First published on Thursday, January 2, 2025
Last updated on Thursday, January 2, 2025
2024 was a busy year for business owners, especially within the world of HR. From competition for skilled workers increasing to an added focus on mental health and employee wellbeing in the workplace these issues mean employers have to learn to adopt new strategies to continue thriving in a constantly changing work environment.
With so many changes, employers understandably have questions about what might be on the horizon for 2025. The landscape will face its share of challenges and changes, including:
- A continuation of the cost-of-living crisis
- Increased technological advancements
- The introduction of several employment legislations
So how can business owners address the challenges head on? Here’s what we think…
The cost-of-living crisis continues…
According to research conducted by Ipsos Polling for Global News, one of the biggest concerns for employees throughout 2024 was the continued rise in the cost-of-living. And unfortunately, this isn’t going away.
The challenge of getting by financially from day-to-day is the fundamental preoccupation of Canadians.”
“It’s not surprising that it (cost of living) shows up as the number one domestic story.” – Darrel Bricker, global CEO of Ipsos public affairs
Business owners and HR directors saw a drop in productivity, resulting from employees being concerned, burnt out, or preoccupied with the stresses associated with the cost-of-living.
As the financial strain continues to affect households, your staff’s morale and wellbeing will be affected more than you might think. That’s why it’s important to put measures in place to help balance out the negative effects of the cost-of-living crisis in the workplace.
For example, consider the financial implications on your staff if you’re planning on enforcing new policies such as a strict return-to-work policy.
Also, consider looking into providing access to an Employee Assistance Programme to give your team someone to talk to when they need it most.
Other benefits you could consider offering include:
- Discounted employee benefits (like those found on Bright Exchange)
- Free food and drink
- Free upskilling opportunities
- Pay increases (if you can afford it)
These measures can help boost retention and engagement, which is cheaper than constantly rehiring and training.
The rise of technology and AI
Lots of new technologies are emerging, leading many workers to worry about losing their jobs. This is especially true of AI.
AI and advanced technologies can enhance staff satisfaction and boost productivity by automating various tasks. Alternately, job insecurity can drive high turnover, low productivity, and low engagement. So, what can you do to strike a balance and avoid the fear of AI in the workplace?
Start by offering upskilling opportunities where you can, educating your staff on any new systems, technologies, or use-cases for AI. This way, you’ll provide the tools for success, while reassuring your staff of their future in your organization.
Big legislation changes
Several employment legislation changes are coming into effect in 2025 that will have significant effects on business owners.
For example, the Digital Platform Worker’s Rights Act taking effect July 1 will bring huge reforms to gig economy’s workers rights, including transparency in their work terms, fair compensation and dispute resolution.
Some legislations won’t take effect until later in the year, it’s crucial for your business to start planning ahead.
Culture is king
Company culture remains a huge priority for employees. It dictates everything from how your team interacts with each other to the values, beliefs, and attitudes you uphold in your organization.
For millennials and Gen Z employees in particular, culture is a top priority when choosing the type of employer they want to work for. Looking ahead, your business needs to find genuine ways to showcase your culture to attract the best talent.
How BrightHR supports your business
There’s a lot for your business to contend with in 2025. But don’t worry, BrightHR has got your back.
Book a demo with one of our friendly experts to discover how our expert document templates, confidential 24/7 HR and health & safety advice, and streamlined HR software can support your business in 2025.
