How These 2025 Workforce Trends are Driving HR Leaders to Outsource Unemployment Claims
The modern workforce is undergoing significant transformations, driven by technological advancements, changing employee expectations, and global shifts in work culture. These changes are placing unprecedented demands on HR departments, stretching their resources thin as they navigate complex issues while strategically positioning their organizations for success. To address this growing strain, many companies are outsourcing certain HR functions, allowing their teams to focus on high-priority initiatives that drive the business forward in this new era.
Key HR Trends Shaping the Workplace in 2025
The coming year will bring a host of critical focus areas for HR leaders. From leveraging artificial intelligence to fostering employee well-being, HR professionals will need to adapt and innovate to meet the demands of the evolving workplace. Here are five of the most significant trends that will occupy HR teams’ attention in 2025, and how strategic resource allocation can help address these priorities effectively.
1. Integrating AI Into Business Operations
Will 2025 be the year that AI is operationalized to improve business processes and deliver value at scale? That’s what some pundits believe.
Drawn by the potential to improve productivity, efficiency, and service, countless organizations are implementing AI-powered solutions across various business functions. As employees shed mundane tasks in this AI age, they’ll have more time to focus on higher-value work. Perhaps that’s why renowned HR expert Josh Bersin has dubbed 2025 the “Year of the Superworker.”
As AI transforms the workplace, HR professionals must rethink job roles, develop and communicate ethical policies for AI use, and establish training and change management programs that boost AI adoption and address worker anxiety about its impact.
2. Navigating the Hybrid Work Environment
The pandemic forever changed the workplace, as many companies chose not to revert back to a fully in-office model post-COVID. According to a survey by Zoom, 6 out of 10 businesses offer a hybrid arrangement—primarily to meet employee expectations, but also because they believe this approach can improve productivity by enhancing job satisfaction and work-life balance.
In 2025 HR professionals will continue to navigate this new working model, as they adapt workplace policies, determine which roles should be eligible for hybrid work, and ensure data remains secure even when accessed remotely. They’ll also devote more attention to promoting collaboration in the hybrid environment, keeping workers connected even when they’re physically apart.
3. Fostering Employee Wellbeing
Mental health issues are on the rise, and the effects are reverberating throughout the workplace. A Wellhub study found that nearly 9 out of 10 employees believe wellness programs are just as important as salary, and 83 percent would consider switching jobs if their current employer didn’t prioritize wellness. Almost half identify work-related stress as the main source of their mental health challenges.
These sobering facts mean HR professionals will need to focus greater attention on employee wellbeing in 2025. That could mean crafting new workplace and leave policies that support mental wellness, expanding benefit packages with the wellness perks most valued by their employees, or determining the impact of adding mental health days to PTO allowance.
4. Evolving the Approach to Diversity, Equity, and Inclusion (DEI)
While some organizations are ramping down their DEI initiatives amidst pushback, others remain fully committed to building a diverse workplace in which all employees feel equally valued. But in this new environment, DEI may look and sound different.
HR professionals will need to adapt their DEI approach to ensure it aligns with the organization’s business objectives, complies with regulations, mitigates risk, and serves all employees effectively. HR teams will be charged with developing more holistic initiatives that address complex issues like intersectionality and neurodiversity, while using data analytics to uncover workplace disparities, design new programs, and measure their effectiveness.
5. Improving Employee Engagement and Retention
Today’s highly competitive labor market makes it crucial to keep employees engaged and on board, especially given the high cost of turnover. Gallup research indicates turnover can cost as much as 80 percent of salary for technical employees and a whopping 200 percent of salary for leadership and management roles.
While a robust compensation and benefits package is crucial, it’s not enough to retain employees in the modern work world. HR professionals must use a data-driven approach to understand their specific workforce values, then apply those insights to develop strategies and programs that engage employees and improve retention.
Optimizing HR Resources: The Strategic Shift to Outsourcing
These are just a few of the many strategic endeavors that will demand HR professionals’ focus and energy in 2025. But with many organizations running a lean HR staff, time is a precious commodity. Forward-thinking companies are making the strategic decision to outsource important yet time-consuming functions, such as unemployment claims management, to free up their HR teams for high-impact initiatives.
While unemployment claims management remains a critical HR function, it often creates a significant administrative burden that diverts HR professionals from higher-value work. The hours required to review and respond to claim notices thoroughly, file compelling appeals, and prepare for hearings can be substantial, even for mid-sized companies. For organizations experiencing growth, the claims volume can quickly become overwhelming.
When HR teams become bogged down in unemployment claims, they struggle to dedicate sufficient time to strategic initiatives like integrating AI into operations, navigating the hybrid work environment, promoting employee wellness, or evolving DEI programs for optimal impact. However, neglecting unemployment claims isn’t an option either, as it can lead to lost winnable claims, driving up the unemployment insurance (UI) tax rate and eroding the bottom line.
Outsourcing unemployment claims management to an experienced provider is an effective way to help HR staff focus on strategic work that demands their skills and expertise. It’s also a proven way to win more claims and reduce unemployment-related costs.
An outsourced unemployment claims management partner takes accountability for this critical function in many ways.
- They apply best practices and efficient processes that streamline claims management and improve compliance.
- They help internal staff craft claim responses that are timely, complete, and accurate, improving the claim win rate.
- If the business decides to appeal a lost claim, the vendor ensures all witnesses are prepared for the hearing to maximize the odds of a win.
- A strong partner identifies costly fraud and errors, while preventing other mistakes that could spur penalties or fines.
- An outsourced vendor helps avoid the most common claims mistakes, freeing up potentially hundreds of thousands of dollars to invest in growth opportunities or improve the bottom line.
Free Up HR Time by Outsourcing Claims to UC Alternative
Leading organizations partner with UC Alternative to help their HR professionals gain back time for strategic initiatives. We take ownership of the unemployment claims management function, moving the administrative burden off the HR team’s plate and freeing them to focus on higher-value work.
UC Alternative brings the expertise, processes, and technology to handle unemployment claims proactively and strategically—reducing your HR team’s workload while helping you win more claims and reduce your UI tax rate. Outsourcing unemployment claims management can also help your business combat rising operational costs in 2025.
If you’re ready to free up your HR team’s time to focus on strategic work and keep up with growth, we’re ready to help! Complete this form to arrange a call with a UC Alternative consultant.
