7 HR trends in 2025

Focus on 7 HR trends in 2025:

1. Artificial intelligence

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If you missed the point, it's because you were on another planet in recent years. Between fascination and fear, it gives rise to numerous reflections and discussions within companies, whether around the coffee machine or in the offices of decision-makers.

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In the field of human resources, artificial intelligence is beginning to take hold and promises to contribute to certain developments. What is expected in the near future is above all a saving of time concerning tasks that deal with large amounts of data. Artificial intelligence will facilitate and accelerate their collection and valorization.

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For example, we can cite the management of leave and working hours, the sending of documents to be completed to employees, the use of chatbots to answer questions from employees or people coming from outside, the pre-selection of candidates for recruitment, etc.

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The time you will save thanks to AI on repetitive and boring tasks will free you up valuable hours and allow you to devote yourself to projects that have more added value. However, to consider it as a real asset, it is necessary to be able to avoid the algorithmic biases that may occur. By optimizing data at multiple levels, AI can become a valuable tool in supporting more important decisions, as long as it is used... intelligently.

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2. Training and skills development

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In 2025, growing digitalization and the advance of technologies require continuous updating from a professional point of view. We know it, the continuing education and development prospects are factors in attracting and retaining talent. In 2021, Luxembourg companies in the private sector understood this well, since those that received State aid for training devoted 1.3% of their payroll to it.

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Offering the opportunity to stay up to date with market developments is a strategic investment for both the employer and the employee. Continuing education has become more than important; it is now necessary for the proper functioning of businesses.

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3. Intergenerational work

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In today's businesses, generations that are very different from each other have to work together on a daily basis. They don't have the same codes, the same habits, or the same models. Generation Z (born between 1995 and 2009), active in the labor market, and Generation Alpha (born between 2010 and 2020), who will soon arrive, are shaking up workplace standards. The expectations of young employees are no different from those of their predecessors and human resources have no choice but to try to best meet their needs for meaning, sustainability and flexibility.

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To attract and retain new generations, the HR approach must be more human, inclusive and flexible, with an emphasis on transparency. Social and societal responsibility and the values supported by the company also play a fundamental role in the choice of new workers.

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4. Mental Health and Wellbeing

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The 2021 pandemic marked a turning point in the mental health of workers. Since then, the well-being in business is a subject that concerns more. The subject is vast and can be approached through various lenses. But in general, one of the most important levers for the prevention of psychosocial risks lies in the organization of work and in the implementation of concrete measures internally.

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In Luxembourg, bullying is one of the major problems related to professional well-being. With one of the highest reporting rates in Europe, the subject has become a cause for concern. This situation can be explained, in part, by the multicultural context of the country, and the sometimes inadequate management of cultural tensions that may arise between workers. This is a major challenge for Luxembourg businesses, which requires a global approach between prevention, rapid intervention and victim support.

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In addition, a law, which redefines the legal framework on psychological harassment, was adopted on 29 March 2023. The latter focuses more on the consequences that cases of harassment can have. Whether or not there was intent to harm is no longer a criterion taken into account in establishing the responsibility of the perpetrator.

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5. Pay transparency

As you are aware, in 2023, Europe adopted new rules on pay transparency with the aim, in particular, of combating wage inequalities between men and women. The principle of equal pay already existed, established by the Treaty of Rome in 1957, but in reality, it is clear that it is not always respected. The measures recently adopted by the European Parliament are binding and should make it possible to move in the right direction.

This European regulation must be transposed into national law by 7 June 2026 at the latest. Therefore, the companies concerned must already update themselves and make information that may not have been available before. This may represent certain adjustments for some, and more substantial repositions for others. Large businesses in particular have their work cut out for them. Indeed, those with more than 250 employees are affected by a greater number of measures to be implemented.

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6. Teleworking

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Between the arrival of young workers, for whom flexible work and working hours are a key choice criterion, and the high number of cross-border workers who cross borders every day to come and work in the Grand Duchy, teleworking is a hot topic.

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In Luxembourg, almost half of employees come from border countries (Belgium, Germany and France). Unfortunately, we know the consequences on road traffic and train attendance. Teleworking is a practice appreciated by employees, and yet, there is increasing reluctance on the part of employers in the country to implement it, according to the “Quality of Work” study published in June 2024, carried out by INFAS for the CSL.

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Currently, tax treaties with border countries allow 34 days of teleworking outside Luxembourg for full-time work. But recently, a request was submitted by France to increase this quota to 40%. The subject therefore promises to be in the news again this year.

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7. Eco-anxiety

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In December 2024, the CSL published a study on the protection of employees against climate change. Indeed, climate change has a direct or indirect impact on our working conditions. Air pollution at work, heatwaves that make activities complicated, bad weather that causes accidents... Workers are increasingly confronted with it. If you have not yet done so, you will have to take up the subject in order to find a way to support your employees in the years to come.

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The key actions that CSL proposes are to strengthen social dialogue, assess risks, empower employees and apply effective preventive measures.

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In addition, it should be noted that ensuring the safety and health of employees is part of the employer's obligations in all aspects of work.

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Sources:

https://www.lifelong-learning.lu/observatoire-de-la-formation/les-pratiques-de-formation-des-entreprises/fr

https://www.improof.lu/fr/articles/harcelement-moral-au-travail-au-luxembourg/

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