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HR Priorities for 2025: Leadership, Retention, and Cost Control

As the workplace undergoes rapid technological advancements, shifting priorities, and uncertain economic conditions, HR leaders are facing increased pressure to identify key areas for future success. McLean & Company’s HR Trends Report 2025 provides data-backed insights, highlighting the evolving priorities HR leaders must focus on to secure long-term success.

  1. Developing Leaders
    • Leadership development is now the #1 priority for HR in 2025, replacing recruitment for the first time in five years.
    • Strong leadership pipelines correlate with better financial performance, such as higher revenue growth and strategic goal achievement.
    • Companies that focus on leadership development are nearly 1.9 times more likely to excel at strategic goals.
  2. Retaining Employees
    • Organizations are shifting focus from external recruitment to internal talent development to reduce turnover costs.
    • Strategic listening is key to improving retention; however, only 23% of organizations have a formal employee listening strategy.
    • Retention strategies must include employee engagement and experience improvements, which will directly impact long-term success.
  3. Controlling Labor Costs
    • In the current economic climate, managing labor costs remains crucial for HR.
    • Having a formal total rewards strategy helps HR organizations manage labor costs more effectively, making them 1.9 times more likely to succeed in cost optimization.
    • Total rewards strategies ensure investments are aligned with business priorities, maximizing the value of labor spend.
  4. Enhancing Employee Experience
    • A positive employee experience is essential for maintaining engagement and productivity.
    • AI adoption in HR is rising, but only 42% of HR professionals report using AI in key functions such as talent acquisition, learning, and development.
    • Enhancing HR’s data literacy and technological capabilities is vital to improving employee experience outcomes.
  5. Recruitment
    • Recruitment remains an essential aspect of HR, though its priority has dropped compared to previous years.
    • The use of pay transparency has improved recruitment effectiveness, with organizations focusing on it being 18% more likely to excel in attracting talent.
    • While recruitment isn’t the top priority, it’s still critical in filling talent gaps and meeting business needs.

The HR landscape in 2025 presents significant challenges and opportunities. By prioritizing leadership development, employee retention, labor cost management, and improving employee experience through technology, HR leaders can drive organizational success. The integration of AI and data literacy will be crucial in transforming HR functions and aligning them with strategic business goals.