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McLean & Company's Early Insights on HR Trends for 2025

As we enter a new era in the workplace, McLean & Company, a prominent HR research firm, has published an enlightening preview of their anticipated HR Trends Report 2025. This report is designed to prepare HR professionals and organizations for the evolving landscape of work as we approach 2025. In a world affected by economic fluctuations, technological advancement, and the rising demand for employee-focused work environments, HR leaders are called upon to rethink their strategies and priorities.

The Evolving Role of HR

The report emphasizes the shifting focus of HR from merely recruiting talent to nurturing and developing it within organizations. Will Howard, the practice lead for HR Research & Advisory Services at McLean, asserts that the main priority will be enhancing leadership development and improving talent retention. As organizations face economic uncertainties and a competitive labor market, effective internal talent pipelines are crucial to maintaining stability and performance. With a staggering percentage of HR respondents indicating a lack of proficiency in data and technology skills, there is a pressing need for investment in tech-savvy HR professionals.

Key Trends to Watch

The preview of the HR Trends Report spotlights three pivotal trends that HR leaders must consider for operational success:
1. Human Leadership in a Complex Digital World: The role of leaders is evolving as they become essential to help employees realize their potential while ensuring their well-being. The report highlights that 73% of leaders feel their competencies will need considerable updating to meet the demands of the future workplace. With enhanced leadership development, organizations can significantly boost performance and financial outcomes, positioning them for better adaptability and sustainable growth.
2. AI Transformation in HR: As artificial intelligence continues to reshape the workspace, it is vital for HR to harness its potential effectively. Although 42% of HR professionals reported using AI tools, only 7% indicated having a documented AI strategy in place. Establishing a solid framework for AI within HR operations can significantly bolster an organization’s capability to adopt new technologies and thrive amid rapid advancements.
3. Navigating Wellbeing Challenges: Employees face numerous threats to their overall wellbeing, exacerbated by external economic pressures and legislative changes. The report highlights a substantial gap in financial wellbeing investment, which is critical as 70% of survey participants identify economic instability as the leading threat to employee wellness. HR must proactively address these challenges to implement effective wellbeing initiatives that genuinely support the workforce.

Top HR Priorities for 2025

With these trends in mind, the following organizational priorities have emerged as critical for HR in 2025:
1. Developing Leaders: This year, the priority has shifted from recruiting new talent to developing existing leaders within the organization. Despite the vital importance of leadership, only a meager 33% of respondents believe their organizations excel in this area, underscoring the urgent need for improvement.
2. Retaining Employees: A new priority on the list, retaining talent has become more significant as organizations strive to maximize their existing workforce rather than seeking new hires in a turbulent job market.
3. Controlling Labor Costs: This long-standing priority remains critical as organizations navigate tight budgets and aim to maintain a sustainable workforce.

Looking Ahead

The full HR Trends Report 2025 will be published on January 7, 2025, providing further insights into these priorities and strategies to enhance HR's contributions within organizations. HR leaders and practitioners are encouraged to explore the report's findings as they prepare for the challenges and demands of the future of work.

For further engagement, McLean & Company will also host a free webinar titled 2025 HR Trends: Embracing Human-Centric HR on January 16th and January 23rd, offering participants an opportunity to delve deeper into these trends and challenges.

By adapting to these new dynamics, HR leaders can ensure they have the tools, insights, and strategies necessary to lead their organizations effectively into 2025 and beyond.