Key takeaways

• Two-thirds (66%) of managers and executives say that most recent hires are not fully prepared, and a lack of experience is their most common failing.

• Nearly three-quarters (73%) of organizations recognize the importance of reinventing the role of the manager, but just 7% are making great progress.

• Over half (54%) of workers and leaders are concerned about the blurred distinctions between work done by humans and technology.

Why this research matters
In an increasingly boundaryless world, leaders are being asked to address the complex tensions between business and human outcomes. At the same time, Artificial Intelligence (AI) is reshaping work — automating tasks, shrinking entry-level roles, and accelerating change. Deloitte's "2025 Global Human Capital Trends" report finds that this new reality is creating worker, manager and organizational needs that are seemingly at odds — bridging the growing experience gap as entry-level roles disappear, supporting people and their development as middle management evolves, and ensuring that workers and organizations are able to fully realize AI's potential.

"Turning tensions into triumphs: Helping leaders transform uncertainty into opportunity," explores how workers, managers, executives and organizations across 93 countries are navigating today's biggest workplace challenges. It shows how organizations can rethink talent development beyond traditional experience pathways, reimagine the role of managers, and use AI to create value for organizations and their people, especially as only 6% of workers believe their organization is making great progress in creating this value.

Closing the gaps in human and hard skills 
Organizations are confronted by a growing tension between the need for experienced workers and the reality that many skilled candidates lack the necessary experience. Complicating matters is that the number of traditional entry-level roles is shrinking, making it harder for workers to gain the necessary hands-on experience. To close this gap, organizations should shift from rigid experience requirements to skills- and potential-based hiring.

• To close experience gaps, 73% of executives and 72% of workers agreed that organizations should do more today to connect their workforce with opportunities to build experience.

• Nearly three-quarters (74%) of surveyed workers, managers and executives say it is very, or of critical importance to prioritize human capabilities.

Evolving the role of middle managers
To help organizations and workers navigate rapid change and increasing AI adoption, the traditional role of managers is ripe for reinvention. Organizations benefit from having dedicated people developers, but many managers today find themselves focused more on administrative work than nurturing talent. AI can help managers balance their daily tasks so they can become more people-focused and agile. Organizations that successfully reimagine the role of the manager will likely be better positioned to navigate an increasingly complex and AI-powered future.

• Managers spend nearly 40% of their time on solving problems for today and administrative tasks, with only 13% of their time spent developing the people who work for them.

• Over a third (36%) of managers say they are insufficiently prepared to be people managers, and 40% report a decline in mental health after becoming managers.

An employee value proposition in the AI era
As workers increasingly use AI, it's changing their experience at work in unexpected and subtle ways. Human/AI collaboration is an increasingly important part of the modern "employee value proposition" (EVP )— the reasons people choose to work for and stay at a company. An updated EVP can help organizations better support their employees and adapt to these changes. Additionally, leaders who communicate AI's role in job transformation, career growth, and work-life balance can help create workforce trust.

• Over half (52%) of leaders view the potential value of deeper human and machine collaboration as very or critically important.

• Over 70% of managers and workers are more likely to join and stay with an organization if its employee value proposition helps them thrive in an AI-driven world.

Key quotes
"Focusing too much on short-term results can be to the detriment of creating long-term value. Yes, organizations can leverage advances in AI to drive value and improve the bottom line. However, the organizations who effectively use it to identify and tackle emerging challenges, create a better quality of life for workers, and reimagine rigid management structures have the potential to unlock greater value for all of their stakeholders."     
—  Karen Pastakia, global human capital practice leader and partner, Deloitte Canada

"Workforces as a whole, rather than people as individuals, have long been at the center of most workplace strategies. But when we look more closely at each worker's skills, tasks, motivations and well-being, we can better incentivize them to stay longer and think more creatively about how their organization can succeed."
—  Simona Spelman, US human capital national leader and principal, Deloitte Consulting LLP

"The challenge for leaders is recognizing that solutions for these long-simmering tensions lie all along the spectrum and understand that they may need to adapt and evolve their strategies over time. It's all about making the choices that help move their organization forward while also supporting their workforce."
—  Kyle Forrest, US future of HR leader and principal, Deloitte Consulting LLP

To view the full report, visit Deloitte's 2025 Global Human Capital Trends page.

Learn more about Deloitte's Human Capital practice here or connect with us on LinkedIn.