There may be trouble ahead: new report spells out challenges for 2025
What’s keeping business leaders awake at night? Plenty, according to a survey by the Future of Work Hub. AI integration, the cost of living crisis and a complex regulatory environment top the list
A major survey of business and HR leaders has laid bare the scale of the strategic challenges that organisations will face in 2025, highlighting hopes and fears for the year ahead.
According to a new report from the Future of Work Hub, ‘Strategic Workforce Priorities – What Matters Most?’, companies face a ‘complex landscape’ with several critical issues springing to the fore. The Future of Work Hub is an initiative of the British law firm Lewis Silkin.
Which front-of-mind issues are keeping leadership teams awake at night? Unsurprisingly, technological advancements, including AI, are expected to be the leading concern for businesses in 2025.
Top business concerns
Global dynamics and political trends continue to significantly impact organisational workforce planning and HR strategy. Other top concerns for business include the cost-of-living crisis and an increasingly complex regulatory environment following employment law reforms post the UK election.
Leadership, line manager capabilities and workforce skills are under significant pressure, according to the report; workforce social and cultural expectations and values also have a significant impact on HR strategy. Resource constraints, including limitations on time, budget and people, are the most significant barriers organisations face in responding to large-scale trends. And there is a rising expectation for businesses to support workforce health and financial wellbeing, as well as provide good work.
Roadmap for change
The report sets out a roadmap for change with nine key steps:
- Embrace technological innovation and AI integration
- Navigate global dynamics and political trends
- Address the impact of rising cost pressures on the workforce
- Improve ability to track and respond to regulatory changes and compliance
- Enhance leadership and managerial competencies and workforce skills
- Respond to workforce demographic shifts and values
- Assess exposure to sustainability and climate change risk
- Address the negative impact of resource constraints on achieving strategic goals
- Promote employee voice, wellbeing and good work
Building resilience
The authors of the report observe that ‘As businesses navigate the complexities of the modern work environment, these strategic priorities will be crucial in building organisational resilience and maintaining a competitive edge in an ever-evolving landscape.’
The Future of Work Hub report surveyed a wide range of organisations from 12 different business sectors employing 80,000 people between them; 57 per cent were headquartered in the UK, 22 per cent in the EU and 22 per cent in the USA. Technology firms accounted for 17 per cent of the survey and financial services for 11 per cent. The survey completed between 20 November and 11 December 2024.
Access the full report, ‘Strategic Workforce Priorities – What Matters Most? Shaping the Future of Work in 2025 and Beyond’, here.
Listen to a podcast with report co-author Lucy Lewis, employment partner at law firm Lewis Silkin, here.
