Throughout 2024, we saw the employer-employee relationship become increasingly transactional. It’s safe to say, many employees have grown sceptical over the past few years as they watched companies champion purpose without action and make promises in candidate-driven markets, only to break them when power shifted.

And while the arrival of Gen Z into the workforce might suggest fresh optimism, research by Tulgan reveals a different reality: Gen Z are less inclined to believe a company will support them over a long period of time, reflecting a lower baseline of trust than previous generations. At the same time, their expectations are rising, 67% of hiring managers in the UK report that Gen Z’s salary demands have increased in the past year (Robert Half 2025 Salary Guide).

This year, businesses will have to work harder to build back trust and create meaningful connections to attract and retain top talent.

We at People Made, regularly speak with employees across a range of industries about what they value most in their jobs - and one theme consistently stands out: the people. Because a good team can make even the worst tasks more enjoyable - we’ve all been there, grinding away at a seemingly endless job, but the camaraderie of a work friend makes it easier (and maybe even fun).

In fact, nearly three in five (57%) employees say that having a 'work best friend' makes their job more enjoyable, and 84% of professionals believe that it’s important for companies to facilitate personal interactions that help develop work friendships (KPMG). It’s not a revelatory assertion, but perhaps it’s an untapped one...

In 2025, we’re likely to see more companies investing in their teams to foster a stronger culture, create a sense of inclusion and belonging, boost engagement, improve loyalty, and get people back into the office. Think about how your internal communications, employee engagement, manager guidance, and culture activations might be shaped to embrace a more team-centric approach.

While HR teams are increasingly adopting AI technologies like chatbots, job-matching tools, and automated interviews; 75% of candidates are opposed to AI making final hiring decisions.

Despite this, a recent study by Hirevue shows 70% of HR professionals plan to use AI within the next year and 73% trust AI for candidate recommendations - highlighting a clear mismatch with candidate expectations. This emphasises the need to preserve meaningful human interactions - such as in-person team meet-and-greets - throughout the recruitment process to attract top talent and maintain employer appeal.

But striking this balance won’t just be crucial for the candidate experience - businesses will also need to integrate AI in ways that enhance the employee experience. Currently, only 38% of companies offer AI literacy programs (LinkedIn), but this is set to rise as 82% of business leaders see the need for employees to upskill and work effectively with AI tools (Microsoft Work Trend Index).

In 2025, AI literacy will take centre stage as businesses work to boost productivity and empower employees to focus on creative, collaborative, and strategic tasks. As AI continues to reshape workplace culture, investing in internal capabilities and preparing employees for these changes will be vital. Equally important will be identifying key moments to foster human connection throughout both the candidate and employee experience, to ensure culture is not lost and engagement doesn’t wane.

High performers seek growth - whether through upskilling or clear career paths - feeling a sense of progression is critical to their satisfaction. Yet a common obstacle to this we see many businesses face, is the inability to provide adequate constructive feedback. A study by PwC revealed that over 75% of respondents find feedback valuable for their career development, yet fewer than 30% reported receiving it - despite nearly 60% of employees wanting feedback on a daily or weekly basis.

So, why isn’t this happening? Well, data suggests it’s because people focus on the discomfort of giving feedback rather than its benefits. A survey by Interact found that two-thirds of managers are often uncomfortable communicating with employees, and 37% admitted to feeling uneasy about giving direct feedback if they anticipate a negative reaction.

This hesitancy has led to growing mistrust in manager feedback among employees—with a 2024 Gartner survey revealing that 87% of employees believe algorithms could provide fairer feedback than their managers.

In 2025, we are likely to see more businesses adopt the ‘feedback philosophy’ approach to engage and develop high performers. This means fostering a culture of feedback through a conceptual campaign that goes beyond just providing tools and training, and works to actively shift mindsets so that both employees and managers embrace constructive feedback.

But what about your organisation? How does it approach feedback? Consider what specific aspects of your organisation's structure or culture might be hindering the adoption of effective feedback practices. Is it simply a skill issue, or are there a broader cultural challenges to address?

At People Made, we’re increasingly seeing talent being turned off by lofty, purpose-driven EVPs. This doesn’t mean they care less - they absolutely do - but skepticism is growing toward businesses that claim to champion purpose only to prioritise profit at every turn.

A study by EY Lane4 highlights this disconnect: while 86% of employees acknowledge their organisation has a “purpose statement,” nearly three-quarters (71%) believe their leaders ultimately make critical decisions based solely on financial considerations.

Instead, employees are looking for businesses that share their values and enable them to make a real-world impact in their everyday work—not just seemingly hollow promises of change 20 years down the line.

In 2025, 45% of HR professionals believe integrating values into their EVP will be essential. Companies that fail to back up their EVP with authentic actions risk further losing trust and credibility. 

In practice, this means demonstrating and proof-pointing your EVP throughout the candidate and employee journey - finding creative ways to ensure people can confidently recognise and reference distinctive reasons to join and stay. And with Gen Z’s growing scepticism, early talent may require even clearer expectations and actionable invitations to align with your organisation’s values and make an impact.

In today’s softer and more precarious global market, HR and employer brand teams are under increasing pressure to demonstrate ROI and measure the effectiveness of their initiatives. Highlighting this, a global survey by Right Management found that 65% of senior HR executives in the UK feel mounting pressure to clearly prove the financial return on investment (ROI) of staff development programs.

This pressure even extends to the earliest stages of planning, where reducing ambiguity and enabling HR teams to make informed decisions has become an even greater priority.

At People Made, we’ve seen a sharp rise in businesses conducting employer brand sentiment studies to better understand how external talent perceives them - not just as a brand but as an employer - and track the effectiveness of employer brand communications. And it makes sense, right? If we do it for our consumer brands, why not for employer brands?

Moving into 2025, we will see more businesses turning to employer brand sentiment studies to help them identify opportunities to strengthen their EVP, employee engagement, and talent communications. If you’re about to embark on an EVP, consider how brand sentiment research might help you inform your positioning. Alternatively, if you’re working with a recently updated EVP, consider how running external talent research might help evaluate and refine your messaging to better connect with top talent.

While these trends are just the tip of the iceberg, one thing is clear: the businesses that will emerge as top employers in 2025 will be those that prioritise building trust and fostering meaningful connections with talent.

At People Made, we help businesses at every stage of growth define and strengthen their employer brands and company culture.

Want to learn more? Get in touch today: [email protected]

Article written by Amity Fisher, Associate Strategy Director