As technology—especially AI—reshapes workplace strategies, HR leaders find themselves at the forefront of business transformation. Deloitte’s 14th annual Human Capital Trends Report underscores that human capital concerns are no longer just an HR matter—they’re now central to C-suite priorities. The message from Kyle Forrest, future of HR leader at Deloitte Consulting, is clear: “Inaction is a choice.” Organizations must act intentionally to turn rising workplace tensions into opportunities for growth.
Workers Expect Alignment Between Values and Actions
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73% of executives and 72% of employees believe organizations should create more experiential growth opportunities.
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Yet only 6% of businesses are making strong progress in integrating human sustainability into core strategy.
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Workers want visible, authentic alignment between corporate values and behavior—not just messaging.
This values gap is a critical risk, especially in an environment where both job seekers and employers struggle to connect despite ongoing talent shortages.
Top Three Workforce Challenges HR Must Tackle in 2025
1. Reimagining the Manager’s Role in an AI-Enhanced Workplace
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74% of organizations say it’s important to redefine the manager’s role, but only 7% report strong progress.
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Managers today spend 40% of their time on administrative tasks, with just 13% focused on team development.
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Over 33% of managers feel underprepared, and 40% report deteriorating mental health.
Opportunity: Use AI to offload low-value tasks like feedback collection and documentation, freeing time for people management and development.
2. Addressing Experience Gaps with Strategic Onboarding
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Two-thirds of executives say new hires lack adequate experience.
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Frustration with enterprise tools and poor integration often leads to early turnover.
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The first 90 days and one-year milestones are key retention risk points.
Solution: Implement AI-powered onboarding to help new hires navigate systems, find information quickly, and align with organizational practices from day one.
3. Redefining the Employee Value Proposition in an AI-Driven World
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70%+ of managers and workers prefer organizations that help them thrive with AI.
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Effective HR tech isn’t just operational—it can be a competitive differentiator.
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Employees are more likely to stay if AI augments rather than overwhelms their workday.
Approach: HR must design sustainable work patterns and integrate wellness into productivity strategies, making AI a source of empowerment.
HR’s Strategic Role in Leading Business Transformation
Forrest urges HR to “go on offense”—not just manage workforce change, but drive it. That means:
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Demonstrating the ROI of people-focused technology.
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Breaking down data silos to inform cross-functional decisions.
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Designing work intentionally to address modern expectations.
Karen Pastakia, global human capital leader at Deloitte Canada, warns against over-prioritizing short-term metrics. She advocates for long-term value creation—where AI enhances not just profit, but employee well-being and organizational culture.
The Case for Personalized Workforce Strategies
Simona Spelman, U.S. human capital national leader at Deloitte, calls for a shift from blanket workforce policies to personalized talent management:
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Understand each employee’s skills, drivers, and career goals.
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Tailor incentives, recognition, and development to individual needs.
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Encourage longer tenure and creative contributions through personalized engagement.
HR Must Lead with Adaptability
As AI-related tensions and transformation accelerate, HR leaders are uniquely positioned to guide organizations through uncertainty. Deloitte’s report concludes that adaptive, personalized, and tech-enabled strategies will define success in 2025 and beyond. HR’s ability to evolve its approach—while centering the workforce—will determine whether today’s tension becomes tomorrow’s competitive advantage.
Source – HR Executive
