Written By: Dahlia Shabsove, Senior HR Advisor & Chen Sasson, HR
Director, Centre of Excellence, MaxPeople| National Payroll Institute’s Dialogue Magazine, Vol. 47, Issue 1

Gordon Moore, co-founder of Intel Corporation, famously said, “Change has never been this fast, and it will never be this slow again.” His words resonate now more than ever.

As we enter 2025, the pace of change continues to accelerate. Organizations face new complexities ranging from evolving workforce expectations to rapid technological advancements and ongoing economic uncertainty. Foresight and intentionality are now the keys to success.

“ Change has never been this fast, and it will never be this slow again.”

This article explores five key HR trends set to shape 2025, offering insights grounded in data, expert perspectives and practical actions. By staying ahead of these changes, organizations will be better equipped to navigate the future of work with confidence and purpose.

1. Pay Transparency
Pay transparency is becoming a defining HR trend in Canada as more jurisdictions introduce or pass legislation aimed at promoting equitable compensation practices. Several Canadian jurisdictions have proposed pay transparency laws, though not all have been passed, and some have even been voted down. The federal government and British Columbia have active laws, while similar legislation in Newfoundland and Ontario remains up in the air.

Generally, these laws require employers to:

• Include salary ranges in job postings.
• Refrain from asking job applicants to share information regarding their pay history.
• Refrain from retaliating against employees for discussing their pay.

Beyond compliance, the Mercer’s 2024 Global Pay Transparency Report revealed that 69 per cent of employers believe that candidates expect pay transparency, emphasizing the need for organizations to align their practices with this belief.

As a starting point, MaxPeople suggests conducting pay equity audits and salary structure redesigns to proactively identify and address potential inequities. Organizations should also pin down their compensation strategy (ideally before legislation mandates transparency).

As an organization, do you want to lead, meet or lag behind the market when it comes to compensating your employees? If you are still determining your strategy, take a closer look at your value proposition, and consider why employees would choose your company over others.

2. Leadership Skills Development
In 2025, organizations should prioritize leadership skills development to support managers as they transition from individual contributors to effective leaders. Managers play a pivotal role in overseeing people and executing organizational strategies.

That being said, leadership and managerial skills are not inherent. They are not automatically acquired upon promotion to a managerial role. These skills must be learned and cultivated through deliberate development efforts. This is crucial, as research from DDI’s Frontline Leader Project reveals that 57 per cent of employees have left their job due to poor management.

Some of the common gaps or areas where managers often struggle include providing constructive feedback, effective delegation, managing interpersonal conflicts and fostering strong communication. Investing in targeted training programs for these areas will not only empower managers, but also enable them to develop high-performing teams and cultivate future leaders, creating a positive work environment that enhances employee engagement and retention.

3. Flexibility and Hybrid Work
In 2025, the trend of flexibility and hybrid work continues to dominate the HR landscape, reshaping workplace dynamics and employee expectations. The pandemic-driven shift to remote work has fundamentally changed how organizations operate, and despite return-to-office (RTO) initiatives, employees overwhelmingly prefer maintaining hybrid and flexible arrangements.

Traditional 9-to-5 work arrangements are getting left behind and replaced by expectations of autonomy and adaptability. According to the ADP survey, People at Work 2022: A Global Workforce View, 64 per cent would consider quitting if they were required to return to the office full-time, highlighting the risks of resisting hybrid models. Organizations should embrace this new reality as a key strategy for attracting and retaining top talent.

There are many valid reasons why employers may be reluctant to let employees work from home. Some of these include concerns regarding time theft, information privacy, or employee engagement. The good news is that all of these concerns can be addressed with proactive solutions.

Implementing clear performance metrics and scheduling regular check-ins can help ensure accountability and productivity, while investing in secure technology, such as VPNs and encrypted file-sharing systems, can mitigate privacy risks. To maintain employee engagement and prevent feelings of isolation that may occur while working from home, employers can create opportunities for virtual team-building activities, regular one-on-one meetings, and open communication channels.

By addressing these concerns with thoughtful strategies and support, employers can balance their needs while enabling employees to work from home effectively.

To successfully implement hybrid models, companies should implement formal hybrid work policies that clearly outline expectations for both in-office and remote work. Investing in employee well-being initiatives, such as allowances for home office setups and mental health resources, can further support a remote workforce. Leaders must also foster an inclusive workplace culture by leveraging asynchronous communication tools to accommodate different schedules and time zones and prioritizing results over physical presence when evaluating performance.

By adopting these strategies, organizations can build resilient, engaged teams while positioning themselves as forward-thinking employers operating in a competitive talent market.

4. Succession Planning
Canada’s aging population is leading to a rapidly shrinking labour force, posing threats to businesses’ continued success and growth. As more experienced employees retire, gaps in senior leadership and the potential loss of critical organizational knowledge have the potential to negatively impact operations.

MaxPeople is supporting our clients to identify critical roles and high-potential employees, conduct talent assessments to identify where gaps may present themselves, implement mentorship programs, and encourage knowledge sharing.

Furthermore, by developing long-term talent pipelines that are aligned with strategic goals, organizations can better prepare for a more seamless transfer of knowledge and equip the next generation of leaders.

As David DeLong wrote in his book, Lost Knowledge: Confronting the Threat of an Aging Workforce, “Knowledge is the foundation of organizational performance, yet most companies do not know what they know—or what they are about to lose.”

To address this, organizations must integrate succession planning into broader business strategies and actively measure progress to mitigate the risks of the departure of key players and build a resilient leadership structure for the future.

5. Generative AI in HR
Generative artificial intelligence (AI) has been making waves in HR for several years, with platforms like ChatGPT, Gemini and Cohere becoming widely accessible and integrated into daily work.

The burning question is: will AI replace and render jobs obsolete? Fearmongering and speculation surrounding this question and the capabilities of AI is rampant.

The answer is not a simple “yes” or “no.” AI can automate repetitive tasks, create efficiencies in workflows, and even create new roles. Its use has become standard practice and will continue to grow in popularity.

However, at this stage, AI cannot replace the complex human nature of work, such as strategic decision making, emotional intelligence, relationship building and visionary leadership. Innovation will always start with people — amplified by technology, not replaced by it.

As organizations continue to adopt AI tools, it is important to acknowledge their limitations. These systems and the results that they yield are not always current and up to date, and they lack the ability to interpret nuanced matters like legislation accurately.

Instead, AI serves as a powerful starting point — a tool that necessitates human oversight to verify information and refine outcomes. Organizations should adopt AI thoughtfully, ensuring it aligns with their strategic goals and addresses specific challenges they face.

2025 and Beyond
As we look to the rest of 2025, the HR trends outlined above will play a critical role in shaping organizational success in an increasingly dynamic and complex business environment.

Pay transparency, leadership development, flexibility in work arrangements, succession planning and the integration of generative AI are not passing trends. They are strategic imperatives for organizations that want to stay competitive.

The rapid pace of change requires organizations to be agile and embrace innovation while fostering a culture that prioritizes employee engagement, growth and well-being.

Navigating these changes requires expertise, and that is where MaxPeople comes into the picture. Whether it is pay equity audits, policy development, succession plans, or technology implementation, our team is here to support your organization every step of the way.

For more information about fractional HR services, email [email protected] or call 1.888.709.1236