HR professionals are shifting gears in 2025, moving from aggressive hiring strategies to investing in existing employees. According to the latest SHRM State of the Workplace report, leadership and management development have overtaken recruitment as top priorities.
The report highlights a significant shift in strategy, talent acquisition no longer ranks among HR’s top three priorities. Instead, organizations are doubling down on upskilling and reskilling to meet evolving business needs.
Retention and Employee Development Take Center Stage
With a cooling labor market and fewer hiring pressures, HR leaders are focusing on retention and internal career growth. The SHRM report notes that a majority of organizations are enhancing training programs, particularly for hourly employees, to strengthen competitiveness.
However, challenges remain. In 2024, 56% of HR professionals rated their recruiting efforts as effective or very effective, yet only 41% of U.S. workers agreed. A key issue? Heavy workloads due to unfilled positions, led to widespread burnout and turnover.
The Impact of Turnover on Training Efforts
A separate study by the Association for Talent Development (ATD) warns that high turnover rates could undermine these training initiatives. While 80% of talent development professionals are confident, that they can deliver training despite workforce churn, nearly half admit they lack a clear strategy.
Employee experience is another focus area for 2025. SHRM’s research underscores that recognition programs and team collaboration can significantly enhance retention when labor shortages persist.
For HR executives, the message is clear- Sustainable growth depends on nurturing internal talent. Investing in learning and development will be crucial in maintaining a competitive edge in the evolving workforce era.
What’s your take on this shift? Let us know your thoughts!
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