News Spotlight

Employees impacted by LA fires. This is a crucial moment for companies to support employees in Southern California, allowing additional flexibility, offering mental health support, and providing immediate grants to those affected (Fortune).

Will IT become the new AI HR? NVIDIA CEO Jensen Huang predicts that IT teams will become the de facto HR department for AI agents, leading the hiring, training, and supervising digital workers of the future (The Drum).

Quality workspaces are lacking. With many outdated workplaces standing empty following the pandemic, companies returning to in-person work are hard-pressed to find spaces to attract employees to the office (The Wall Street Journal).

Stat of the Week

A new study predicts that while 92 million jobs will be displaced in the next decade, 170 million will be added. Some of these roles are expected, like those in big data, fintech, and AI. But many of the largest growing jobs will be those that are core to keeping the global economy in motion, including an additional 34 million agricultural jobs driven by green transition trends and rising costs of living.

In addition to agriculture, the most significant growth is anticipated for those working in delivery services, software, construction, and in-store sales, while the largest declines will be seen by cashiers, administrative assistants, building caretakers and housekeepers, record keepers, and printers. New technological skills will be needed in the decade to come, but many of the skills needed to thrive in the economy of tomorrow will be those that workers have been cultivating for generations. There’s no denying that the workforce is on the cusp of great transformation, and employers are increasingly investing in reskilling and upskilling programs to ensure that workers can keep pace with evolving demands. A mix of technical, social, and trade skills will be essential for the future of work, and employers and employees alike are striving to prepare.

Deep Dive Article

The 4 Most Important Investments in EX Today, According to HR Leaders

The new year is underway, and as we consider what we can expect in the months ahead, the U.S. job market is a myriad of contradictions. Over the past year, unemployment has remained low and quit rates have declined. While this is generally a sign of a healthy labor market, hiring rates are also lagging, signaling that the market is stagnating, with few opportunities for those looking for work.

Meanwhile, employee engagement has hit an all-time low. In 2024, 4.8 million fewer employees reported feeling engaged at work than the year prior — less than one-third of U.S. employees overall. It’s abundantly clear that Americans ended the year dissatisfied with their current work arrangements and without many options for changing course.

The year ahead is likely to herald more change, uncertainty, and contradictions for the U.S. workforce, as employees navigate return-to-work mandates, emerging technologies, and an overall tepid labor market. Additionally, much hangs in the balance as the new administration returns to the White House, with concerns mounting around macroeconomic stability, tariffs threatening global trade, and no end in sight for the current geopolitical conflict.

With so much uncertainty and disruption on the horizon, workers need to be able to count on their employers to have their best interests in mind. And with employee engagement so middling leading into the new year, HR teams have their work cut out for them as they support their teams through what’s to come. A positive employee experience (EX) will be essential to bolstering engagement and preventing burnout as employees deal with financial, political, and social stressors. However, many HR leaders cite EX as their top challenge today.

A new report from isolved identifies key trends HR leaders can expect in the coming year, finding that in 2024, 79% of employees report experiencing burnout, with more than half saying it lowered their engagement and more than one-third saying it affected their performance. The vast majority of employees are beginning this year with their reserves already empty, making it an urgent priority for HR teams to address burnout and enhance work-life balance.

Fortunately, 76% of HR leaders don’t see the current needs and expectations of the workforce as unreasonable, signaling that leadership is sympathetic to the evolving challenges faced by their employees. With the knowledge that stronger EX is essential to maintaining an engaged, productive workforce, HR leaders identified the following as the four most significant investments they can make to cultivate a better experience for their teams:

• Competitive compensation
• Competitive benefits
• Diversity, Equity, Inclusion, & Belonging (DEI&B)
• Good leadership

“Experience. Balance. Burnout. These are no longer just buzzwords—they represent real challenges requiring flexible, personalized solutions," says Yutaka Takagi, Principal Product Evangelist at isolved. “Flexibility will be the key to designing employee experiences that matter to each person—whether through when and where work gets done, time-off policies, or learning and development.”

Creating strong employee experience is key to driving engagement, loyalty, and retention, as well as building stronger, more resilient companies that can also withstand the change to come. Here’s how HR leaders are taking an EX-centered approach today:

1. Competitive Compensation

Compensation plays a pivotal role in the employee experience, impacting motivation and retention. When employees feel their contributions are fairly valued, they are more motivated, engaged, and committed to their company’s work. This recognition not only strengthens commitment among current staff but also attracts top talent, creating a stable and skilled workforce while reducing costly turnover.

Fair pay also supports employees' financial well-being, which can directly impact their productivity and job satisfaction. By offering adequate compensation, organizations alleviate financial stress, enabling employees to focus on their roles with greater clarity and dedication. This financial security fosters a sense of stability, driving higher performance and a more positive attitude toward work.
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Furthermore, competitive compensation contributes to a harmonious and equitable workplace. When employees collectively perceive their pay as fair, it cultivates a culture of trust and respect, reinforcing the organization’s reputation as an employer of choice. This positive perception not only enhances the morale of current employees but also makes the organization more appealing to prospective talent, solidifying its position as a desirable workplace.

2. Competitive benefits

Benefits can significantly enhance the employee experience by supporting work-life balance and overall well-being. When they have access to benefits like flexible work arrangements, generous leave policies, and wellness programs, employees can manage their personal and professional lives more effectively. This support reduces stress, boosts morale, and promotes a healthier and more engaged workforce.
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Comprehensive benefits also increase job satisfaction by demonstrating that employees are valued. Health insurance, retirement plans, and professional development opportunities signal an organization’s commitment to its team’s long-term success and security. These offerings foster loyalty, enhance engagement, and help reduce turnover, ensuring a stable and satisfied workforce.
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Additionally, competitive benefits play a crucial role in attracting top talent and building an employer's reputation. Skilled candidates are drawn to organizations that prioritize their employees’ needs, viewing such workplaces as supportive and forward-thinking. By investing in robust benefits packages, companies strengthen their appeal and establish themselves as employers of choice in a competitive job market.

3. Diversity, Equity, Inclusion, & Belonging

Diversity, equity, inclusion, and belonging (DEI&B) initiatives play a transformative role in improving the employee experience by fostering belonging and collaboration. Inclusive workplaces that value diverse perspectives make employees feel respected and empowered to contribute, enhancing teamwork, strengthening relationships, and promoting innovation by encouraging individuals to share their unique ideas and insights.

DEI initiatives also open doors for growth. By implementing equitable policies, organizations ensure all employees have access to resources, opportunities, and career advancement, regardless of their background. This commitment to fairness reduces bias, builds trust, and increases job satisfaction, making employees feel valued and supported in their professional development.

Moreover, DEI initiatives drive innovation and problem-solving by bringing together diverse teams with varied perspectives. These differences fuel creative solutions and more effective decision-making, benefiting both employees and the organization as a whole. By cultivating an inclusive and equitable environment, companies not only enrich the employee experience but also strengthen their ability to adapt and thrive in a dynamic marketplace.

4. Good Leadership

Strong leadership is essential to improving the employee experience by providing clear vision and support. Effective leaders set clear goals, offer guidance, and ensure employees have the resources they need to succeed. This clarity helps employees understand their roles and feel supported, fostering confidence and alignment with organizational objectives.

Strong leadership also builds engagement and trust, creating a positive and motivating work environment. Transparent communication, active listening, and consistent feedback build trust between leaders and employees, making individuals feel valued and respected. Additionally, good leaders prioritize growth and development, offering mentorship and opportunities for advancement. This focus on professional development empowers employees to reach their full potential, enhancing satisfaction and loyalty.

Get ahead of the trends.

The majority of employees are already struggling with engagement and burnout, frustrated by economic and political upheaval, as well as the uncertainty they’ve experienced in the workplace in recent years. But there is an opportunity, at the start of this year, to help the workforce get back on track and make sure that employees have what they need to feel engaged and satisfied at work.

It's crucial that HR leaders not delay, waiting to see signs of burnout or dissatisfaction in their workforce, but to take the initiative proactively in delivering a better experience for their employees. As leadership considers how best to support employees, a key resource will be isolved’s full list of 2025 trends, which provides actionable insights to strengthen recruitment, retention, and engagement goals, preparing your organization and your employees for whatever comes next.

Thanks for reading — be sure to join the conversation on LinkedIn and let me know your thoughts on this topic!

Quote of the Week

“Even if I don’t reach all my goals, I’ve gone higher than I would have if I hadn’t set any.”
​Danielle Fotopoulis