McLean & Company, one of the world’s leading HR research and advisory firms, is pleased to share the highly anticipated preview of the HR Trends Report 2025, set to be published in January 2025, to help equip HR leaders with the data and insights needed to ensure their organizations are prepared to thrive in the future of work.
TORONTO, Dec. 3, 2024 /PRNewswire/ – In a time marked by economic and political shifts, evolving technology, and a growing need for human-centric work practices, HR leaders are being called on by their organizations to rethink priorities and approaches. According to the new HR Trends Report 2025 preview from global HR research and advisory firm McLean & Company, HR teams are increasingly challenged to develop internal talent pipelines, retain employees, and manage labor costs as organizations navigate continued economic pressures and a labor market where skilled talent is both scarce and expensive. The comprehensive preview of the full report – which is set to be published on January 7, 2025 – has been released in advance of the new year as HR teams and their organizations plan for the top organizational priorities for HR in 2025.
“As we move into 2025, HR’s key strategic contribution will be driving leadership development and talent retention. A focus on these top priorities will reduce recruiting expenses, helping to control labor costs while ensuring the organization has the talent and leadership required for the future of work,” says Will Howard, practice lead, HR Research & Advisory Services at McLean & Company. “Additionally, there must be an increased focus on improving HR’s proficiency in data and technology skills. The lack of progress in this area is concerning, as effectively harnessing AI advancements and leveraging large amounts of data requires investing in a data-literate, tech-savvy HR workforce now, not later.”
The report has been informed by the perspectives of 779 HR and business professionals across a variety of regions and industries. Over the past three years, a stagnant 29% of HR organizations were reported to be highly effective at facilitating data-driven people decisions, with HR respondents reporting their own proficiency in data and technology skills to be lacking.
In the report preview, McLean & Company spotlights three critical trends for HR to consider as HR adapts to new demands and organizations progress into 2025:
Human Leadership in a Complex Digital World. The role of leaders is evolving, with a heightened focus on helping employees achieve growth, purpose, and fulfillment while caring for their wellbeing and experience. According to the firm’s findings, effective leaders who possess the skills and competencies to help others thrive in today’s increasingly complex environment are of critical importance for organizations, with 73% of leaders indicating they feel that their skill sets will need to change completely or almost completely to adapt to the future of work.
McLean & Company explains in the report that failing to effectively develop leaders risks decreased organizational performance. This is particularly concerning because when HR excels at leadership development, organizations are 2.3 times more likely to be high performing at changing quickly to capitalize on new opportunities, 1.9 times more likely to be high performing at achieving strategic goals and objectives, and 1.6 times more likely to be high performing at overall organizational growth. HR’s effectiveness at developing leaders also has an immense impact on financial outcomes, such as optimizing costs and growing revenues. Therefore, organizations must close this gap in leadership development to prepare for 2025 and beyond.
The report preview spotlights the gap between the importance of leadership and the current state of leadership development across organizations, as well as the importance of a strong HR organization in fostering strong leaders.
AI Transformation in HR. With the impact of technologies like AI accelerating at an unprecedented rate, HR has a significant role to play in organizational technology enablement. While 42% of HR respondents say they are currently using AI, including generative AI, robotic process automation, and advanced analytics, only 7% reported that their HR organization has a formal, documented AI strategy that is broadly communicated and is the main driver for relevant initiatives. HR plays a key role in helping the organization adopt AI, but HR’s effectiveness in technology enablement remains low, ranking last across the strategic skills and competencies surveyed.
HR’s ability to play a crucial role in the selection, implementation, and use of advanced technologies will be critical in enabling success for organizations. When HR is effective at this competency, they are also 4.1 times more likely to be highly effective at enabling the organization’s adoption of new technology, which will be a key element for long-term success as the future of work continues to trend toward rapid technological change and advancement.
The report preview outlines how HR can more effectively harness the potential of AI in 2025, from having a formal AI strategy to improving HR’s technology enablement proficiency.
Navigating Multiple Threats to Wellbeing. As the external environment increasingly affects employees’ lives at work and at home, organizations are called to play a leading role in supporting holistic wellbeing. McLean & Company’s findings highlight that economic uncertainty puts immense pressure on workers, but organizational investments in financial wellbeing are falling short. Though 70% of respondents reported economic stability as the largest threat to the wellbeing of their workforce, financial wellbeing ranked last across the wellbeing dimensions that have reportedly received increased investment. Legislative and political shifts have also added complexities to supporting employee wellbeing, with new legislation and political issues ranking as the third and fourth largest perceived threats to employee wellbeing in 2025.
While additional investment into any wellbeing dimension will never be a wasted effort, the firm advises that HR must lead the way in uncovering what the workforce truly needs. This will be critical to ensuring investments are directed into wellbeing programs and initiatives that will make a difference for employees.
The report preview outlines some of the top threats to employee wellbeing and how organizations have changed investments in those areas.
The report preview also highlights the top three priorities for HR organizations in 2025, noting that the priorities in the first and second spots have shifted compared to the firm’s 2024 report. The top three priorities for the coming year are outlined below:
Developing Leaders. The top spot was previously held by “recruiting,” but has evolved to focus on developing leaders in 2025. However, despite the importance of leadership, only 33% of respondents reported that HR is highly effective at developing the organization’s leaders, emphasizing the crucial need to address the gap between HR’s top priority and its current state.
Retaining Employees. The second priority is a new addition to the firm’s reporting process, ranking exceptionally high on the list of critical HR priorities in its first year of inclusion. In a challenging labor market and uncertain economy, organizations are doubling down on the talent within the organization rather than seeking talent externally.Controlling Labor Costs. The third priority has remained consistent year over year, with “controlling labor costs” holding steady from 2024. Organizations must manage their labor costs in a tight economy to make sure their budget remains sustainable and their talent and labor spend is strategic to deliver the most return on their investment.
Alongside a deeper analysis of the three priorities above, the remainder of the top organizational priorities in HR will be explored and analyzed further in the full HR Trends Report 2025, expected January 7, 2025. The report will delve into the top organizational priorities, HR’s strategic leadership, and key challenges HR must overcome to help the organization meet the demands of 2025 and beyond.
To access the report preview, please visit HR Trends Report 2025 preview.
To register for McLean & Company’s free upcoming webinar, 2025 HR Trends:
Embracing Human-Centric HR, please visit the registration page for January 16 at 1 PM ET or the registration page for January 23 at 1 PM ET.
Media interested in connecting with McLean & Company analysts for exclusive, research-backed insights and commentary on HR Trends in 2025, HR’s critical role in digital transformation and the future of work, and more can contact Senior Communications Manager Kelsey King at kking@mcleanco.com.
About McLean & Company
McLean & Company pairs evidence-based research and immediately applicable tools with deep HR expertise to position organizations to meet today’s needs and prepare for the future. The global HR research and advisory firm’s member organizations enjoy comprehensive resources, full-service diagnostics, workshops, action plans, and advisory services for all levels of HR professionals, from executive leadership to HR leaders to HR team members, that help shape workplaces where everyone thrives.
McLean & Company is a division of Info-Tech Research Group.
Media professionals can register for unrestricted access to research across IT, HR, and software and hundreds of industry analysts through the firm’s Media Insiders program. To gain access, contact kking@mcleanco.com.
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SOURCE McLean & Company
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