New SHRM Research Uncovers 2024’s Biggest Workplace Challenges — And Why 2025 Is the Year of Employee Development
The research found HR professionals are turning their focus to developing the talent within organizations.
ALEXANDRIA, Va. – Today, SHRM, the trusted authority on all things work, worker, and the workplace, released its highly anticipated 2025 SHRM State of the Workplace and CHRO Priorities and Perspectives reports. The research reveals key HR trends and priorities on recruitment strategies, leadership development, and employee experience as the HR profession shifts its focus in 2025.
Recruiting emerged as the top priority for HR professionals in 2024, with 43% identifying it as their primary focus, followed by employee experience (31%) and leadership and manager development (27%). However, only 56% of HR professionals rated their organization’s recruiting efforts as effective or very effective, highlighting ongoing challenges in attracting top talent amid a competitive job market.
These staffing challenges can lead to heavier workloads, contributing to increased burnout among employees. To attract and retain top talent, employee experience has become a critical focus for organizations —driven by factors such as teamwork, purpose, fairness, and recognition—to mitigate burnout and boost retention.
“As organizations continue to navigate talent shortages, economic fluctuations, and evolving workplace dynamics, HR leaders are shifting their focus to long-term workforce development and engagement strategies,” said Johnny C. Taylor, Jr., SHRM-SCP, President and CEO, SHRM. “To thrive in today’s ever-evolving landscape, organizations must ensure the pace of change inside their businesses keeps up with or outpaces the change happening outside. Investing in strong leadership, employee experience, and learning and development will be key to driving business success in the year ahead.”
Leadership and manager development also emerged as a key focus in 2024, recognized as essential for both individual and organizational success. However, data revealed a gap in execution, as about a third of workers reported poor management and ineffective senior leadership within their organizations.
On the positive side, labor and employee relations stood out as the strongest-performing HR practice area, earning the highest ratings from HR professionals, HR executives, and U.S. workers alike.
Looking ahead to 2025, HR professionals and U.S. workers align on key priorities, urging for a shift from recruitment-focused strategies to a greater emphasis on employee, manager, and leadership learning and development.
The findings from SHRM’s CHRO Priorities and Perspectives Report further reinforce these trends with a greater emphasis on the growth of AI and economic pressures.
Key findings from CHRO Priorities and Perspective include:
More than 51% of CHROs identified leadership and manager development among their top priorities for 2025, highlighting its critical role in fostering sustainable business practices.
Other key CHRO priorities include organization design and change management (30%), enhancing employee experience (28%), and optimizing talent management strategies (27%).
61% of CHROs cited wage inflation and 45% identified rising operational costs as major challenges their organizations and functions are facing.
90% of CHROs anticipate greater AI integration in the workplace in 2025, and 83% expect its role to increase in HR functions.
However, CHROs remain committed to prioritizing the human aspect of work.
59% anticipate a greater focus on employee well-being and mental health and 53% predict more investments in rapid skill development to help employees adapt to emerging technologies in 2025.
For more insights, download the full SHRM State of the Workplace report here The CHRO Priorities and Perspectives report can also be downloaded here.
About SHRM
SHRM is a member-driven catalyst for creating better workplaces where people and businesses thrive together. As the trusted authority on all things work, SHRM is the foremost expert, researcher, advocate, and thought leader on issues and innovations impacting today’s evolving workplaces. With nearly 340,000 members in 180 countries, SHRM touches the lives of more than 362 million workers and their families globally. Discover more at SHRM.org.
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