As we head into 2025, the professional world is poised for significant transformation. Economic shifts, evolving employee expectations, and the arrival of new workplace practices are challenging companies to adapt quickly.
With employee morale at a low, increasing demands for flexibility, and new leadership styles on the rise, the coming year will bring both unexpected challenges and exciting opportunities. According to an article from The Star, below are the key trends shaping the workforce in 2025 —
Employee disengagement – a growing concern
Employee morale has taken a hit, with workers feeling disconnected and overworked. A Gallup study reveals that 62% of employees globally report feeling disengaged in their roles, a trend that is expected to grow. This disengagement often leads to “quiet quitting,” where employees do only the bare minimum required by their job descriptions. This phenomenon, especially prevalent in the U.S., reflects broader dissatisfaction with workplace culture, recognition, and leadership.
The slow job market in the U.S. is exacerbating this issue, with many employees feeling “stuck” in their current roles. Glassdoor’s survey found that 65% of Americans feel trapped in their jobs, with higher percentages seen among women and tech professionals. These employees are longing for opportunities that offer more meaningful work, career growth, and improved work-life balance.
Generation Z’s impact on management styles
Contrary to common perceptions, Generation Z is not avoiding corporate responsibility. In fact, many are stepping into management roles earlier than previous generations, with 14% of 27-year-olds in the U.S. already in managerial positions. However, their approach to leadership is markedly different from that of older generations. Gen Z managers prioritise empathy, well-being, and clear communication in the workplace.
Glassdoor’s research reveals that terms like “well-being” (+222%) and “empathy” (+76%) have seen significant growth in reviews related to leadership. On the flip side, issues such as “burnout” (+126%) and the need for clearer guidance (+52%) are becoming more prominent. This shift indicates a greater focus on employee support, fairness, and inclusion, which are expected to become even more crucial as Gen Z takes the reins in leadership positions.
Side hustles and entrepreneurial spirit on the rise
The professional landscape in 2025 will see a continued rise in side hustles and entrepreneurship. No longer just a financial necessity, having multiple jobs or activities has evolved into a strategic choice, particularly among younger workers. According to a Glassdoor-Harris survey, 39% of American employees now have side hustles, with Gen Z (57%) and Millennials (48%) leading the charge.
The flexibility of hybrid work and digital platforms has made it easier for employees to pursue entrepreneurial ventures while maintaining a traditional job. This growing trend presents a unique challenge for employers, who must find ways to accommodate employees’ diverse career aspirations while still ensuring their engagement and productivity.
Employee well-being – A central focus for employers
As employee well-being takes centre stage in 2025, employers are reevaluating their benefits and support systems. Traditionally focused on health insurance and retirement plans, companies are now expanding their offerings to include mental health support, flexible leave policies, and more. Between 2019 and 2024, access to mental health benefits has risen significantly, highlighting the increasing recognition of mental well-being in the workplace.
Additionally, benefits like parental leave, family medical leave, and bereavement leave are becoming more prevalent, addressing the complex needs of today’s workforce, particularly those balancing caregiving responsibilities. Working from home, although widely accepted by employees, remains a point of contention for employers seeking to maintain team cohesion and optimize office space. Despite economic pressures, companies are continuing to invest in these benefits, viewing them as a strategy to boost employee motivation and attract top talent.
Adapting to new realities
The year 2025 promises to bring both challenges and opportunities as the workforce adapts to new realities. Companies will need to rethink traditional management styles, address employee disengagement, and provide meaningful career growth opportunities. As younger generations, particularly Gen Z, step into leadership roles and side hustles become more common, the workplace will undergo a fundamental shift. By prioritizing employee well-being and flexibility, businesses can stay ahead of the curve and foster an environment that attracts and retains top talent.