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Building the Future: Five Trends Shaping the Workplace in 2025

An “Evolve to Grow” Thought Series – Part 1

Five years since the pandemic began, the workplace is being redefined in real time. Organizations across industries are racing to evolve how they attract, retain and engage the talent needed to power their future. The norms of work have fundamentally shifted, and the ability to unlock the full potential of people is quickly becoming the dividing line between companies that will struggle and those that will lead. Our team of experts works with organizations of all sizes across sectors, and we’re seeing five powerful, interconnected shifts take hold. Here we share practical strategies to help organizations stay ahead of the curve.

Redefining Strategy, Vision & Culture

Across industries, more organizations are reassessing their core identity – not as a one-off, but as a strategic response to a changing landscape. Some are doing this as part of long-term planning (2030 is a milestone that many organizations are seizing as a strategy landmark); others are reacting to catalysts like mergers, leadership transitions, evolving social expectations, or market disruption. Mission, vision, and values are being revisited to reflect where the business is headed, and increasingly, this work is being used to drive performance, nurture alignment, energize culture, and engage employees around what comes next.

What’s Working? This isn’t about branding – it’s about direction. Companies getting it right are tying purpose to strategy, connecting the dots for employees, customers and investors, and engaging teams in the process. They’re being intentional – creating space for input and co-creation, clarifying the business case and opportunity for all stakeholders, redefining how to scale culture and behaviors, leveraging leaders to activate, and storytelling to reinforce. The “how” is just as critical as the outcome – done well, this work builds clarity, credibility, and lasting alignment.

Developing Leaders, Not Just Operators

Leadership gaps are widening – in both capacity and capability. Too many leaders are stuck in the day-to-day, pulled into non-stop meetings, with little time left for what actually defines leadership: coaching, vision, strategy, and connection. The shift from “doer” to “enabler” is stalling, often because mid-level managers aren’t being empowered, and senior leaders haven’t been equipped to lead in today’s environment. And the stakes are rising – leaders aren’t just expected to deliver results; they’re expected to lead with empathy, navigate complexity, and engage on everything from performance to purpose to well-being. According to a recent study by FTI Consulting, 81% agree that CEOs are responsible for role-modeling the right behaviors for their employees.¹ Yet, as Gartner cites, 70% of leaders aren’t seen as capable of developing the next layer of talent²– a clear signal something must shift.

What’s Working? Forward-thinking companies are raising the bar on leadership – and giving their people the support to meet it. They’re redefining roles to prioritize influence over output, updating success metrics to reward coaching and culture-building, and protecting time for strategic thinking. Some are even formalizing “thinking time” with leadership models. More importantly, they’re asking leaders to show up with greater presence and humanity – to lead with clarity, empathy, and the confidence to have hard, honest conversations. That combination is what turns operators into real leaders.

Navigating the Dichotomy of Talent Excess & Talent Shortage

Layoffs continue to dominate headlines – driven not only by cost and performance pressure, but also by the need to make room for future-fit talent. It’s a paradox: companies are downsizing in some areas while urgently hiring in others. And while applicant volume is rising, success isn’t about numbers – it’s about fit. That means evolving in ways that attract the talent you need, while keeping your current teams – especially legacy talent – engaged and motivated.

What’s Working? Organizations getting this right are aligning talent strategy with business direction. They’re building internal mobility, investing in future capabilities today, and creating environments where both new and existing talent feel valued and can develop and deliver. A strong Employee Value Proposition (EVP) is essential – not as a static message, but as a living, evolving commitment to what matters most to the people they want to attract and retain.

Nurturing Employee Engagement, Retention & Culture Amid the Return to Office Evolution

Return-to-office policies are evolving and so is the definition of flexibility. While approaches vary, research from McKinsey reinforces what many already know: it’s less about where people work, and more about the environment leaders create.³ With employee engagement at a 10-year low and 93% of Americans planning to job hunt in 2025,⁴retention can’t be left to chance. It must be designed.

What’s Working? Success starts with clarity – clear expectations, purposeful connection, and open, two-way feedback. It requires moving beyond top-down communication to build genuine, empathetic relationships between leaders and employees. Growth must be ongoing and visible, with development embedded in the everyday experience, not treated as a one-off event. When people see a future and feel supported in it, culture takes root and retention follows.

Integrating AI into Human Resources & Ways of Working

AI adoption in HR is accelerating with 72% of companies now using it in at least one HR-related function.⁵ From recruitment to performance management, AI is emerging as both a disruptor and a differentiator, offering sharper insights and greater efficiency. But with that comes new questions about trust, transparency, and the human experience.

What’s Working? The real impact of AI shows up where it enhances – not replaces – the human experience. Companies are integrating it with intention, using clear communication and thoughtful change management to build trust. Some are applying tools like AI-powered coaching to scale development, while staying focused on what AI can’t replicate: empathy, trust, situational awareness, complex reasoning and human connection. The goal isn’t to automate leadership – it’s to elevate it.

Looking Ahead

The organizations shaping the future of work aren’t waiting for stability or a pre-made playbook – they’re building it themselves. They’re connecting culture, leadership, vision and strategy; blending high-tech with high-touch; and creating environments where people and performance thrive together. These aren’t separate challenges – they require an integrated, human-centered approach to how we work, lead, and grow.

The “Evolve to Grow” strategy and solutions from FTI Consulting’s People & Transformation practice empowers companies to reach their full potential by aligning strategy, structure and culture, and by developing the talent and leadership capabilities needed to drive sustainable success.

Footnotes:

1: FTI Consulting, “CEO Leadership Redefined: 2025” (February 2025). Online survey conducted January 18–February 1, 2025, among 800 U.S. full-time employees at large companies (collectively employing 3.9 million people), 250 global institutional investors (average $125 billion AUM), and 200 D.C. policy influencers.

2: “Top 5 HR Trends and Priorities That Matter Most in 2025,” Gartner (last accessed July 1, 2025).

3: DeSmet, Aaron et al., “Returning to the office? Focus more on practices and less on the policy,” McKinsey & Company (February 14, 2025).

4: “New Year, New Career,” Monster (January 2025).

5: Becker, Jan-Ove Becker et al., “The Littler 2024 European Employer Survey Report,” Littler Mendelson P.C. ( October 9, 2024).

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Published

September 03, 2025

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