Top HR trends to watch in 2025

Developing internal talent, retaining employees, and managing labour costs are the top priorities for HR.

Amidst changing workforce demographics and a tightening labour market, developing internal leaders is now the top priority for HR in 2025, according to the latest HR Trends Report 2025 by McLean & Company.

Having surveyed 779 HR and business professionals across regions, the report found that recruiting is no longer the first priority for HR for the first time since 2019. Increasing economic pressures and a competitive labour market have driven HR to shift focus from recruitment towards talent development and retention, as well as managing labour costs in 2025.

Top 5 priorities for organisations in 2025

1. Developing leaders
2. Retaining employees
3. Controlling labour costs
4. Providing a great employee experience
5. Recruiting

The report emphasised that the role of leaders is evolving in today's increasingly complex and rapidly changing environment. Developing leaders is, therefore, essential for preparing them for the future of work and their expanding roles, while also ensuring they balance their own wellbeing alongside the wellbeing of their teams.

Meanwhile, to retain talent and enhance employee experience, HR is making progress on employee listening. According to the report, 61% of respondents reported an increase in employee listening efforts, while 59% reported increasing the use of data to make talent decisions. However, few organisations are listening to the employee voice strategically, with 37% lacking an employee listening strategy.

For HR itself, as the function continues to strengthen its strategic partnership with the organisational leadership, the report highlighted the importance of prioritising leadership development, investing in technology skills, as well as adopting a wellbeing strategy through employee listening.

10 emerging trends in the HR landscape in 2025:

1. Redefining expectations for the roles of people managers.
2. Adopting skills-based hiring practices.
3. Measuring the ROI of HR programmes.
4. Breaking jobs down into tasks to match individuals with work and projects based on skills and interests.
5. Increasing transparency into pay and pay decisions.
6. Implementing an AI-specific workforce upskilling strategy.
7. Adopting trauma-informed practices to foster a safe workplace for all.
8. Enabling the organisation to practice neuroinclusive leadership.
9. Providing reverse mentorship opportunities.
10. Implementing returnships to access a larger talent pool.

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