Ep 44: Organization Change Trends and Predictions for 2025

by | Jan 11, 2025 | Podcast | 0 comments

Welcome to 2025! In this episode of the Harmonious Workplaces podcast, Rich Cruz, Sharyl Volpe, and Ben Kleinman discuss key trends and predictions for the workplace in the new year. They explore a range of topics, from the renewed focus on teamwork to the impact of AI, and the ongoing challenges for HR and change management professionals. Here’s a breakdown of what to expect:

Renewed Focus on Teams and Teamwork

A major trend for 2025 is a renewed focus on teams and how they function. There’s a recognition that teams are essential for getting things done. This requires improved communication, psychological safety, and a balance between individual and team goals. Companies should involve people in co-creating the future rather than imposing changes on them. The emphasis is on outcomes, not just being present, which also means that where work is done is less important than how it’s done.

  • Opportunity for CM/OD/HR: Recognize your workforce as a key strategic asset and invest in them both as individuals and as teams. This includes training, incentives, establishing ground rules for teamwork, and ensuring accountability. It also means getting the right people on the team and, when necessary, removing the wrong people. Teams should have the authority to make decisions, not just be held accountable to carry out tasks.

The Downside of Forced Return to Office (RTO)

Forcing employees back to the office is predicted to backfire, leading to demotivation and demoralization. Many employees are already disgruntled, with low workplace satisfaction and low trust in managers. This will cause talent to leave for better opportunities.

  • Opportunity for CM/OD/HR: Avoid forced RTO and find other ways to enhance team productivity. Focus on creating environments with psychological safety, empathy, and respect.

AI Literacy: No Longer Optional

AI literacy is critical for knowledge workers. AI is not just a future possibility, it is a current reality that is becoming more ubiquitous and user-friendly, embedding into many workplace tools. Companies should use AI to help organize tasks, as a thought partner, and as a coding assistant.

  • Opportunity for CM/OD/HR: Provide training and support to employees so that they can effectively work with AI. Guide the organization on the pros, cons, and limitations of AI. Showcase best practices for using AI as a thought partner and assistant.

CM/OD/HR: Still Fighting for a Seat at the Table

Despite the importance of people in getting work done, CM/OD/HR will still be perceived as cost centers rather than value drivers. These departments will have to keep proving their worth.

  • Opportunity for CM/OD/HR: Demonstrate how CM/OD/HR can drive strategy, increase revenue, and decrease costs through an engaged workforce and seamless execution of transformations. Change management can mitigate risks and enable revenue by helping people adopt new systems and processes, thus helping to avoid opportunity costs.

No Major Revolutions in Change Management

While AI will play a larger role, there will be no major revolutions in change management in 2025. Instead, there will be iterative improvements via AI. This means better communication, identification of champions and laggards, and better “listening” across the organization. There will also be a focus on teaming to execute more effectively with or without AI.

  • Opportunity for CM/OD/HR: Lead the way by training the organization on AI and promote its use as a thought partner and assistant. Use AI to enhance the organization’s culture through sentiment analysis, recognition ideation, and customized training opportunities.

The Impact of a Growing US Economy

If the US economy grows, people will likely start quitting jobs they don’t like in significant numbers. Employees are already dissatisfied, with low workplace satisfaction and manager trust.

  • Opportunity for CM/OD/HR: Show your team appreciation, recognize their contributions, and demonstrate growth opportunities within the company. If growth isn’t possible, support employees in their search for a better opportunity.

Other Trends to Watch

  • Small Businesses Selling: More small businesses, particularly those owned by baby boomers, are expected to sell as owners retire without a clear succession plan. This presents opportunities for change management professionals to assist with integration.
  • Lack of Civility: Civility skills are lacking in the workplace, leading to conflict and communication issues.
  • DEI Walkbacks: DEI initiatives will continue to face pushback.
  • AI in Change Initiatives: AI and automation will be used more frequently in change initiatives.
  • Employee Well-being: Employee well-being will be integrated into change strategies.
  • Agile Change Management: Agile change management will become the new norm.
  • Emphasis on ROI: There will be a greater emphasis on the return on investment (ROI) of change management.
  • Leadership Development: There will be a continued focus on leadership development and change capability building.

The Missed Opportunity for HR

The podcast also highlights a missed opportunity for HR professionals. There is a suggestion that HR could take ownership of change management and be great stewards of human capital. However, it’s predicted that HR will not step up to the plate to fully embrace the strategic aspect of change management, and will continue to be seen as hiring/firing/benefits, and not fully embrace human capital.

Conclusion

The workplace in 2025 will be shaped by a variety of factors. These include a focus on teamwork and employee well-being, the integration of AI, and the need for change management to prove its worth. While there may be no major revolutions, it’s clear that adaptability and a focus on people will be key to success.

Make change your friend!

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