The HR statistics & trends currently shaping the industry in 2025

AI is advancing fast, workplace expectations are shifting, and HR is under pressure to do more with less. In 2024, half of HR professionals faced budget cuts, and 60% struggled to prove the return on investment (ROI) of their initiatives.

To succeed in 2025 and beyond, HR teams must become even more strategic about resource allocation and double down on people analytics to inform decisions and secure leadership buy-in. But how?

Drawing from Leapsome’s 2024 Workforce Trends Report, this article explores the biggest shifts reshaping HR and how leading teams are adapting to stay ahead. 

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Economic pressures are pushing HR to rethink strategies

Budget cuts, hiring freezes, and shifting workforce expectations made it harder to secure funding for People initiatives in 2024. To adapt in 2025, HR leaders need to adopt tools that enable them to proactively demonstrate HR ROI.
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HR budgets are tightening, forcing leaders to do more with less

Half of HR professionals experienced budget cuts in 2024, while over one-third faced hiring freezes, stalled promotions, layoffs, and other team departures. The effects ripple across organizations, straining HR teams and impacting employees.

Adding complexity, HR roles now demand a hybrid of interpersonal and technical skills. In fact, 71% of HR professionals say they need stronger people skills, and 74% need greater technical expertise.

It’s no wonder that seven in ten HR leaders agree our current business climate is increasingly challenging.
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Proving the ROI of HR initiatives is a growing challenge

Budget cuts bring increased scrutiny to HR spending. Executives are looking for metrics to justify HR investments, yet many HR teams struggle to present them with compelling business cases — 60% of HR leaders say it’s difficult to gather the necessary People insights to back up their proposals. And even when data is available, nearly half of HR professionals (48%) say they struggle to prove the value of HR and align their initiatives with broader business goals.

To solve these issues, HR teams will need a better approach to people analytics — specifically, one that enables quick data synthesis and visualization. 
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Leaner tech stacks take center stage as a cost-cutting solution

With more scrutiny on their resources, HR teams need to get more out of their tech stacks. That means identifying redundant tools and consolidating functions — for instance, into a comprehensive HRIS with people enablement features. For example, a team might go from using different platforms for core HR, performance management, engagement, and learning and development, to a single solution for all of the above. 
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HR leaders face mounting pressure to consolidate tools

Having to “do more with less” affects everything — from staffing and budgets to HR software strategy. So, 85% of HR leaders are consolidating their tech stacks, streamlining processes, and phasing out tools that don’t improve efficiency.

But remember, a judicious auditing process is critical. After all, 99% of companies rely on HR technology to operate. Cutting HR software entirely isn’t realistic. Instead, top HR leaders will turn to more comprehensive solutions to consolidate tools and cut costs without sacrificing HR services or efficiency. 
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Current People data tools are missing the mark

The problem isn’t just the number of tools HR teams use — it’s how those tools function. While 78% of HR leaders say they need a unified source of People data, many solutions fall short. Nearly two-thirds of HR professionals say their current HR systems aren’t user-friendly, which slows down decision-making and introduces friction to the people analytics process. Saying goodbye to subpar tools in 2025 will be key to maintaining a high-performing HR team and getting leadership buy-in.

❗As “doing more with less” becomes a more common workplace mantra, it’s even more critical to experiment with automation and AI use cases.

Looking for ideas on how to get started? This year, HR leaders say they’re most interested in automating analytics and reporting, performance management, and employee data management — so start with one of these use cases and then build an AI program from there.

AI can give you an edge, but employee adoption lags

Many HR leaders and managers already use AI to streamline decision-making, optimize performance cycles, and gain better insights into employee sentiment. However, many individual contributors (ICs) have been slower in adopting it. A lack of training and lingering fears about job security are hindering them from unlocking the technology’s full potential.
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AI is already boosting efficiency for HR leaders and managers

Many HR professionals have moved beyond the experimentation phase and are now implementing AI and automation in earnest. More than 80% of HR leaders and managers rely on AI regularly, with 83% saying these tools help them work faster and smarter. From performance management and turnover prediction to personalized learning and survey analysis, AI is giving HR professionals deeper insights into their workforce.

Managers are also benefiting from these technologies. AI-powered tools help them with data analysis, feedback collection, and decision-making, reducing their administrative workload and giving them more time to focus on team development.
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Many employees haven’t adopted AI, but they’re eager to learn

Despite AI’s proven benefits, many employees haven’t incorporated it into their daily workflows. Just 42% of ICs in tech and consulting say they use AI weekly, and a third don’t use it at all.

That said, there’s a growing appetite to learn. AI and automation rank as the #1 skills ICs want to improve. This signals that employees are open to exploring new opportunities with AI, but need the proper training and reassurance to embrace it fully; nearly half of ICs (46%) admit they still worry that AI will replace a large portion of their roles.

For AI adoption to succeed at scale, companies and HR teams need to assuage these fears. That means positioning AI as a tool that enhances (but never replaces) human work, while investing in upskilling initiatives that help employees stay ahead and grow as professionals. 

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Managers need more support to drive results

Just like HR leaders, managers are feeling the weight of growing expectations. They’re leading bigger teams, taking on additional responsibilities, and navigating new workplace realities, all while trying to keep their reports engaged and productive. Without the right support, overwhelm and burnout are inevitable.
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Rising workloads are fueling burnout across organizations

Workloads have increased dramatically, and not just in the HR department. Over 70% of managers and 63% of ICs say they have more on their plates than they did in 2023. The impact is clear — 60% of managers and 50% of ICs report feeling overwhelmed, and more than half say their mental well-being has deteriorated.
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Turnover rates are rising & managers are stretched thin

As workloads increase, so does turnover. In 2024, one in three ICs were considering quitting or actively seeking a new job, citing career stagnation, inadequate pay, and poor work-life balance as top reasons for leaving.

Meanwhile, layoffs and hiring freezes mean remaining managers are responsible for larger teams than ever — 61% of respondents had more direct reports than the previous year.

If companies want to improve retention, they need to address these underlying issues. That means rethinking workload distribution, prioritizing employee development, and giving managers the resources they need to effectively support engagement.

Identifying ways to proactively address burnout will be difficult in 2025, especially as HR teams also feel stretched thin. That’s where efficient tools and systems come in.
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Efficient tools & systems are more critical than ever

HR leaders, managers, and employees agree that outdated, inefficient systems are making work harder than it needs to be. Nearly half of respondents in all groups say better tools would help them stay productive and focused in the year ahead;  efficient tools and systems ranked as the #1 concern for HR leaders and ICs, and the #2 concern for managers.

Flexibility is another growing priority. While hybrid and remote work remain popular, managers are finding it harder to keep their teams aligned and connected. Employees, on the other hand, want more autonomy and better work-life balance. More than rethinking where work happens, organizations must focus on how to support it — such as through smarter workflows, clearer communication, learning opportunities, and better access to critical information.
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Looking forward: developing trends in 2025

From AI adoption challenges to return-to-office debates, HR leaders face new pressures daily. Here are some of the trends leaders should keep an eye on in 2025 based on Leapsome’s latest research:

• HR will become more strategic — Most HR leaders say their role as strategic consultants is expanding, and 92% feel prepared to generate business impact. Meanwhile, building high-performing teams is now a top priority, with 62% of HR leadership being responsible for workforce productivity and 48% making key business decisions.

• Workplace division will impact HR’s ability to lead — Political and cultural shifts are creating deep divisions within organizations, leaving HR caught in the middle. Two in five HR leaders say these divides are making it harder to implement changes, and 72% report that workplace polarization is negatively affecting overall business impact. DEIB initiatives are also at risk, especially in the United States. A third of HR leaders worry about budget cuts, which could lead to higher turnover and lower morale.

• AI skills gaps & adoption will remain a challenge — Despite the push to integrate AI, many companies aren’t ready. Three in five HR leaders report a significant AI skills gap, and nearly 94% believe failing to reskill employees could put their companies at risk.

• Return-to-office pressure will grow — The debate over remote work isn’t going away. More than half of HR leaders (56%) say their CEOs are pushing for a return to office, but they’re not convinced. 82% agree that innovation and collaboration can happen anywhere, and 79% believe giving employees a choice over where they work leads to better productivity.

• More creative productivity measures will emerge — Productivity is no longer being reduced to clocking in and out every day. Companies are now evaluating success based on factors like creativity (50%), innovation (47%), and task completion (44%) rather than hours worked (29%).

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Navigate the future of HR with Leapsome

As budgets shrink, expectations grow, and AI reshapes the workplace, HR leaders have a chance to redefine their role, leading through complexity and driving real business impact. But success requires leveraging the right tools to streamline operations, empower managers, and make data-driven decisions.

That’s where Leapsome comes in. Leapsome’s all-in-one HRIS and people enablement platform helps HR teams navigate complexity with confidence — no sprawling tech stack required. Whether it’s optimizing performance management, boosting employee satisfaction, or aligning teams with business goals through data-driven analysis, Leapsome equips HR leaders with everything they need to succeed.

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