Ryan FowlerMcLean & Company’s latest HR Trends Report reveals that for the first time since 2020, HR’s role as a strategic partner to organisations has plateaued. The global HR research and advisory firm’s findings show that while 48% of HR organisations now have a formal strategy—up from 37% in 2024—there are growing pressures on HR to adapt to shifting priorities and prove return on investment in 2025.
Will Howard, practice lead at McLean & Company, said HR must shift its focus to internal talent development and retention, while demonstrating its value through data-driven insights: “From 2020 to 2024, HR’s strategic partnership surged as organisations navigated the pandemic and shifting worker priorities. In 2025, priorities are shifting, and HR must be quick to adapt to changes in strategic direction.”
The report, informed by insights from 779 HR and business professionals across regions including North America, Europe, and Asia, highlights five top priorities for HR in 2025: developing leaders, retaining employees, managing labour costs, enhancing employee experience, and recruitment. Howard added that HR’s ability to deliver on these priorities will be critical in maintaining its strategic role.
McLean & Company also identified key trends for 2025, including the need for human leadership in a complex digital world, where people managers are 1.7 times more likely to experience stress than individual contributors. Leadership development will be essential in equipping managers to balance their wellbeing with that of their teams.
The report underscores the transformative potential of AI in HR, noting that despite low levels of tech enablement within HR teams, effective AI adoption can significantly improve talent acquisition and decision-making processes. McLean & Company’s data shows that organisations using AI effectively are 1.4 times more likely to excel in learning and development.
Employee wellbeing remains a critical issue, with 70% of respondents citing economic instability as the biggest threat. Howard stressed that wellbeing strategies must align with employee needs: “Simply increasing spending is not always realistic or feasible. Instead, adopting a wellbeing strategy through employee listening will ensure resources are allocated to what matters most.”
Emerging HR trends for 2025 include redefining people manager roles, adopting skills-based hiring, measuring HR program ROI, and increasing transparency around pay decisions.
