7 Workplace Trends Shaping Canadian Workplaces in 2025

Here’s what Canadian industry leaders should watch for—and how it will impact workplaces across the country.

What workplace trends will shape the employee experience in Canada in 2025?

The evolving economic landscape, the rise of artificial intelligence (AI), shifting workforce expectations, and global uncertainty are transforming Canadian workplaces. In just a few short years, we’ve seen a competitive job market give way to new workforce challenges, including skills gaps, employee engagement concerns, and increasing demand for workplace flexibility.

In 2024, leadership development, trust-building, and mental health support were major areas of focus. Those themes will carry into 2025, but with added urgency, especially as AI continues reshaping Canadian industries.

Yet, many employees remain skeptical about AI’s impact on their roles. According to a global survey of nearly 43,000 employees from Great Place to Work®, only 51% of employees are excited about using AI to enhance their work, and just 45% trust their company to implement AI in a way that benefits them.

This presents a unique opportunity for Canadian organizations that prioritize trust and employee well-being. High-trust workplaces will gain a competitive edge by fostering AI adoption while ensuring employees feel supported.

“When a workplace is a great place to work for all, all stakeholders will benefit from AI abundance,” says Michael C. Bush, CEO of Great Place To Work^®. “The secret ingredient is trust. Companies that have it are going to build much faster and go much farther than their competitors.”

Here are the trends and considerations that will make or break your workplace culture in 2025:

1. Employee disengagement and Canada’s ongoing labour shortage fuel ‘quit and stay’ risks

While the “Great Resignation” has slowed, Canada is still facing significant workforce challenges. The country’s unemployment rate sits at 5.8% as of early 2024, yet labour shortages persist in key industries, including healthcare, technology, and skilled trades.

Many employees, facing economic uncertainty, are choosing job stability over job-hopping. However, this doesn’t mean they’re fully engaged in their work. A growing number of employees are experiencing “quiet quitting”—remaining in their roles but disengaging from meaningful contributions.

With only 18% of employees globally reporting being “extremely satisfied” with their jobs (Gallup), retaining and engaging top talent in Canada is more critical than ever.

2. AI-driven upskilling becomes a priority for Canadian businesses

Canada’s digital economy is rapidly evolving, and so are its workforce requirements. A World Economic Forum report found that 1 billion people worldwide will need to be reskilled by 2030, yet traditional training models are struggling to keep up.

According to Deloitte, while 31% of businesses see AI skills as a top priority, only 17% are actively investing in AI training. This gap will challenge Canadian employers who need AI-proficient workers.

“The best companies will invest in upskilling their existing workforce instead of solely hiring external talent,” says Bush. “Skills like curiosity, resilience, and adaptability will be key indicators of future success.”

Canadian businesses must integrate AI literacy into their workforce strategies to remain competitive.

3. AI is reshaping leadership roles and career pathways

HR leaders across Canada are rethinking leadership development, particularly at the middle management level. Research from Gartner shows that 70% of organizations struggle to develop their middle managers—a crucial role that connects executive vision with frontline teams.

At the same time, AI is reshaping job responsibilities. Many companies are using AI to enhance efficiency, streamline processes, and reduce management layers, which is altering traditional career paths.

“Middle managers are under more pressure than ever,” says Tony Bond, Chief Impact Officer at Great Place To Work. “To thrive, organizations must redefine these roles—focusing on mentorship, collaboration, and adaptability.”

Organizations that invest in leadership development, rather than eliminating these roles altogether, will see long-term success.

4. Canadian companies that foster connection will gain a competitive edge

While remote work remains popular in Canada, hybrid models are presenting new challenges. Research from Johns Hopkins Carey Business School, using Great Place To Work data, found that employee well-being has declined to pre-pandemic levels.

“We lost important cultural touchpoints during the pandemic,” says Julian Lute, Senior Strategic Advisor at Great Place To Work. “Organizations must rebuild those connections—whether teams are remote, hybrid, or in-person.”

Great workplaces will differentiate themselves in 2025 by investing in meaningful employee interactions, celebrations, and recognition programs.

5. Financial well-being will be a growing concern for Canadian workers

With inflation, rising housing costs, and ongoing market uncertainty, financial wellness is a growing concern for Canadian employees. Many companies will need to rethink their compensation, benefits, and financial wellness programs to support employees.

“Young employees are worried about affording a home or saving for retirement,” Lute says. “Organizations that provide financial education, savings programs, and flexible compensation will stand out.”

From housing affordability challenges in major cities like Toronto and Vancouver to rising household debt, financial well-being will be a defining issue for Canadian workers in 2025.

6. The role of DEIB is evolving in Canadian workplaces

With increasing scrutiny around diversity, equity, inclusion, and belonging (DEIB) initiatives, Canadian companies must refine their approach. While many businesses remain committed to DEIB, the language and strategies they use may shift.

Companies that embed diversity into their core values and purpose will foster greater employee trust. Clear and actionable commitments—rather than surface-level pledges—will define successful DEIB initiatives moving forward.

7. Employee resource groups (ERGs) will focus on wider impact

As workplace culture evolves, successful employee resource groups (ERGs) will need to expand their scope beyond identity-based groups. The most effective ERGs will:

• Build cross-functional connections
• Align with business objectives
• Encourage collaboration between different employee communities

Organizations that integrate ERGs into their business strategies will see greater engagement and long-term success.