Title: Tackling Internal Challenges: 3 Strategies for HR Leaders to Confront Future Disruptions in 2025
Jennifer Rozon serves as the President of McLean & Company, a go-to resource for HR and leadership experts worldwide. With a torrent of economic and political changes, technological advancements, and the demand for human-centric work practices, organizational dynamics are in a state of flux.
Faced with multiple pressures, HR teams must provide support during a mental health and well-being crisis, guide leadership through shifting societal expectations, manage labor costs in uncertain economic times, and handle a myriad of other challenges.
As a result, HR priorities are undergoing transformations. Recruitment is no longer the top concern for HR and business professionals, according to McLean & Company's recent survey. Instead, the focus has shifted towards leadership development, retention, and labor costs management.
These shifting priorities indicate numerous uncertainties and contradictions that necessitate preparation. In the absence of a crystal ball, HR leaders must prepare for the future by revisiting and prioritizing what's within their control.
Developing & Supporting Leaders
Perpetual challenges, such as the dearth of effective leadership development programs, remain. This is problematic since leaders are now expected to take on even more responsibilities, including serving as team leaders and performing daily tasks. Moreover, emotional intelligence and incorporating a human-centric perspective into managerial decisions have become increasingly crucial. As a result, leaders are experiencing escalating stress levels compared to individual contributors.
Recognizing these challenges, many organizations have started to take action. However, time will tell if committed efforts will translate into better outcomes. Armed with insights, HR can play a pivotal role in strategic organizational growth through targeted leadership training programs.
Mastering AI & Technological Literacy
AI is currently a buzzword, but many organizations have yet to fully integrate this technology into their operations. While tactical uses, such as streamlined communication drafting and résumé screening, have been popular, strategic use cases, like data analysis and internal talent transition, are still in the early stages.
As AI becomes more integral to organizational functioning, emphasis on the human aspect of work is often overlooked. This oversight risks employee dissatisfaction and loss of trust in employers.
HR's crucial role in digital transformation puts a spotlight on its AI skills gap. This gap could hinder HR's effectiveness and pose challenges to an organization's ability to adopt new technologies. By investing in training, HR can enhance its AI proficiency and contribute to broader organizational initiatives.
Controlling Labor Costs
Organizations' reduced focus on recruitment can be partially attributed to the need to manage labor expenses given the uncertainty of the economy and tightening labor market. Retaining talent while keeping expenditures in check is always crucial, but it’s especially important now.
Developing and maintaining existing talent can be a cost-effective alternative to constantly searching for new talent, despite the competitive demand for specialized skills. Current employees' deep organizational knowledge is a valuable asset that often goes untapped during standard onboarding.
As the future unfolds, HR leaders must be proactive in shaping their organization's success by prioritizing leadership development, exploring AI opportunities, honing data literacy, and balancing labor expenses.
Do you fit the profile to join our elite group, the Human Resources Council?
Given her position as the President of McLean & Company, a renowned HR and leadership expert resource, Jennifer Rozon certainly has the qualifications to join the Human Resources Council. Her experience in navigating organizational dynamics and her focus on leadership development would be valuable assets to the council.
