Embracing the future of work – will you stall or soar?

As 2025 approaches, businesses stand at a critical crossroads. Will they meet the future of work head-on, or stall in the face of emerging challenges?

 

The past few years have seen an ascent into a seemingly bright future of work, before a plummet into layoffs, burnout and disillusionment. But just when many thought the bottom had dropped out, we’re seeing faint signs of recovery – one that will propel companies forwards of they handle the critical choices up ahead correctly.

 

Among our future of work predictions for 2025, we predict big risks and opportunities such as the following:

 

Conditional employee experience is on the rise

 

After a lull in 2024, many companies have recommitted to employee experience (EX) – or, at least, a new, more narrow definition of EX as a carrot to dangle in front of employees, rather than the foundation of a sustainable work culture.

 

This “conditional EX” approach – where leadership promises engagement improvements only after they see results – is a shortsighted gamble. We predict that we’ll see a rise in milestone trophies and quick-fix gift card incentives, or President’s Club trips to Cabo. But here’s the reality: behind those surface incentives hide cracks that will widen over time.

 

The return-to-office war will escalate for a small, embattled group of CEOs

 

The war over return-to-office policies is about to escalate, and not in the way you might expect. With Amazon setting the tone, mandating a full five days a week back in the office, embattled CEOs are lining up to copycat the move. Don’t be fooled, though – this approach will only work for a few giants, such as Amazon and JPMorganChase, who may welcome the attrition it causes. But for most companies? Forcing the issue is a recipe for rebellion – quiet resistance, soaring attrition and a hit to productivity.

 

Here’s the reality that most CEOs need to accept: hybrid is here to stay. With 43 per cent of workers already hybrid in 2024, and the number rising, those who resist this trend will find themselves outpaced in recruitment and talent retention. Reject this fact, and you’re making it really, really easy to sort the winners from the losers in our 2026 predictions.

 

Organisations will rush to close skills gaps with AI-powered intelligence tools

 

The year 2025 will also mark a reckoning in AI adoption. Many companies have jumped headfirst into the generative AI (genAI) craze, but not all will make it out unscathed. One in seven firms will give up entirely, realising that they lack the skills, training and infrastructure to make AI work for them. The ones that get it right, however, will embed AI into their workflows at critical moments, driving productivity gains and preparing for an AI-powered future.

 

In the long run, though, AI tools alone won’t save the day. While the number of organisations adopting these tools is set to jump from 35 per cent to 50 per cent in the next year, most users will still find themselves disappointed without a parallel shift in culture and governance to match the promise of the new tools.

 

As we saw in 2024, even as the EX winter got colder, companies that zigged while the rest zagged emerged far ahead of their counterparts. We know of one financial services company that received the highest employee satisfaction scores it has ever seen, despite the general chilly work climate, because it invested in employees and addressed organisational concerns.

 

Conversely, we’re working with many firms – in media, consumer products and more – who are dealing with stagnant work cultures, general distrust in executives and lower confidence in organisational strategy due to letting EX slide for the past year. That’s why we say that the future of work doesn’t have to be your future of work. Whether you stall or soar is up to you.

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You can download Forrester’s complimentary 2025 Technology & Security Predictions Guide here.

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By James McQuivey, VP research director, Forrester