It feels like we only just wrapped up 2023 and already we are here wrapping up 2024! The last couple of years have seen a plethora of industrial relations changes, but what does 2025 hold for those with a HR focus? At their recent ReimagineHR Conference in Sydney, Garter highlighted the top three trends that will shape HR priorities in 2025.
Their insights are summarised below, and you can click here to read it for yourself.
1. HR supporting growth strategies
56% of CEOs cited that growth remains a top business priority for 2025, with workforce strategies ranking fifth among organizational concerns. With that is an increasing recognition of the role HR plays in aligning workforce capability to support business growth ambitions.
How do we address this in HR?
- Identify high-growth areas: Collaborate with leadership to understand which business areas are poised for expansion and prioritize workforce investments there.
- Mitigate talent risks: Use workforce analytics to predict potential gaps and develop strategies to address them proactively.
- Position HR as a strategic partner: Clearly articulate how HR initiatives directly contribute to growth and transformation goals.
2. Bridging the Gap Between AI Ambitions and Reality
Artificial Intelligence is seen as the most impactful technology for 2025, with 74% of CEOs prioritizing it. However, organizations face barriers like data limitations, skills shortages, and change resistance when implementing AI strategies.
How do we address this in HR?
- Foster an AI-ready culture: Create awareness about AI’s potential and involve employees in conversations about its benefits and implications.
- Upskill and reskill employees: Develop targeted training programs to build the technical and strategic skills needed for AI integration.
- Enhance change leadership capabilities: Equip leaders with the tools to manage transitions effectively and encourage buy-in across the organization.
3. Navigating Labor Market Shifts
Talent shortages, skills mismatches, and rising employee expectations are reshaping Australia’s labour market. Nearly half of job seekers decline offers due to unmet expectations, highlighting the need for stronger alignment between EVP and workforce demands.
How do we address this in HR?
- Refine the employer value proposition (EVP): Ensure EVP messaging reflects genuine organizational values and meets employee expectations.
- Adopt capabilities-focused workforce planning: Regularly assess current workforce capabilities and identify gaps to align with future demands.
- Prepare for future scenarios: Use predictive analytics to plan for labour market changes and adapt workforce strategies accordingly.
To thrive in 2025 and beyond, HR must adopt proactive strategies that address the intersection of technology, workforce dynamics, and growth. By tackling these challenges head-on, HR can help organizations build resilient workforces, enhance employee experiences, and drive long-term success.