As we move into 2025, the world of work is evolving rapidly. Leaders are faced with a challenging economic outlook, technological disruptions, and changing employee demands. Understanding the shifts that will shape the year ahead will be essential for leaders looking to have high-performing organisations. Based on our data, our conversations with CEOs and other senior executives and teams, and our experiences with clients, these are the top six trends we think leaders will need to be on top of in 2025.

1. Performance will be the #1 priority due to tough economic headwinds
In 2025, overall economic growth in the UK is expected to be anaemic. Businesses will face pressures on multiple fronts: from a strained labour market, inflation, geopolitical uncertainty and trade friction. For example, a CBI survey of companies in December 2024 found that expectations for growth were at their weakest since November 2022. Indicating that firms are preparing to cut down on hiring and reduce their output over the next few months.
With economic challenges exacerbated by recent tax hikes, organisations will need to focus on maximising the performance of their existing workforce, ensuring every employee contributes to the company’s success. It will be a year of doing more with less, particularly in terms of resource utilisation. Thus, maintaining a workforce that is engaged with driving performance throughout the year will be critical. Employee happiness and satisfaction simply won’t cut it. This will be coupled with an increased focus on performance management. Recent announcements such as that from Meta – preparing to cut about 5% of its global workforce, as the company looks to drop “low performers faster”, is just the latest illustration of this (BBC News).
2. The return-to-office debate will need to be resolved
The return-to-office debate will need to be resolved by organisations in 2025. While some companies, notably Amazon, are pushing for full-time back to office work, others, including Spotify, are embracing fully-hybrid or remote models. Businesses will need to strike the right balance dependent on what works best for them. A tailored approach that considers job functions and work types but also balances what the organisation “needs” versus what employees “want” will be key. There will be no one-size-fits all solution. Smart companies will be measuring how their harder business outcomes are affected by these policy changes and working out the optimal solutions for them.
3. AI and Workforce Integration will need to be mediated
We know AI will play an increasingly central role in transforming the way we work in 2025 and beyond. With its widespread implementation to people’s daily working lives, there is bound to be friction between employees that are uncertain of their job security and future roles being taken over. This integration must be managed carefully to avoid both employee resistance and anxiety. To successfully introduce AI, businesses should emphasise that AI enhances, rather than replaces, human roles. Gradual implementation, training, and reskilling will be essential for employees to adapt to new technologies and develop the necessary skills. At the same time, organisations will need to assess segmented reactions to AI’s introduction: some employees will see it as a way to be able to spend time on more value-adding activities; others will see it as a way to do less, with resultant productivity challenges.

4. DE&I efforts will need to be refocused
Diversity, equity, and inclusion (DE&I) will need a thorough revamp in 2025. Many companies are reigning back their DE&I initiatives already. Corporates including Amazon, McDonalds and Meta are scaling back their diversity programmes amid fears of legal and political risks under the new Republican administration in the US (BBC News). For these initiatives to regain momentum and credibility, companies should be leaning toward adopting a data-driven approach to measuring the impact of DE&I initiatives to focus on those creating the greatest business ROI. Tracking progress and setting measurable goals will help companies drive genuinely meaningful change. DE&I needs to move beyond descriptive data into predictive analytics.
5. Loud leadership will be out
As stated in the 2025 Forbes article ‘Quiet Quitters Vs. Loud Leaders: The New Battle For Workplace Culture’, to combat disengagement, many leaders have adopted a ‘loud leadership’ approach, increasing the volume of emails, meetings, and check-ins to try to re-establish connection with employees. While these actions are often driven by good intentions, they can backfire by overwhelming employees and creating friction, worsening the disengagement they’re aiming to address. “Loud leaders” may fail to identify the underlying causes of disengagement, opting for over-management rather than seeking input or understanding. This can create a cycle of resentment, where employees feel micromanaged, and leaders become disheartened by the lack of genuine engagement. Instead, leaders should opt for a “listen-first” approach, using improved listening programmes, enhanced employee insights and crowdsourcing of ideas to get innovation and improvement flowing up the business.
6. Succession planning will be pivotal
With an aging workforce and the need for constant readiness of transformation, succession planning at senior leadership level will become increasingly critical. Companies need to be proactively developing future leaders by using stronger assessment diagnostics, building a talent pipeline, offering clear career development paths, and creating targeted leadership support such as individual and team-based coaching. A strong succession plan will provide the resilience needed to navigate change and secure long-term success. Additionally, succession planning fosters a culture of internal mobility, ensuring that employees are prepared to step into key roles when needed, reducing the risks associated with talent shortages or losses.
The economic headwinds in 2025 will see a substantive rift between winners and losers in business. By staying attuned to the trends above, our data suggests that businesses can adapt effectively to the challenges and opportunities of 2025, ensuring they remain resilient, innovative, and poised for growth.
Contact us to learn how our work around leadership, employee engagement and culture can help you to navigate these challenges effectively.