HR Changes in Spain 2025: Changes Happening Now with Case Studies.
- InAudio
- Jun 11
- 5 min read
Updated: Jun 12
The Spanish HR environment in June 2025 stands at a crossroads, shaped by sweeping labor reforms, rapid technological adoption, and evolving expectations around employee well-being and inclusion. Companies are not only adapting to new laws but also leveraging digital tools and innovative strategies to attract, retain, and develop talent. This article explores these trends with insights and case studies from leading Spanish firms.
1. Navigating Extensive Labor Law Changes
Reduction of Working Hours and Digital Time Tracking
Spain’s landmark move to a 37.5-hour workweek (down from 40) without salary reduction is the most significant labor reform since 1983. Companies are rethinking scheduling and productivity while maintaining output. Simultaneously, the mandate for digital time tracking—requiring all businesses to implement electronic systems for recording working hours—is modernizing HR operations and ensuring compliance.
Case Study: CaixaBank
CaixaBank, one of Spain’s largest financial institutions, was an early adopter of digital time-tracking solutions. By integrating advanced workforce management software, CaixaBank not only complies with new regulations but also gains insights into work patterns, enabling more flexible scheduling and improved work-life balance for employees. This shift has been particularly beneficial for their hybrid workforce, where remote and in-office collaboration is seamlessly managed.
2. AI Integration and Ethical HR
AI in Recruitment, Onboarding, and Performance
Nearly 20% of Spanish companies now use AI systems, with adoption rates highest in technology services and large enterprises. AI is transforming HR by automating candidate screening, streamlining onboarding, and personalizing training. However, the focus is shifting from hype to demonstrating clear ROI and addressing bias in AI-driven decisions.
Case Study: Santander Spain
Santander Spain has implemented AI-powered recruitment tools to reduce bias and improve efficiency. Their system anonymizes resumes during initial screening, ensuring candidates are evaluated on skills and experience rather than demographics. Santander also uses predictive analytics to identify skills gaps and recommend targeted upskilling programs for employees, supporting internal mobility and career development.
3. Skills-Based Hiring and Internal Mobility
Beyond Degrees: Valuing Skills and Potential
With a shortage of digital talent—particularly in AI, cybersecurity, and cloud computing—Spanish companies are increasingly hiring based on practical skills and learning potential rather than formal education. Upskilling and reskilling programs are critical, and internal talent marketplaces are gaining traction.
Case Study: Repsol
Repsol, the multinational energy company, has launched ambitious upskilling and reskilling initiatives, enabling employees to transition into new roles as the company evolves. Their internal talent marketplace allows employees to explore lateral and vertical career moves, fostering engagement and addressing critical skills gaps. This approach has reduced hiring times for technical roles and improved retention rates.
4. Employee Experience and Well-being
Holistic Well-being and Work-Life Balance
The new labor laws reinforce the importance of work-life balance and digital disconnection. Companies are implementing policies to support mental health, prevent burnout, and ensure employees can truly disconnect outside working hours.
Case Study: Inditex (Zara)
Inditex, the global fashion giant, has introduced comprehensive well-being programs that include on-demand counseling, manager training on mental health, and flexible work arrangements. By leveraging employee feedback tools and sentiment analysis, Inditex tailors its initiatives to individual needs, resulting in higher engagement and productivity.
5. Flexible Work Models and Compliance
Hybrid and Remote Work as the New Norm
Personalized hybrid models are now standard, with companies offering flexibility while ensuring core collaboration times. Compliance with labor laws for remote workers is a top priority, especially for geographically dispersed teams.
Case Study: Telefónica
Telefónica has developed robust policies for remote work, including digital disconnection guidelines and regular check-ins to monitor well-being. Their hybrid model allows employees to choose when to work from home or the office, supported by digital tools that ensure compliance with time-tracking regulations.
6. DEI as a Core Business Strategy
Embedding Inclusion and Mitigating Bias
Diversity, equity, and inclusion (DEI) are now core business imperatives. Companies are leveraging AI to eliminate hiring biases and implementing transparent pay equity policies. New protocols for LGBTQI+ employees are also being introduced.
Case Study: BBVA
BBVA has embedded DEI into its business strategy, using AI-driven analytics to monitor and address pay gaps. The company has established Employee Resource Groups (ERGs) and introduced specific measures to support LGBTQI+ employees, including clear protocols for addressing harassment or discrimination.
7. Data-Driven HR and People Analytics
Measuring ROI and Predictive Analytics
HR is increasingly data-driven, with companies using analytics to measure the impact of initiatives, forecast workforce needs, and personalize development. Integrated HR platforms are central to this transformation.
Case Study: Iberdrola
Iberdrola uses integrated HR platforms to manage centralized employee data, automate compliance, and generate comprehensive reports. Predictive analytics help the company identify future skills needs and develop targeted training programs, ensuring readiness for industry changes.
Conclusion
Spain’s HR landscape in 2025 is defined by rapid adaptation to new laws, technological innovation, and a renewed focus on employee experience and inclusion. Companies like CaixaBank, Santander, Repsol, Inditex, Telefónica, BBVA, and Iberdrola are leading the way, demonstrating how strategic HR management can drive business success in a complex and evolving environment. As organizations continue to navigate these changes, the ability to blend compliance, technology, and human-centric strategies will be key to thriving in Spain’s new era of work.
Article Validity, creation and authority.
This article was created using a combination of three AI programs: Perplexity, Gemini, and ChatGPT. The content was developed based on information provided by Rajen at InAudio, tailored to the profile of a company currently enrolled in Business English classes with InAudio. It was refined and supplemented with relevant statistics and insights to address the company's current and future needs.
Sources used in this article:
Summary of key labor changes including reduction of working hours, mandatory digital time tracking, and guaranteed digital disconnection. This source provides practical advice for businesses adapting to new regulations.
Discusses the integration of AI in HR, training needs, and the importance of combining technology with human-centric approaches. Highlights real-world adoption rates and challenges in Spanish companies.
Detailed overview of the reduction in working hours, minimum wage increases, digital time tracking, and other key labor reforms. Explains the rationale and compliance requirements for businesses.
Comprehensive review of Spain’s labor framework transformations, including minimum wage adjustments, digital disconnection, equality measures, and updates on dismissal compensation. Aligns national changes with European standards.
Lists major legislative developments, such as working hour reductions, digital disconnection, severance pay changes, and the reform of the Interns’ Statute. Provides legal context and foresight for HR professionals.
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