Education HR Insights from ELMO’s 2025 HR Industry Benchmark Report

The education industry’s HR revolution has begun

With upskilling posing a challenge, hybrid work debates still unsettled, and a new generation of education professionals entering the field, here’s what you need to know for 2025.

AI has firmly landed in education HR

AI is no longer just an emerging trend, it’s a reality that’s already reshaping HR operations across the education sector. The data shows that:

• 81% of HR professionals expect AI to significantly impact their department in the next year
• 70% feel prepared to integrate AI into HR processes
• 50% of organisations are increasing their AI related budgets in 2025.

AI is currently assisting education HR functions by:

• Automating repetitive administrative tasks, freeing HR teams for strategic initiatives
• Streamlining recruitment and onboarding processes
• Supporting data-driven decision making to improve workforce planning.

It should be made clear, though, that rather than replacing jobs, AI will largely augment roles and increase productivity. This is enablement, not replacement. HR teams that actively embrace AI driven tools will gain a major competitive edge and put them in good stead for the years ahead.

However, AI can still pose challenges, as we discuss in our full report. 

Hybrid work remains rather contentious

Five years on from the pandemic, we’re still seeing the hybrid work debate roll on. In our report we found that:

• 42% require full time onsite attendance
• 36% operate hybrid models with mandated office days
• 15% allow employees full flexibility over hybrid work schedules.

The search for the ideal balance continues, with 60% of institutions planning to revise their policies this year, and:

• 17% moving to 5 days in office
• 16% hybrid – mandated days in office
• 19% hybrid employee choice 
• 40% no plans to change

It’s increasingly clear that Institutions that successfully align work policies with employee preferences will be better positioned to attract and retain top education professionals.

However, for many teachers in particular, hybrid models simply aren’t an option. For those who are required to be onsite, alternate benefits may need to be offered.

The rise of the Gen Z workforce

Baby Boomers are retiring, and Gen Z are stepping into their shoes. By 2030, Gen Z will make up a third of the workforce. The challenge? Their expectations tend to differ substantially from previous generations.

HR professionals in education report noticeable generational differences:

• 54% say there is a significant difference in work styles
• 42% observe some differences but not drastic.

These are strong figures that tell us that organisations that don’t adapt their management approach may struggle to retain younger workers. According to our ongoing Employee Sentiment Index surveys, Gen Z employees across ANZ consistently rank flexible work as a top factor in workplace retention

HR emerges as a strategic force

We’ve found that HR professionals are seeing an increased level of collaboration between their Chief Human Resources Officer (CHRO or equivalent) and executive leadership: 

• 64% report strong partnership with the Chief ExecutiveOfficer
• 57% see strong collaboration with the Chief Financial Officer

This shift highlights HR’s growing role in:

• Aligning HR strategies with organisational goals
• Using financial data to drive workforce decisions
• Predicting and preparing for future workforce trends.

What are the biggest challenges in education HR for 2025?

While progress is evident, education HR professionals still face significant challenges, telling us that:

• 28% identify poor employee wellbeing as a significant issue
• 28% struggle with upskilling and reskilling employees to keep pace with change
• 27% report budget constraints putting pressure on HR initiatives.

Budget constraints aside, this indicates that more focus needs to be placed on initiatives that help improve employee wellbeing, while also ensuring that solid upskilling programs are being offered. Conquering these challenges will result in lower attrition and better supported employees.

Education HR wrap up for 2025

So, what did we learn? AI, hybrid work, and talent retention are reshaping education HR. HR is no longer just about policies and administration, it’s now a key driver of high level decision making.

We can also see that education institutions that invest in AI, refine their work policies, and align their HR strategies with organisational goals will position themselves for long-term success.

Read the full 2025 ELMO HRIB report