1. Organizations will see a loss of expertise going forward

In 2025, more people in the workforce will reach retirement age than in any other year on record, which means organizations will lose some of their most experienced employees at a faster rate.

In addition, technology has blurred the line between novice and expert employees across many industries. For example, artificial intelligence (AI) has taken over many of the functions that were previously done by interns or support teams. Without these opportunities to learn and build expertise, leaders are concerned about how they will develop future experts.

To avoid losing expertise, organizations will need to build a knowledge base from their existing experts and use technology to ensure the information can easily be shared between expert and novice employees.

A dedicated knowledge management team can help organizations collect information directly from experts and then use them to create microlearnings, including videos or activities, that other employees can use to guide their own work. Workforce management tools can also help supervisors suggest microlearnings for employees who may need more support.

Related resources:

• The experience-complexity gap
• Advisory Board's insights on workforce benchmarks
• The secret behind sustainable system growth

2. Organizations will restructure to take advantage of new technologies

In 2024, "[l]imitations from murky decision rights, multi-layered approvals, complex hierarchies, and rigid role designs" prevented organizations from fully leveraging the full potential of AI technology.

Going forward, leaders will have to make significant changes to how their organizations operate if they want to take advantage of AI and other technological innovations and boost their growth. Some ways to do this include:

• Creating flatter, less hierarchical organizations
• Centralizing corporate functions to increase consistency and avoid duplicative work
• Investing in agile learning practices for cross-functional team

"In our practice, we've observed that effective change management is crucial when implementing new technologies like AI," said Sherrilyn Quist, a senior director at Optum Advisory. "A detailed plan including clear communication about the benefits, comprehensive training, and regular feedback loops helps employees feel more engaged, leading to successful adoption and meaningful use of the AI technology."

3. Companies will turn to 'nudgetech' to boost collaboration

According to a 2024 Gartner survey of almost 18,000 workers, only 29% are satisfied with their collaboration at work, down from 36% in 2021. In addition, analysis found that satisfaction with collaboration can have a significant impact on performance.

To encourage effective collaboration, companies are turning to "nudgetech," or a new set of AI-powered tools that allow personalization at scale. These tools can provide reminders about employees' communication preferences or working styles. They can also generate custom communication tips.

"Nudgetech can create a double benefit: improved communication and increased behavior change," the authors write.

Related resources:

• 2 ways to foster a culture of collaboration and risk-taking
• 4 ways to create an environment of trust for your team

4. Algorithms will have a bigger role in employee evaluations

Although research has found that algorithms being used for management functions such as feedback and performance reviews can feel "alienating," surveys suggest that employees believe algorithms are fairer than their human counterparts.

For example, a June 2024 Gartner survey of more than 3,300 employees found that 57% believed humans are more biased than AI when making compensation decisions. Similarly, a separate survey found that 87% of employees believe algorithms provide fairer feedback than their managers.

"Employees are embracing the idea that AI tools can increase, rather than erode, fairness in the workplace and highlight contributions that their managers could miss in more traditional performance management processes," the authors write. Although managers will still finalize major decisions, algorithms will likely provide more in-the-moment feedback for employees, especially for tasks that are digitally based or easily quantifiable.

Related resources:

• Conversation guide for ongoing employee evaluation
• Employee expectation gap analysis
• How to mitigate bias in performance reviews

5. Leaders will have to learn how to retain high performers amid AI

As more organizations implement AI tools to improve productivity and reduce busy work, leaders will have to learn how to distinguish between mediocre performers who are bolstered by AI and actual high performers.

Currently, best practices suggest managers focus on the employees' outcomes rather than the process they took to get there. However, in the long run, companies will need to develop new ways to define and reward high performance, especially as it becomes more difficult to differentiate employees whose work quality is based on their own efforts compared to AI.

Going forward, companies will need to develop clear guidelines on what kind of AI-generated work is acceptable and train managers to recognize when employees are relying too heavily on AI. Some organizations may also need to fundamentally change how they recognize and reward employees' work.

Related resources:

• Advisory Board's insights on workforce benchmarks
• 6 priorities for health system strategists
• Are healthcare leaders ready for AI?

6. Organizations will focus more on inclusion and belonging

With diversity, equity, and inclusion (DEI) initiatives under increasing politicization and scrutiny, most organizations are planning to shift their focus toward promoting greater inclusion and belonging for all employees.

However, this doesn't mean that diversity will become unimportant. Instead, "[o]rganizations that develop inclusive cultures and fair processes, such as standardized recruiting practices that benefit all candidates, inclusive management, and a focus on collaboration and connection, will experience balanced growth in hiring, promotions, and retention across demographic groups," the authors write.

By focusing on inclusion and belonging, organizations can maintain or enhance workforce diversity while also improving talent outcomes and innovation.

Related resources:

• Build a diverse and sustainable workforce pipeline
• How to embed diversity and inclusion in your workforce strategy
• The manager's guide to inclusion and belonging

7. Organizations will need to take a human-first approach to AI

According to a July 2024 Gartner survey, one in five employees said that AI had made their job harder instead of easier or having no impact. To reduce the risk of negative consequences associated with AI, progressive organizations will take an employee-centric approach to the technology.

HR should be proactive about AI governance conversations and incorporate employee feedback about which workflows could be improved. Some things to consider in these conversations include:

• The need for retraining
• New role designs and workflows
• Performance metrics that incentivize new behaviors they want employees to implement
• Learning curves and high workloads that could prevent adoption

According to research from Gartner, employees are 1.5 times more likely to be high performers and 2.3 times more likely be highly engaged at work when organizations take a human-first approach to AI.

Related resources:

• Why nurses need to be part of AI decisions
• The top 3 concerns staff have about AI — and how to address them

8. Companies will need to take steps to combat loneliness

In 2023, former U.S. Surgeon General Vivek Murthy declared loneliness and isolation an epidemic "that has harmed individual and societal health" in the United States. Aside from being a risk to personal well-being, loneliness can also be a significant business risk since it can lead to engagement levels dropping and poorer performance from employees.

To mitigate loneliness among employees, organizations can target interactions within their workforce, including by actively guiding employee collaborations or providing structured opportunities for employees to interact positively with their colleagues. According to Gartner research, organizations that adopt this type of guided collaboration meet their profit goals 10% more often than those that don't.

Related resources:

• How addressing loneliness could support your bottom line
• How to address the loneliness epidemic
• 5 ways to re-engage at work

9. Organizations will be pushed to adopt responsible AI norms

"[I]n 2025, employee activism will be a driving force for defining what the employee-AI partnership looks like," the authors write.

Currently, more employees are stepping up to help create responsible norms for human-technology collaborations through collective action, protests, open letters, and internal advocacy. According to the authors, progressive organizations will embrace these efforts and work to co-create their AI strategy and values with employees.

Related resources:

• 3 principles for the equitable use of AI in healthcare
• Radio Advisory: Is governance the answer to AI integration?
• Your playbook for developing an AI governance strategy