Photo Source: Tara Winstead
According to Gartner’s latest research, 2025 will be marked by workforce challenges that could define the fate of businesses in the years ahead. Leaders are rethinking how to engage and keep their workforce, with talent retention and development at the top of the agenda.
The role of management is evolving, influenced by the changing demands of a digital-first world. At the same time, AI introduces new complexities and risks that companies must address. Gartner’s findings show that organisations that anticipate and respond to these issues head-on will gain a competitive advantage.
The Workforce of the Future
The workforce is feeling the effects of a dual crisis—an ageing talent pool and the rise of AI automation. As experienced professionals retire, they take with them a wealth of institutional knowledge, leaving gaps in the workforce. At the same time, entry-level employees face diminishing opportunities to learn on the job. A Gartner survey from May 2024 found that “six in 10 employees said they aren’t getting the on-the-job coaching they need to support their core job skills.
” To address these concerns, companies are increasingly adopting AI-driven learning platforms and mentorship programmes. But despite these efforts, many organisations are stymied by outdated systems. “Limitations from murky decision rights, multi-layered approvals, complex hierarchies, and rigid role designs stood in the way of 2024 being the year AI changed organisations’ trajectories,”
AI is increasingly becoming the standard in performance evaluations, with employees viewing it as a more objective alternative to human managers. According to a June 2024 Gartner survey of more than 3,300 employees, “57% believe humans are more biased than AI when it comes to making compensation decisions.”
The growing reliance on automation is making it harder to differentiate high performers from those whose output is largely AI-driven. This challenge has left many organisations struggling to update performance metrics and reward systems.
The focus is shifting in DEI from representation to fostering inclusion and belonging, as political scrutiny over diversity programmes intensifies. “With this pivot, organisations will be able to maintain or enhance their workforce diversity while improving talent outcomes and innovation,” Gartner’s research suggested.
The Hidden Risks of an AI-First Approach
The rise of AI presents both opportunities and challenges for businesses, especially when adopting an “AI-first” approach without sufficient planning. A July 2024 Gartner survey of more than 3,500 employees revealed that “one in five report that the technology their organisation has adopted in the past two years has made their job harder.”
Businesses risk deploying AI tools that create more inefficiencies than improvements without a human-first strategy. In addition to these productivity concerns, workplace loneliness is becoming a pressing issue. Remote and hybrid work arrangements have led many employees to feel isolated, with a Gartner survey of 18,000 employees showing that “only 29% of employees globally feel satisfied with the interactions they have with coworkers, down from 36% in 2021.”
Companies are investing in initiatives aimed at improving collaboration and fostering employee connections to address this. At the same time, employee activism is having a growing influence on AI ethics.
Workers are calling for greater input in shaping AI policies with AI playing an increasing role in workplace decision-making . However, a Gartner survey of 243 CIOs found that “only 21% said they focus on mitigating the potential negative impacts of AI on employee work.” Businesses that engage their employees in AI governance will likely build greater trust and ensure more responsible technology adoption.
From Awareness to Action
For executives, the challenges of 2025 raise critical strategic questions:
- Which trends will have the greatest impact on the organisation?
- Which talent segments are most affected by AI disruptions?
- How can businesses balance technological advancements with employee well-being?