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