So what do we focus on for 2025?
Over the last week or so, many “year-in-review” articles summarizing 2024 have emerged. They prompted me to think about the “so what” for 2025. Here are the key “people” themes I believe will continue to be a focus in 2025, along with some considerations for small businesses.
1. Who Are We Going to Hire?
The talent pool remains tight, and with the political shifts underway, I suspect it won’t improve anytime soon. Education has long struggled to build needed skills in line with the rapid evolution of business needs, and the speed of change shows no signs of slowing. Additionally, over 70 countries held elections in 2024, with many ousting incumbent governments and shifting toward parties with stronger anti-immigration policies. Canada, should be able to benefit positively from skilled migrants (as noted recently in The Economist, more people wanted to move to Canada than anywhere else), however, our own outlook on immigration is turning negative. This is unfortunate since research shows skilled immigrants boost innovation and exporting activities.So what?
Now, most small businesses don’t actively recruit immigrant workers unless government programs simplify the process, which doesn't generally happen. So why should small business owners care about any of this? Because everyone shares the same talent pool. If it’s hard to compete for talent now, it will only get harder if we restrict skilled labor inflows, so completing for the people you need is likely to remain a challenge. If you haven’t already, now is the time to:- Clarify your EVP. Your EVP is your employee value proposition and answers the question 'why would I work here over anywhere else?'. It's particularly valuable for small businesses looking to compete for talent.
- Develop a comprehensive, up-to-date people plan so you know who you need and when you need them and then double the time you think it will take to find that hire.
- Systematically invest in developing your team, especially for critical and hard-to-fill roles. Growing talent takes time, often longer than evolving a business—so don’t wait.
2. Are We Equitable Enough?
A noticeable rollback in DEIB (diversity, equity, inclusion, and belonging) initiatives seems to parallel changes in immigration policies. Prominent U.S. firms like Walmart, Ford, Lowe’s, and John Deere appear to be dialling back their diversity efforts. I did recently see statistics that suggest fewer than 1% of companies are actually reducing their initiatives, but even 1% is too much in a world that is still far from equitable. And it's not just the statistics, it's still attitudes. I attended a Canadian conference in 2024 where a male participant remarked that “if women stopped waffling on about diversity and just focused on their careers, they’d be better off.” He was not the only person with that perspective so clearly, there’s still work to do.So what?
As the Neuroleadership Institute rightly states: ‘if you have a brain you are biased”. Which means, by definition, we will not be truly equitable in the way we work unless we address that. You can have the best culture, best processes, best team in the world; they are still biased. Assuming we can ignore that fact in today’s world of work is, at best, naïve. The upside in this swing, if there is one, is that rather than stopping DEIB work, some organizations are simply ditching the DEIB label. That is something I can get behind, because a) any time you have to explain the acronym before you start the work, you’re really not doing yourself any favours, and b) DEIB, like so many things ‘people’, is not an initiative, it should be about the way we work. So how do you make this something that is just a normal part of what you do?- Teach everyone about why inclusion and equity matters. Explain unconscious bias and how to behave inclusively in the workplace. Consider programs like our "Acting Inclusively" course for a cost-effective starting point.
- Encourage people to focus on learning rather than blaming. No-one likes change, but they certainly don’t like it if you’re going to make them feel small, stupid or wrong for what they have done up until now.
- Examine your people practices (starting with recruitment and compensation) to remove systemic bias.
3. What does AI offer us?
Predictions about AI in 2025 are in full swing. While ethree is definitely not a tech company, you certainly cant consider a technological advancement of the magnitude of AI, without considering the impact on people. AI proponents tout the benefits, including opportunities to reduce human error, leveraging vast quantities of data to support decision making, unwavering 24/7 focus and energy (whereas people need to sleep) and more. Meanwhile others raise concerns: some estimate that operating AI servers will consume more electricity annually than a small country, raising sustainability concerns. Others highlight roles already being displaced by AI; the idea that AI will only eliminate menial tasks and elevate everyone’s work is overly optimistic—retraining displaced workers isn’t simple or quick. But, even I (as a relatively non-tech person) recognize we rarely go backward when it comes to technology so regardless of the challenges, I doubt AI is going to go away any time soon (nor do I think it should).So what?
- For small businesses—often stretched thin—I do think AI presents significant opportunities for efficiency. We are often wearing 420 hats, many of them administrative in nature. Start exploring how AI can reduce the number of hats your team wears or make their lives easier day to day and allow you to max your salary budget on roles AI can't do.
- Tools for process mapping and documentation, which are crucial for scaling businesses, are a particularly promising use case for AI.
4. To Remote or Not to Remote?
Should we really work in an office? The debate about hybrid work continues, with companies like Amazon, Barclays, Boots, and Morgan Stanley now mandating office attendance (even if in some cases it's not fully implemented yet). While remote work isn’t feasible for all roles, some organizations see it as critical to their EVP, and many organizations have settled into hybrid models (e.g., 1-2 remote days per week).So what?
The main observation I have about the whole 'remote debate' is how often I witness discussions based on experience bias or concerns rather than facts. I am not dismissing the concerns, I do believe that managing remotely is different, but largely because we have to be more intentional about how we lead, not that leading people working elsewhere requires different activities. You can get away with unstructured leadership when folks are in front of you, not so much when they work elsewhere, so I wonder how much of our concerns about remote are really concerns about our leadership skills and people practices. So with that in mind I'd say:- Base your decision on data, not trends or gut feelings. Measure productivity to guide your approach. If you think you need a change, or have concerns, get the data to determine if thats actually true.
- If you’re sticking with remote or hybrid work, ensure your leaders are intentional about their management style. Remote leadership demands structured, proactive engagement.
5. How Do We Support Our People?
The challenges of modern life are reshaping what employees expect from work. Leaders are now seen as part of an employee’s support network—a far cry from the 20th-century leadership model of being the most technically proficient person in the work. Yet, many leaders aren’t equipped for this role (if they’re being trained at all). According to Gallup, only 23% of employees are engaged (21% in Canada) . Compare that to 70% engagement in organizations implementing best practices. Add to that the statistics that demonstrate an increase in stress and anxiety in the workplace and we need to implement meaningful change in how we work and not just run a few lunch and learns (and no, I'm not knocking lunch and learns because we deliver them but I just don't think that is going to cut it in 2025).So what?
So let's focus on building more human leadership:- Much of engagement is about our ability to connect meaningfully with our people. Train leaders to have meaningful, constructive conversations. Listening and empathy are key skills and we generally overestimate our ability to listen effectively by 50%, so make sure those skills are front and centre.
- Provide support to leaders on handling topics that create concerns, like mental health, accommodations, stress and other issues. Leaders aren't counsellors, they need to know where the line is and how to handle those types of situations, especially if you don't have an HR person.
- Create space for conversations on the employees agenda. I recently posted about the value of 1:1s and I can't stress that enough.