A new report from SHRM reveals that HR professionals are pivoting from recruitment to internal talent development as organizations look to strengthen leadership and improve employee retention in 2025.
According to SHRM’s 2025 State of the Workplace and CHRO Priorities and Perspectives reports, recruiting was the top HR focus in 2024, cited by 43% of respondents. But with limited success—only 56% rated their efforts as effective—many organizations are now emphasizing employee experience, leadership development, and upskilling existing talent.
“As organizations continue to navigate talent shortages, economic fluctuations, and evolving workplace dynamics, HR leaders are shifting their focus to long-term workforce development and engagement strategies,” said Johnny C. Taylor, Jr., SHRM president and CEO.
Burnout and workload pressures remain top concerns. SHRM’s research shows that employee experience, driven by factors like fairness, recognition, and a sense of purpose, is increasingly seen as vital to retaining talent and reducing burnout.
Leadership and management development also rose in importance, though execution remains a challenge. Nearly a third of workers surveyed cited ineffective leadership and poor management at their organizations.
The report found that labor and employee relations were the highest-rated HR function by both professionals and workers, signaling operational strength in that area.
Looking ahead, 51% of chief human resource officers (CHROs) identified leadership development as a key 2025 priority. Other top concerns include organization design and change management (30%), employee experience (28%), and talent management strategies (27%).
The findings also reflect the growing influence of technology. About 90% of CHROs expect greater AI integration across the workplace in 2025, with 83% predicting its expansion in HR functions. Even so, the human side of work remains a focus: 59% of CHROs expect more attention on employee well-being and mental health, and 53% foresee increased investment in rapid skill development.
