The start of 2025 is bringing major shifts for U.S. workplaces, with federal return-to-office (RTO) mandates setting the tone for what’s ahead. The Trump administration’s push for increased in-office presence among federal employees has accelerated, and states like Indiana are following suit. Indiana’s governor recently mandated RTO for state employees, signaling that a broader movement toward pre-pandemic workplace structures may be underway. These moves could present both opportunities and serious challenges for HR professionals striving to balance organizational goals with employee needs.
RTO mandates: Back to cubicle workdays
Indiana’s decision to mandate RTO for state employees signals that more organizations will be reverting to pre-pandemic ways of working. The shift is not limited to state employees but federal workers are feeling the RTO heat as new policies under the Trump administration push for increased in-office presence across federal agencies. However, companies and HR professionals should be concerned about potential employee pushback. According to a MyPerfectResume survey, only 2% of workers prefer full-time on-site work, while 36% state that no perk could convince them to return to the office. Taking this even further, 77% of those surveyed believe that RTO mandates are more about companies exerting control over employees than an attempt to improve productivity.
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LiveCareer’s RTO Realities and Predictions Report highlights that 91% of workers know someone who has been required to return to the office since 2023, and 86% observed negative repercussions for those who resisted, including termination or formal reprimands. Among those who faced consequences, 63% reported being fired, while 23% faced formal reprimands, demonstrating the serious risks employees encounter when resisting these mandates. Another report from MyPerfectResume found that 51% of workers would quit if faced with a non-negotiable RTO mandate, while 40% would actively search for remote jobs. These strict enforcement measures signal that companies are doubling down on in-office policies, which may lead to heightened employee dissatisfaction and attrition.
The data shows that mandating RTO will put a major strain on company and employee relations, with HR stuck in the middle. Employees have gotten the opportunity to experience flexibility and work-life balance through remote work, and they aren’t going to be so eager to relinquish it. Mandating a full-scale RTO without considering employee needs is a surefire way to decrease morale, retention, and the symptoms of the newly coined “Great Detachment,” where employees are disengaging from their roles.
To mitigate these risks, HR leaders must take a proactive approach, supporting their organizations to be more employee-centered than “business as usual.” This could include conducting surveys to capture employee preferences regarding work, inquiring about perks like transportation stipends, childcare support, or adopting hybrid work models that will make transitions to some form of in-office work easier. Tailoring RTO policies by job function rather than a blanket approach could also be a great way for companies to maintain employee trust and focus on their wellbeing.
Not addressing the needs of employees when considering RTO can cause damage to workplace culture and lead to loss of talent—all major headaches for HR professionals. If HR can seize this period of change as an opportunity to work proactively with company decision-makers and employees, a balance could strike where all parties come out on top.
Skills-based hiring: A true workplace revolution
RTO isn’t the only hiring trend Indiana is shaping in 2025. The shift to skills-based hiring, supported by Indiana’s governor, represents a transformative opportunity for all companies. Moving away from traditional hiring practices focused on degrees and credentials allows companies to focus on the skills needed for a position, expanding their talent pool.
Skills-based hiring is an approach that offers opportunities to candidates from non-traditional backgrounds and employees re-entering the workforce. This form of candidate selection also provides new possibilities for career pivoters who can bring innovative and creative approaches to different industries and positions. Creating teams from diverse backgrounds brings varied perspectives and problem-solving abilities to the table, a significant way for companies to improve innovation and growth.
For HR professionals and leaders, implementing a skills-based hiring approach helps to uplevel team productivity and effectiveness and supports a diverse company culture. This approach to hiring may require rethinking more traditional hiring strategies, including how job descriptions are written, how candidates are selected, and even creating new onboarding and training programs to support employees. While this will require some work from HR teams, the benefits outweigh the necessary protocol and operational changes. Some of the burden of making changes to recruiting processes can be lifted by leveraging AI tools, making the transition less challenging.
With the appropriate policies, evaluation procedures, and development pathways for employees, HR can lead the forefront of this revolution to change how we hire, develop and cultivate talent. Companies that invest in these practices will surely lead the way in attracting top talent.
DEI rollbacks: A hit to workplace culture
The rollback of DEI initiatives is occurring at multiple levels, from the federal government mandates to state policies. Even large corporations are jumping in, leading to big implications for workplace culture. DEI programs have historically been implemented to ensure equitable representation across companies, eliminate toxic work environments and promote employee wellbeing. Scaling back these efforts, as seen on the federal level and with new Indiana orders, risks undermining not just the progress made by these programs but also puts into question companies' so-called “diversity values.” This could make employees feel alienated, devalued, and ready to find new companies that put DEI at the forefront of work.
We are now in a time where employees are prioritizing value alignment when it comes to both selecting and staying at companies. The perception that DEI is no longer a commitment can lead to losing top talent and decreasing employee morale and engagement.
HR leaders and professionals are navigating a challenging moment as DEI is under fire. However, by advocating for these initiatives, HR professionals can highlight the important role these policies play in fostering innovation, creativity and employee engagement. Even in the face of DEI setbacks, HR can help organizations understand that a commitment to these policies is necessary to ensure new talent is acquired and existing employees are retained. If not, HR will likely see employees jumping ship to find companies focusing on what is important to them, with DEI being a critical component.
Key takeaways: Navigating workplace shifts in 2025
The workplace shifts emerging at the start of 2025 signal significant changes ahead for the corporate landscape. Here are a few critical items HR professionals can have top of mind to navigate the changes:
Emerging RTO mandates: Mandates like the Trump RTO executive orders for federal employees and Indiana’s similar policy signal a potential return to pre-pandemic working models, which could impact employee retention, turnover, productivity and morale.
HR leaders can support companies in a more effective rollout by prioritizing flexible solutions, such as hybrid models, creating tailored perks or incentives and actively seeking employee input.
Skills-based hiring revolution: Emphasizing skills over credentials is a great way to broaden the talent pool and foster workplace diversity. This shift supports non-traditional candidates, career pivots, and those re-entering the workforce, which is a huge plus for companies.
HR professionals can lead this transformation by redesigning recruitment strategies to focus on skills and using AI to support them in this effort.
Rollback of DEI initiatives: Scaling back DEI programs risks undermining workplace culture and employee morale. Companies considering rollbacks should be aware of the impact on their current workforce and their ability to attract and retain top talent.
HR professionals can be at the forefront of advocating for the importance of DEI in fostering innovation, creativity, and retention, ensuring these initiatives continue to thrive at their company.
By addressing these challenges with thoughtful, employee-focused strategies, HR professionals can turn potential obstacles into opportunities, paving the way for workplaces that thrive even with the changes that have already occurred at the start of 2025.
Jasmine Escalera, career expert at MyPerfectResume
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