HR's Role as Strategic Partner Stagnates for First Time in Four Years: HR Must Adapt to Shifting Priorities and Demonstrate Data-Backed ROI in 2025, Says New Trends Report From McLean & Company

Global HR research and advisory firm McLean & Company has published its highly anticipated annual HR Trends Report. The 2025 report outlines current and future trends in the HR space, identifies top priorities for the coming year, and provides data-based insights to help HR leaders prepare their organizations to thrive in the future of work, advising that HR must also strengthen its position as strategic organizational partner. 

TORONTO, Jan. 7, 2025 /CNW/ - As reported in the recently published HR Trends Report 2025 from global HR research and advisory firm McLean & Company, alongside the top priorities and expected trends for 2025 found in the firm's annual report is the critical finding that for the first time since 2020, HR's role as a strategic partner to the organization did not grow. The firm's research insights indicate that although HR is becoming more strategic, with 48% of HR organizations reporting they have a formal HR strategy compared to just 37% in 2024, HR must adapt to changes to sustain and grow its strategic relationship with the organization and demonstrate the value and return on investment (ROI) of HR initiatives.

McLean & Company, one of the world’s leading HR research and advisory firms, has released its HR Trends Report 2025. The annual report examines current and future HR industry trends and spotlights top priorities in the coming year, backed by the firm’s research and survey data, to help HR leaders prepare for an unpredictable future and strengthen HR’s position as a strategic partner to the organization. (CNW Group/McLean & Company)

The firm also outlines how HR professionals are facing increased economic pressures and a competitive labor market, as HR's top priority has shifted away from recruitment toward developing leaders, retaining employees, and managing labor costs in 2025.

"From 2020 to 2024, HR's strategic partnership surged as organizations navigated the pandemic, remote work, and shifting worker priorities. Effective change management, talent management, and talent acquisition were crucial during this period, and HR was a critical partner in navigating those changes," says Will Howard, practice lead, HR Research & Advisory Services at McLean & Company. "In 2025, priorities are shifting, and HR must be quick to adapt to changes in strategic direction. HR has an opportunity to deliver value through internal talent development and retention and show, through data, how they deliver organizational priorities."

The report has been informed by the perspectives of 779 HR and business professionals across a variety of regions, including North America (84%), Europe (6%), Asia (4%), Oceania (2%), Latin America (2%), Africa (2%), and the Middle East (1%). Respondents' industries included manufacturing, finance and insurance, healthcare and social assistance, educational services, public administration, retail trade, construction, transportation and warehousing, professional, scientific, and technical services, and more.

The full report from McLean & Company spotlights the top five priorities for HR organizations in 2025, noting that there have been some significant shifts in ranking compared to the firm's 2024 report released late last year. According to the firm's most recent findings, HR's top priorities in 2025 are:

1. Developing leaders
2. Retaining employees
3. Controlling labor costs
4. Providing a great employee experience
5. Recruitment

McLean & Company advises that the ability to demonstrate how HR delivers on the new top five priorities will be key in strengthening HR's role as strategic partner in the coming year.

Top Trends for HR in 2025

In addition to HR's top five priorities in 2025, the new report from McLean & Company examines pivotal trends that must be considered and prioritized in the coming year as HR continues to develop and maintain its strategic partnership with the organization:

1. Human Leadership in a Complex Digital World. In an increasingly complex and rapidly changing environment, leaders are facing increasing demands. Their evolving role now emphasizes guiding employees toward growth, purpose, and fulfillment while ensuring their wellbeing and a positive employee experience. According to the report, people managers are 1.7 times more likely to report higher levels of stress compared to individual contributors. Developing leaders, the #1 priority for HR in 2025, will be crucial in preparing leaders for a future of work in which their roles are stretched and they are tasked with balancing their own wellbeing alongside the wellbeing of their teams.
   
   The firm's research findings show that when HR excels at leadership development, organizations are 1.9 times more likely to be high performing at achieving strategic goals and objectives, 1.8 times more likely to be high performing at cost optimization, and 1.7 times more likely to be high performing at revenue growth.
   
   
2. AI Transformation in HR. HR plays a key role in the adoption of AI, but HR's technology enablement skills remain low, with HR's level of effectiveness in tech enablement ranked in last place of the competencies measured in the report. McLean & Company's research highlights that it is vital for HR to invest in technology skills, as they are key in enabling the successful adoption and integration of AI within the organization.
   
   Effective use of AI in HR enhances key employee experience outcomes, such as talent acquisition, the candidate experience, talent management, and learning and development. For example, when HR uses AI effectively, organizations are 1.3 times more likely to be highly effective at recruiting by effectively filling vacant roles with quality external talent and at providing a great candidate experience, 1.2 times more likely to be highly effective at facilitating data-driven people decisions, and 1.4 times more likely to be highly effective in learning and development.
   
   
3. Navigating Multiple Threats to Wellbeing. McLean & Company's survey data shows that 70% of respondents reported economic instability as the largest threat to the wellbeing of their workforce, with tightening labor markets, new legislation, and political issues rounding out the top four threats to employee wellbeing.
   
   "Wellbeing investments must be aligned with employee needs to ensure return on investment," explains Howard. "Organizations need to first listen carefully to understand employee wellbeing priorities and needs, then act accordingly. But simply increasing spending is not always realistic or feasible. Instead, adopting a wellbeing strategy that is developed through employee listening will be foundational in ensuring that limited resources are strategically allocated to what matters most to the workforce."
   
   The new report shows that HR organizations with a formal, documented wellbeing strategy are 1.6 times more likely to be high performing in supporting employee wellbeing and 1.3 times more likely to be high performing at providing a great employee experience (priority #4 for HR in 2025).
   
   
4. Emerging HR Trends. Making sense of new and varied HR best practices can easily become overwhelming. To cut through the noise, McLean & Company identified ten emerging trends in the HR landscape and surveyed respondents on the organizational impact they anticipate each practice will have.

The ten emerging trends, ranked in order of anticipated organizational impact, are:

1. Redefining expectations for the roles of people managers.
2. Adopting skills-based hiring practices.
3. Measuring the ROI of HR programs.
4. Breaking jobs down into tasks to match individuals with work and projects based on skills and interests.
5. Increasing transparency into pay and pay decisions.
6. Implementing an AI-specific workforce upskilling strategy.
7. Adopting trauma-informed practices to foster a safe workplace for all.
8. Enabling the organization to practice neuroinclusive leadership.
9. Providing reverse mentorship opportunities.
10. Implementing returnships to access a larger talent pool.

A more detailed view into the anticipated impact and implementation rates of these emerging trends is available in the full report.

The HR Trends Report 2025 from McLean & Company offers a plethora of critical data-backed insights for HR organizations, including that HR will be key in driving talent development and retention to reduce recruiting expenses and help control labor costs while ensuring the organization has the talent and leadership required for 2025 and beyond. 

The firm also advises that HR must insert itself into the AI conversation, as technology changes are people and process changes, areas in which HR plays a pivotal role. In effectively managing and delivering on HR's top priorities while planning for current and future trends, HR has an opportunity to showcase its abilities and cement its role as a strategic organizational partner in the future of work.

To access the full HR Trends Report 2025, including extensive data points and research-driven insights on each identified trend, a full list of the top eight threats to employee wellbeing in 2025, AI use case percentages by HR taxonomy areas, and more, please contact [email protected].

To register for McLean & Company's free upcoming webinar inspired by the firm's HR Trends Report 2025, please visit the registration page for January 16 at 1:00 PM ET or the registration page for January 23 at 1:00 PM ET.

Media interested in accessing full research insights or connecting with McLean & Company analysts for exclusive, research-backed insights and commentary on HR trends in 2025, HR's critical role in digital transformation and the future of work, and more can contact Senior Communications Manager Kelsey King at [email protected].     

About McLean & Company

McLean & Company pairs evidence-based research and immediately applicable tools with deep HR expertise to position organizations to meet today's needs and prepare for the future. The global HR research and advisory firm's member organizations enjoy comprehensive resources, full-service diagnostics, workshops, action plans, and advisory services for all levels of HR professionals, from executive leadership to HR leaders to HR team members, that help shape workplaces where everyone thrives.

McLean & Company is a division of Info-Tech Research Group.

Media professionals can register for unrestricted access to research across IT, HR, and software and hundreds of industry analysts through the firm's Media Insiders program. To gain access, contact [email protected].

SOURCE McLean & Company

Media Contact: Kelsey King, Senior Communications Manager, McLean & Company, [email protected] | [phone] x2418