By George Waggott, founder, and Roberto Fonseca Velazquez, law student
George Waggott Law
This year is shaping up to be the year of talent development. Indeed, human resource leaders are shifting their priorities away from aggressive hiring and toward investing in the employees they already have. According to the 2025 State of the Workplace report from the Society for Human Resource Management (SHRM), recruiting has fallen dramatically in importance—from the number one priority last year to seventh place this year. This is all occurring in the context of general economic concerns and efforts to increase productivity.
The result is that leadership development is now at the forefront of HR strategies. A separate SHRM study found that 51% of Chief Human Resource Officers (CHROs) consider developing leaders and managers their top priority. Other key areas of focus include organizational design and change management (30%), employee experience (28%), talent management (27%), and learning and development (24%).
Why the Shift to Development?
This change reflects broader challenges in the workplace. HR professionals are facing ongoing talent shortages, economic uncertainty, and evolving workplace dynamics. As a result, organizations are investing in long-term workforce development to improve retention, engagement, and productivity.
“It’s really about ensuring that the employees you have at your organization are working towards being productive, and that you can retain that talent,” says James Atkinson, VP of Thought Leadership at SHRM. “We’re seeing a focus shift from recruiting outside the organization to really building up and developing talent within.”
Developing Leadership and Employee Experience
For Human Resources leaders, leadership development means more than just technical training—it’s also about fostering soft skills like conflict resolution, communication, and the ability to inspire teams. Around 40% of CHROs prioritizing leadership development say these softer skills are their primary focus.
Employee experience is another growing concern. Among companies that consider it a top priority, 40% are reported to be focusing on improving employee satisfaction, engagement, and productivity. Fewer organizations are emphasizing workplace culture (15%) or return-to-office strategies (5%), which were a greater focus over the past few years.
Human Resources leaders are also addressing employee well-being, with 59% of CHROs saying that they are planning to enhance their well-being initiatives in 2025. Burnout remains a significant issue—61% of employees reported experiencing burnout in 2024, and 35% say that they faced increased workloads due to unfilled positions.
The Rise of Human-Centered Leadership
Human Resources professionals recognize that the key to a resilient workforce lies in strong, people-focused leadership. “There’s going to be an emphasis on that human-centered leadership in 2025,” says Atkinson. “Leaders need to be equipped to lead change but also equipped to engage with their employees as well.”
As organizations move away from reactive hiring strategies and focus on sustainable talent development, the role of Human Resources professionals is becoming more critical than ever in shaping the future of work.
For more information about George Waggott Law, please see: www.georgewaggott.com, or contact: george@georgewaggott.com
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