The Evolution of HR 2025: Retention, Engagement and Productivity in Uncertain imes

At our first annual HR Forum in Berlin, hosted in partnership with Roxana Dobrescu, Chief People Officer at commercetools and featuring guest speaker and Björn Kastl, Chief People Officer at MYTHERESA, we explored key HR trends shaping 2025. In a world of rapid technological advancements and global uncertainty, many classic HR challenges—such as engagement, motivation, and cost management—remain as relevant as ever. Are we heading "back to the future"?

Our discussions covered a broad spectrum of HR topics, highlighting the importance of balancing change agility with stability, shifting towards skill-based hiring, reinforcing DEI commitments, optimising benefits, adapting hybrid work policies, and leveraging AI to enhance (not replace) human interaction. Additionally, with younger employees prioritising work-life balance and displaying reluctance toward leadership roles, fostering an inclusive and participatory decision-making culture is more crucial than ever.

Key Takeaways

• Change Management: Change should be introduced thoughtfully—one step at a time. Overloading employees with too many changes creates fatigue and reduces productivity. Keeping certain areas stable fosters greater adaptability.
• Skills & Succession Planning: Finding skilled executives remains a challenge. Prioritising a skills-based hiring approach over rigid job descriptions unlocks hidden talent and strengthens succession planning.
• Diversity, Equity & Inclusion (DEI): Organisations must remain steadfast in their DEI commitments despite shifting political landscapes. Companies that genuinely integrate DEI principles enjoy stronger morale, higher productivity, and greater success.
• Employee Benefits: Striking the right balance between cost efficiency and employee satisfaction is key. While feedback will vary, consistency and a strong return on investment should guide decision-making. Tailored benefits should be fair but not overly complex.
• Hybrid Work: Resistance to hybrid work policies persists, underscoring the need for flexibility and transparent communication.
• AI & Human Interaction: Automation is rising, but so is the need for human connection. HR must champion face-to-face engagement and use AI as an enabler, not a replacement, of meaningful workplace interactions.
• Workforce Trends & Leadership: Economic uncertainty is shaping younger employees' career outlooks. Many hesitate to take on leadership roles, valuing work-life balance instead. Organisations must develop leaders who can navigate uncertainty while fostering engagement and empowering employees through greater involvement in decision-making.