Top 5 Trends to Watch for 2025!

Here’s IRI’s analysis of the top trends expected to shape 2025, driving significant impact and change. Stay alert to these developments and prepare for what’s on the horizon! 

1. Fewer Federal Sustainability Lawsuits with Potential Independent Regulation from States
   Shift: The Trump Administration will deprioritize federal environmental regulations and reduce the likelihood of legal action against companies for sustainability issues. Instead, state-level regulations will become the primary sources of enforcement. There will be an increased patchwork of regulations to wade through as states ramp up their efforts in the face of deregulation at the federal level. 
   Preparation: Companies should ensure they have listening posts across the regulatory spectrum and that mechanisms for communicating potential issues across the organization are robust. This will enable issues of concern to be identified early and alternatives identified, sourced, and deployed. Increased cooperation up and down the value chain will help to ensure compliance and lack of disruption.  
   
   
2. Expect Shifting Retirement Expectations and Workforce Impact
   Shift: Many Baby Boomers aren’t able to retire or simply do not want to. Given there are fewer Gen X and Millennials in the workforce to take their places, this can be a good thing. However, having four generations in the workforce at one time can cause friction and mismatched expectations. Additionally, Boomers not moving on means that leadership experience opportunities for younger generations are more limited, causing a skills gap and frustration. 
   Preparation: Companies should consider long-term planning for a multigenerational workforce by investing in healthcare and benefits that appeal to older employees while also attracting younger workers through flexible or hybrid work arrangements. Younger workers should be given additional opportunities to build their leadership skills to prepare them to take on Boomers’ roles. 
   
   
3. Humans vs. Machines? 
   Shift: Recent union actions, such as the longshoremen’s East Coast strike and the Hollywood writer’s strike, have brought automation concerns to the forefront. Workers are protesting the increased use of AI and automation, fearing job losses and demanding protection. Additionally, knowledge workers are being told repeatedly that technology.
   Preparation: To remain resilient, companies can promote transparency around AI roles and use automation to complement human workers. The narrative should be shifted from ‘humans vs machines’ to ‘humans empowered by technology’. Clear communication and training programs will be essential to mitigate fears of job displacement.
   
   
4. Have Office Workers Had Enough? 
   Shift: A man left behind during a team-building mountain climb nearly lost his life, while a Wells Fargo employee passed away unnoticed at her desk for several days.  Meanwhile, the incoming Trump administration has been vocal about requiring federal workers to be in the office five days a week and Amazon is under a cloud of suspicion as to whether its full-time return-to-office mandate is really just a move to reduce headcount without the expense of layoffs. It has been suggested that there has been a fundamental shift in employees’ psychological contract with work, moving from ‘We pay you to do X.’ to ‘I am willing to do X for Y.’ With an emboldened labor movement, the increased use of technology, and shifting generational patterns, deep shifts could be on the horizon.  
   Preparation: Companies should balance operational flexibility with employee satisfaction, adopting hybrid models where possible and clearly communicating the benefits of in-office work for team dynamics and productivity. Communication channels between staff and senior leadership should be clear and robust with frequent opportunities for feedback and metrics for success. 
   
   
5. Gen Z’s Impact on the Workplace 
   Shift: Generation Z, digitally savvy and having come of age during a pandemic and in an era of economic uncertainty and soaring higher education costs, is now in the workplace. One major change is the need for a shift in management and communication styles to accommodate Gen Z’s preference for digital communication and collaboration tools. The generation’s strong emphasis on work-life balance and desire for purpose-driven work and continuous learning opportunities also pose challenges for companies aiming to attract and retain young talent. 
   Preparation: To retain Gen Z talent, companies should emphasize initiatives that resonate with them, like flexibility, social responsibility projects, mental health support, and professional development. Managers should work with them to identify the skills they should develop and the types of projects that will help them grow.

View This Year’s Innovation Trends

Interested in seeing how innovation trends shaped up in 2024? Check out our Trends Analyzer for valuable insights and forecasts. 

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