. HR teams play a crucial role in identifying these skill gaps and addressing them.
Looking Ahead to 2025
Sirsha HALDER, General Manager of ADP’s UK and Northern Europe, said that “transformative changes are coming to the UK by 2025. The Employment Rights Bill will set out a new vision for working,” “Organisations must adapt proactively to these changes to ensure compliance, while creating dynamic and inclusive workplaces.”
