In recent years, the landscape of Human Resources (HR) has been marked by rapid changes, moving from one crisis to another. As HR teams catch their breath, they face a pivotal moment where hiring remains uncertain, diversity initiatives are sidelined, and the rise of AI questions the "human" in human resources. Despite these challenges, building a high-performing organisation remains a constant goal. This is evident in global people strategies that have remained stable between 2023 and 2024, focusing on employee engagement, performance management, learning and development (L&D), and manager enablement.
The 2025 State of People Strategy report reveals several crucial insights that shape the current HR landscape:
Employee engagement remains the top priority for HR teams for the fourth consecutive year.
High-performing teams excel at meeting managers' needs, with 91% achieving this compared to only 41% of lower-performing teams.
There's a noticeable decline in prioritising diversity, equity, inclusion, and belonging (DEIB) programmes, with only 15% of respondents considering them a top priority.
AI adoption in HR has stagnated, but its potential remains significant, particularly in content generation.
Flexible work policies are gaining traction, especially in Europe, as organisations adapt to new work paradigms.
These findings underscore the evolving nature of HR strategies and the need for adaptability in the face of changing workplace dynamics.
High-Performing Teams: These teams excel by meeting managers' needs, with 91% achieving this compared to only 41% of lower-performing teams. They prioritise performance reviews and trust in senior management.
Managerial Focus: Managers emphasise team connection, with 78% conducting regular check-ins. This connection is crucial for meeting goals and enhancing team dynamics.
Shared Responsibility: Culture and people strategy require collaboration between HR and managers. While managers influence daily employee experiences, HR sets the vision and values.
Engagement as a Priority: Engagement remains HR's top priority for the fourth consecutive year. Organisations recognise that engagement and performance are intertwined, contributing to long-term employee success.
Challenges in DEIB: Diversity, equity, inclusion, and belonging (DEIB) efforts have seen a decline in prioritisation. Only 15% of respondents prioritise DEIB programmes, highlighting a need for sustained commitment.
Growth Through Innovation: With budget constraints, HR teams are innovating in L&D initiatives to boost engagement. Flexible work policies are increasingly popular in Europe.
AI in HR: While AI adoption has stagnated, its potential remains significant. Current applications focus on content generation, but advanced analytical uses are less common.
The 2025 State of People Strategy report underscores the importance of strategic collaboration between HR and managers to foster an environment where employees can thrive. As organisations navigate these challenges, the role of HR in shaping culture and supporting managers becomes increasingly vital.
For more insights or to discuss how ECW Search can support your organisation's people strategy needs, please contact us today! Our team of experts is ready to help you navigate the evolving landscape of HR and build a robust, future-proof people strategy. Visit www.ecwsearch.com or email us at contact@ecwsearch.com
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