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WORKFORCE 2025

POWER
SHIFTS
 WORKFORCE 2025

Employees' needs can feel like a moving target,

changing with new trends, technologies, and values.

But in the past year, we've seen companies

mandating office returns, flattening management
layers, tightening salary increases - all in the name
of stability and growth.

The push and pull of power between employer

control and employee expectations is rewriting
common assumptions about work, as highlighted
in our latest annual Korn Ferry survey.

Think getting everyone back into the office will

enhance team spirit? That's not how talent sees
it. Does it seem like your teams are working
harmoniously across the generations? Ask your
Gen Z employees about that. Feeling like you’re
winning with AI? The truth is that you’re probably
falling behind.

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 WORKFORCE 2025

The Workforce 2025 survey results

are clear. The workforce is evolving—
and fast. Read on to catch up.

2025’s critical workforce insights:

How We Did It
1. MISSING MANAGERS Korn Ferry surveyed more than
15,000 professionals worldwide
to understand how they really feel
2. THE SALARY SQUEEZE about work today. The Workforce
2025 survey included participants
from entry-level positions to
3. A NEW AI WORLD ORDER CEOs across ten major markets:
the USA, UK, France, Germany,
Brazil, UAE, Saudi Arabia,
4. THE HYBRID HEADACHE Australia, Japan, and India.

5. GENERATIONAL
GASLIGHTING?
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 WORKFORCE 2025

1. MISSING MANAGERS
When companies need to cut labor costs,
middle managers are often the first in line
for layoffs. And that tactic seems to be
affecting many workers this year.

In our 2025 Korn Ferry Why does this happen?

Workforce survey, 41% of When managers leave, senior
employees told us that their executives are left to pick up
organization has slashed the slack—on top of their heavy
management layers. strategic workload.

The impact is more than just a Instead of fully focusing on

slimmed-down organizational crucial business decisions and
chart with fewer managers. growth plans, now they also
Losing that management layer have responsibility for the day-
can quickly lead to employee to-day issues their managers
confusion and dissatisfaction, handled, only with less time to
ultimately affecting productivity. deal with everything.

43% of employees say their

leaders aren't aligned, and 37%
say the lack of managers has
left them feeling directionless.

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 WORKFORCE 2025

The result is less time for strategic planning,

collaboration among their peers, and
communication with their direct reports.

It’s no surprise, then, that 43% of senior

executives doubt their ability to fulfill their
responsibilities, compared to 40% of CEOs.

And given their ever-growing workloads and

responsibilities, who can blame them?

43% 40%
OF SENIOR
EXECUTIVES
VS OF CEOS

STRUGGLE WITH
IMPOSTOR SYNDROME

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 WORKFORCE 2025

Business Impact
Reducing management population
can lead to a multitude of problems:

Lack of communication and

alignment across the business

Lower productivity due to lack

of leadership support

Increased turnover as limited

promotion paths drive top talent
to seek opportunities elsewhere

When done well, eliminating levels can

be part of a larger solution to reduce
bureaucracy. But without appropriate
guardrails, any short-term gain in
efficiency could lead to long-term pain.

When management disappears,

so does direction. A leaner
organization today can mean a
leadership crisis tomorrow.”
Lesley Uren, Korn Ferry

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 WORKFORCE 2025

Trusted Manager: The

Underused Retention Tactic
We’ve all heard the adage, “People don’t leave Businesses know that having motivated
bad companies. They leave bad bosses.” workers makes a big difference to their bottom
line. And great managers play a huge role in
And as people increasingly resent companies helping you retain top talent.
for layoffs and corporate directives that indicate
a lack of trust, such as workplace surveillance After all, your competitors might be able to
software and return-to-office mandates, having a entice your people with a better rewards
manager in their corner matters more than ever. package than you can offer. But can they
guarantee them a supportive boss?
Indeed, in our 2025 Korn Ferry Workforce survey
respondents agree that a trusted manager For those people who have managers they love,
is a top reason they not only stay at their it’s a risk they’re not often willing to take, which
organization, but why they remain excited and is why we've found that excellent managers
engaged with their work. tend to have the lowest staff turnover rates.

80% of workers say

Any company that wants growth needs to care they would stay in a
about workforce engagement levels. Our research job because they have

80%
for the World’s Most Admired Companies found
a manager they trust
that organizations with the highest motivation
and engagement saw twice the revenue growth
of their worst-performing peers.”
Maria Amato, Korn Ferry

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 WORKFORCE 2025

#1 Pay and
compensation

2. THE SALARY
SQUEEZE
#2 Job
security
Cash is still king when people are
looking for a new job. It won the
top spot for why people would
accept a new job in 2024, and it

#3
TOP 5 PRIORITIES
takes the crown again this year. The work
WHEN CHOOSING
itself
A NEW JOB
It’s always a powerful talent attraction tool, but
money seems particularly relevant in 2025 when
many workers are struggling with a serious
salary squeeze. In the past year, cost-of-living
increases have spiraled in most countries, yet Employee
salaries haven’t leapt up at the same pace.

That’s why 70% of those in our 2025 Korn Ferry

#4 benefits

Workforce survey are feeling concerned about

the cost of living outpacing their current salary.
And 35% believe they are paid below the value
of their skills.
Flexible work

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#5 hours
 WORKFORCE 2025

Employees who feel the cost of living

But most people won’t quit their current is outpacing their salary are:
gig just for a higher bank balance, which
might only be temporary. More likely to leave within three months

Right now, they also really want job More focused on the complete package
security, rewarding work, better benefits, (salary and benefits)
and more control over their working hours.
If you can offer these, they’ll be powerful More likely to stick with a job they hate
tools to attract top talent in 2025, even if if the money is good enough
you struggle to compete on pay.

Business Impact
With employees becoming more

70%
geographically dispersed, companies need
to review their compensation structures and
align pay with the regional cost of living.

AGREE THE
A paycheck gets employees
COST OF LIVING in the door. Job security,
IS OUTPACING meaningful work, and respect
THEIR SALARY for personal boundaries keep
them from looking for the exit.”
David Ellis, Korn Ferry

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 WORKFORCE 2025

The Optimistic
Job Seeker
Think you have the upper hand Is this optimism justified?
with workers too scared to
Only 10% of the global
leave? Think again.

10%
workforce told us they’re
Despite their strong desire for job security, actively applying and /
in 2025, our data shows that a significant
or interviewing so the job
majority of workers around the world believe
they could land a new job if they needed to.
market might be slow for
the year ahead.
Employees in India are most confident,
but in almost all of the regions Korn Ferry
surveyed, more than half of workers felt they
could find a new job, despite this optimism Nonetheless, if your best people get fed up and
dropping 7% in the US since 2024. walk out the door, then even if they fail to find a
new job, you’ll still be looking to fill their shoes. This
will cost your organization significant time, money,
productivity, and growth.

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 WORKFORCE 2025

FRANCE

49%
UK
54% GERMANY

53%
3. A NEW AI 82% UAE

WORLD ORDER
AI isn’t just changing the way we
USA 61%
AI
OPTIMISM 84%
work. It’s reshaping the work itself. SAUDI ARABIA

BRAZIL 80%
Almost everyone is grappling with AI in one
way or another, but the countries powering
85% INDIA
ahead in the shift to AI might surprise you.
JAPAN 43%
While the US, Europe, and Japan have 55% AUSTRALIA

historically driven digital innovation, it's

now India, Brazil, and the Middle East
emerging as the most AI-ready workforces.
MOST WORKERS IN EMERGING ECONOMIES FEEL POSITIVE
ABOUT AI’S IMPACT ON THEIR ROLES, AS OPPOSED TO MANY
OF THEIR WESTERN COUNTERPARTS.

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 WORKFORCE 2025

The same markets leading in AI optimism are also

the ones putting real money into AI training. Our
survey shows that workers who are trained to use
AI are significantly more likely to embrace it.

More than 75% of workers in India and Brazil

report receiving solid AI training, whereas
Business Impact
employees in the US, Europe, and Japan don’t With insufficient AI training, leaders often
think they’re getting enough. misjudge where it could be most effective,
leading to a disconnect between their vision
This lack of training isn’t just a regional issue—it’s and the actual day-to-day application.
creating a critical disconnect between senior
leaders and their teams. Meanwhile, high-performing CEOs who
excel in technology adoption have been
shown to achieve higher annual revenue
growth, according to Korn Ferry CEO
WHILE assessment data.

78%
OF LEADERS
BELIEVE THEY HAVE
AI FIGURED OUT
Leaders who master technology
and AI aren't just keeping up
with the times. They're setting
their businesses up for success.”

ONLY
Bryan Ackermann, Korn Ferry

39%
OF WORKERS
AGREE

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 WORKFORCE 2025

4. THE HYBRID
HEADACHE
We’ve heard it for years
now—hardly anyone wants
to work in an office full-time.

Of the 59% of global employees who

are working full-time in the office,
only 19% actually want to be there.
Yet, more employers are trying to
enforce return-to-office mandates.

That’s a lot of unhappy employees.

What do people want instead?

For 48%, hybrid would be ideal—yet
only 27% have this option. And 25%
really want to be fully remote.

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 WORKFORCE 2025

But that’s not the full picture. The preference for

work arrangements varies dramatically across
different regions, with some being much more anti-
office than others.

In Brazil, for example, only 12% are happy with full-

time office life, but in Japan, that jumps to 36%.

This creates a real conundrum for multinational

companies. Should they opt for a consistent global
workplace policy or adapt it to regions?

Business Impact
One-size-fits-all policies risk alienating
employees, while case-by-case approaches
create complexity and confusion.

The solution? A clear policy that defines your

company’s approach, using your employer brand
to turn this into a competitive advantage.

The best workplace policies aren’t

about control. They’re about
clarity, culture, and making it easy
for people to do their best work.”

Daren Kemp, Korn Ferry

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 WORKFORCE 2025

REGION CURRENT IDEAL

US FULL-TIME IN OFFICE 63.9% FULL-TIME IN OFFICE 20.5%

FULL-TIME REMOTE 14.8% FULL-TIME REMOTE 33.4%
HYBRID 17.5% HYBRID 35.6%
UNSURE 3.8% UNSURE 10.5%

UK FULL-TIME IN OFFICE 52% FULL-TIME IN OFFICE 17.3%

FULL-TIME REMOTE 11.8% FULL-TIME REMOTE 25.1%
HYBRID 33.1% HYBRID 49.5%
UNSURE 3% UNSURE 8.2%

INDIA FULL-TIME IN OFFICE 61.2% FULL-TIME IN OFFICE 17.8%

FULL-TIME REMOTE 8.3% FULL-TIME REMOTE 25.9%
HYBRID 27.4% HYBRID 48.1%
UNSURE 3.2% UNSURE 8.1%

FRANCE FULL-TIME IN OFFICE 60.1% FULL-TIME IN OFFICE 19.7%

FULL-TIME REMOTE 6.1% FULL-TIME REMOTE 18.6%
CURRENT VS. HYBRID 29.7% HYBRID 50%

PREFERRED WORK UNSURE 4.1% UNSURE 11.7%

ARRANGEMENTS GERMANY FULL-TIME IN OFFICE 47.6% FULL-TIME IN OFFICE 15.1%

FULL-TIME REMOTE 8.2% FULL-TIME REMOTE 25.7%
HYBRID 34.6% HYBRID 48.8%
UNSURE 9.6% UNSURE 10.5%

JAPAN FULL-TIME IN OFFICE 69.6% FULL-TIME IN OFFICE 36.1%

FULL-TIME REMOTE 4.3% FULL-TIME REMOTE 14.8%
HYBRID 19.4% HYBRID 39%
UNSURE 6.7% UNSURE 10.1%

SAUDI FULL-TIME IN OFFICE 65.8% FULL-TIME IN OFFICE 18%

ARABIA FULL-TIME REMOTE 10.7% FULL-TIME REMOTE 22.9%
HYBRID 19.5% HYBRID 52.6%
UNSURE 3.9% UNSURE 6.5%

BRAZIL FULL-TIME IN OFFICE 56.9% FULL-TIME IN OFFICE 12.1%

FULL-TIME REMOTE 12.7% FULL-TIME REMOTE 27.6%
HYBRID 28.6% HYBRID 55.4%
UNSURE 1.8% UNSURE 4.9%

AUSTRALIA FULL-TIME IN OFFICE 59.8% FULL-TIME IN OFFICE 17.7%

FULL-TIME REMOTE 10% FULL-TIME REMOTE 22.3%
15 HYBRID 27.3% HYBRID 52.8%
UNSURE 3% UNSURE 7.3%
 WORKFORCE 2025

#1 Poor pay and

compensation

Sorry Boss,
Life's Calling
People are fed up with #2 The work
itself
“always-on” work culture—
answering messages or taking
calls at all hours of the day.

#3
This year, we’re seeing that workers are
Lack of job TOP 5 REASONS
starting to draw a line in the sand, taking security FOR LEAVING
back control of their personal time.

While low pay tops the list of factors

driving people to leave, lack of respect
for personal boundaries is also among
the top five motivators for employees
Inadequate

#4
to walk out the door in 2025.
employee
Workers are so tired of having no work- benefits
life balance that the right to “switch off”
is even being legislated in some places.

Embedding respect for working hours

Lack of
into your company policies and culture
respect for

#5
can be a powerful retention tool. personal
priorities
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 WORKFORCE 2025

5. GENERATIONAL
WHAT ARE YOUNGER WORKERS SEEING THAT
THEIR OLDER COLLEAGUES ARE MISSING?

GASLIGHTING? WHILE GEN Z SEES

49%
A MAJOR
TECHNOLOGY
SKILL GAP
Are there any major problems with
having five different generations
OF GEN Z IS CRYING
OUT FOR BETTER
COMMUNICATION AND
TEAMWORK TRAINING
40%
AMONG THEIR OLDER
COLLEAGUES

working together? It depends who

you ask.
Communications Gap Digital Divide
And soon, we’ll have six generations
in many companies. By 2033, nearly a ONLY BUT ONLY

third of people over 70 will continue 27% 24%

to work, while Generation Alpha (born OF BABY BOOMERS
THINK THERE'S AN
OF BABY BOOMERS
BELIEVE THERE'S A
2010–today) will start filling up the junior ISSUE. THAT'S QUITE
A PERCEPTION GAP
PROBLEM WITH THEIR
TECH SKILLS
roles. This is making the workforce more
multigenerational than ever.
37%
OF MILLENNIALS
This brings significant benefits, such as SAY THERE'S A
FUNDAMENTAL CLASH
more senior employees’ experience and IN GENERATIONAL
VALUES AT WORK
knowledge that can be shared down
through the workforce. But it can also
cause significant dissatisfaction for some. Conflicting Values
In our 2025 Workforce survey, 45%
of baby boomers said they believe
COMPARED
there are no challenges working across WITH

generations. But only 17% of Gen Z

shares this rosy view.
27%
OF BABY BOOMERS

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 WORKFORCE 2025

On the flipside, our findings also highlight

a growing issue with access to professional
development, which could contribute to the
friction between generations in the workplace.

While younger workers say they are given ample

opportunities to learn new skills and technology,
the opposite is true for older workers. Almost half
of baby boomers and more than a third of Gen X
say they feel excluded from upskilling opportunities.

Business Impact
Providing training on communication and
teamwork is critical to ensure these generations
can collaborate to solve business challenges.
Focusing the generations around shared goals and
values can help to bring them together.

Tailoring training and rewards to meet the needs

of different generations can also help bridge gaps.

A multigenerational workforce can be a

company’s greatest asset—or its biggest
obstacle. The difference comes down to
whether leaders ignore or try to bridge
the multigenerational divide."

Tessa Misiaszek, Korn Ferry

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 WORKFORCE 2025

Ready to Reframe
Your Thinking?
Recognize some of your own 2025
workforce challenges in this list?
Find out how companies are turning
these insights into action by watching
our webinar to get practical strategies
your organization can use today.

From fixing generation gaps to making

hybrid actually work, we'll show you
how to shift 2025's challenges into
your competitive advantage.

WATCH OUR WEBINAR

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Korn Ferry is a global organizational
consulting firm. We work with our
clients to design optimal organization
structures, roles, and responsibilities.
We help them hire the right people
and advise them on how to reward
and motivate their workforce while
developing professionals as they
navigate and advance their careers.

Business advisors.
Career makers.

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