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Attraction and Retention Trends to Monitor in 2025

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2.5 minute read

Employers may face challenges in attracting and retaining talent in 2025. Despite a decrease in employee quits in 2024, EY reports that 38% of employees might leave their jobs next year. This suggests a potential shift in market trends, with workers possibly exploring new opportunities. Eagle Hill Consulting also indicates a possible rise in turnover by early 2025. Employers should refine their strategies to secure top talent. Here are five key trends to watch for in the coming year.

 

Unemployment Rates Above 4%

Despite recent job market strength, economists foresee a hiring slowdown. Unemployment is expected to rise from 4.1% to 4.4% by 2025, keeping the labor market competitive and potentially shifting leverage back to employers.

 

Artificial Intelligence (AI) and Automation

AI and automation are reshaping the future of work. By 2025, machines will handle more tasks than humans, but AI will also create 97 million new jobs in fields like data analysis and cybersecurity. This technology allows employees to focus on engaging tasks, boosting efficiency, and innovation. While some jobs may be automated, experts predict more opportunities will arise, requiring advanced skills. Employers should prepare for this shift in the job market.

 

Demand for Weight Loss Drugs

J.P. Morgan estimates that by 2030, 9% of the U.S. population could be using GLP-1 drugs, originally for diabetes but now popular for weight loss. As employers plan for 2025, there's pressure to cover these costly treatments, influencing job choices. While most employers currently cover GLP-1s for diabetes, a growing number are adding weight loss coverage. As demand rises, companies must weigh the benefits of offering these drugs to attract talent, with some implementing targeted coverage to maximize investment returns.

 

Return to Work

Workplaces are returning to pre-pandemic norms, with JLL’s Future of Work survey showing a rise in full-time on-site work expectations from 34% in 2022 to 44% in 2024. Now, 95% of employers require at least one on-site day weekly. As more companies, like Amazon, mandate five-day office weeks, balancing business needs with employee preferences remains crucial.

 

Gig Work Popularity

Gig work is rapidly becoming a vital part of the global economy, especially among younger generations. With millennials leading and Gen Z catching up, over 62% of U.S. adults now earn through gig platforms. This trend offers greater satisfaction due to its flexibility and control. To stay competitive, traditional employers are adopting gig-like benefits such as autonomy, flexible schedules, and on-demand pay. Embracing gig workers can also help address current hiring and retention challenges.

 

Summary

To stay competitive in 2025, employers should track employee needs and adapt talent strategies to attract and retain top talent. Download the bulletin for more details.

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National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.

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Erin Woulfe

Erin Woulfe

Erin Woulfe likes to write about things that matter. Keeping her finger on the pulse of what’s happening in the public sector world, she blogs about the latest legislative news and employee benefit trends that affect our school, city and county clients. She’s been with NIS since 2002. “I love connecting to our clients and providing them with the tools they need in order to administrate their plan,” says Erin. “Whether that be materials to educate their employees on certain benefits, how to effectively communicate change within an organization, or providing tips and how-to’s to help them make their job easier.”