TABLE OFCONTENTS 13Navigating the Future: HR and WorkforceInsights for 2025 EXECUTIVE SUMMARY In 2024, HR departments faced the challenge of steering organizations through rapid change, politicaland economic uncertainty, and the ever-evolving nature of work and the workplace. This report delvesinto HR’s role during this transformative year, highlighting key achievements and opportunities for futuregrowth. Drawing on insights from 1,615 HR professionals, 238 HR executives, and 471 U.S. workers, thefindings encapsulate multiple perspectives to assess HR’s effectiveness across 16 HR practice areas.This comprehensive review offers valuable insights into HR in 2024 while providing actionable insightsto inform strategies for 2025 and beyond. KEY FINDINGS: 1.Recruiting a Persistent but Common Challenge —In 2024, recruiting was the top priority for HR,fueled by the ongoing challenge of attracting top talent in a market where job openings outnumberindividuals actively seeking work. Given these conditions, it is unsurprising that only a portion ofHR professionals and U.S. workers viewed their organization’s recruiting efforts as effective. Thesestaffing challenges resulted in heavier workloads for some employees, ultimately driving higherburnout rates. 2.Employee Experience as a Strategic Priority —In 2024, employee experience was a top priorityfor HR. Previous research conducted by SHRM Thought Leadership identified a strong connectionbetween employee experience, engagement, and turnover;¹ however, not all HR professionals orU.S. workers felt that their organizations excelled in these areas. Key drivers of positive employeeexperience include teamwork, purpose, fairness, and recognition. The current research highlightsrecognition and team collaboration as areas of opportunity to enhance employee experience anddrive retention, which are crucial amid labor shortages. 3.Leadership and Manager Development as a Catalyst for Growth and Key Priorities —In 2024,leadership and manager development was a key focus for organizations, seen as essential notonly for individual growth but also for its broader impact on employee experience and retention,two areas critical to the other 2024 priorities. Despite its importance, however, only a portion of HRprofessionals and U.S. workers felt that their organizations excelled in this area, with about a thirdof workers reporting poor management and ineffective senior leadership. 4.Excellence in Labor Relations and HR Function Strategy and Management —Labor and employeerelations emerged as the strongest-performing HR practice area in 2024, earning the highest ratingsfrom HR professionals, HR executives, and U.S. workers alike. Similarly, HR function strategy andmanagement was recognized as a highly effective practice area, particularly by HR professionalsand HR executives. However, neither of these HR practice areas were a top priority in 2024,reflecting their established nature as foundational to the HR function. This foundational strength willbe particularly important amid the rapidly evolving regulatory and political landscape of 2025. 5.A Call to Shift Priorities Toward Employee Engagement and Development in 2025 —Both HRprofessionals and U.S. workers are aligned in identifying leadership and manager development,employee experience, and learning and development as the major priorities for 2025, signaling ashift from a recruiting focus in 2024 to a focus on employee development and engagement in 2025.Workers also highlighted the importance of total rewards in light of inflation and economic concerns,creating new challenges for HR to address in a constrained environment. 6.Strong HR Technology Important to HR Success —HR technology emerges as a pivotal yetpotentially overlooked pathway to achieving 2025 priorities. The data showed a strong relationshipbetween the perceived effectiveness of HR technology and overall HR effectiveness — when HRtechnology is more effective, U.S. workers are more likely to view their HR departments as effective.HR technology’s strong relationship with learning and development effectiveness further reinforcesits strategic value. In sum, 2024 was defined by talent shortages, technological advancements, and a rapidly evolvinglandscape, driving organizations to prioritize recruiting efforts while also focusing on employeeexperience and leadership as well as manager development to develop and retain scarce top talent.HR excelled in labor and employee relations as well as HR function strategy and management, areasthat, while not top priorities, are essential to HR’s role. Looking ahead in 2025, HR professionals and U.S. workers are calling for a shift toward employeedevelopment and engagement, with HR technology potentially playing a key role in achieving thesepriorities. The strong foundation in labor relations and HR strategy and management will be crucial asorganizations navigate the evolving regulatory and political landscape. INTRODUCTION The yea