Explore workplace trends for 2025, with tips for small business leaders to help you manage change. From the growing use of AI to changing workforce demographics.
Big changes are afoot in the workplace. Technology is transforming how we work and shifts in culture and demographics are changing who’s in the workforce. As a business leader, these changes can bring about new challenges you’ll need to navigate.
Understanding trends that may impact the workforce can help you manage uncertainty. By focusing on building new skills and capability, you can also boost employee engagement, evolve your business culture and keep your business thriving.
Let’s explore four major workplace trends you may want to factor into your business planning.
No trends list would be complete without a mention of artificial intelligence (AI) in business. In 2025, many businesses and workers will continue to experiment with AI, recognising its potential to enhance productivity, creativity and efficiency in the workplace.
Our research shows that the majority of SMBs already using AI tools see them as essential to staying competitive in the future.
64% of businesses already using AI believe that businesses that don’t work with AI in the next 5 years will lose their ability to compete.
- Telstra Artificial Intelligence Report 2024
AI is different from previous technology innovations because it can be applied across a business; it’s not limited to a specific function or role. In its Skills Horizon report, the University of Sydney suggests that leaders should rethink how they see AI.
The report describes AI as “a general-purpose infrastructure for rethinking work, processes and business models.”
As leaders expand their use of AI at work beyond current use cases, we expect businesses will start to see new benefits in terms of competitiveness and efficiency.
Learn how to incorporate AI in your business operations
Getting value out of AI requires more than just adopting a tool or chatbot- the real key to success lies in developing digital fluency across the organisation.
To really get the most out of AI, you need people to shift their mindset and truly understand AI and its effectiveness.
While you don’t need to build your own AI technology, you do need to know what’s possible. Here are some suggestions to help build digital fluency:
Learn more about how to put AI to work for your business with the Telstra Artificial Intelligence Report 2024.
Australia has had a historically tight labour market for several years. In its assessment of the Australian labour market, the Reserve Bank of Australia (RBA) says the market is operating above full employment. Although employment has softened since its post-Covid peak in late 2022, the RBA still expects it to remain high.
Competition for talent can be challenging and it’s expected to remain a key issue for small and medium businesses throughout the year.
Employees are looking for employers who share their values now more than ever, which is why your employee value proposition is important in attracting and retaining the right people. This includes not just the benefits you offer, but also what your business stands for.
Some factors that may influence a candidate’s choices include:
A clear idea of what your target employees want from their work can help you craft a compelling employee value proposition.
The Australian workforce is becoming more diverse, not just in terms of gender, but also age. As highlighted by McCrindle, for the first time in history seven generations will be alive at once, with the arrival of Gen Beta… The oldest Gen Zs will turn 30, while many Gen Ys are now closer to 50 than 25. Gen X are approaching retirement with the oldest turning 60.
A new generation is entering the workforce en masse, while older employees are extending their careers. This means the spread of generations in the workforce is expanding, creating generational diversity in the workplace.
Different generations have unique needs and expectations when it comes to their roles and employers. Because of this, meeting the needs of different employee groups can benefit your business in many ways, including:
The ability to manage diversity, including generational diversity will be critical to a business’s success.
Leaders should ensure they create an inclusive environment for all generations.
As a business leader, your goal should be to create an environment that accommodates the priorities of different generations while ensuring everyone works as one.
Here are some ideas on how you can foster this environment:
Learn how demographic shifts are changing the workplaces of today
Flexibility in work arrangements - whether it be hours or location – is no longer just a trend; it’s an expectation for much of the modern workforce. Hybrid working is here to stay in 2025, striking a balance between the desire for flexibility and the benefits of working in the office.
Learn more about the benefits of hybrid working
Flexibility is crucial for many employees, often valued even more than a pay rise. It fosters trust, belonging, and loyalty within an organisation, which are key factors in employee satisfaction and retention.
Here are a few suggestions if you’re considering changing your working model, or, want to make hybrid work better for you.
The workplace continues to evolve in 2025, with many recent workplace and employment trends gaining even more importance, especially AI taking centre stage. For small business leaders, this presents an incredible opportunity. Tools like AI and data analytics can help streamline operations, improve decision-making, and create new ways to connect with customers.
However, it might also feel like work has become more complex than ever. Shifting employee expectations and an inter-generational workforce means the end of a one-size-fits-all approach.
To thrive in 2025 and beyond, “soft” skills like communication, adaptability, and the ability to work across diverse teams will be critical. These skills help you navigate complexity, solve problems, and bring out the best in your people. By staying open to learning and embracing innovation, you can transform today’s challenges into opportunities to grow and strengthen your business.
Explore insights and ideas for small and medium businesses to help you harness the power of AI to become more efficient.
Download your Tech State of Play report to help propel your business further through technology.
