HR News

Securing a Tech-Savvy HR Workforce

With people leaders looking to leverage AI and data analytics to boost talent development and retention in the new year, research shows they must first improve their existing data and technology skills.

By Maggie Mancini

Amid continued economic pressures, HR teams are increasingly challenged to develop internal talent pipelines, retain employees, and manage labor costs, according to a preview of McLean & Company’s HR Trends Report. The report finds that just 29% of HR organizations are effective at facilitating data-driven people decisions, with respondents reporting that their proficiency in data and technology skills is lacking.

Still, HR plays a key role in advancing AI as businesses turn to 2025. With AI and its impact accelerating at an unprecedented rate, HR has a significant role to play in organizational technology enablement. While 42% of HR respondents say they currently use AI, only 7% report that their HR organization has a formal, documented AI strategy that is broadly communicated and is the main driver for relevant initiatives. HR plays a key role in helping the organization adopt AI, but HR’s effectiveness in technology enablement remains low, ranking last across the strategic skills and competencies surveyed.

The report finds that HR’s ability to play a role in the selection, implementation, and use of AI will be critical in enabling business success. While effective in this, they are also four times more likely to be highly effective at enabling the organization’s adoption of new technology, which will be a key element for long-term success as the future of work continues to trend toward rapid change and advancement.

“As we move into 2025, HR must insert itself into the AI conversation,” says Will Howard, practice lead, HR research and advisory services at McLean & Company. “When HR partners with the organization in its AI strategy, they are almost 12 times more likely to be at the most advanced levels of AI maturity and transformation.”

Howard explains that this may be due to HR’s ability to implement change management strategies to help with the adoption of AI, assess and close skills gaps to prepare the organization to use AI, and anticipate the challenges that may arise.

“On the flip side, HR also needs to work on its own technology and data skills to make even more progress. AI use is still low within HR itself, and the top two barriers to HR not using AI are lack of expertise within HR as well as HR’s lack of understanding of capabilities and benefits. HR needs to improve its data and technology skills to go beyond just supporting the rest of the organization and start taking advantage of AI itself.”

In addition to improving AI and data skills in 2025, the report finds that the role of leadership will continue to evolve. Effective leaders who possess the skills and competencies to help others thrive in today’s increasingly tech-focused environment are of critical importance for organizations, with 73% of leaders indicating they feel their skill sets—particularly relating to technology and data analytics—will need to change to adapt to the future of work. Failing to effectively develop leaders risks decreased organizational performance.

At the same time, holistic well-being is at the forefront of HR strategy going into the new year. As the environment increasingly impacts employees’ lives at work and at home, organizations are called to play a role in supporting holistic well-being. The report finds that economic uncertainty puts pressure on workers, but organizational investments in financial well-being are falling short.

Though 70% of respondents reported economic stability as the largest threat to the well-being of their workforce, financial well-being ranked last. And data analytics play a key role here, too—research from Optum finds that just 42% of organizations are highly effective at leveraging data to manage their wellness programs.

In 2025, HR’s key strategic contribution will be driving talent development and retention, the report finds. To harness the benefits of AI advancement and data analytics to improve employee development and boost retention, improving these competencies is essential.

Championing Holistic Wellness

By modeling healthy behaviors and creating a safe environment where employees feel comfortable discussing mental health concerns, HR can empower employees to prioritize their well-being.

By Maggie Mancini

Employee well-being has become a major concern for employers over the last few years, with organizations grappling with how to address burnout, mental health concerns, and disengagement among members of their workforce. And while 63% of workers describe their well-being as “good” or “thriving,” nearly half admit that work stress has an impact on their mental health, according to findings from Wellhub’s State of Work-Life Wellness 2025. At the same time, just 54% of workers consider themselves physically fit, 40% claim their diet is unhealthy, and 71% report getting less than the recommended amount of sleep each night.

This disconnect—between the perceived well-being of the workforce and the reality of employees’ physical and mental health—is a complex issue, with deep roots in America’s societal and workplace cultures, says Lívia Martini, chief people officer at Wellhub.

“This disconnect stems from a combination of factors, including the pressure to project an image of wellness and the ‘always-on’ work culture,” Martini says. “To bridge this gap, HR leaders need to champion a holistic approach to well-being that goes beyond generic programs.”

She explains that HR leaders should work to promote empowerment and flexibility, encouraging employees to take ownership of their workloads and schedules to help them avoid burnout and prioritize their well-being. Additionally, employers should offer tailored wellness initiatives that address individual needs and preferences, leveraging data and technology to enhance effectiveness.

By demonstrating a genuine commitment to employee well-being, modeling healthy behaviors, and creating a safe and supportive environment where employees feel comfortable discussing their mental health concerns, HR can empower employees to prioritize their well-being—leading to a happier and more productive workforce, Martini says.

The report also finds that four out of five workers value their well-being as much as their salary, indicating that well-being is no longer just a perk but a necessity for attracting, retaining, and engaging with employees.

“It’s important for HR leaders to recognize that caring for employees’ well-being is caring for their business because a business can only do as well as its people,” Martini says. “Companies with a dedicated well-being program are pulling ahead in the ever-intensifying fight for talent and seeing greater employee performance as a result of well-being programs improving the health of their employees.”

The report finds that 83% of employees would consider leaving a company that does not focus on well-being. HR leaders should prioritize well-being support, moving beyond superficial perks and turning instead to leadership-driven engagement, Martini says.

Work stress is the most common cause of mental health decline among Gen Z, millennial, and Gen X employees, while baby boomers are most worried about inflation as they prepare for retirement, the report finds. To avoid these concerns trickling down and impacting performance and engagement, Martini says that HR leaders must adopt a tailored, proactive approach grounded in understanding the unique concerns of their workforce.

“Well-being is not a one-size-fits-all approach,” Martini says. “The first step in being able to understand and address the key drivers of work stress among employees is to actively listen and engage with employees. By gathering insight on employee well-being through one-on-one check-ins or regular employee surveys, HR leaders can constantly be in the loop about the main stressors they can help alleviate through workplace wellness initiatives.”

To do this, transparent communication about these insights and solutions is paramount, and can show employees that their concerns are being heard and taken seriously.

Given that the demand for well-being support at work is growing with each passing generation, HR leaders can leverage these strategies to build a comprehensive well-being program that addresses the needs of the multigenerational workforce.

Balance inclusivity with personalization. “Each generation has unique priorities, whether it’s physical health, mental resilience, or financial stability, and a successful program must reflect this diversity while uniting employees under a shared vision of well-being,” Martini says.
Understand that flexibility is essential. To meet the diverse needs of the multigenerational workforce, offering a range of resources like on-demand counseling, fitness programs, and personalized wellness plans allows employees to choose what works best for them, she says.
Integrate well-being into workplace culture. If an organization wants to support employee well-being, leaders must also actively promote and model healthy behaviors to reinforce their importance, Martini says.
Leverage technology to enhance accessibility. Personalized wellness packages can boost accessibility and engagement with well-being support at work, allowing employees to utilize one platform that provides them easy access to wellness offerings that meet their needs and preferences, she says.

According to Wellhub’s 2024 Year in Review Trends Report, which uncovers insights based on 500 million cumulative check-ins from three million employees globally, employees value a hybrid approach to wellness, with those who use both digital and in-person wellness options having a higher engagement rate.

“HR leaders really need to hone in on those flexible wellness initiatives so that well-being can be accessible and available to everyone, no matter what their needs are,” Martini says. “Having flexibility is an expectation now, not just a trend, and as RTO policies are becoming more and more commonplace, digital wellness options are so important for employees to be able to prioritize and fit wellness into their busy schedules.”

When company leaders champion well-being, uncover barriers to holistic well-being through data, and use tailored strategies to support their teams’ unique needs, company culture will shift to allow employees to feel valued and supported, leading to greater business success, Martini says.

Shifting Focus on Retention

By zeroing in on engagement, investing in talent, and tailoring strategies to the diverse needs of the workforce, HR can position their organizations to thrive in 2025 and beyond.

By Maggie Mancini

Even as voluntary quits have been down throughout 2024, with employees hesitant to seek out new job opportunities in a tight talent market, retention has remained a top priority for employers, according to research from Gallagher. With organizations preparing for a spike in employee turnover in the new year, HR leaders are tasked with figuring out how to adapt and keep their workforces thriving into 2025.

“Retention isn’t just about reacting when turnover spikes during certain seasons. It’s an ongoing commitment,” says Renee Barber, global director of recruitment at TYR Talent Solutions. “As soon as an employee walks through the door, companies should be thinking about their long-term engagement and growth.”

This, Barber says, requires a mindset shift from treating employees as cogs in a machine to viewing them as valuable contributors whose development is aligned with business success.

When it comes to tailoring recruitment and retention strategies to suit the unique needs of the multigenerational workforce, understanding employee motivation is paramount, Barber explains. HR and business leaders must go beyond surface-level metrics and focus on what drives individual employees.

“It’s not just about salary,” she says. “What motivates people to do their best work? How can the company foster an environment where employees feel a sense of purpose and belonging? These insights are often surprising and can lead to more meaningful and tailored retention strategies that resonate on a deeper level.”

In today’s employment market, automatic, system-generated decline emails have become more common in the application process. This is largely because the ATS is reviewing resumes and looking for “keywords” that match the job description, says Amy Sharp, manager of client engagement and talent acquisition at TYR Talent Solutions.

“What we as recruiters need to focus on is not just what the need is now, but what the need will be in the future,” Sharp says. She explains that by examining and analyzing market trends, HR and recruitment leaders will have a better understanding of how each role will change in the future. For HR leaders, this means taking a closer look at cultural fit and soft skills, rather than trying to follow the job description word-for-word.

“Companies should also adapt to generational shifts and diverse needs, recognizing that motivation can look very different depending on where someone is in their career and life,” Barber says.

Throughout 2024, employers have grappled with how to keep employees engaged and productive amid The Big Stay. As organizations look to 2025, HR leaders must adapt their hiring strategies to stay competitive in a rapidly evolving workforce, Barber says.

“With The Big Stay creating longer tenures but also potential disengagement, the focus should shift from simply filling roles to investing in long-term talent development,” she says. “This means hiring for potential, prioritizing internal growth, and offering flexible, personalized work experiences that resonate with a diverse, multigenerational workforce.”

Companies should build stronger employer brands by aligning with employees’ values, fostering a culture of continuous learning, and leveraging technology to streamline recruitment and predict future talent needs, Barber says. By doing so, organizations can attract top talent and ensure long-term engagement in a competitive job market.

For HR leaders looking to prevent turnover and enhance loyalty among top talent, Barber and Sharp suggest taking these key steps.

Create an internal strategy that values employee growth and engagement. “The core strategy for preventing turnover isn’t just about perks like flexible hours or remote work, though those can certainly help,” Barber says. Rather, it’s important to provide opportunities for employees to expand their skills and contribute to long-term projects. Building loyalty comes from making employees feel valued, seen, and involved, rather than simply passive recipients of a paycheck, Barber says.
Connect employees to a larger purpose or mission. Don’t just make employees feel like they’re waiting to punch a clock, Sharp says. Build out an internal retention strategy that focuses on employee engagement and efficiency. This could mean more flexible working hours, frequent check-ins, or simply delegating tasks to help support growth and make employees feel like they’re part of something bigger.
Shift the mindset on recruitment and retention. “It’s important to see retention and recruitment as continuous, long-term processes rather than seasonal responses to attrition,” Barber says. “A company’s success is directly tied to the satisfaction and growth of its people.”

By focusing on engagement, investing in talent, and tailoring strategies to the diverse needs of the multigenerational workforce, HR can position their organizations to thrive in 2025 and beyond, Barber says.