ADP Unveils HR Trends Shaping Work in 2025

19 November, 2024

Experts share insights and resources to help employers navigate HR trends and priorities in the year ahead

Melbourne, Australia, November 19, 2024 – From developments in generative artificial intelligence (AI), skill-building and employee well-being to laws and regulations surrounding AI and pay transparency, the global world of work will continue to transform in 2025. To help employers navigate shifting priorities, ADP today unveiled the key HR trends employers should have on their radar and the resources to help them support their people and focus on business growth.

View all the 2025 HR trends and gain practitioner insights

Kylie Baullo, Managing Director at ADP ANZ stated, “For over forty years, ADP has been dedicated to supporting businesses of all sizes and industries in Australia in navigating workforce changes. In 2025, with a stronger focus on employee well-being, pay transparency, and skill development, we are committed to helping employers embrace the next wave of transformation.”

Ms Baullo added, “Whether leveraging generative AI to boost productivity or fostering inclusive workplaces, ADP remains a trusted partner, empowering organisations to create environments where people and businesses can thrive together.”

The employee experience and well-being are ongoing business priorities: The business case for prioritising the employee experience is strong, with a positive employee experience helping to drive engagement and productivity. To enhance the experience they offer, employers will look for opportunities for personalisation, from customising tasks to speak to employee’s unique skills and strengths to tailoring communication and recognition. Additionally, prioritising ways to help employees manage their workloads and setting realistic expectations will help employers tackle employee stress and burnout.

Skills have emerged as a strong indicator of employee success: In today’s complex labour market, skills are quickly rising to the top of priority lists for employers. Prioritising a skills-based approach to talent can shift the focus of hiring and development from traditional qualifications, such as degrees and industry experience, to a person’s skills and abilities. As employers look to fill gaps, leaders should consider upskilling employees by introducing additional skills or reskilling employees to help them take on new roles and responsibilities as work continues to change.

New laws are shaping how AI is developed and used in employment decisions: As AI becomes more ingrained in the technologies people use, laws around how companies use data will continue to change and expand. Depending on an organisation’s processes and technology, AI may be a part of employment decision making, which requires care and compliance with new laws and regulations. Employers should continue to monitor new legislation, comply with new laws on the development of AI systems and use AI effectively and responsibly at work.

Pay equity and pay transparency remain business priorities: Globally, pay equity and pay transparency continue to be important areas of focus for employers, as some localities require organisations to analyse and report pay gaps and provide job applicants and employees with more information about pay. Employers should monitor evolving legislation and work to understand their pay data to effectively address any pay gaps and comply with pay transparency laws.

Generative AI continues to revolutionise HR, jobs and the workforce: As generative AI tools reveal efficiencies, driving productivity and introducing new ways of getting work done, organisations are exploring how to best use the technology. The focus should be on eliminating friction points and distractions for employees so they can focus on the real work. It’s important for businesses to avoid overly complex employee trainings and to focus on the goals they’re looking to achieve, identifying ways in which generative AI can support those desired outcomes.

Firms are looking to expand skills to benefit from emerging technologies: While upskilling and reskilling might not be new concepts, upskilling and reskilling to support generative AI and the solutions it’s creating are. As generative AI technologies make skills a business priority, employers will look to leverage their HR teams and new tools to better understand how work gets done in new ways and the skills needed to support those modes of working. In addition to technical skills development for workers, employers should consider offering them opportunities to experiment with generative AI in a safe, predefined manner to help drive innovation.

For additional insight and resources, visit adp.com/HRTrends2025.

About ADP (NASDAQ: ADP)

Designing better ways to work through cutting-edge products, premium services and exceptional experiences that enable people to reach their full potential. HR, Talent, Time Management, Benefits and Payroll. Informed by data and designed for people. Learn more at ADP.com

ADP, the ADP logo, and Always Designing for People, are trademarks of ADP, Inc. All other marks are the property of their respective owners.

Media Contact:

Adp@iconagency.com.au