As we enter 2025, the workforce is changing, with changing demographics and a highly competitive labour market challenging organizations like never before. The latest HR Trends Report by McLean & Company, recently published by Human Resources Online, reveals a fundamental change in HR priorities, with internal leadership development now taking centre stage. This shift is pivotal for HR as it adapts to new realities and embraces strategies to navigate the evolving workforce dynamics.
Leadership development takes priority in a complex workforce environment
For the first time since 2019, recruitment is no longer the top priority for HR. Instead, the focus has shifted towards developing strong internal leaders who can navigate the complexities of the modern workforce. According to the HR Trends Report, organizations increasingly prioritise leadership development as they prepare their teams for a rapidly changing work environment. In a world where roles are expanding and evolving, leaders must be equipped to guide their teams effectively and balance their well-being with that of their employees.
Leadership is becoming more critical as the workforce adapts to technological disruptions, remote work, and an ever-changing economic landscape. Organizations are investing in upskilling leaders to ensure they possess the competencies required for the future of work. HR professionals recognize that strong leadership is vital for fostering a thriving organizational culture, driving productivity, and mitigating challenges such as burnout or turnover.
Building a sustainable workforce
While leadership development takes precedence, talent retention remains a top concern for HR professionals. In 2025, organizations emphasise retaining top talent by creating positive employee experiences and enhancing overall job satisfaction. The HR Trends Report highlights the importance of employee listening—an essential strategy for ensuring employees feel heard, valued, and supported.
However, the report also reveals that many organizations still struggle with implementing a strategic approach to employee listening, with 37% lacking a formal listening strategy. This gap allows HR to harness data-driven insights and feedback mechanisms to make informed talent decisions. Listening to employees fosters a sense of engagement and provides the foundation for creating tailored strategies that enhance retention.
As HR strengthens its strategic partnership with organizational leadership, it’s clear that developing leaders and fostering a positive work environment will be key drivers of success in 2025. Organizations are also adopting emerging trends such as skills-based hiring practices, increased pay transparency, and AI-specific workforce upskilling strategies to support these priorities.
As the workforce landscape evolves, HR strongly emphasises cultivating leaders from within while refining talent retention and employee experience strategies. By focusing on leadership development, employee engagement, and strategic workforce planning, organizations can position themselves for success in an increasingly complex and competitive market.