Workplace culture trends in 2025: what leaders need to know

Creating a great workplace culture is no small feat, whether you're running a small business or leading a team in a large corporation.

It's a complex, ongoing process that requires consistent effort, open communication, and a deep understanding of your team’s diverse needs and motivations.

For small business owners, the challenge often lies in balancing limited resources with the desire to foster a supportive and engaging environment.

On the other hand, team leaders in big companies must dig through layers of corporate policies and varying team dynamics.

Regardless of the size of the business, encouraging a positive culture means being adaptable, empathetic, and committed to continuous improvement. It's about creating a space where everyone feels valued, motivated, and connected to the collective mission, even when the going gets tough.

As 2025 approaches, now is a great time to review the elements that impact your workplace culture.

From our experience with small business owners and team leaders in big corporates, we’ve reviewed trends we’ve spotted throughout 2024.

We’ve also listed the trends we think will be important in 2025.

Have a read to see if you agree.

Current trends in workplace culture (2024)

As we moved through 2024, several key trends shaped workplace culture in the UK. These trends reflect the evolving needs and expectations of employees, as well as the broader socio-economic landscape.

1. Hybrid and remote work models:

The hybrid work model continued to be popular, with many companies offering flexible work arrangements. This trend is driven by employee demand for work-life balance and the realisation that remote work can boost productivity.

2. Employee wellbeing:

There was an increased focus on employee wellbeing, with companies investing in mental health resources, wellness programmes, and flexible working hours. This trend was a response to the burnout experienced by many employees during the Covid-19 pandemic.

3. AI and automation:

The integration of AI and automation in the workplace was on the rise. These technologies were being used to streamline processes, enhance decision-making, and improve productivity.

4. Upskilling and development:

Companies were prioritising skill development and upskilling to keep pace with technological advancements and changing job requirements. This includes offering training programmes, workshops, and opportunities for continuous learning.

5. Sustainability:

There is a growing emphasis on sustainability and environmentally friendly practices. Companies were adopting green policies and promoting sustainable practices to attract environmentally conscious employees and customers.

Workplace culture predictions for 2025

Looking ahead to 2025, we can expect some of these trends to continue, while new ones emerge.

1. Continued hybrid work:

The hybrid work model is likely to remain popular, with companies offering more flexibility in work arrangements. This will require clear guidelines and communication to ensure productivity and collaboration. However, we predict seeing more employees (dependant on their role) required back in the office for more days of the week as a way to increase touch points between management and staff. This won’t work for every business and every employee, but it might be worth consulting individual team members on their needs and routines to keep both the business leaders and team members happy. Read our blog on navigating the world of people challenges in the age of technology for more insight.

2. Enhanced employee wellbeing:

The focus on employee wellbeing will intensify, with companies offering comprehensive mental health support, stress management programmes, and wellness initiatives. This will be crucial for retaining top talent and maintaining a healthy workforce.

3. AI-powered tools:

The use of AI-powered tools will become more widespread for all departments. Workers in different areas of businesses are beginning to realise the possibilities with AI for their workload. With applications in areas such as recruitment, employee engagement, productivity enhancement, creative thinking time, and admin assistance,  these tools will help streamline processes and improve the overall employee experience.

4. Purpose-driven work:

Employees will increasingly seek out companies that align with their values and offer a sense of purpose. This will require organisations to revisit their mission and vision statements and ensure that they are lived experiences rather than just words on a wall.

5. Sustainability as a core value:

Sustainability will become a core value for many companies, with a focus on reducing carbon footprints, promoting eco-friendly practices, and engaging in corporate social responsibility initiatives. There are those companies who will continue to promote their sustainability values as a way to entice employees, but younger generations will see through this. Those companies that prove themselves in this area will develop trust among future generations of employee and customer.

6. Leadership and management:

The quality of leadership and management will continue to be an essential factor in employee retention and satisfaction. Companies will need to invest in leadership development and ensure that their leaders embody the best characteristics of the organisation. Specifically, investment into personal work coaches for individual team members who show promise for promotion is being considered by many of the companies we’ve worked with in the late part of 2024.

Final thoughts

Team leaders in big companies and owners of small businesses must stay informed and adaptable. Embrace these trends and make strategic investments in employee wellbeing, technology, and sustainability. This way your organisation can create a thriving and resilient workplace culture that will stand the test of time.