HR’s Focus for 2025
In our first month of RedGreen Partners, Directors and Co-Founders Nick Allwood Kerry White have really enjoyed catching up with their network (new and old) and hearing about what 2025 has in store for the HR world.
Kerry White wanted to share some of these findings in her “HR’s Focus for 2025” and each Focus includes a commentary from our HR network. First up is:
LEADERSHIP DEVELOPMENT
For many, Leadership Development is the top focus for HR in 2025. Particularly as a high number of Companies are aiming to get more output with less headcount. Investing in Leadership Development to equip and upskill their business leaders to adapt, could be essential to an organisation’s success.
An environment which promotes mentorship/coaching/regular knowledge-sharing sessions will not only allow Leaders to continuously learn but also guide and instil this way of learning to future Leaders.
Gartner recently reported that 75% of HR leaders believe managers are overwhelmed with the expanding scope of their responsibilities and only 23% of HR leaders are confident there are rising leaders who can meet the future needs of the organization.
So want can HR focus on? Melanie Bowes, HR & Leadership Development Consultant at Budie People Consulting & Coaching kindly shared her thoughts……
“As HR professionals, we know that investing in leadership development can increase engagement and effectiveness at every level of the organisation. However, to maintain investment in a cost-conscious climate, we must be better at articulating the link between leadership development and organizational effectiveness, we must be scrupulous in selecting only the most impactful initiatives, and we must continue to measure and report on ROI”.
RESPONSIBLE TECH & AI
We’re not just talking Tech & AI but RESPONSIBLE Tech & AI.
We all know that technology and AI now touches every aspect of HR operations and employees’ work. Tools like AI HR Assistants are making recruitment and onboarding supposedly smoother and technology can make decision-making easier by providing data insights and handling routine tasks.
According to Global Market Researcher Research And Markets, the HR market for AI is projected to reach $17.61 billion by 2027 (worth $3.89 billion in 2022).
But….. using technology, particularly AI isn't without its issues. It goes without saying that there needs to be a human involvement in any utilised AI material, be that for HR, recruitment or business decisions. Organisations need to balance the efficiency it brings, alongside ethical considerations.
Ben Gledhill, Interim Recruitment Strategy Consultant at Stagecoach added “..the use of AI in HR is very much a double-edged sword. Yes, there are many benefits such as an increased user experience as well as the obvious efficiencies available, however it needs to be leveraged with both pragmatism and ethics. We are in danger of falling to the “hype” without truly understanding the full capabilities in all elements of the people life cycle. Workflow automation has been around for years, and we are already seeing many organisations utilise Generative AI; how we fully embrace AI is bigger and much braver question.”
Likewise, as AI becomes increasingly embedded in workplace processes, regulatory changes surrounding it's use in employment decisions are gaining momentum. Now more than ever, organisations should monitor and comply with emerging laws governing data usage and AI systems.
THE GREAT RETURN TO (A FLEXIBLE) OFFICE
This Focus is a real love it or loath it topic which we could probably write a book on, let alone a quick synopsis!! It’s The Great Return to (a flexible) Office….
At the back end of 2024, high profile organisations such as Amazon, Manchester United, Tesco and THG sanctioned a return to the office mandate rather vocally and earlier this month, the CIPD stated one in 11 (9%) of organisations are NOT allowing any form of hybrid working. But what’s right for your organisation?
In January’s Workforce Trends report, the CIPD found that only 13% of UK employers believed remote working had harmed productivity, while 46% reported employees were actually more productive when working from home or in a hybrid model.
At RedGreen Partners, we’re constantly speaking to our network and flexibility (not just site/home working patterns) at work is definitely in the Top Three motivations for job seekers.
For many businesses, 2025 will be a decisive year to properly measure and respond to their working pattern. With flexible working requests having also increased in 2024, organisations need to evaluate not just on business’ performance but their culture and Employee Experience and engagement.
Maxine Blackwell, People & Culture Director at Zen Internet added: “It’s great to offer flexibility so people can gain work-life balance but what happens when it starts to feel that the balance is moving too far in one direction? Well, in many cases companies are not having those difficult and upfront conversations and instead, mandating that people go back into the office. It’s a one-size fits all approach that doesn’t necessarily support colleague engagement. Why not instead, consider looking at the working practices, do you have core hours that colleagues must be available to work and have these been effectively communicated? Do your Managers regularly have conversations with their teams about performance and more specifically honest conversations with those who aren’t delivering? I’m a big advocate of working collaboratively and the benefits of coming together regularly in a shared space which helps build camaraderie, trust and supports health and wellbeing. But finding the right balance whilst attracting and retaining talent is crucial.”
Whether it’s site based, hybrid, remote or agile working, what seems to be imperative for the workplace of the future, is that there needs to be open and continuous communication from the Leadership down AND back up again. Keep speaking, communicating and engaging. Show and embrace the benefits of working collaboratively rather than dictating and being prescriptive.
EMPLOYEE EXPERIENCE AND COMPANY CULTURE
To many, Employee Experience (EX) is the vital component in creating a strong and espoused workplace culture and we certainly saw an increase in EX specialists and positions in 2024. A trend expected to continue into 2025.
A Qualtrics 2025 Employee Experience Trends Report stated two-thirds (66%) of employees believe their senior leaders are both competent and act consistently with the organisation’s values, but only 52% believe they will choose employee well-being over short-term gains.
Employees are no different to any end consumer who may be buying a car or booking a holiday through a travel agent. They’re all looking for a personalised experience.
Lisa Dolan, Regional VP of Employee Experience at Teleperformance commented “In 2025, focusing on employee experience is crucial for any business. Employee experience includes the physical work environment, tools and technologies, and company culture. Prioritising this helps attract and keep top talent, boost productivity, and create a positive work culture.
Areas to concentrate on are:
Engagement: Engaged employees are more motivated and productive.
Well-being: Prioritising health and well-being create a supportive work environment;
Effective Communication;
Technology: Investing in the latest technologies can improve employee morale and productivity;
Measuring Success
By focusing on these areas, you can create a positive and productive work environment, attract and keep top talent, and boost overall productivity.”
SUSTAINABLE WORKFORCE PLANNING OVER REACTIVE EXPANSION
The lesson from the pandemic’s hiring spree will remain clear in 2025: Strategic and sustainable growth requires thoughtful, long-term planning, not reactive expansion.
Employer brands and company profits are better served when they avoid large fluctuations in staffing and one major benefit is building a resilient and adaptable workforce. By forecasting trends and challenges, companies can address skills gaps, invest in employee development and create a more engaged workforce. This proactive and over-arching strategy helps retain top talent and reduces turnover.
Hannah Dale, Workforce Planning Manager at Information Commissioner’s Office added… “In a time when societal and technological shifts are reshaping the way businesses operate, it’s more important than ever for leaders to understand future skills and resource requirements. By adopting a proactive, strategic approach to workforce planning—and ensuring an inclusive, EDI-focused mindset throughout—businesses can boost employee engagement, enhance workforce agility, and remain competitive in an ever-changing environment. Aligning workforce strategies with long-term business objectives ensures organisations have the right talent, with the right skills, in the right roles, at the right time—ultimately positioning them for sustained success.”
In contrast, reactive expansion often leads to hasty hiring decisions driven by immediate headcount needs, resulting in a mismatch between new hires' skills and the organisation's long-term needs. It can also strain resources and create a chaotic work environment, impacting productivity, morale and turnover.
So, by focusing on a long term, sustainable workforce plan, organisations can prepare for future growth and market changes, supporting long-term success and fostering a positive work environment.
GOVERNMENT AND EMPLOYMENT LAW CHANGES
For our final Focus, we couldn’t not mention the Government and Employment Law changes which have/are coming in….
When the new Government took office halfway through 2024, everyone knew there would be changes which would impact employees, employers and organisations.
The increase in wages and employer NI contributions coming into effect in April 2025 has already seen a number of businesses showing their hand and making staff cuts to reduce costs. The Office for Budget Responsibility (OBR) estimates that, overall, the changes will add 2% to employers' payroll costs. So, for those that can absorb the increase without headcount cuts it will likely only lead to prudent hiring at best. Unless you’re bucking the trend of course, and some Companies are doing very well.
Charlotte Dean, Managing Director at P3 People Management added… “The Employment Rights Bill (ERB) has been the talking point in the people space for months now. Understandably organisations are concerned about the changes this will bring. Change can be challenging, but we can handle it. Many of the changes will not take effect until later in 2025 or indeed 2026. So, my advice is to stay informed and have the timeline for changes on your radar.
However, there are steps employers can be taking now to get ahead of the curve. For example, don't wait for the removal of the 2-year qualifying period to be better at managing new recruits! Instead, start improving your onboarding process now. Taking action now will set us up for success, and remember, these updates can bring new opportunities.”
Finally, with a risk averse employer market, interim appointments may be a strategy used by Companies when a permanent hire may not be able to be 100% justified by key decision makers. This has already been evidenced at RedGreen Partners by the number of enquiries from both hiring managers and candidates who are looking to explore interim or temporary contract solutions.
CONCLUSION
What is paramount from these Focuses is that they’re all intertwined and there will be a lot of interface and crossover between them.
HR teams are going to have to work as exactly that – A Team. Communication and collaboration are going to be key for everyone.
With so much more than these 6 Focuses for HR to concentrate on (and I’ve not even mentioned change management and attraction and retention!), in my opinion, the sector is continuing to show its value at the top table and 2025 is going to be a busy year for everyone in HR!!
Whether you’re looking for that next career move or recruiting into your HR team, who you partner with can make all the difference. RedGreen Partners were founded on doing the right thing and treating everyone we partner with as equals. We support, counsel and guide our candidates on their goals, aspirations and progression through every step of their professional journey and our clients trust us and our ability to attract, engage and secure top talent.
For a confidential chat with Kerry White, Director at RedGreen Partners, please email kerry.white@redgreenpartners.co.uk or call 07831464981