George Waggott, founder, and Roberto Fonseca-Velazquez, law student,
George Waggott Law
The workforce landscape is undergoing significant changes, with evolving employee expectations, economic pressures, and generational dynamics shaping workplace trends. A recent study by Glassdoor highlights five key trends that are shaping the workplace going into 2025. This article reviews those trends and related implications.
1. Rising Employee Resentment and Disengagement
A stagnant job market has left many employees feeling "stuck," with around 65% of employees overall feeling this way. The effect is particularly strong in tech (73%) and in advertising (70%). The U.S. quit rate fell to 1.9% in September 2024, the lowest since 2015, signaling suppressed mobility. This frustration manifests in trends like "quiet quitting", where employees do the minimum effort required to keep their jobs. Additionally, employee satisfaction with career opportunities has declined since 2022 across sectors such as IT (-7.5%), pharmaceuticals (-7%), and media (-5.8%). While low turnover benefits employers temporarily, a surge in resignations is expected once the job market improves.
2. Career Setbacks and Pay Stagnation
Economic challenges have pushed many workers down the career ladder. In 2024, 17% of people who changed jobs reported pay declines, with tech seeing the sharpest rise in such cases (18%). Managers are particularly affected; 22% experienced pay cuts, and 32% of former managers transitioning to non-manager roles saw reductions. These setbacks suggest that many people will face long-term setbacks in their careers, akin to post-2008 trends, with mid-level professionals competing for entry-level jobs, creating bottlenecks for new entrants.
3. Gen Z’s Growing Influence in Management
By 2025, Gen Z will comprise 10% of managers, aligning with historical generational trends. Leadership styles are evolving to emphasize empathy, wellbeing, and setting boundaries. Glassdoor reviews have seen significant increases in mentions of terms like burnout (+126%) and equity (+41%). While generational differences are often overstated, the Gen-Z cohort’s management style reflects a deepening concern with establishing inclusive and empathetic leadership.
4. The Rise of Side Hustles and Alternative Career Paths
Side hustles and entrepreneurship are becoming mainstream, with 39% of workers engaging in activities for the purpose of earning supplemental income, particularly Gen Z (57%) and Millennials (48%). New business applications in the United States have surged by 47% since 2019. Social media's prominence has also enabled people to exploit novel income streams, like content creation. Despite fears that there is a declining work ethic among the working age population, workforce participation hit a 20-year high (84% in July 2024), driven by diverse career pursuits beyond traditional corporate roles.
5. Employer Investment in Holistic Wellbeing
Employers are enhancing benefits to address modern employee needs. According to Glassdoor, employees have reported an 18% increase in access to mental health coverage since 2019. Conversely, 48% of workers report that it is more difficult for them prioritize mental health now compared to five years ago. Meanwhile, access to other benefits, such as parental leave and bereavement leave, has also been expanded by employers. These offerings cater to the "sandwich generation", those who juggle caregiving responsibilities, enabling employers to differentiate themselves and maintain employee engagement amid tightened budgets.
Takeaways for 2025
These trends highlight a workforce grappling with economic constraints, evolving career paths, and shifting expectations for leadership and benefits. Organizations that adapt to these changes—by addressing employee frustrations, fostering career growth, and investing in holistic wellbeing—are better positioned to navigate the future of work.
For more information about George Waggott Law, please see: www.georgewaggott.com, or contact: george@georgewaggott.com
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