Employment Trends for 2025
Here at Danton, we’re taking a look at what trends employers might expect in 2025. The biggest change this year is the implementation of The Employment Rights Bill later this year which will influence many of the expected employment trends. Some of these trends will also be global and we’ve included others more local to the West Midlands. Here are our 8 key trends that we think will make a hit in 2025.
4-Day work week
The second 4-day work week pilot is well underway, and the findings are due later this year. In the first round, 92% of businesses maintained a 4-day work week after the pilot finished and we expect more businesses to look at how they can adopt this way of working.
For some, it may mean squeezing 38 hours into four days rather than five. For others, it could mean a reduction in working hours while maintaining the same level of productivity. While some businesses may not find a 4-day week possible or attractive to their clients or employees. However, we believe some businesses will start to use the 4-day work week as an incentive to look at how they can adopt more flexible work into their business where possible.
Equally, offering a 4-day work week or more flexibility will make employers more appealing when hiring new talent.
While this level of flexibility may not work for all businesses, there is an ongoing culture shift from the traditional 9-5 working patterns. Looking at how some level of flexibility can work for your business will keep you ahead of the competition.
The role of the manager
The role of the manager is going to be more critical in 2025. We’ve already seen some large shake-ups in employment law last year and we expect more to come this year. Your managers are key to making sure you reduce risk in your business and keep compliant with employment law.
While you shouldn’t expect your managers to be experts in employment law, they do need to be aware of changes to the law and the new duty to actively prevent sexual harassment in the workplace. Your managers are also best placed to prevent any discrimination so, understanding the Equality Act 2010 and how to apply it in their role, is important for your business.
Likewise, how well your manager performs impacts the wider business. Recent research found that 81% of people will leave a role because of poor leadership and management. Therefore, giving managers comprehensive training should be central to any employment trends in 2025.
Supporting productivity with AI
AI is still in its infancy but is used across many business areas. Those who learn to leverage AI to support productivity will be at an advantage in the marketplace. Here at Danton, we don’t think AI should replace the personal touch. We believe that greater personal interactions and building stronger relationships will be essential to developing AI.
Using AI to support your business is a good investment but AI is not without its challenges so it needs checks and measures to make sure you’re outsourcing the right kind of processes to AI.
Equally, this could see a raft of different job roles required within your business to implement any AI usage. This could see your people retrain with new skills to meet the changing needs of the business.
Sustainable Workplaces
People are looking for businesses to lead the way with sustainability, and this is reflected in the research they do before applying for roles. Looking at how you can make your business and operations more sustainable will make you more attractive to any talent you are looking to hire later in the year.
Sustainable workplaces can also help reduce overheads for the business as you begin to reduce your energy use. This can work in tandem with more flexible working practices.
We will also see businesses look for ways they can communicate their sustainability efforts and bring in more corporate social responsibility. Even small and micro businesses have a part to play in creating sustainable workplaces.
Employee Wellbeing
We will continue to see a rise in employee wellbeing. The research is clear that happy employees are more engaged and have a positive impact on the bottom line. As we tackle more complex challenges in the world, looking after employees' wellbeing becomes more important. From building resilience to team building and mental health, there are many ways that businesses can support employee wellbeing whatever the budget.
Purpose-led business
We will also see more businesses deliver on purpose beyond making a profit. As with a greater need for flexible and sustainable workplaces, having a clear purpose makes businesses an attractive employer and potential employees want to see a bigger purpose driving the business.
Connection
There will be more drive for connection in 2025, with more business leaders wanting to build stronger relationships within the wider business community. This could come out with better events, networking and conferences but also collaborations that support multiple businesses to grow.
As our workforce starts to see hybrid working as the norm, we believe people will want to connect more in person to replace what they once had by going to the office every day.
Investment
Finally, we know that the West Midlands has some exceptional businesses and talent. We believe that 2025 will see more growth and investment in the region to support businesses and increase jobs. Danton may be biased but we think this is the best place in the country to start and grow a business. We look forward to seeing and supporting more businesses to reach their goals this year.
Employment Trends for 2025
While we don’t have a magic ball to predict the future, these are the 8 trends that we expect to see in 2025. As with any year, adapting to change is important to keep your business relevant for your customers. Your people are core to this mission and Danton is here to help you get the best from your employees.
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