Workforce management trends for 2025 will emphasize greater agility, resilience, and precision than ever before. Amid rising labor costs and supply chain disruptions, companies are reimagining their approach to workforce planning and employee engagement. From the strategic integration of temporary workers to an increased focus on upskilling, these shifts are reshaping traditional workforce models to support sustained success and competitiveness.
As we explore these workforce management trends, it becomes clear that organizations positioned to thrive in 2025 will be those that embrace flexibility, foster continuous learning, and build robust systems to navigate challenges and opportunities alike.
1. Rise of Temp Workers
Organizations have been increasingly incorporating temporary labor into their staffing models to address worker shortages and volatile market demands .
According to a 2024 HR.com survey, 84% of companies use contingent workers, with 12% of those companies revealing that more than half of their workforce is contingent. The U.S. Government Accountability Office notes that about 40% of U.S. workers operate in contingent roles, with the manufacturing sector increasingly leveraging this flexibility to manage fluctuating demands.
This shift provides flexibility for businesses and offers workers more control over their schedules, aligning with the growing preference for flexible, short-term work arrangements across industries. As workforces blend more permanent, part-time, and temp workers, companies should look to adopt “total talent management” strategies to manage different worker types seamlessly under one umbrella.
The processes and systems used to manage the contingent workforce must be integrated seamlessly with the processes and systems used to manage permanent staff. This holistic approach centralizes workforce planning, giving managers better visibility and control over all labor resources—whether permanent, part-time, or contract-based. Total talent management also enhances flexibility, as organizations can allocate tasks according to skills and availability, optimizing productivity without relying solely on full-time employees.
2. Upskilling & Reskilling
The World Economic Forum projects that 50% of all employees will need reskilling by 2025 due to increasing automation and technological adoption across industries. Manufacturing, in particular, faces a critical skills gap, with projections indicating that up to 2 million manufacturing jobs could remain unfilled by 2025 if upskilling and reskilling efforts do not increase to meet demand.
In an effort to close skills gaps, especially in tech-driven roles, companies will invest heavily in upskilling and reskilling programs, creating pipelines of talent for future needs.
This investment in upskilling and reskilling is not only essential for bridging the skills gap but also for future-proofing the workforce in an era of rapid technological advancement. As automation, AI, and digital tools become increasingly embedded across functions, employees are expected to possess a blend of technical, analytical, and problem-solving skills. This shift demands that organizations actively cultivate a skilled workforce capable of adapting to new roles and challenges, rather than relying solely on external hiring, which can be costly and time-consuming.
3. Crisis-Preparedness
Accenture reports that 82% of energy companies experienced moderate to severe supply chain disruptions in 2020. These disruptions highlighted vulnerabilities that have driven energy firms to build resilient supply chain strategies to maintain operational continuity. For example, resilient companies saw nearly double the market recovery speed compared to those with less robust measures.
Meanwhile, McKinsey’s research shows that companies in the oil and gas sector are incorporating risk assessment and mitigation strategies to address rising supply costs and logistical challenges. By focusing on supply chain stability, companies can save up to 15% in operational costs, especially during unexpected supply shortages. This resilience not only supports financial stability but also prepares companies to handle future crises.
Supply chain disruptions are not the only crises—product recalls have also been a major issue in 2024, with the U.S. experiencing a notable increase in product recalls. The U.S. Food and Drug Administration (FDA) reported over 740 food and beverage recalls this year, more than doubling the 313 recalls in 2023 and significantly surpassing the 289 recalls in 2022.
Companies are expected to build contingency models for staffing to adapt quickly to sudden demand changes, supply chain issues, or global crises. Aligning labor demand planning with supply chain demand planning is poised to be a key differentiator for organizations. By synchronizing workforce availability and qualifications (see workforce management trend #2 above) with material and production needs, companies can better handle unexpected shifts in demand—minimizing costly delays and operational inefficiencies.
4. Cost Optimization
In April 2024, worker pay in goods-producing industries increased by 1.2%—the most in a year—after rising 0.9% at the end of 2023. Wages and salaries for civilian workers increased 1.1% for a third straight quarter, and were up 4.4% from a year ago, in part due to minimum wage increases.
As labor costs rise, companies are expected to invest in strategies to optimize workforce spending, from data-driven scheduling to automation in repetitive tasks.
This in turn will help reduce unnecessary overtime or reliance on high-cost staffing options. Not only is it important to get insights into unnecessary labor, but it’s also important to know if some production lines are less efficient than others.
Our customers tell us that in the past, the focus was simply on producing goods—no matter the cost—just to ensure there was inventory to sell. Today, however, organizations are placing a greater emphasis on reducing the Cost of Goods Sold (COGS), which includes raw materials, labor, and transportation. By optimizing labor costs and improving operational efficiency, businesses can adapt to market pressures like inflation and rising wages while maintaining profitability and competitiveness. This shift toward cost-conscious production highlights the importance of workforce management solutions that enable smarter, more precise labor planning.
By using data-driven insights, companies can pinpoint areas where labor is underutilized or overextended, allowing them to streamline workforce allocation. Identifying inefficiencies across production lines is crucial, as it enables organizations to adjust staffing to align with real productivity needs, ensuring labor is deployed where it has the greatest impact. These optimizations not only cut excess costs but also create a more balanced workload, reducing employee burnout and improving morale—which further supports productivity.
5. Retention
According to a 2024 FlexJobs survey, 80% of employees claimed flexible working arrangements would make them more loyal. Retaining employees remains a pressing issue—especially in sectors outside nuclear and petrochemical, where fatigue rules are less commonplace. As we’ve heard from our customers, employees working excessive hours—often exceeding 60 or 70 per week—face heightened risks of burnout, injuries, and mistakes. For instance, overtasked employees may skip essential quality checks or “pencil whip” tasks due to sheer exhaustion. In industries like food manufacturing or chemical production, these lapses can lead to costly errors, reduced product quality, and increased safety hazards.
To combat these issues and become the “employer of choice,” organizations are embracing flexible scheduling to improve work-hour management. Employees increasingly value the ability to work when it aligns with their personal schedules, rather than being forced into rigid or excessive shifts. Flexibility can alleviate the mental and physical strain of long hours, reduce turnover, and attract top talent in competitive markets.
Offering scheduling options like mobile apps that empower employees to manage their schedules (e.g., shift swappings, overtime volunteering, leave requests) from anywhere fosters a sense of control and satisfaction. For businesses, ensuring proper staffing levels and accommodating individual preferences helps eliminate forced overtime during peak production periods, creating a healthier, more engaged workforce.
6. Digitization for the Frontline
We’re all still talking about “Industry 4.0”, “digital transformation”, “digitization”, or “digitalization”. In 2025, digital transformation in workforce management is promising to revolutionize the frontline experience in particular. Here at Indeavor, many organizations choose to work with us because we enhance the frontline operations experience, eliminating administrative burdens and empowering supervisors with real-time insights. They are prioritizing digitization not just for automation’s sake but to make supervisors’ jobs more effective.
Supervisors often face overwhelming workloads, spending hours behind desks navigating multiple systems for scheduling, compliance, or workforce data updates. This leaves little time to address critical frontline tasks like employee engagement (see workforce management trend #5 above), quality assurance, or safety checks.
By digitizing processes and centralizing data, supervisors can shift their focus from low-value administrative tasks to high-impact activities on the production floor. For example, real-time access to workforce data and operational dashboards can enable supervisors to make quick, informed decisions, reducing inefficiencies and improving outcomes. Having a single source of truth ensures that supervisors can trust the data at hand, minimizing guesswork and errors. This transition supports better communication, stronger leadership, and more responsive decision-making, ultimately enhancing both the employee experience and operational performance. Quality checks, safety oversight, and addressing employee concerns are improved when supervisors can dedicate their time and attention where it matters most.
Get Ahead of These Trends With Indeavor
Indeavor’s automated, demand-based scheduling solution aligns with key workforce management trends by supporting total talent management, centralizing upskilling efforts, enhancing resiliency, and empowering frontline decision-making to improve retention and reduce costs.
Total Talent Management
Indeavor allows organizations to manage temporary, contract, and full-time employees within a single, integrated scheduling platform. By unifying all workforce types in one system, companies can maintain a comprehensive view of available talent, simplifying complex staffing needs while ensuring compliance with labor standards across worker categories. This approach not only streamlines scheduling by centralizing data but also enables seamless tracking of hours, shifts, and assignments for both contingent and permanent staff.
With all employee types managed together, organizations gain greater flexibility to adapt to fluctuating demands, optimize workforce allocation, and ensure that temp and contract workers are held to the same standards and guidelines as full-time employees. This fosters a more cohesive and efficient workforce.
Upskilling & Reskilling Programs
Indeavor simplifies upskilling and reskilling by integrating skill compliance directly into the scheduling process, aligning employee assignments with their competencies and qualifications in real time. By connecting with Learning Management Systems (LMS), Training Management Systems (TMS), or Human Resources Information Systems (HRIS), Indeavor ensures that only employees with verified skills and up-to-date training are assigned to specific tasks.
This integration not only enhances safety and compliance but also provides a clear, auditable record that validates each employee’s qualifications for their assigned roles. With a centralized source of truth for skills, competencies, and qualifications, managers can make informed scheduling decisions, quickly identify gaps for targeted training, and maintain a skilled workforce that meets regulatory and operational standards—ensuring quality and efficiency at every level.
Labor Demand Planning
Indeavor strengthens organizational resiliency by uniting labor demand planning with supply chain demand planning within a single platform. This integration enables companies to automatically align labor resources with real-time production needs, ensuring shifts are precisely staffed to prevent over- or understaffing, even during unexpected disruptions. Indeavor’s labor demand planning tools adapt workforce levels to fluctuating supply requirements, enhancing responsiveness and efficiency.
By integrating with leading supply chain solutions like OMP, SAP, and Oracle, Indeavor creates a seamless flow between production forecasts and workforce allocation, delivering an end-to-end solution that anticipates labor needs, reduces downtime, and boosts overall productivity. This unified approach empowers organizations to maintain stability and agility, optimizing performance across planned operations and unplanned challenges alike.
Optimize Workforce Spend
Indeavor’s platform is a powerful tool for cost reduction that helps organizations minimize unnecessary overtime and pinpoint inefficiencies across production lines. By optimizing scheduling based on real-time demand and aligning labor precisely with production needs, Indeavor enables companies to reduce costly overtime and manage staffing more strategically.
A global Fortune 100 food and beverage manufacturer achieved a 50% reduction in overtime hours by implementing Indeavor’s solution, reflecting significant savings and enhanced labor efficiency. Indeavor’s data insights allow managers to identify underperforming production lines or processes, offering a clear view of where adjustments can enhance productivity. This comprehensive approach to labor management not only cuts costs but also supports a more streamlined, balanced workforce aligned with operational efficiency goals.
Mobile Employee Engagement
Indeavor enhances retention by empowering employees with greater flexibility and control over their schedules through a mobile-first experience. With the Indeavor mobile app, employees can view their schedules, request time off, swap shifts, and receive updates in real time—anytime, anywhere. This level of transparency and convenience fosters a sense of autonomy and satisfaction, helping organizations stand out as employers of choice in competitive markets. Flexible scheduling supported by Indeavor ensures employees can balance their work and personal lives, reducing burnout and improving overall retention.
Labor Analytics
Indeavor supports digitization for the frontline by providing supervisors with real-time labor data and insights, eliminating the need for manual tracking and administrative burdens. With a centralized platform offering actionable analytics, supervisors can quickly identify gaps, optimize workforce allocation, and ensure compliance with labor standards—all from a single source of truth. This streamlined access to decision-support tools enables frontline leaders to spend more time engaging with their teams, conducting quality and safety checks, and driving operational improvements, rather than being tied to a desk. This enhances both the employee experience and overall productivity.
Navigate Change With Confidence
As technology evolves, staying ahead of these workforce management trends is critical to maintaining a competitive edge. Utilizing a robust workforce planning solution like Indeavor can help your organization be prepared for the demands of 2025. By optimizing costs, enhancing resiliency, and supporting continuous upskilling, Indeavor equips companies with the tools to manage complex workforce changes effectively.
About the Author
Jeff Hawkins is the Key Accounts Lead for Indeavor. With more than 20 years of Manufacturing/Supply Chain Leadership, he leverages his Industry experience to support our Key Commercial Customers while helping them solve their most complex labor resource needs. As a liaison to the manufacturing sector, he partners with business leaders to optimize their workforce management systems to ensure their valuable resources are focused on business objectives over administrative burdens. To learn more, or to get in touch with Jeff, connect with him on LinkedIn.
