What’s on the agenda for HR leaders in 2025?

“I think some of the struggles of recent years are going to continue into 2025. I think we'd be naive to think otherwise."

So says Peter Pontone, head of HR for Canada at Linde, reflecting back on 2024, while looking ahead to the new year.

“2024 was an extremely challenging year. I mean, probably the last four years were very challenging for a lot of people, with lot of layoffs and a lot of restructuring, and obviously everything that was going on with COVID and what a lot of people called a recession”

But Pontone characterizes himself as "cautiously optimistic."

"Everything I'm reading [is] saying that the economy and jobs are predicted to grow right across North America, and we see some of the signs of interest rates lowering,” he says. “I really hope that 2025 is better. I think what will help drive that is a lot of the economic indicators.”

For Kiran Benet, CPO at Redberry Restaurants, the new year presents a mix of opportunities and challenges as it plans to build 30 to 40 new restaurants annually as franchisee operator for Burger King, Taco Bell, and Jersey Mike’s in Canada.

"I wish I had a crystal ball, but for the most part, I would say I'm feeling optimistic, but measured… because we're across the entire country, and each region has unique challenges and opportunities depending on labour market conditions,” she says.

For Redberry, 2025 is poised to be a year of growth, innovation, and continued focus on employees, according to Benet, from leveraging AI to pay transparency initiatives to financial wellness: "There’s a lot going on," she says.

Generative AI: comfort and anxiety

Generative AI is a growing focus for Redberry, particularly in streamlining recruitment for its 3,000 annual hires, says Benet. That’s included researching different partners “to meet these growing needs going forward, to make it easier on everybody, in terms of the employee experience, but also the manager experience,” she says.

One challenge has been addressing concerns from staff who may be apprehensive about AI. Benet emphasizes that the technology is designed to reduce administrative burdens, allowing managers to focus on employee development and customer service.

"We don't want them in the back office, behind the computer trying to report back to what's happening. We want them customer facing and really making sure the employees are getting the development that they need… So, from that perspective, we've done a lot of work to help the employees understand that it really is to help your jobs, make it easier for you.”

Pontone views generative AI as a double-edged sword, presenting both opportunities and challenges. He emphasizes the need for a strategic approach.

"When you're looking at AI, some of the anxiety is ‘Is it going to replace us all? Is this going to work? Is this going to be reliable?’ I think some of the comfort comes when you actually see it become a tool that helps you streamline and simplify processes."

He believes organizations must strike a balance between exploring AI’s possibilities and managing its implementation pragmatically to avoid being overwhelmed.

“You have to be very selective on where you’re going to use it, and when.”

For Laurie Mezger, people and culture manager at the YMCA of the National Capital Region, 2025 will be a busy year. With a lean HR team — just four members including herself, supported by a VP — the organization is embarking on a five-year strategic plan prompted by the arrival of a new CEO.

“My focus will definitely be on how to communicate and how we're going to put the everything into action.”

And generative AI is on the radar, primarily from a security and privacy perspective, as the YMCA has established a clear policy to guide its use, she says.

"Mostly, it's about security and privacy,” says Mezger. “We don't have a problem [with the tech]. If you want to use it, just keep data out of it, and keep names out of it, and you're fine."

Pay transparency on agenda for 2025

Pay transparency will be another big focus for Redberry in 2025 as part of efforts to create an open talent marketplace across brands and regions.

"We actually spent the last year engaging comprehensive market reviews in each of the regions that we operate, and also doing cross-brand analysis," says Benet, citing the importance of a robust pay compensation system.

In January, Redberry plans to launch a detailed pay structure outlining compensation, career progression, and additional benefits. The initiative will help employees understand their earning potential and opportunities within the company, she says.

"We do offer bonuses, we have benefits. We offer all these perks and opportunities that smaller franchisees might not be able to do. But given that we are a large multi-brand operator, there's a lot of great opportunities here, and that facilitates our retention and attraction.”

The YMCA has proactively addressed pay transparency and compliance with Ontario’s regulations on job postings, which include salary disclosures and clear communication with candidates. Mezger notes that transparency is already embedded in their practices.

"We already have our salary listed on all our job postings,” she says. “We also have a statement [ saying] that we don’t use artificial intelligence… to scan resumes… we do it manually."

As pay transparency gains traction, Pontone predicts it will become a greater focus, driven by legislation and employee demand. However, he downplays its urgency for his team.

"It's not on the top of our list, of my list, at least. We're going to monitor legislation and adhere to that. But really, what it comes down to is if you have a reliable and structured program, then everybody should feel less nervous about a pay transparency legislation."

The key, he says, is ensuring compensation programs are reliable and based on thorough market analysis.

Employee well-being a central concern

Pontone’s HR team in Canada consists of 32 members — a modest group tasked supporting a workforce of roughly 2,100 employees in the country and 60,000 globally.

But employee well-being is an ongoing priority, especially in a world that continues to grow more complex, says Pontone. He expresses concern about how global crises, such as conflicts in Ukraine and the Middle East, as well as political tensions, may affect mental health.

"I'm just concerned about the toll that'll have on people's health and mental health and overall well-being ... I don't think that's ever going to change, and I don't think it's ever going to get more simple."

Wellness remains a priority at the YMCA, which has anywhere from 400 to 650 employees depending on the season, with ongoing efforts to keep programs relevant and effective.

"We implemented a wellness check-in so managers meet with their staff one-on-one — I call it a coffee chat — just a quick check-in to see how they’re doing,” says Mezger. “We also have engagement surveys for new employees, 30-day, 60-day, 90-day, so we ask on the 90-day [survey]: ‘Have you had a wellness check-in?’ That’s the way we measure it."

Despite these efforts, Mezger acknowledges a gap in the utilization of employee assistance programs (EAPs).

"That’s something I’ve got to think about: ‘How are we going to get this message out?’ Because it’s a great program.”

Redberry supports employee wellness through programs that address financial and mental well-being, says Benet, such as savings accounts, financial counseling, and home and auto benefits.

"We have financial advisors that provide free financial counseling to anybody in the organization," she says.

To ensure accessibility, Redberry uses a communications platform that delivers resources directly to employees’ devices, an important option considering 98 per cent of staff are out in the field.

"We have a communications platform that people can sign on in their app, and we can push out messages to remind them: 'Here's the link to the EAP. Here's the link to financial wellness resources.' ... The links are always there. You don't have to search for someone at head office to help you out at any time."

Navigating flexible and hybrid work

Flexibility is a key driver of employee satisfaction, particularly for Redberry’s restaurant workers, who make up 98% of the company’s 5,000-strong workforce, says Benet.

So, schedules are tailored to employee availability, accommodating diverse needs such as school commitments, caregiving, and participation in the gig economy, she says. To enhance flexibility further, the company plans to roll out technology in 2025 that allows team members to manage schedule changes more easily, she says.

"We've been planning some technology innovations for the last year. We're hoping to launch it in 2025, so we're really excited about that."

Flexible and hybrid work models remain an area of ongoing experimentation at Linde, says Pontone, who sees hybrid work—typically two or three days in the office—as striking the best balance for most organizations while noting that decisions should be tailored to the nature of the work.

"We're always going to be trying to figure it out. I don't think anybody knows the secret sauce, so I think it's always going to be a continue to test and learn. But what I will say is the reason is because everyone's so different. This is where diversity comes in, right? I mean, people have diverse needs, diverse backgrounds, they all work differently."

Diversity, inclusion, and belonging remain central to Pontone’s HR vision. He sees these priorities as essential to fostering an engaging employee experience.

"You're going to be bringing people in with diverse backgrounds. And I think organizations are going to continue to [be] making sure that those folks are all feeling included and belonging within the organization… that’s still going to be a priority in 2025.”

Skills mobility, succession planning

Pontone identifies skills mobility as a rising priority for HR in 2025. He highlights the need for employees to develop diverse and transferable skills, given the rapid pace of technological change.

And Pontone advocates for employees to embrace horizontal growth rather than focusing solely on climbing the corporate ladder: "Don't worry so much about title and levels. [It’s about] that lattice, that horizontal growth — go learn a new skill set, go take a class."

“Trying to ask for stretch assignments, trying to get involved in projects that are a little bit of your comfort zone… where you're learning a little bit more — that's critical. I think that's going to be a huge advantage.”

Mezger says 2025 will be focused on their Human Resource Information System (HRIS), introduced two years ago, which has streamlined processes such as performance reviews.

"The values will be changing because it's part of our performance review,” she says. “We have to ensure that everyone really understands how to put that into action so everyone feels very comfortable about the new changes."

Succession planning is also on the horizon, with plans to use the new HR system to identify and prepare future leaders.

"We do performance reviews twice a year. We're going to implement the succession planning portion of it and the development plans ... to ensure we have leaders in mind to fill spots, not even for people that vacate, but also for expansion," says Mezger.

To fill spots and combat labour shortages, Redberry uses a mix of internal promotions, transfers, and local community engagement to attract talent in underserved areas, says Benet.

"Sometimes, we just have to put together a more strategic approach to our hiring, whether that’s internal promotions or transfers... and letting people know well in advance that we're coming to the market and trying to entice the local community to come apply."

She says the company has lower than average turnover for the QSR industry.

“We do our engagement survey every year [and] make sure we have a lot of feedback mechanisms to ensure our workforce ... as their needs evolve, we're staying on top of that."