Opportunities and challenges

As we reflect on the past year, we wanted to highlight some key themes that stood out and explore those likely to shape the workplace and the field of occupational psychology heading into 2025 and beyond. Special thanks to DOP committee members Dr Noreen Tehrani and Dr Timothy Gore for their invaluable contributions to this article.

1. AI and automation technology

The expanding applications of AI, both predictive and generative, is reshaping workplaces. AI tools can be useful, but are often used in ways they are not intended, or are even against the terms of service or ethical guidelines. Predictive AI tools in hiring are raising questions about fairness and effectiveness, while generative AI is influencing workflows, learning, and even fundamental job structures while causing serious debates over everything it affects.

Predictive AI used to make personnel decisions often lacks robust evidence, leading to potential misuse and legal challenges. Generative AI introduces risks associated with rapid production of false or misleading information, amplifying human error when unchecked. 

This technology also forces a rethinking of skills development: are we teaching people to solve problems or training over-reliance on machine intelligence? It's essential to distinguish human cognitive and emotional skills from tasks machines can do effectively and accurately.

How psychologists can help:

• Debunk the hype: Challenge weak evidence for predictive AI in areas like recruitment with rigorous, accessible research.
• Provide policy support: Guide organisations on creating ethical and practical policies, addressing when and how employees should use AI.
• Understand AI as a collaborator: Find ways for AI tools to augment and support human skills with sufficient oversight and accountability, not to replace them.
• Learning and development: Help design education models that use AI for practical skill-building while ensuring foundational cognitive and interpersonal skills remain strong.

2. The hybrid working dilemma

The ongoing debate between traditional office setups, hybrid working models, and fully remote work continues. No single model is right for all teams or organisations. 

There's confusion about the best working arrangements for productivity and wellbeing. Blanket mandates to return to offices or fully remote setups may ignore the nuances of different roles, job demands and individual preferences.

How psychologists can help:

• Tailor the environment: Develop the research on optimal conditions and setups for different workplaces to match remote, hybrid, or on-site work best for specific tasks, roles and people.
• Rethink workspaces: Help organisations redesign offices as collaboration hubs, rather than places to do laptop work that can be done anywhere.
• Build on research: Continue to develop and build on research into how working arrangements contribute to individual and group productivity and wellbeing in different workplaces and teams.

3. Wicked problems and adaptive leadership

Not every challenge has a good solution. Modern workplaces face 'wicked problems': extraordinarily complex issues with no clear or permanent solutions. Leaders are under pressure to adopt flexible styles while maintaining cohesion, creativity, and purpose.

Leaders are stretched thin trying to address diverse and sometimes conflicting needs. Fragmented work setups often make it harder for teams to form the deep bonds that spark innovation.

How psychologists can help:

• Develop adaptive leaders: Create training programmes that equip leaders to switch between styles as situations demand.
• Foster collaboration: Design strategies to help remote and hybrid teams build trust and psychological safety. In remote working environments, this takes even more deliberate planning and action. 
• Build purpose: Support leaders in crafting and communicating a shared sense of purpose that energises geographically and psychologically diverse teams.

4. Lifelong learning

Rapid technological advances mean the traditional model of front-loading education early in life is giving way to continuous learning.

Many workers lack time, resources, or confidence to engage in lifelong learning, and higher education institutions face pressure to adapt to social, cultural and labour market forces. Entire new industries and sectors emerge within career lifespans, so there are many new work opportunities, but career transitions are complex and challenging even though they can be rewarding and fulfilling.

How psychologists can help:

• Promote accessible learning: Advocate for microlearning, just-in-time training, and bite-sized qualifications that meet people where they are.
• Build education partnerships: Work with education providers to develop programmes that combine rigorous learning with practical, real-world application.
• Develop on-the-job training:  Work with new and existing employers in emerging industries to upskill workers with the capacity and motivation to learn.

5. Workplace wellbeing: A reality check

Many wellbeing initiatives lack an evidence base, resulting in wasted resources, employee disillusionment and missed opportunities to make a real impact. There is a real problem with workplace interventions that fail to  deliver improvements of productivity or employee wellbeing that are promised.

Interventions like Mental Health First Aid may sound good but deliver limited results. Meanwhile, workplaces are failing to address systemic barriers to wellbeing, such as housing, childcare, and eldercare challenges.

How psychologists can help:

• Demand evidence: Call out popular but ineffective interventions, redirecting resources to proven methods based on empirical evidence.
• Design systemic solutions: Help organisations tackle root causes of stress and performance issues by addressing practical employee needs, from flexible work policies to on-site support services.
• Measure cost-effectiveness: Provide robust evaluations of wellbeing programmes to ensure they deliver meaningful outcomes.

The opportunity for psychologists at work in 2025

Occupational psychologists are uniquely positioned because they operate across diverse domains, from academic settings, public and private sectors, engaging in research, collecting data, analysing evidence, and gathering case studies and stories. This broad range of skill sets and perspectives allows psychologists in workplaces around the country to see workplace challenges from many angles and contexts. Bringing these perspectives together can make occupational psychologists uniquely equipped to tackle complex problems and drive meaningful change across society.