New Year 2025! New Predictions!
Authored by ABP Vice Chair and Head of Accreditation Dr Dawn H. Nicholson.
As we step into 2025, we asked our ABP Board to forecast the top workplace challenges and highlight where business psychology could make a significant and positive impact. Here are just some of their fascinating insights!
Claire Lish – ABP Chair
War for Talent 2025:
Claire is keenly interested in how companies will vie for top talent. She notes a trend where employees favour holistic experiences, emphasizing flexibility and well-being over hefty salaries and perks. This shift calls for businesses to create a “lifestyle workforce” that resonates more with people, especially those with limited budgets or progression promises. Claire’s personal experiences as a parent and someone with a disability underscore the importance of this approach, as it reflects the pressures many employees face.
Dr. Dawn H. Nicholson – ABP Vice Chair, Head of University Accreditation
Value Beyond Wages:
With rising employer NI and minimum wage, some companies might struggle to boost wages. Dawn suggests focusing on other motivational avenues, highlighting the Job Demands-Resources model. Employees cherish agency and autonomy, and empathetic leadership coupled with excellent job design can make a big difference. Investing in job design and nurturing empathetic leaders could be the key to making employees feel valued.
(Reference: Demerouti, E., Bakker, A. B., Nachreiner, F., & Schaufeli, W. B. (2001). The job demands-resources model of burnout. Journal of Applied Psychology, 86(3), 499–512. https://doi.org/10.1037/0021-9010.86.3.499)
Dr. Stewart Desson – ABP Treasurer, Events Lead
Celebrating Creativity:
As we march into 2025, Stewart celebrates creativity—the bedrock of innovation. While personality influences creativity, he emphasizes that gender isn’t a defining factor, especially in egalitarian cultures. Research shows minimal gender differences in creativity, highlighting the importance of fostering inclusive environments. Stewart urges us to focus on cultural and contextual factors to unlock everyone’s creative potential.
(Reference: Taylor, C. L., Said-Metwaly, S., Camarda, A., & Barbot, B. (2024). Gender differences and variability in creative ability: A systematic review and meta-analysis of the greater male variability hypothesis in creativity. Journal of Personality and Social Psychology, 126(6), 1161).
Nick Hayter – Standards Pillar Lead
Engagement Paradox:
In 2024, intrinsic motivation remained steady, but employees’ pride in their companies dwindled. Despite a softer job market, intent to stay has increased. Trust in leadership has eroded due to restructurings and the “do more with less” mantra. Nick predicts this trend will continue, urging companies to pivot to employee-centric approaches and provide necessary resources. Rebuilding trust and confidence in leadership is essential for creating a positive work experience.
Ben Williams – Advocacy Lead
‘Validity-Quake’ in Recruitment:
Ben foresees a ‘validity-quake’ in traditional recruitment processes as ChatGPT’s mainstream usage influences job performance and assessment validity. He suggests business psychology can address this by revisiting job descriptions, investigating concerns about assessment processes, and designing assessments that measure new, relevant skills. Integrating considerations of GPT usage into how assessments are designed, run and scored, will be crucial in this evolving landscape.
Hybrid Work – An Ongoing Journey
Hybrid Work:
The Board all agree that hybrid work is still a work in progress. Despite the emergence of set policies, and more RTO mandates, the impact of hybrid work and office days is still under analysis. Flexibility remains a priority, with employees preferring not to commute to the office just to then join Zoom calls. The tension between remote and office work persists, and there is no one-size-fits-all solution. Employers must navigate questions about fairness and remuneration costs, ensuring different roles are a good fit to varying work patterns.
What workplace challenges do you foresee in 2025? How can business psychology play a role in addressing them? Let’s start the conversation!