The world of work is seeing a historic transformation, and the question is no longer if but how fast companies need to adapt. The "XING Future Work Report 2025" provides valuable insights into the trends SMEs should keep in mind to stay competitive in a changing world. Digital transformation in SMEs, flexible work models and new employee demands are at the heart of the discussion.
Flexibility as a new principle: Hybrid working and polywork
In SMEs, hybrid working is no longer a niche model – it’s the standard for flexible working. According to the report, more and more employees want a mix of working from home and office time. The challenge lies in the implementation: how can SMEs achieve a productive balance between the two worlds by maintaining their corporate culture?
The report also addresses the trend of “fluid polywork”. Instead of pursuing only one job, more and more professionals aim to organize their employment relationships in various roles and projects. For companies, it is an opportunity to retain innovative and versatile talent both as employees and freelancers – and to be more successful in the long run, thanks to project work and interdisciplinary teams.
For SMEs, it means implementing new salary models that pay performance- rather than time-based, i.e. remunerating results rather than attendance time.
Skills shortage: Time for creative recruiting
The shortage of skilled workers remains one of the biggest challenges - also for SMEs. There is a gap, especially in technical professions and social services. International professionals could close the gap. According to the report, location-independent recruiting is a solution. Yet only roughly 50% of the companies have focused on transregional and international talent search.
There is huge untapped potential here: companies that integrate talent from distant regions and foreign countries instead of recruiting only locally can significantly increase their opportunities. However, flexible working models and digital onboarding processes are essential for this.
One more topic: Generation Z and Alpha have more complex expectations of work. Besides intrinsic motivation and the demand for work-life balance, external factors like job security and financial compensation become more relevant. Employers addressing these needs have a clear competitive advantage.
Technology as a partner: Human-machine cooperation
Another highlight of the report is the role of technology. While AI and automation trigger fears about job losses in many industries, the analysis shows that new technologies act as partners to the employees. Machines are ideal for taking on repetitive tasks and allowing humans to focus on more complex and creative work.
For SMEs, it means that instead of seeing AI as a threat, they should use it strategically to optimize processes and increase productivity. However, it is crucial to accompany and train the employees when introducing new technologies.
Diversity, inclusion and neurodiverse talents: Encouraging creativity and innovation
On top of diversity in general, the report supports the increasing empowerment of neurodiverse talents. People with neurodiverse profiles such as autism, ADHD, dyslexia, or Tourette’s, are highly gifted and often provide special skills like analytical thinking, pattern recognition or creativity. Companies embracing inclusion offer fairer working conditions and benefit from innovative approaches and solutions.
For SMEs, it means that open and flexible work structures and adapted leadership concepts are needed to unlock the full potential of the team members. Diverse teams integrating neurotypical and neurodiverse perspectives at a time prove to be more creative and resilient in times of crisis.
New leadership: Rethinking the lead
The transformation of the working world requires a new form of leadership. Hierarchies make way for flatter structures with a stronger focus on coaching, empowerment and agility. In addition to giving instructions and managing, leaders must accompany their teams through moderation and mentoring.
An interesting detail of the report: companies embracing agile management and co-determination are more innovative and resilient in times of crisis.
Conclusion: Setting the course for the future
The „XING Future Work Report 2025“ clearly shows that SMEs need to act now to be successful in the long term. The working world of the future will be more flexible, diverse and tech driven. Companies adopting these developments early on will be successful in the long run. Employees willing to adapt and engage in ongoing training will also benefit from many new career opportunities.
As the leading trade fair, the A+A in Düsseldorf provides the perfect platform to discuss these topics and exchange ideas with experts and other companies.
