#USA #New York #Workforce Trends #CHRO #hiring slowdown

Hiring Expectations Take a Dip Among HR Leaders

As we progress toward the second half of 2025, the hiring landscape is shifting noticeably among organizations. According to a recent survey conducted by The Conference Board, an increasing number of Chief Human Resource Officers (CHROs) are predicting a downturn in hiring activities in the coming six months. Specifically, one in five CHROs anticipates reducing their workforce, which marks a significant increase from just 11% a year ago. This shift indicates not a loss of confidence, but a strategic approach to navigating ongoing economic uncertainties.

Understanding the Reasons Behind the Shift

The current climate is characterized by economic and policy unpredictability, prompting HR leaders to adopt a more prudent strategy when it comes to staffing. CHROs are refocusing their efforts on optimizing the performance of existing employees rather than expanding the workforce. Diana Scott, leader of The Conference Board US Human Capital Center, emphasized that these leaders are investing heavily in change management training for their teams to adapt to rapid changes in the workplace environment. Approximately 50% of CHROs reported ongoing investments in leadership training specifically designed to improve their team's ability to manage change effectively.

Survey Findings Highlighting Key Trends

The findings from the CHRO Confidence Index reveal various insights into the current workforce dynamics:

• - Hiring Component: The hiring index component settled at 54 in Q2, reflecting a slight year-over-year decline from 59 in Q2 2024. This trend illustrates a cooling off in workforce expansion plans. Currently, 20% of CHROs foresee decreasing hiring in the next six months, while 36% expect to increase their hiring—a marginal drop from 37% in the previous quarter.

• - Retention Expectations: The retention index improved slightly to 54, indicating a more stable outlook compared to the previous quarter. Notably, 16% of CHROs foresee a decrease in retention rates, while 32% expect to see retention improve.

• - Engagement Levels: There is a growing optimism among HR leaders regarding employee engagement. The engagement index rose to 58, with 45% of CHROs expecting higher engagement levels, representing a significant improvement from prior quarters.

Confidence in Managing Change

Most HR leaders express a solid confidence in their organizations' ability to manage impending changes. According to the survey:

• - 13% are very confident in their change management capabilities,
• - 56% are confident,
• - 29% report slight confidence,
• - and only 2% express no confidence.

Such confidence is critical as organizations navigate an always-evolving work ecosystem. CHROs are increasingly standardizing change management practices and ensuring robust training programs for both leaders and managers to better handle uncertainties.

Anticipated Impacts of Government Policies

In addition to organizational concerns, the survey indicated that HR leaders expect enacted government policies to bear significant consequences on the workforce landscape. Approximately 50% of participants anticipate a negative impact, marking a noticeable increase from previous assessments. This anxiety about external influences further complicates the decision-making process surrounding hiring and retention strategies.

A Strategic Path Forward

In summary, while hiring may be slowing down, HR leaders are also reinforcing their commitment to employee development, engagement, and retention. The current strategy focuses on equipping existing teams to manage change proactively. As they prepare for the shifting landscape, CHROs appear prudent in choosing when to expand their teams, emphasizing a thoughtful approach to human resource management in these challenging times. The focus appears to be on resilience, adaptation, and strategic foresight—essential skills for any leader in today’s complex business environment.