From the widespread adoption of artificial intelligence (AI) to a multigenerational workforce and rising health care costs, the world of business is on the brink of transformative change. For small to midsize businesses (SMBs), adapting to these trends can feel overwhelming, but it also offers a golden opportunity to innovate and thrive.
Below, we highlight key insights from the 2025 Trends Guide For Small Business Owners and explore how each trend can impact your people, processes, and bottom line.
HR Trends: The Evolving Role Of People Management
AI is being used for everything from sourcing talent to automating HR paperwork. Traditional roles relying on repetitive tasks are at risk of being automated, creating a need for upskilling and retraining. According to GMS’ 2025 Trends Guide, 76% of HR leaders warn that not implementing AI soon could leave their organizations lagging behind in innovation. Additionally, only 41% of HR professionals say they feel prepared for AI’s ethical and operational challenges. With over 82% of companies using or exploring the use of AI applications, future business strategies will have to consider the opportunities and threats that come with the arrival of AI.
Payroll Trends: Pay Equity And Transparency
More states are passing laws requiring employers to disclose salary ranges, while pending federal regulations could further tighten rules around pay transparency. Fair and transparent practices build trust and reduce legal risks, while non-compliance or perceived inequities can hurt morale and expose you to lawsuits. We recommend auditing your current pay structures, verifying that job titles and salaries align, and communicating the rationale behind raises and promotions.
Risk Management Trends: Cybersecurity In A Hybrid World
As ransomware attacks and data breaches become more sophisticated, SMBs are prime targets – especially those juggling remote or hybrid setups. A single breach can cost you financially and damage your reputation. SMBs often lack in-house security expertise, making proactive measures critical. It’s vital that employees are patching software frequently and employers should consider managed detection and response (MDR) services to monitor threats 24/7.
Benefits Trends: Prioritizing Mental Health
Rising mental health needs mean more employers are expanding employee assistance programs (EAPs), adding teletherapy coverage and granting mental health days. Employees increasingly view mental health benefits as a must-have, not a perk. Offering genuine support enhances retention, boosts morale, and reduces burnout. It’s best to keep it simple. Start by improving access to mental health resources like free or discounted teletherapy sessions so employees can get help before crises escalate.
More Trends And Insights
These four trends are just the tip of the iceberg. Download our comprehensive 2025 Trends Guide For Small Business Owners for a deeper dive into the year’s most transformative shifts.
If you’re looking for hands-on support in HR, payroll, risk management, or benefits, contact us today. At Group Management Services (GMS), our experts can help you navigate these changes with confidence, so you can keep focusing on what you do best: growing your business.