If you had a crystal ball, you would be able to predict next year’s small business trends and know exactly how they would impact your company. But we live in the real world ― and for that, there is Megatrends.
What are Megatrends? Every year, UKG experts research and analyze the state of the global workplace and collaborate with leaders and HR practitioners at organizations of all sizes to determine which trends will likely impact organizations and employees in the year ahead. As a result of this year’s efforts, UKG has identified three Megatrends set to shape workplaces in 2025.
In this blog post, we’ll take a closer look at each Megatrend and apply its insight to how it will affect small businesses this year ― and how you can make the most of it for your business.
#1 The Escalating Global Labor Deficit: Reimagining Talent Acquisition
Organizations in multiple countries are reporting issues around finding sufficient talent ― and this deficit is projected to increase dramatically over the next decade. Reasons for this include changing demographics, skills gaps, shifting labor force participation rates, and evolving employee expectations. Meeting this challenge will require a multi-layered talent acquisition strategy to address the current talent shortage while preparing for what lies ahead.
Small business trend: How can small businesses meet this challenge?
Small businesses will need to adopt innovative and flexible approaches to talent acquisition. This could include leveraging remote work to access a broader talent pool, investing in training and development to upskill existing employees, and creating a stronger brand to attract top talent. Additionally, small businesses might benefit from partnerships with local educational institutions to create pipelines for future talent.
HR and payroll technology that includes recruiting and onboarding tools and automated processes can make it easy for you to attract, hire, and retain the best people for your business ― even when talent is scarce.
85.2 million jobs could go unfilled by 2030 based on today’s global talent deficit.
#2 The Amplified Employee Experience Imperative: Unleashing Engagement
Employee engagement has always been a consistent measure of success for organizations of all sizes. However, with current low unemployment rates and increasing talent shortages, its significance has grown, as engaged employees are less likely to leave their jobs. As a result, business leaders are placing a higher priority on engagement, especially since it has shown little improvement over the past decade. To stand out as a preferred employer in a competitive market, organizations need to refocus on creating a people-centric culture and offering an employee experience that builds trust, engagement, and retention.
Small business trend: How can this trend be interpreted for the needs and resources of a small business?
For small businesses, enhancing the employee experience can be achieved through personalized approaches that larger organizations might struggle to implement. This could include fostering a close-knit, supportive work environment, offering flexible work arrangements, and recognizing and rewarding employee contributions. Small businesses can also focus on delivering clearer communication and providing opportunities for professional growth and development, which can significantly boost engagement and retention.
One way to make engagement a more holistic and consistent part of your small business is to implement an HR and payroll solution that prioritizes culture building and can help you identify areas of opportunity to incorporate feedback, recognition, and development into everyday processes for a stronger company culture.
53% of employees are considering new opportunities.
#3 The Human-AI Advantage: Unlocking Productivity
There is no question that accelerating innovation and automation technologies, including Generative artificial intelligence (AI), are transforming work today. Artificial intelligence has been shown to enhance and improve employee productivity and performance. Many organizations are seeing the benefits of AI, but AI tools still rely on quality data and human participation that requires a connection between the two. To operationalize and optimize AI tools, organizations need to invest in their people through skills enhancement and digital enablement while ensuring a foundation of quality data.
Small business trend: How can a small business apply AI tools for their businesses, given lower headcounts and potentially fewer resources?
Small businesses can start by identifying specific areas where AI can have the most significant impact, such as automating repetitive tasks, enhancing customer service, or improving data analysis. Investing in user-friendly AI tools that don’t require extensive technical expertise can also help. In addition, small businesses should focus on training employees to work effectively with AI and ensuring that they have access to high-quality data, and collaborate with technology vendors to tailor solutions to their specific needs.
56% of executives see AI as a job creator in their organizations.
Conclusion
The Megatrends influencing the workplace today emphasize discovering fresh and innovative ways to rethink talent acquisition, boost engagement, and enhance productivity. It’s essential to expand talent pools, transform the employee experience, and leverage AI to drive meaningful and lasting changes in the workplace for more satisfied, engaged employees and improved business outcomes.
Considered through a lens of small business trends, this translates into actions such as adopting flexible and innovative strategies to attract and retain talent, creating a supportive and engaging work environment, and using AI to enhance productivity and performance. By doing so, small businesses can not only navigate the challenges of the future but also thrive in an increasingly competitive environment.