Collage HR Trends for Q3 2025:

This summer quarter is feeling slower with vacations but there’s still no shortage of activity in the HR space. Let’s jump in!

1. AI implementation is happening now - where do we start?

Previous quarters have been more focused on questions and analysis. AI adoption has increased significantly in the last three months. Whether it is in the area that may have the most impact or enabling tools across the whole organization.

As The Globe wrote, a lot of the push has been top-down (often from CEOs). Investors are looking for more efficiency and AI is a potential tool. Klue recently laid off 40% of staff to compete in the AI-first era, while also seeing significant efficiency improvements from AI already. AI tools have also come a long way, including with the release of GPT-5. By all accounts, GPT-5 is a significant upgrade. Shopify made AI usage an expectation in the company but has always been ahead of the curve on the topic.

At Collage, we recently added an AI resume screener to our applicant tracking system (ATS) to help our clients review resumes. Many hours saved for the Collage team and early adopters so far!

Our Recommendation: Assess the biggest opportunities and find an affordable way to test. Testing with marketing copy is an easy start. Check out the tools your current vendors provide. Lean into your organization’s tech-forward staff. Don’t hire expensive consultants. Make it easily accessible for teams and test it. AI is a key new area of learning and development for many.

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2. Performance management - how do we increase velocity?

When hearing performance management, some people assume performance improvement plans (PIPs). The conversation has been changing in recent quarters. Most organizations we are speaking to are focused on improving velocity - getting better results from the team. The term velocity is often associated with product teams but applies to every part of the organization. It is also not necessarily about working longer hours.

The problem is often indecision. This can stem from unclear accountability or complicated organizational structures. It is also often driven by poor managers. Today, this is leading to a broader review of organizational structures to see whether teams are aligned and exactly who is responsible for what. Sometimes, the question really is about whether one of the middle layers is needed or is helping. We’ve all had a manager who changed their mind on priorities frequently.

Our Recommendation: If you see teams not executing at the pace you are looking for, dig in. This is what we are seeing more of. If a project stalled for a month, more of the same is not going to work. Set clear expectations and make it clear where accountability sits. Clearly articulate what to say “no” to.

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3. Return-to-office - is it over?

Organizations started preparing for 2026 this quarter. Many employers want staff in the office but 59% of staff prefer working from home most of the time. Ontario government workers will be required to be in the office Monday-Friday in early 2026, along with Rogers staff. The big banks are mandating 4-day in-office attendances starting the fall. The rationale behind the mandates is around collaboration and improved performance. At the same time, Shopify moved to be remote-first in 2020 and hasn’t looked back. Shopify’s performance isn’t struggling as it reclaimed the title of Canada’s most valuable company.

The current market dynamics are playing in employers’ favour, with Canada losing 41k jobs in July. Job stability is a good thing in this environment. Employers know that.

The topic has been very divisive. Neither side has good data to support their position. It’s hard to disagree that a one hour commute is painful though, in the eyes of employees. There are signs that some people have abused the “flexibility” of remote work. The energy of a team collaborating in person is amazing. I have also not seen a highly impactful Zoom call with 10+ attendees. 

Our Recommendation: As an employer, make a decision and end the debate in your company. Communicate it, along with its timelines, and stick to it. If you are remote-first, use that as an advantage and hire across Canada. If you are bringing people into the office, make the office experience a good one. If you are an employee, try to adjust if you can. Employers will appreciate it and you might change your opinion. If you can’t adopt the policy for a good reason, have an honest conversation with your manager or HR as to why and they will hopefully try to help.

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