2025 has been a tough one for HR so far.
Between economic uncertainty, tighter regulation, a shifting talent market and AI moving faster than most of us would like, it’s fair to say HR have had their hands full.
And while none of these issues are brand new, they’re starting to pile up in ways that are hard to ignore.
They’re showing up in the day-to-day: hiring takes longer, budgets are tighter, people need more support and the systems we’ve relied on can’t always keep up.
A recent article from Raconteur summed it up well, not by offering exact predictions but by holding up a mirror to what many in HR are already facing.
So I’ve pulled together a few of the themes that really resonated with me, along with some quotes that reflect where we are and where HR and HR leadership might need to re-focus.
1. Letting go of the myth of the “perfect hire”
Skills gaps persist, hiring costs are up and roles are changing faster than ever thanks to AI. The instinct to wait for “oven-ready” candidates is understandable but it’s also unhelpful.
If we’re serious about closing capability gaps, we need to move the focus to upskilling, internal mobility and building adaptable teams - not chasing unicorns.
2. DEI is being deprioritised - just when it’s needed most
Some major organisations are scaling back their DEI commitments. Whether it’s budget, backlash or political pressure, it’s clear that momentum is fading in some quarters.
“It’s easy to make a statement about diversity and inclusion. The real work is to hold yourself accountable for making progress.” - Josh Harris, CEO, Neverland
From what I come across, this is one of the biggest risks of 2025. Not just morally but operationally.
Inclusion is essential to innovation, retention and solving the very talent shortages HR are grappling with.
HR can’t afford for it to become an optional extra.
3. Return-to-office mandates are backfiring
The “return vs remote” debate is ongoing but what’s clearer than ever is that blanket mandates aren’t working. They erode trust and spark attrition, often without delivering any real uplift in productivity.
“There is almost no evidence that [remote workers] are skiving. I see it as people managing their life around their work.” - Gemma Dale, Senior Lecturer, Liverpool John Moores University
It’s important to consider stopping framing flexibility as a perk and rather as a core part of the employee experience. It can act as a key lever for retention and inclusion.
4. Regulation is getting stricter and it’s already being felt
New legislation, changing employment rights and rising costs are forcing HR to play an even stronger governance role.
The Government’s employment bill hasn’t even passed yet but its impact is already showing up in planning conversations and hiring freezes.
This isn't just about compliance, it’s about capacity and many HR teams are feeling the weight.
5. HR burnout is no longer hidden
Post-pandemic, the emotional load hasn’t lifted and it’s catching up with HR. While HR have prioritised everyone else’s wellbeing, HR teams are often stretched too thin.
“Businesses could face a challenging spike in HR turnover at a time when they want their teams performing at their best.” - Lenke Taylor, Chief People Officer, Personio
This is the year to be honest about HR capacity and to resource the function like the strategic asset we keep saying it is.
6. AI isn’t just a tech issue, it’s now a core part of the people agenda
We’re no longer in the "exploring use cases" phase.
AI is already in recruitment platforms, employee queries, performance systems, learning tools and more often than not, it’s entering our workplaces faster than we’re designing for it.
That’s the challenge and the opportunity. There’s a short window to shape how AI shows up in organisations before it becomes embedded in ways not intended.
“We’re at a point with AI where there are more questions than answers. We do not have the playbook for what it means to bring AI into our workforce.”- Sarah Franklin, CEO, Lattice
This isn’t about resisting change. It’s about making sure the systems we adopted reflect the values we stand for.
- Do employees know what’s being tracked, analysed or auto-generated about them?
- Do managers understand where AI can help and where it must not replace human judgment?
- Are we thinking about the unintended consequences, the bias risks, the trust gaps?
HR don’t need to be AI experts.
But they do need to be AI-ready with clear guardrails and a strong ethical backbone.
Because how AI is integrated in the next 12 months may define employee trust, organisational culture and HR’s credibility for the next 10 years.
My final thoughts
There’s no doubt that 2025 is asking more from HR than ever before. But amid all the changes, one thing remains constant: HR’s role isn’t just to react, it’s to steady the course.
It’s a reminder to keep learning from each other, challenging what’s outdated and building workplaces that work for the long term.
If any of this strikes a chord or highlights a challenge you’re facing - I’d love to compare notes.
Until next time,
Liz
