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Paycor’s Latest Report Reveals Key HR Trends and Predictions for 2025

Paycor's Latest Report Reveals Key HR Trends and Predictions for 2025
Nearly Half of HR is New to Their Role: Paycor Unveils New Report

Paycor HCM, Inc., a leading provider of human capital management (HCM) software, has published its new report, “HR in 2025: Insights & Predictions.” This comprehensive report explores key trends expected to shape the human resources landscape over the next year, drawing on insights from a survey of more than 7,000 professionals. The findings underscore the importance of effective management in driving employee engagement and retention across remote, hybrid, and onsite work environments.

1. Employee Turnover Risks

  • Early Tenure Turnover: Employees with two years or less at a company are the most likely to leave, with a 38% higher likelihood of job searching in the next 12 months. Employees with one year or less at a company are 21% less likely to rate their leaders favorably.

2. HR’s Strategic Role

  • Leadership Development: C-suite executives view HR as crucial for leadership development. Chief executives cite “lack of HR support” and “outdated performance management systems” as major obstacles to effective management.

3. Impact of Effective Leadership

  • Business Results: Employees at high-performing companies are 110% more likely to receive productive feedback and 397% more likely to find their senior leaders engaged and inspirational compared to those at low-performing companies.

4. Engagement Levels Across Work Environments

  • Hybrid Work: Hybrid workers are the most engaged, being 31% more engaged than remote workers and 16% more engaged than fully in-person workers. Fully onsite workers come in second place, while remote workers report the lowest satisfaction levels.

5. Recruitment and Retention

  • Hiring Plans: 91% of businesses plan to hire in the next 12 months. Paycor customers show higher confidence in meeting recruiting goals (79%) compared to non-Paycor users (56%).
  • Retention Rates: Employees at companies using Paycor are 55% less likely to look for a new job in the next 12 months, indicating strong retention influenced by Paycor’s solutions.

Paycor HCM, Inc. is a leader in providing human capital management (HCM) software, offering innovative solutions to help businesses manage their workforce effectively. Paycor’s suite of HCM solutions empowers leaders to develop their teams and drive organizational success.