Reflections of 2025

Every time we meet a new client or partner, one of the first questions we’re asked is “What are you seeing from a People and Culture perspective?”

Across industries and company sizes – from early-stage startups to established mid-sized organisations – the challenges are often remarkably similar. But what stands out are the shifts we see year on year, and 2025 has been no exception.

After reflecting on the past 12 months, here are the Top 5 People and Culture themes we’ve observed.

Change was everywhere

If 2024 hinted at transformation, 2025 delivered it in full force.

Restructures, M&A activity, strategy shifts, funding fluctuations, changing customer expectations—businesses of all sizes navigated significant change.

Whilst employees are accustomed to dealing with change, there is a level of fatigue setting in. So, there is an onus on leaders being more transparent than before as expectations of how change is managed are higher. And whilst the outcome of change is often unknown (think impacts from global markets or AI), employees are seeking authentic communication.

What we saw is the best change programs had a people lens from the start, so if you want a change to really stick, consider the employee experience to ensure a more sustainable outcome.  

SMBs and startups are seeking HR guidance much earlier

2025 marked a noticeable shift in that Founders and small business owners are engaging HR support earlier than ever.

Rather than waiting for a problem to arise such as an employee relations issue, a compliance concern, or a structural bottleneck, leaders are prioritising proactive People and Culture foundations.

In the past we found conversations with Founders were focused on explaining what HR did, now leaders know that good HR is a growth accelerator rather than an admin function and are willing to invest in a flexible way – which naturally we’re rapt about!

By building early frameworks around culture, role clarity, performance and policies, Founders and small business leaders save time (and headaches) later and set the foundations for scale. A focus on people and culture is a key enabler of business growth and performance. Leaders that are open to bringing in experts to partner with them early on, set the tone that people are valued.   

AI became the norm (but the frameworks lagged)

Last year was all about experimenting with AI. This year? AI became embedded in day-to-day work – from recruitment processes to performance analytics to admin automation.

But many organisations adopted tools faster than they built the guidelines, governance, and ways of working to support them. We saw clients grapple with a lack of clarity on what’s AI-appropriate (and what isn’t).

The speed with which AI has become part of the working landscape means often there are no agreed frameworks for transparency, data use, or role expectations.

Our recommendation? It’s worth spending some time considering the governance around the use of AI in your organisation to ensure you minimise risk and get the gains from the technology.

People management became even more complex

Performance conversations were never simple – but in 2025, they became even more nuanced.

Managers faced rising complexity across mental health considerations, diverse diagnoses and neurodiverse needs, flexible working and increased legal and cultural expectations.

Leaders face a tough job. People management is no longer about process, it’s about skill, emotional intelligence, and sensitivity. Across our clients and the broader market, building leadership capability continues to be a focus with a particular need to hone soft skills to balance business outcomes and showing genuine support and care to employees.  

Closing thoughts

2025 reminded us that while businesses grow, adapt and transform, their people remain the constant thread.

Whether navigating AI, restructuring a team, or supporting managers with complex performance needs, the foundations of People and Culture are more important than ever.

If you’d like help navigating any of these challenges, or simply want to chat about what you’re seeing in your business, the Nine Yards team are here to support you. Whatever your journey.