Insights on the HR Landscape in 2025
This report takes a closer look at job retention, work styles, the adoption of AI in the workplace, and more.
Sprout Solutions, together with BS.works, recently released a report on the state of the HR landscape in 2025. How long do employees stay in a company? Do they maintain a healthy work-life balance? What are their greatest perceived challenges? Do they believe their company is ready for AI? The report, titled “The State of HR 2025,” answers these questions and more. Below are some of the highlights of the report and Sprout Solutions’ recommendations for action.
About Sprout Solutions and ‘The State of HR 2025’ Methodology
Sprout Solutions is a SaaS (software as a service) company that automates HR and payroll. Through their solutions, they cut costs, reduce risk, and focus their teams on what drives business growth. It is the largest SaaS company by annual recurring revenue in the Philippines.
“The State of HR 2025” study surveyed 3,819 respondents from 117,900 eligible users. The 3,819 respondents who completed the 53-item survey answered questions that revealed their views and perceptions based on the Likert-scale and the Links, Fit, and Sacrifice model.
The report was made together with the Hong Kong-based company BS.works, a firm that helps organizations use behavioral science, data, and technology to drive customer acquisition.
Findings and Recommendations
The State of HR 2025 is a report that focuses on what Sprout Solutions calls “retention in the human + AI workplace.” The data from the survey shows a number of findings:
1. Workers with closer links stay longer
The report found that on the average, employees stay in a company for 1.84 years. 36% of respondents have been with their current companies between half a year and two years. And just one out of every five employees has stayed with their current organization for more than five years.
The study found that when workers have strong relationships with coworkers, they tend to stay longer. Social groups clearly play a role in employee retention.
Recommendation: Managers should create an environment that builds social connections. They can prioritize in-person interactions to build stronger social links. Work from home arrangements should be approached with care, always maintaining social links to team members.
2. Longer tenure coexists with low work-life balance
Surprisingly, both meaningful work and low work-life balance coexists with longer tenure. According to the survey, employees who have stayed longer in a company are less likely to believe that their companies support work-life balance. Sprout suggests that longer-tenured employees work harder or work longer hours because they enjoy their jobs more. This comes at the expense of work-life balance.
Recommendation: Design work processes that enable employees to make meaningful contributions to their organizations.
3. The daily commute is a burden to workers
Two out of every five employees spend two to three hours daily in their commute. And only one out of three workers commute for less than an hour daily. However, the study found no relationship between commute time and retention. Sprout notes that it is possible that employees already consider commute times before they join a company.
Recommendation: Companies can ease the daily commute burden through transport shuttles and flexible and remote work arrangements. However, be mindful of the impact of these arrangements on social bonds.
4. Workers believe AI adoption will make their organization more productive and competitive
62% of employees use AI in the workplace. But whether they use AI or not, most employees agree that AI will make their organizations more productive and competitive. They also believe AI is useful and easy to use, and that their organizations are prepared to use AI tools. However, when workers use AI, they are more likely to agree with these statements than those who don’t use AI.
Recommendation: Showcase the use of AI at work. Champion AI adoption through ease-of-use campaigns. Peers at work can also become ambassadors for AI adoption.
5. Millennials and Gen Z workers share the most similarities
Millennials and Gen Z have the most similar work styles among those surveyed. Meanwhile, boomers have the most different work styles compared to all other generations. They communicate with less context, decide by consensus, and are less likely to build relation-based trust.
Recommendation: Managers can map work styles to design interventions that align work styles with organizational values. It’s important to remember that work style differences may be due to generational traits or age.
For more information on The State of HR 2025, check out the link.
