As 2024 draws to a close, Fast Company’s Work Life team has been reflecting on the significant trends of the year and anticipating what 2025 might bring. Here are some of the key stories we'll be monitoring in the new year:
1. **The Ongoing Debate Over Return to Office (RTO)**
The discussion about returning to the office continues, even after three years of chronicling the push to bring workers back to physical spaces. The divide between what employees want (flexibility and hybrid schedules) and what some leaders desire (in-office collaboration and pre-pandemic workplace norms) persists. Despite the wish to move past this debate, we expect more companies to adjust their policies in 2025, especially following major employers like Amazon mandating a five-day-a-week return to the office.
Many companies will still opt for hybrid work models. “Hybrid work is the new normal,” says Sam Naficy, CEO of Prodoscore. “Despite the push for in-office mandates, hybrid work is here to stay, driven by the need for flexibility. Few companies will fully revert to all-office models without risking talent loss.”
In some instances, RTO mandates might be designed to encourage resignations. In a recent op-ed, Elon Musk and Vivek Ramaswamy, who are set to lead the new Department of Government Efficiency, expressed hope that requiring federal workers to return to the office full-time would lead to resignations. They wrote, “Requiring federal employees to come to the office five days a week would result in a wave of voluntary terminations that we welcome: If federal employees don’t want to show up, American taxpayers shouldn’t pay them for the COVID-era privilege of staying home.”
2. **AI's Impact on Jobs and Hiring**
Throughout the year, we've covered employee concerns about AI's impact on careers. This impact is already evident, with a November study showing a 21% reduction in job posts for automation-prone roles related to writing and coding compared to manual-intensive jobs since ChatGPT's introduction.
However, many experts are optimistic about AI's potential to reduce mundane tasks and even create new jobs. Futurist Frank Diana notes, “It is normal to worry about job loss with new technology. But historically, new technologies have led to more jobs than the previous ones ever allowed.”
One area where AI is already making waves is in hiring. While many companies have long used AI for candidate screening through applicant-tracking systems, more are likely to embrace AI in the hiring process in 2025. A recent study from Resume Builder found that nearly 70% of companies plan to use AI for some part of the hiring process by the end of 2025. Beyond initial vetting, 23% of companies already use AI to conduct interviews, and another 19% plan to start using AI for interviews within the next year.
Adam Charlson, managing partner of Focus Search Partners, advises against relying solely on AI for hiring. “AI can quickly sift through a vast pool of résumés and pinpoint those that best match the keywords in a job posting,” writes Charlson. “But can AI alone truly determine the best fit for a position? The short answer is no. While AI can do a lot, it doesn’t replace a human when it comes to hiring.”
3. **Backlash Against DEI Programs**
This year saw many companies, including Walmart, Lowe’s, Ford, John Deere, Harley Davidson, Jack Daniels, and Toyota, scale back DEI programs in response to conservative activism. Anti-DEI sentiment is also growing among employees. A November 2024 Pew study found that 23% of workers described focusing on DEI as “a bad thing,” up from 16% in 2023.
However, DEI is far from over. Erin Uritus of Out & Equal and Bob Witeck of Witeck Communications, Inc., write, “The truth is that we are not witnessing a sea change in the marketplace or an erosion in public attitudes. Most businesses understand that DEI is good for workers and good for business.”
With the arrival of a new Trump administration, there will likely be additional pressures on DEI programs. We'll be closely monitoring how businesses committed to greater equity in the workplace rebrand or shift their efforts in the new year.