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3
Megatrends
Shapingthe
FutureofWork
2025MegatrendsbyUKG
Clickheretobegin
AtUKG,weknowthatpeopleare
therealdrivers
oforganizationalsuccess.
Throughextensivecollaboration,
research,andanalysis—alongwith
one-on-oneconversationswithleadersandHRpractitionersatorganizationsofallsizes—UKGdetermineswhich
workplacetrendsarelikelytoimpactorganizationsandemployeesacross
theglobalworkforceintheyearahead.
Asaresultofthisconcertedeffort,UKGhasidentifiedthreeMegatrendssettoshapeworkplacesworldwidein2025—andprovidesaroadmapforhowtosuccessfullynavigatethem.
THEESCALATINGGLOBAL
LABORDEFICIT:
REIMAGININGTALENT
ACQUISITION
MEGATREND1
THEAMPLIFIEDEMPLOYEE
EXPERIENCEIMPERATIVE:
UNLEASHING
ENGAGEMENT
MEGATREND2
THEHUMAN-AI
ADVANTAGE:
UNLOCKING
PRODUCTIVITY
MEGATREND3
1
TheEscalating
GlobalLaborDeficit:
Reimagining
TalentAcquisition
Inmanycountries,organizationsacrossmultipleindustriesreportatalentscarcitythatismakingitdifficulttorecruit
employees.Reasonsfortheshortageincludedemographicdynamics,geographicimbalances,skillsgapsissues,shiftinglaborforceparticipationrates,andchangingemployee
expectations.Thistalentdeficitisexpectedtogrowsignificantlyoverthenextdecade.
THEPATHFORWARD:
Organizationsmustactnowtoimplementamultifacetedtalentacquisitionstrategy
thatwillhelpthemaddressthecurrenttalentshortagewhilesimultaneouslypreparingthemforwhatwillinevitablybecomeamuchmorechallengingsituation.
MEGATREND1|THEESCALATINGGLOBALLABORDEFICIT:REIMAGININGTALENTACQUISITION
%
ofemployersgloballyarehavingchallengesfillingopenroles.SOURCE:
ManpowerGroup
92
isthenumberofworkersforevery100openjobsintheU.S.SOURCE:
U.S.ChamberofCommerce
asofDecember2024
85.2million
isthenumberofjobsthatcouldgounfilled
by2030,basedontheglobaltalentdeficit.
SOURCE:
KornFerry
61%
ofmanufacturerssaythey’restrugglingtofill
criticallaborgaps.SOURCE:
UKG
85%
ofretailerssaylaborshortagesimpacttheirabilitytomeetcustomerserviceexpectations.
SOURCE:
UKG
MEGATREND1|THEESCALATINGGLOBALLABORDEFICIT:REIMAGININGTALENTACQUISITION
WhatYouCanDo
Tosurvive—andthrive—amidamassivetalentandskillsshortage,youneedawaytopredict,analyze,andaddressthegapsbetweenyourworkforcepracticestodayandyourhumancapitalneedsoftomorrow.
Herearesomeideasforhowtoachievethis:
Establishflexibleandstrategicworkforceplanningpracticesthatcanhelpyoudeterminethecurrentandfutureneedsforyourfull-time,part-time,andgigworkforce.Artificialintelligence(AI)insightscanhelpidentifystaffingtrends,
optimalstaffinglevels,hiringopportunities,andrecruitmentrecommendationsforbothshort-termforecastingandlong-termworkforceplanning.AIcanalsohelpimproveplanningagilitywithflexible,easy-to-useworkloadbudgetingandcapacityplanningtools.
MEGATREND1|THEESCALATINGGLOBALLABORDEFICIT:REIMAGININGTALENTACQUISITION
WhatYouCanDo
Arobusttalentstrategyfocusedonskills-basedhiringcanbroadenthetalentpoolandhelporganizationsachievecriticalperformanceandgrowthtargets.Focusingonaperson’sabilitiesandcompetenciesratherthansolelyontheireducationanddirectexperienceisamoreexpansiveapproachthatconsidersapplicantswhodon’tfitthe
traditionaltemplateforarolebuthavetheskillsthatcanbeappliedtothejob.
Herearesomeideasforhowtoachievethis:
Unlocktalentinyourorganizationbyconnectingpotentialandcurrentemployeestogrowth,development,andmobilityopportunitiesthatkeepthem—andyourorganization—thriving.Applyskills-basedhiringmethodologytocurrent
employeesforjobchanges,promotions,anddevelopmentopportunities.Helpemployeesexpandtheirskillssotheycanadvancetheircareers.Cross-training,reskilling,andupskillingaremethodsthatorganizationscanleveragetoensure
theyhaveabroadanddeepbenchofmulti-skilledandtalentedindividualswhocanadaptandflextochangingbusinessneedsinthefuture.
MEGATREND1|THEESCALATINGGLOBALLABORDEFICIT:REIMAGININGTALENTACQUISITION
WhatYouCanDo
Toremaincompetitiveinanenvironmentwhereit’sbecomingincreasinglychallengingtofindorattracttalent,it’s
importanttostreamlinetheapplicationandhiringprocessesandboosttheaccuracyofthecandidate-matchingandcandidate-evaluationprocesses.
Herearesomeideasforhowtoachievethis:
Thebestwaytoattract,engage,andretaintoptalentistoprovideapersonalizedandconvenientexperienceforbothcandidatesandnewhires.UtilizeAI-guidedrecruitingfeaturesthatnotonlyassessskillsandexperiencebutalso
behaviors,motivations,andcareeraspirationstodeterminelong-termcandidatesuccessandfit.Enablecandidatestousefamiliarsocialandmobiletechnologytoolswhensearchingandapplyingforopportunities—andgivenewhiresthetoolstoseamlesslyacceptofferlettersandcompletetheirnewhirepacketsfromanydevice.
NEXTSECTION
2
TheAmplifiedEmployeeExperienceImperative:
UnleashingEngagement
Employeeengagementhashistoricallybeenakeyindicatorofsuccessinbothlargeandsmallorganizations.Withlowunemploymentandthegrowinglaborshortage,the
importanceofengagementisamplifiedbecauseengagedemployeesaremorelikelytostaywiththeirorganizations.
Consequently,C-suiteleadersareprioritizingengagementasavitalbusinessmetricbecauseithasseeninsufficientimprovementoverthelastdecade.
THEPATHFORWARD:
Thegoalistobeanemployerofchoiceinthiscompetitivelabormarket,so
organizationsmustrenewtheirfocusoncreatingapeople-centriccultureanddeliveringadifferentiatedemployeeexperiencetoincreasetrust,engagement,and—ultimately—retention.
MEGATREND2|THEAMPLIFIEDEMPLOYEEEXPERIENCEIMPERATIVE:UNLEASHINGENGAGEMENT
%
ofemployeesgloballyarenotengaged.SOURCE:
Gallup
42%
ofglobalemployeessaytheiremployerisn’tmeetingtheirneeds.
SOURCE:
Mercer
53%
ofemployeesareconsideringSOURCE:
GreatPlaceToWork
newopportunities.
2/3
ofemployeessaythatlowtrusthurtstheirdailyeffortatwork.
SOURCE:
UKG
$56M
iswhatorganizationscansaveannuallybyaddressingthetopfactorsthat
contributetodisengagement.
SOURCE:
McKinsey
MEGATREND2|THEAMPLIFIEDEMPLOYEEEXPERIENCEIMPERATIVE:UNLEASHINGENGAGEMENT
WhatYouCanDo
Trust,thefoundationalelementofemployeeengagementandapeople-centricculture,isbuiltthrougheverydaymomentsthroughouttheemployeeexperience.Buildingacultureoftrustresultsinabetterexperienceforyourpeople—whichpaysoffinseveralways.Employeeswhotrusttheirleadersandfeelinvolvedindecisionsthatimpactthemaremorelikelyto
delivergreatcustomerservice,stayalongtimeattheirorganization,andstronglyrecommendtheirworkplacetoothers.
Herearesomeideasforhowtoachievethis:
Bybringingtogetherdata,research,andyouremployees’voices,youcanturntypicalHRmetricsintoactionableinsightsthatenhanceworkplacecultureandalignthemwithcriticalorganizationaloutcomes.Leverageemployeesentimentdataandextensivebenchmarkingtohelpidentifyareasfororganizationalimprovementandrecognizeworkplace
excellence.Enhancingemployeeengagementtofosterahigh-trustcultureisessentialfororganizationalsuccess.
MEGATREND2|THEAMPLIFIEDEMPLOYEEEXPERIENCEIMPERATIVE:UNLEASHINGENGAGEMENT
WhatYouCanDo
Whenyouinvestthetimetounderstandwhattrulymatterstoyouremployees,youcanestablishpoliciesand
programsthatmeettheneedsofallemployees—fromtheofficetothefrontline—andthat’llhelpmotivatethemtoperformattheirbest.
Herearesomeideasforhowtoachievethis:
Employeeexperiencetechnologycanhelpcreateapositiveworkenvironment,improveengagement,andoptimizetouchpointsthroughouttheemployeelifecycle.Fromtheperfectpaycheckdeliveredontime,everytime,tofinancialliteracyresourcesandflexiblepayoptionstoschedulesthatcanbeeasilyviewedandeasilychanged,knowing
whatyouremployeesvalueintheirworkplaceexperienceandmeetingtheseneedsareessentialtocreatingagreatexperienceforallemployees.
MEGATREND2|THEAMPLIFIEDEMPLOYEEEXPERIENCEIMPERATIVE:UNLEASHINGENGAGEMENT
WhatYouCanDo
Whenyougiveyouremployeesavoiceandlistentothem,youcanidentifywhatmattersmosttothemaswellas
areasthatmaybeimpactingengagement,productivity,performance,andmore.Theinsightsgainedcanassistyouinmakingstrategicdecisionsandcreatingactionplansbasedontheirfeedback.
Herearesomeideasforhowtoachievethis:
Surveysarearobustsolutionforgatheringandanalyzingemployeeinsightsandhelpingorganizationskeepupwithevolvingworkforceneeds,concerns,andengagementlevels.Withcustomizablesurveysandreal-timereportingtools,organizationscangatherandanalyzeinformationquickly,streamlinedecision-making,andfosteramorepositive
employeeexperienceandproductiveworkenvironment.
NEXTSECTION
3
TheHuman-AIAdvantage:
UnlockingProductivity
Theworldofworkisundergoingsignificanttransformation
duetorapidinnovationandtheintroductionofautomation
technologiesthatincludegenerativeAI(GenAI).AI’smost
significantvaluetoanorganizationisitspotentialtoaugmentandimprovetheproductivityandperformanceoftheworkforce.Tothatend,AIoffersconsiderablepromise.Whilemany
organizationsarealreadyseeingthebenefitsofAI,thesetoolsrelyheavilyonqualitydataandhumanengagement.HumanshelppowertheAI,andtheAIhelpsempowerhumans.This
necessitatesanimportantconnectionbetweenthetwo.
THEPATHFORWARD:
TosuccessfullyoperationalizeAItechnologyandharnessitsfullpotential,organizationsmustsimultaneouslyinvestintheirpeoplethroughskillsenhancementanddigital
enablement,whileestablishingafoundationofqualitydata.
MEGATREND3|THEHUMAN-AIADVANTAGE:UNLOCKINGPRODUCTIVITY
65%
oforganizationsareusingGenAI—anincreasefrom33%in2023.
SOURCE:
McKinsey
33%
ofemployeesuseGenAIregularlyatwork.SOURCE:
BCG
%
ofemployeeswanttheirorganizationstobemore
transparentabouthowAIisbeingused.
SOURCE:
UKG
56%
ofexecutivesseeAIasajobcreatorintheirorganization.SOURCE:
Mercer
32%
believeAIwilladdthemostvalueintheirorganizationbyamplifyingintelligencetoenablehigher-qualitywork.
SOURCE:
Mercer
MEGATREND3|THEHUMAN-AIADVANTAGE:UNLOCKINGPRODUCTIVITY
WhatYouCanDo
AIisatransformativetechnologythatsignificantlyimpactshowwework.It’simportanttoeducateemployeesaboutAIandhowit’sbeingethicallyusedinyourorganization.Besuretoprovidecomprehensivetrainingprogramsonitsvalue,whichincludesboostingefficienciesandoutputsoemployeescanfocusonmorestrategicbusinessgoals.
Herearesomeideasforhowtoachievethis:
Toremaincompetitiveintheevolvingbusinesslandscape,youneedtechnologythatdeliversinsightsandguidancewhereandwhenthey’reneeded.WiththehelpofGenAI,empoweryourpeopletoquicklyfindtheanswersthey
need—basedonprovenpracticesandorganizationalpolicies—byaskingquestionsrightintheflowofwork.
ThisaccesscanenhancetheemployeeexperiencebyprovidingreliableandtimelyinformationthatfreesHRandITteamsfromroutineinquiries.
MEGATREND3|THEHUMAN-AIADVANTAGE:UNLOCKINGPRODUCTIVITY
WhatYouCanDo
Withoutconnectionandasenseofbelonging,employeescanfeeldetachedfromtheworkplaceandtheircolleagues—andthiscanleadtoalackofengagementanddecreasedproductivity.YoucanhelpfostercollaborationbyincreasingtheadoptionandefficacyofAI.InvolveemployeesinopportunitiestouseAI,recommendnewwaysofdoingso,andestablishforumstosharebestpractices.Thenwatchcollaborationflourish.
Herearesomeideasforhowtoachievethis:
AIcanhelpbreakdowncommunicationbarriersandimproveperformanceandproductivity—anditsusecanbeadiscussionpointforemployeesastheycollaboratetoleveragethepowerofAImoreeffectively.Providingasingle
sourceoftruthfortimelyandrelevantemployeecommunicationscancreateafeelingofinclusivityintheworkplaceandhelpimproveengagement.Plus,creatinganenvironmentwhereemployeesfeelvalued,involved,andmotivatedtoexcelcanhelpboostproductivity.
UnlockingAIPotentialatWork:Tools,Training,andResources
Whetheryou’rejuststartingyourAIjourneyorlookingtodeepenyourexpertise,weofferseveraltoolsandresourcestosupportyourgrowth.Clickheretolearnmore.
Icouldusesomehelpinregisteringa
teamforthenextthinktank.Cananyonesendmesomeinformationonthat?
MEGATREND3|THEHUMAN-AIADVANTAGE:UNLOCKINGPRODUCTIVITY
WhatYouCanDo
HarnessthepowerofAItostreamlinepeople-centricprocessesandcreateexceptionalworkplaceexperiences.Whenyouautomateroutineandcommontasks,youempoweryourmanagersandemployeestofocuson
high-valuework.
Herearesomeideasforhowtoachievethis:
UtilizeanAIplatformthatcancompletetasks,suchashelpingwriteaself-reviewduringperformancemanagement
time,solveproblemsautonomouslytoreduceerrors,andspeedupdecision-makingsoemployeescanfocusonhigher-priorityactivities.IntegrateAIintothedailyflowofworkwithatrustedAIsidekicktohelpemployeesquicklyandeasilygetanswerstoquestionsaboutorganizationalpolicies,processes,benefits—andmore—thatwouldotherwi
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