In an era of rapid economic, technological, and social change, HR leaders are tasked with addressing new priorities and challenges. McLean & Company’s HR Trends Report 2025 preview outlines strategies for HR teams to navigate talent shortages, retain employees, and manage costs amidst economic pressures. Based on insights from 779 HR and business professionals, the report highlights emerging priorities and actionable strategies for HR to thrive in 2025.
Key HR Trends for 2025
- Human Leadership in a Digital Age
- Evolving Leadership Roles: 73% of leaders believe their skill sets need significant transformation to align with the future of work.
- Impact of Leadership Development: Organizations excelling in leadership development are:
- 2.3x more likely to adapt quickly to opportunities.
- 1.9x more likely to achieve strategic goals.
- 1.6x more likely to drive organizational growth.
- Call to Action: HR must close gaps in leadership development to enhance organizational resilience and financial outcomes.
- AI Transformation in HR
- Current Usage vs. Strategy: While 42% of HR respondents use AI tools, only 7% have formal AI strategies guiding their initiatives.
- Competency Gap: HR ranks lowest in technology enablement proficiency, limiting its role in organizational AI adoption.
- Path Forward: Establish comprehensive AI strategies and enhance HR’s tech capabilities to enable seamless AI integration and adoption.
- Navigating Threats to Employee Wellbeing
- Top Wellbeing Threats: Economic instability (70%), legislative changes, and political issues are among the leading concerns for employees.
- Wellbeing Investments: Financial wellbeing, though critical, ranks last in organizational investment priorities.
- HR’s Role: HR must lead efforts to identify workforce needs and direct resources toward impactful wellbeing initiatives.
Top HR Priorities for 2025
- Developing Leaders
- Leadership development has overtaken recruiting as the top HR priority.
- Current Challenge: Only 33% of HR organizations are effective at leadership development, highlighting a significant gap.
- Retaining Employees
- Retention emerges as a new priority amidst economic and labor market uncertainties.
- Organizations are focusing on developing internal talent pipelines to reduce dependence on external hiring.
- Controlling Labor Costs
- As a continued priority from 2024, organizations aim to manage budgets strategically while maximizing labor ROI.
Strategic Recommendations for HR Leaders
- Invest in Leadership Development:
- Enhance programs to equip leaders with skills for a rapidly evolving workplace.
- Recognize leadership development as a driver of organizational adaptability and financial success.
- Formalize AI Strategies:
- Develop and communicate AI roadmaps to align HR initiatives with technological advancements.
- Upskill HR teams to improve proficiency in AI, data analytics, and tech-driven decision-making.
- Prioritize Holistic Wellbeing:
- Address economic and political stressors by tailoring wellbeing programs to workforce needs.
- Increase investments in financial wellbeing to support employee stability.
McLean & Company’s HR Trends Report 2025 emphasizes the growing importance of leadership development, AI integration, and employee wellbeing in shaping the future of work. By focusing on these priorities, HR leaders can position their organizations for success amidst economic and technological shifts.
