5 Key Areas of HR Focus for 2025

And just like that, we’re closing in on the end of 2024. As we prepare for a new year, let’s take a look at the key areas that HR leaders are prioritising for 2025. These insights will help support you as you plan your organisation’s priorities for the upcoming year. 

Lattice’s 2025 State of People Strategy Report has pinpointed these areas as part of the focus for HR practitioners:

#1 Engagement as HR’s Top Priority

Contrary to the past several years, there has been an increased demand for employee engagement as HR teams see its connection with retention. This, however, does not mean that performance should take a back seat on HR’s focus. If anything, this simply cements the idea that high performance can’t exist without engagement. 

Through this focus, HR practitioners have realised that performance and engagement should be a priority as they “contribute to a workplace where employees can thrive long-term.” Instead of merely focusing on employee performance, organisations should prioritise engagement to get long-term benefits from their team members. 

The problem with this focus is the disconnect between HR and senior leadership. Lattice shared that while engagement is “not an ideas problem, it is a resource problem.” Even though HR teams know how to make their workforce thrive, the problem is the support, budget, or leadership buy-in they get from the management. Without this trust from the C-suite, they won’t be able to kickstart their planned initiatives that can respond to the needs of their workforce. 

The best way for HR leaders to get the help they need is to hone their data fluency and data-led storytelling skills. This way, they can gain the trust of their CEOs to support their initiatives. 

#2 DEIB Efforts are Losing Ground

Based on the study, only 15% of participants consider DEIB programs a priority. This is an all-time survey low and a 2% decline from last year’s results. The study also pointed out how “DEIB work is hard work.” Even though some organisations have “a genuine interest in advancing DEIB,” it requires long-term commitment to focus on their DEIB efforts. 

To support DEIB initiatives, leadership needs to “truly understand the value of a diverse workforce.” HR leaders need to answer these questions, as pointed out by IELA’s market study:

• What’s your current position?
• Where do you want to go?
• How long will it take to get there?
• What’s the plan to reach that goal?

It’s about clearly understanding what you’re trying to achieve and why. DEI efforts need to be fully embedded into the organisation’s culture and strategy to truly succeed and should not be treated as an after-study. 

#3: AI is More Than a Hype

Despite the growing interest in adopting AI in HR teams, its growth has stagnated over the past year. The study showed that only 15% of teams have transitioned the use of AI from idea to application. 

Korn Ferry has pointed out that while AI has the ability to “supercharge productivity and elevate recruitment,” the reality of AI’s inaccuracies is kicking in. 40% of talent specialists surveyed have expressed their concern that “too much AI in recruitment could make the process impersonal, causing them to miss out on the top candidates.” There’s also the problem with “algorithmic bias,” which has been shown to produce unfair outcomes.  

The big problem lies in the application of such tools. Mostly, AI HR tools are being used for these purposes:

• Writing job descriptions (56%)
• Writing performance reviews (46%) 
• Writing/Updating employee handbooks (44%)
• Summarising employee feedback (43%)
• Sorting job applications (37%)
• Identifying bias (25%)
• Identifying who may be overdue a raise/promo (20%)

While AI has the ability to “ingest and process vast amounts of data to provide informed recommendations on merit budget allocations,” humans still need to evaluate these recommendations and make the final decisions.

Instead of relying on AI tools for HR, practitioners plan to use these tools “strategically and appropriately” so they can add “real value to the experience for candidates, recruiters, and hiring managers.” 

More employers intend to continue using AI to “improve the candidate journey” and not rely on it “to automate hiring.”

#4: Manager Support Makes All the Difference

Lattice and Gartner both agree that support from the leader and manager plays a vital role in HR. When managers see their HR teams as an advocate for themselves and employees, HR teams are able to “meet most or all of their needs.” 

The problem lies in the use of traditional leadership development tools that aren’t as effective as they are today. As Gartner has pointed out, only 36% of HR leaders “think their organisation’s current leadership development programs are effective at preparing leaders for future challenges.” 

The study pointed out that the best way for enterprise leaders to excel in their roles, they should:

• Spend less time in seminars and lectures that have a negative impact on enterprise
• Invest more time in networking events and team-building activities that have a positive impact on both enterprise and human leadership.

Gartner has realised that “Leaders who have utilised peer-connection-based learning experiences are 18% more likely to be enterprise leaders.” 

In 2025, there is a need to strengthen the HR-manager relationship to ensure that businesses and employees succeed. When HR and managers work together, they perform better. When their strategies are aligned more deliberately, “their goals are complementary and not conflicting.”

#5: L&D is Crucial for Retention

For the second time in a row, organisations pinpointed the need to focus on L&D as a top area of focus for HR in LinkedIn’s 2024 Workplace Learning Report. The five top L&D focus areas identified include: 

• Aligning learning programs to business goals
• Upskilling employees
• Creating a culture of learning
• Helping employees develop their careers
• Improving employee retention

In 2025, the need to focus on L&D is no longer just “a box to tick” but as something crucial for retention. Korn Ferry’s Workforce Survey found that “67% of employees would stick with a company if offered opportunities for advancement and upskilling– even if they hated their job.” The study also learned that the second biggest reason why employees leave is a lack of career growth in their organisation. In Australia, this is the number one reason why employees leave.

With this realisation, HR practitioners need to invest in new methods to develop employees for their needs. In-person workshops, standardised training, and online courses are no longer enough. Instead, there is a need to use virtual reality (VR), gamification, and microlearning (aka mentoring). 

How Mentorship Prepares HR Leaders for 2025

As HR leaders navigate the evolving workplace, mentorship emerges as a vital tool to address these key HR priorities. Mentorship fosters authentic connections that drive employee engagement, empowering HR leaders to implement strategies grounded in real-world experiences and needs. By pairing mentors and mentees across diverse backgrounds, it supports DEI initiatives, cultivating inclusive mindsets and advancing equity within organisations. 

Additionally, mentors can guide HR professionals in integrating AI effectively, demystifying complex technologies and ensuring ethical applications that enhance HR practices rather than replace human intuition. 

For manager support, mentorship offers a structured avenue to upskill and prepare leaders to manage with empathy and efficiency, addressing the challenges of a hybrid and rapidly shifting workplace. In L&D, mentorship creates personalised learning pathways, helping HR leaders to design programmes that align with employee aspirations and organisational goals. 

By leveraging mentorship, HR leaders not only enhance these core areas but also build a culture of continuous growth, adaptability, and collaboration essential for 2025 and beyond. 

Book a demo with Brancher today to learn how we can help support your HR plans for the incoming year.