8 Workforce Trends Shaping 2025 & How You Can Stay Ahead

We’re nearly halfway through 2025, and the pressure on employers hasn’t let up. Labor shortages, shifting regulations, rising costs, and new technologies continue to reshape the workforce… and businesses that haven’t adapted are starting to feel the impact.

To help employers stay ahead of the curve (or catch up if they’re behind), we asked Team Engine partners what trends they’re seeing right now and how they’re advising clients to respond. Here’s what’s shaping the rest of 2025 workforce force trends, and where smart companies are focusing their energy.

1. Labor Shortages Are Still the Top Concern

Despite hopes that the labor market trends in 2025 would loosen up, most employers are still struggling to find qualified workers. That reality is unlikely to change in the second half of the year.

“Workforce shortages remain the biggest problem,” said Ed Laflamme of The Harvest Group. “The best thing owners can do is strengthen employee retention strategies by offering competitive wages, clear career paths, incentive plans, training, and a positive culture.”

Evan Tachoir of Jack of All People Trades agrees that retention is becoming just as important as recruiting: “Intentional employee engagement strategies and retention efforts can offset the difficulty of hiring.”

2. Wages Continue to Climb While Employers Fall Behind

The cost of living continues to climb, putting added pressure on workers. As a result, pay expectations are rising, and companies that haven’t kept up are struggling to hire.

“It’s time to get real about compensation,” said Jack Jostes of Ramblin Jackson. “I still see job ads for entry-level positions that require experience but offer less than the local McDonald's. Workers won’t go for it.”

Tito Caceres of Bloom Talent Solutions says now is the time to revise outdated pay structures and align with market rates. “Stagnant wages will drive employees to seek opportunities elsewhere,” he warned. “Employers should be benchmarking regularly, offering performance-based raises, and considering relocation assistance to stay competitive.”

3. Visa and Immigration Uncertainty Demands a Backup Plan

Policy shifts and increased enforcement are making 2025 especially unpredictable for companies relying on visa programs like H-2B and H-1B. That volatility isn’t expected to settle anytime soon.

“The biggest HR trends are being shaped by changes in the administration and heightened scrutiny around employment authorization,” said immigration attorney Nataly Mualem, Founder and Managing Attorney at Mualem Firm. “My advice? Stay calm, be proactive, and have a Plan B.”

That includes:

• Auditing and updating compliance procedures
• Exploring long-term immigration options
• Cross-training internal staff to fill gaps
• Building staffing contingency plans before the need is urgent

Tachoir added that relying solely on visa programs is risky: “Companies will need to invest more in other recruiting channels, employee referrals, and cultural initiatives to stay resilient.” Diversifying with HR outsourcing services is one way companies are staying agile in the face of this uncertainty.

4. Managers Need Soft Skills and Support to Succeed

The role of the frontline manager is evolving. It’s no longer enough to have technical knowledge; leaders now need emotional intelligence, coaching skills, and the ability to retain talent.

“People skills are the new competitive advantage,” said Shelia Matthews of Wilson360. “You may need to pay more than you’re used to for managers who have both technical and people skills, because they’ll be the most highly sought-after candidates.”

Matthews also warned that retirements are accelerating, meaning frontline manager training is becoming essential for business continuity and retention. “If you haven’t started transferring institutional knowledge yet, you’re already behind,” she said. “There’s still time, but you need to act now.”

5. Subcontracting Is Expanding Beyond Field Roles

To cope with ongoing shortages and unpredictable demand, many businesses are subcontracting non-field roles as well.

“More and more of my clients are subcontracting—not just field employees, but also HR, marketing, and accounting roles,” said Jud Griggs of The Harvest Group. “It’s easier to flex your labor costs that way.”

While subcontracting can offer flexibility, it also demands better communication and systems to ensure quality and consistency. Businesses considering this strategy in the second half of the year should weigh those tradeoffs carefully as part of their broader workforce management plans.

6. AI Is Surging but Can’t Replace the Human Touch

AI recruiting tools are flooding the market in 2025, and many employers are testing them out. But experts warn that tech for tech’s sake isn’t the answer.

“Everywhere you look, there’s a new shiny AI solution promising to make recruiting easier and faster,” said Mike Voories of BR1. “But investing in AI just for the sake of having AI can be an expensive mistake.”

Voories encourages clients to focus on where AI in recruitment actually improves outcomes (like speeding up admin tasks or automating screening) while keeping the human side of hiring intact.

“The most successful companies in 2025 will be those that use AI as a tool but ensure the process remains personal and engaging.”

Team Engine fits that balance: using AI and automation to keep the hiring process moving efficiently, while leaving space for human judgment, personal communication, and relationship-building where technology in recruitment falls short.

7. Your Online Reputation Should Be Part of Your Hiring Strategy

Job seekers are researching companies before they apply, and what they find online could be the deciding factor.

“Employers need to maintain a professional and engaging website, highlight their team culture on social media, and proactively manage reviews,” said Caceres. “It’s one of the fastest ways to attract better talent… or lose it.”

With the busy season underway for many industries, now is a good time to audit your digital presence and make updates that reflect your true culture and values. Investing in employer branding strategies and employee engagement platforms can also support retention and recruiting.

8. Benefits and Culture Are Long-Term Investments

Pay may get people in the door, but benefits and culture are what make them stay. That matters even more during a time of economic and political uncertainty.

“Even if only a few employees use them, look into providing medical plans or retirement options,” said Laflamme. “Career-minded employees care about those things, and your company’s future depends on them.”

Alison Hoffman of The Harvest Group added that M&A activity is causing anxiety for middle management. “The smartest companies are preparing for this by engaging key team members with long-term financial incentives,” she said.

It’s not too late to adjust your workforce strategy for 2025… but the window is closing.

“The country as a whole is uneasy,” said Stephanie Leveling of BOSS by Integra. “The best thing a company can do is assure their employees of the stability of the business and create a culture that makes people feel valued and protected.”

For employers who want to stay ahead of these hiring trends, here’s where to focus in the months ahead:

• Reevaluate compensation and benefits packages
• Strengthen your middle management team
• Build flexibility into roles, schedules, and staffing models
• Invest in your employer brand and online presence
• Leverage AI in recruitment selectively, without removing the human element

The job market trends are clear. The question now is whether your company will respond in time.