Experience management company Qualtrics has announced key employee experience trends for 2025, with advice on how employers can better support their workforce amid rapid workplace changes.
The report reveals that younger employees, aged 18-24, are particularly optimistic about their careers and their company’s future. However, organisations need to address areas such as candidate experience and exit processes, which are negatively impacting employee engagement and retention. A key theme of the report is that employees are more engaged when their workplace culture helps them adapt to change.
Managing Workplace Chaos and Pressure
The report shows that nearly 40 percent of employees feel increased pressure to be more productive, mainly due to the fast pace of change, economic uncertainty, and internal strategic shifts. This pressure affects their wellbeing and engagement.
According to Dr Benjamin Granger, Chief Workplace Psychologist at Qualtrics, engagement and wellbeing peak when employees feel supported in adapting to change and take pride in their organisation’s impact on customers. Dr. Benjamin Granger, Chief Workplace Psychologist at Qualtrics.
He said, “In general, humans are excellent at adapting to change, as long as they have support. Increased pressure to be productive must be met with increased organisational support and communication if organizations are to uphold their end of the new psychological contract between employee and employer.”
Young Workers Remain Optimistic, But Not for Long
Despite assumptions about younger workers, the report finds that employees under 25 are highly engaged and optimistic about their future and their company’s success. However, this group is also less likely to stay with a company for three or more years, even when they feel their employer exceeds their expectations.
Leaders aiming to retain this group should focus on aligning company values with employee needs, offering career development opportunities, and ensuring benefits meet their expectations. These factors have been identified as key drivers for retaining young talent.
Dr Granger said, “When leaders accept stereotypes about young employees being lazy, entitled, or disengaged, they do their organizations a disservice. Crushing the optimism young workers bring into the workplace is far from productive, especially when it can be easily nurtured, bringing out creativity and new ideas for innovation.
“Offering them opportunities to share their ideas and stretch their skills can win over talented workers early in their careers and create lasting goodwill toward the company, even after they eventually depart.”
Poor Candidate Experiences Impact Retention
The report reveals several issues with the entry and exit phases of the employee journey. New employees often report dissatisfaction with the application and interview process, leading to a high turnover rate among those with less than six months’ tenure. More than half of these new employees (56%) plan to leave their company within three years, compared to just 34 percent of more tenured workers.
The exit experience is equally problematic. Departed employees, though no longer active, can influence company reputation based on their final impressions.
“Potential and past employees are often overlooked when it comes to a company’s reputation, and organizations take on unnecessary risk by neglecting to address these bookend experiences,” said Granger.
Positive experiences at both ends of the employee journey will not only help retain current talent but also attract skilled candidates in the future, some of whom may return to the company with greater expertise.
Short-Term Gains Eroding Employee Trust
The research also identifies a gap in trust between employees and senior leadership. While more than two-thirds of employees believe their leaders are competent and aligned with company values, only 56 percent trust them to prioritise employee well-being over short-term financial gains.
In an increasingly uncertain global economy, many business leaders are focusing on immediate results. However, this short-term thinking could damage long-term trust and engagement.
“Trust is the glue that holds people within organizations together, but it is often harder to earn and maintain during times of disruption and uncertainty,” said Granger. “Most leaders are comfortable tracking operational metrics, but the ones who earn employee trust go further to monitor how employees feel, and double down on trust building-behavior and communication during challenging times.”
Employees Outpacing Organisations in AI Adoption
The report also shows a gap between employee and organisational readiness for AI. Nearly half of employees report that their companies do not provide adequate training or clear guidelines on AI use. Many employees are taking matters into their own hands, using AI tools they have found independently. This, however, poses security and ethical risks for organisations.
Around 45 percent of employees use AI at least weekly, with many seeing its potential to enhance their work. However, companies lag in providing approved tools and frameworks to ensure AI use is safe and compliant with security standards.
“There’s a growing desire and readiness among workers to leverage AI, even if it isn’t explicitly supported by the company,” said Granger. “This introduces significant risks to employees, customers, and organizations alike. Many workers are already looking for opportunities to use AI to augment their work and it is far better for organizational leaders to lean in and provide approved tools and clear guidance to gain the benefits of these technologies without putting the company or customers at risk.”
