In this insights series from our founder and CEO Lori Teranishi, we explore seven critical trends that demand immediate attention from CEOs and their leadership teams. These trends, which we’ve observed in our work with clients across sectors and geographies, collectively signal an era of continuous disruption, emphasizing the urgent need for businesses to build resilience, agility and foresight to navigate the challenges ahead.
Critical Trend 4: Workforce Transformation and Mental Health
In 2025, mental health is a critical issue for businesses. Economic uncertainty, political polarization and the aftermath of the COVID-19 pandemic have exacerbated stress, anxiety and depression among employees.
The evolving workplace landscape is creating unprecedented psychological strain for employees, with return-to-office mandates directly challenging the autonomy and flexibility workers have cultivated since the pandemic. As employees face the disruption of carefully constructed work-life balance arrangements, organizations risk significant talent loss and diminished productivity by rigidly enforcing pre-pandemic work models that no longer align with workforce expectations.
Companies are increasingly recognizing the importance of supporting employees' mental health, offering benefits like counseling services and promoting a culture of openness and support.
Organizational Response:
- Implement comprehensive mental health support programs
- Develop flexible work policies that balance employee preferences with business needs
- Rethink corporate real estate strategies to align with new work models
- Invest in technologies that support remote collaboration and productivity
- Address the unique challenges of fostering company culture in hybrid environments
