Article: Lessons to shape HR strategies in 2025

Strategic HR

Lessons to shape HR strategies in 2025

To have a successful organisation in 2025, the right HR strategies, focussed on employees’ well-being, are important as they help companies to achieve their goals, aligning HR practices with business objectives.
Lessons to shape HR strategies in 2025

Human resource (HR) and talent management verticals would continue to evolve in 2025 like in the previous year with HR management trying to stay ahead, ensuring their companies remain competitive in attracting, retaining and developing talent – prerequisites for a business growth.  

2024 has been a year of change, as well as opportunities as the workplaces have witnessed new technologies, evolving employee expectations, and a rising focus on a culture of well-being. To build a strong organisation in 2025, HR strategies should focus on understanding employees’ needs. Some of the HR strategies are shared below.   

Well-being a prime focus 

HR leaders had prioritised employees’ well-being over other things in 2024 as it can lead to reduced absenteeism, increased employee engagement and productivity. Employee well-being is vital for building a strong, and sustainable workforce, required for a company’s growth.

How to have a culture of well-being in 2025?

HR managers should realise that it’s no longer about addressing burnouts as employees are looking for more holistic approach towards well-being. 

HR strategies should have flexible working options, breaks during working hours, career guidance, access to mental health resources, learning opportunities, recognising and celebrating employees’ achievements, among others.

Rise of AI-powered recruitment    

Artificial intelligence (AI) has become a necessity for HR leaders to recruit the right talent in 2024. AI-powered tools do everything from collecting candidates’ profiles, screening talents, engaging with them to onboarding new talents.  

HR leaders might be more dependent on AI to acquire talent in 2025 and those implementing AI-solutions will be ahead of others. About 75% of HR leaders think that if their companies don’t embrace AI solutions, like GenAI, in the next 1-2 years, they will be lagging in growth, said a study by Gartner. GenAI enhances the quality of hiring by reducing bias and improving candidates’ match. 

How to benefit from AI revolution in 2025?

Try to incorporate more AI-driven tools to improve employees’ engagement, tracking performance and getting feedback. HR managers should have full knowledge about AI-powered tools like HireEZ, TurboHire, Fetcher, HireValue, among others. They should work with recruitment partners who have invested in AI tools to smoothen and quicken the process. Team members should be well-trained to leverage this upgradation. 

Skill-based hiring is the new trend

Skill-based hiring, which focuses on candidates’ actual potential, is the solution for skill gaps in companies. Employers think that 44% of workers’ skills will be disrupted in the next five years, said a report by World Economic Forum. Six in ten workers would require additional training before 2027 to get jobs, it said. The shift towards skills-based hiring is high because of the rapid evolution of job skills.

How to implement skill-based hiring in 2025?

HR managers can work with those who understand business needs and specific skills required for achieving goals. They should work with other departments to identify evolving skill needs and adapt to new job requirements.

Further, review and revise job descriptions to focus on skills and competencies rather than formal qualifications and degrees.

Diversity and inclusion of next generation workforce

The focus in now shifting to get ready for the next-generation workforce, such as Gen Z and Gen Alpha. Gen Z is expected to represent 27% of the total workforce by 2025, according to a study. While Gen Alpha is expected to enter the workforce in the late 2020s and early 2030s, it said. These generations would redefine organisational values, professional development expectations, and perceptions of work-life balance.

How to embrace diversity in 2025? 

Some HR strategies for embracing diverse workforce in 2025 include, creating flexible work models, investing in advanced technology, promoting a purpose-driven work environment, providing continuous learning and re-skilling opportunities, cultivating collaborative and inclusive cultures and having a human element for team members.

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Topics: Strategic HR, HR Technology, Leadership, #TechHRSG

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