This article is part of a recurring series highlighting recent talent mobility industry reports. If you would like the WERC editorial team to consider covering a specific industry report, email mobility@talenteverywhere.org.
The workplace is in the midst of transformation. Inflation, budget constraints, technological disruption, and shifting generational expectations are reshaping how organizations attract, engage, and retain talent. The Q3/4 2025 Workplace Trends Report by Circles explores these dynamics in depth, highlighting the relationship between employee experience and business performance. Central to the report is the idea that strong cultures, community building, well-being strategies, and innovative tools like AI are not just perks but essential investments that drive retention, productivity, and competitive advantage.
Reimagining Return-to-Office as Experience, Not Mandate
The pandemic shifted perceptions of where work should happen, and employees continue to value flexibility. A LinkedIn survey cited in the report found that 40% of Gen Z and millennials would accept lower pay in exchange for location flexibility. However, office occupancy remains 34% below 2019 levels, despite modest increases in 2024.
Forward-thinking companies are reframing the office as a “destination workplace.” Walmart’s Bentonville campus exemplifies this shift: blending retail, hospitality, fitness, childcare, and even bike trails, it creates a community-like environment rather than a sterile corporate hub. Successful strategies integrate physical, digital, and cultural infrastructure—from collaborative spaces and hospitality-trained ambassadors to wellness-focused design.
The differentiator lies in people-focused strategies: inclusion, growth opportunities, empathetic management, and purpose-driven engagement. Case studies show that when organizations prioritize well-being and community rather than mandates, employees willingly return. For example, a global biopharma company boosted employee satisfaction through concierge services, markets, and team building. Ultimately, success comes not from mandates but from “magnetism”—creating an office so valuable that employees choose to be there.
Generational Shifts and Engagement Challenges
The U.S. workforce now spans five generations, from baby boomers to Gen Z, with Generation Alpha just entering. This diversity presents opportunities and challenges, particularly as global engagement rates fell to 21% in 2024—the lowest since 2021. In contrast, best-practice organizations maintain engagement rates near 70%, showing room for growth.
Different generations prioritize different engagement drivers, with baby boomers valuing security, loyalty, and recognition, while Gen X emphasizes autonomy, transparency, and work-life balance. Millennials seek purpose, feedback, and inclusive cultures, as Gen Z seeks authenticity, flexibility, mental health support, and tech-savvy communication. Organizations are responding with multigenerational strategies. Some provide on-site childcare for younger families, while others now introduce menopause benefits—a growing priority, with 18% of companies planning to offer them in 2025.
Circles found that engagement thrives when companies invest in skills development through reskilling, AI readiness, and immersive learning, as well as flexible benefits tailored to life stages. Technology adoption is seen as a unifier across generations, and mental health support remains a top priority, with 91% of employers increasing investment. Inclusive communication styles, lateral career pathways, and continuous adaptation ensure that organizations maximize talent across generations.
Measuring ROI on Well-Being Investments
Economic uncertainty has forced companies to scrutinize spending. Well-being investments, once broad and unmeasured, are now highly targeted and tied directly to business outcomes. The report stresses that leaders are asking, “How does this initiative move the needle?” rather than “What can we offer?”
Top organizations are prioritizing measurable outcomes, such as mental health programs that reduce absenteeism. They are using data-driven accountability, with providers offering real-time ROI metrics like hours saved or NPS scores. Embedding well-being into business plans is also a winning strategy.
Targeted approaches are replacing one-size-fits-all models. Low-cost but high-value initiatives, such as flexible work or virtual wellness, can replace costly perks like gyms. Concierge programs, meanwhile, can deliver perceived value at scale without large investments. Google, for example, has scaled back “lavish” perks and redirected funds toward counseling, manager training, and flexible work. The shift highlights the maturation of well-being as a business-critical strategy rather than a perk.
Community as a Driver of Retention
Replacing an employee is costly, making retention a financial imperative. Traditional compensation alone is insufficient; culture and community have emerged as powerful retention levers. Key community-building strategies include expanding employee resource groups, such as parenting networks, wellness circles, and early-career communities. Purpose-driven initiatives, like Fidelity’s long-standing volunteer network or L’Oréal’s Citizen Day, can also create shared meaning. Storytelling sessions, innovation jams, wellness events, and other connection-driven experiences likewise can deepen bonds. Community-centered onboarding, ranging from welcome socials to mentorship connections, can set the stage for belonging from day one. Metrics such as engagement scores and attendance rates can help companies quantify the impact.
Shifting Employee Expectations and People Management
Employee expectations have evolved dramatically since the pandemic. Today, flexibility extends beyond location to “work sovereignty”—control over when and how work is done. Microsoft’s 2024 Work Trend Index shows that 84% of employees value schedule flexibility as much as location flexibility. Key expectations include flexibility in scheduling and collaboration, with asynchronous tools and core collaboration hours replacing rigid 9-5 structures. Purpose alignment and whole-person support are also important, as is personalization, which can be demonstrated through such facets as benefits packages, workplace amenities, or learning pathways.
Cisco exemplifies this approach. Its Proximity Initiative connects leaders with diverse employee perspectives, yielding 98% leadership satisfaction and tangible cultural improvements. Cisco also fosters inclusion through its 31 global communities.
Using AI to Strengthen Organizational Culture
AI has moved from a back-office tool to a culture-shaping force. Generative AI can streamline tasks, monitor workloads for burnout, personalize onboarding, and uncover workforce patterns. But adoption requires transparency, fairness, and trust to avoid fears of surveillance. Circles’ report outlines five strategies:
- Build trust through transparency: Clearly communicate what data is collected, how it’s used, and allow opt-in systems.
- Design for fairness and inclusion: Involve diverse teams in development and feedback loops to reduce bias.
- Train AI to understand context: Customize tools with organizational language and ensure human-in-the-loop oversight.
- Make metrics meaningful: Avoid performative engagement; use qualitative and quantitative data for real insights.
- Measure what matters, together: Co-create metrics with employees to reflect what they truly value.
When used thoughtfully, AI supports rather than replaces human culture-building. It becomes an ally in creating equitable, connected, and resilient organizations.
Conclusion
The 2025 Workplace Trends Report underscores a fundamental truth: Employee experience and business performance are inseparable. Organizations navigating inflation, talent shortages, and technological disruption must focus on strategies that enhance flexibility, inclusion, community, and well-being, while justifying investments with measurable ROI.
Reimagining the office as a destination, adapting to generational differences, embedding well-being in business strategy, and leveraging AI responsibly are not optional; they are imperatives for competitiveness. Companies that lead with intentionality, empathy, and innovation will not only retain top talent but also unlock higher productivity and long-term resilience.
In an era of tighter budgets and rising expectations, the winning strategy comes down to treating employee experience not as a perk, but as a driver of business success.