While recruiting was the top priority for HR professionals in 2024, leadership and management development has taken the top spot this year, according to the 2025 SHRM State of the Workplace report.
In fact, recruiting did not break the top three priorities for 2025. “This highlights a shift among workers and HR professionals from focusing on acquiring new talent to enhancing the capabilities of existing employees in order to address evolving organizational needs,” the report said.
Other reports have also indicated that the race for labor has cooled off, easing from the difficulties of 2022 in particular, Indeed said. As of November 2024, the site’s job posting index was down 10% year over year.
SHRM’s report also indicates an increasing focus by HR leaders on retention and career progression. When asked how their organizations could strengthen competitiveness in 2025, HR pros surveyed by SHRM highlighted aspects such as developing training programs — particularly for hourly employees.
However, the struggles with recruiting last year may explain some of the increased focus on employee experience and retention in 2025, SHRM said. While 56% of HR professionals said their organizations’ recruiting efforts were effective or very effective in 2024, only 41% of U.S. workers agreed.
As such, more than a third of workers said they had heavier workloads due to unfilled roles last year, leading to heavy burnout across organizations, SHRM said.
Notably, if turnover is not curbed, it could thwart training efforts for those front-line workers and hourly employees, an Association for Talent Development report said in January. While 80% of talent development professionals told ATD that they thought they could overcome turnover to provide that training, nearly half said they didn’t know how they’d accomplish it.
Employee experience is another focus for 2025, the SHRM report indicated, just as it was in 2024 — which may be key to curbing that turnover.
“The current research highlights recognition and team collaboration as areas of opportunity to enhance employee experience and drive retention, which are crucial amid labor shortages,” the report said.
