Korn Ferry has released its Workforce 2025 Global Insights Report, which pulls back the curtain on shifts impacting the dynamic between employers and employees.
The report has found that today’s workforce is adapting to increased mandated office returns, tighter salary increases, and flatter management layers – all in pursuit of organisation’s seeking stability and growth. The findings are based on Korn Ferry’s annual survey of 15,000 global employees across a range of job roles, age demographics and industries.
“Common assumptions about work are being rewritten in real time amid perpetual uncertainty and pressure points that are permeating the global workforce,” said Lesley Uren, CEO of Korn Ferry Consulting. “And at the forefront is the shifting dynamics between an organisation’s need for growth and stability and employees’ desire for fulfilment and balance in their lives.”
The report examines a variety of factors that are affecting the workforce in 2025. Key data points include:
- Hybrid Headaches: Despite a national push to return to the office, the majority of US workers say it’s not what they want. Although more than 3 in 5 (64 per cent) of employees are now required to work on-site full-time, most would prefer a remote or hybrid setup. The research reveals that 69 per cent of workers want to work remotely at least part of the time – driven by a desire for greater flexibility (61 per cent) and improved mental health (60 per cent). Yet fewer than one in three employees (32 per cent) currently have access to hybrid work options, underscoring a growing disconnect between employer policies and employee needs.
- Missing Managers: As companies streamline operations, nearly half (44 per cent) of US employees report cutbacks in manager levels at their organisations. While leaner structures can boost agility, the absence of these key leaders is creating new challenges, with 40 per cent of US employees saying they feel a lack of direction at work. Senior executives are feeling the pressure too – 72 per cent in the US say they’re stretched beyond their capabilities, compared to 47 per cent of their global peers.
- The Salary Squeeze: Employees at all levels are feeling the impact of an uncertain economy. While two-thirds (66 per cent) of US workers say they are compensated fairly or above the value of their skills, 72 per cent are concerned about cost-of-living expenses outpacing their current salary. Against the backdrop of broader economic fluctuations, employees across the board are prioritising job security along with compensation when looking for new positions.
- Generational Angst:Leaders will be looking closely at the relationship among different generations of workers this year, with 75 per cent of Gen Z identifying challenges working with other generations due to different communications styles, technology gaps or values. However, 45 per cent of Baby Boomers don’t report any problems working across generations.
- A New AI World Order:When it comes to AI in the workplace, US and global employees have divergent views. In the US, 61 per cent of employees feel optimistic about AI’s potential impact on their work; however globally nearly half (48 per cent) of employees are concerned their job will be replaced by AI in the next three years. Further, 58 per cent of US employees feel that their organisation is mostly successful in implementing AI, with those in senior roles feeling most confident. Globally, more than three-quarters (70 per cent) of leaders believe they have an AI strategy, while only 39 per cent of employees agree.
The full Workforce 2025 Global Insights Report can be found here.