HR Trends for 2025—Through the Lens of New Dawn Resources.
It’s hard to believe that we are over halfway through the year and the summer holiday period is coming to a close. This is often a time when coming back into work our organisations start to look at the challenges that they are facing and what they may be facing in the future.
We have been hearing a lot about the Employment Rights Bill, and our organisations are asking a lot of questions. Link: ‘Workers face two-year wait for several new rights‘ – BBC News
The third reading of the bill is due to be held in the House of Lords in early September, and we will keep you up to date on that, but we thought it would be useful to look at the continuing trends and questions that we are answering and supporting organisations with regularly.
1. Flexible Work and Return to office tensions
UK workers now average 1.8 remote workdays per week, the highest in Europe—a permanent shift from the pandemic era. Yet employers are pulling in the opposite direction: nearly half of UK firms now expect full-time onsite presence, up from just 27% in 2023. The result? Friction—and even resignations, as about 9–10% of businesses report employees leaving over rigid return-to-office policies.
That said, firms specifically measuring engagement have discovered a sweet spot—three days a week in the office. PwC UK found this balance maximises engagement; going five days in-office actually reduced it. Link to article: Business Insider
The lesson: Flexibility is no longer optional. Demand is high, and strict mandates are risky. It is important to look at the overall package if it is viable as an organisation.
2. Wellbeing as Core Strategy
Wellbeing remains central in UK HR thinking. Employers are moving beyond reactive support to design holistic programmes that address physical, mental, and financial wellness.
This includes everything from counselling and stress resilience training to flexible benefits, digital wellness tools, and management training to support healthy cultures.
Do you really know how your employees and colleagues are and the pressures they are facing? Knowing that assists with support, retention and productivity.
3. DEI From compliance to culture
Equality, Diversity & Inclusion is firmly embedded in modern HR practice—not just as legal compliance but as a cultural differentiator. Organisations are setting measurable DEI goals, training on unconscious bias, revising recruitment methods, and embedding inclusion throughout the employee lifecycle.
We have talked about the importance and benefits of diversity in many areas last year and it continues to be a strong driver in workplaces. Diversity in the workplace.
4. Skills-Based Hiring & Manager Development
With the rapid pace of technological change and evolving business needs, traditional degrees are no longer the gold standard in hiring. Instead, employers are moving toward skills-first approaches—especially in high-demand areas like AI and sustainability
Upskilling and reskilling programmes are now essential tools to future-proof organisations, retain talent, and build internal pipelines.
5. AI Adoption: Human-Centred, Not Replacing
Employers must navigate a shifting landscape of legal and social expectations:
• The Employment Rights Bill may reshape DEI and workplace policies. Please see our recent blog on this for an overview. Link HERE
• Pay transparency is gaining traction, with EU rules also influencing UK firms.
• Rising National Insurance costs affect compensation strategy and require creative HR responses.
• Data privacy remains paramount amid growing HR digitalisations.
If all of this sounds a lot, it is, and we also know that organisations have a budget and do not always have the resources for a full HR department or sometimes a person. Help may be on hand with costs in the shape of a new potential initiative and we are watching the progress of this.
People Management article ‘Small businesses could be offered HR vouchers to help with workplace reforms‘ link HERE
In the meantime, we at New Dawn Resources offer hands-on expertise, legal clarity, and strategic partnership. Whether you’re a growing manufacturer, a healthcare provider, a retailer, or a professional services business, aligning with these insights through a trusted HR partner will help you build stronger people, stronger strategy, and a stronger future.