Five HR priorities for 2025

Published: 11 December 2024 | Amy Bosley, HR data insights analyst at Brightmine

As 2024 draws to a close, HR teams are turning their attention to the opportunities and challenges that lie ahead in 2025. Insights from our annual HR departments research reveals the five key areas where HR professionals will focus their efforts in the coming year, from leader and manager development to enhancing employee wellbeing.

1. Navigating employment law changes

One notable — though perhaps not surprising — finding from our research is the prominence of employment law changes as a key concern for HR teams. With the recent implementation of the the new duty to prevent sexual harassment and the upcoming Employment Rights Bill, which is set to introduce significant legislative changes in the coming years, staying ahead of compliance requirements will be a top priority for many HR teams. Survey respondents shared how they plan to prepare for these changes by staying informed about legal updates, reviewing organisational policies and processes, and developing and delivering training across their organisations.

Essential resources for employment law compliance

• On your radar – your overview of employment law developments in the pipeline. Learn what’s happening, what might be happening, what’s not happening and how you can start preparing for upcoming changes.
• New sexual harassment prevention duty: 10-point checklist for HR
• Legal timetable

2. Workforce optimisation: recruitment and restructuring

For many organisations, optimising staffing levels will be top of the agenda in 2025. For some, the focus will centre on attracting new talent to support organisational growth plans and address skills shortages. To support these efforts, some HR teams will prioritise improving recruitment processes, methods and channels. Meanwhile, other organisations will focus on recalibrating their workforce through restructures to align with changing business needs or to reduce costs. Whether hiring or resizing, HR teams will need to ensure that workforce planning supports long-term organisational objectives.

Essential resources for recruitment and restructuring

• Attracting the best candidates – developing and implementing an effective strategy
• Recruitment research 2024
• Workforce planning: The fundamentals and getting started

3. Leader and manager development

Leader and manager development continues to be a top priority for HR teams in 2025, building on last year’s focus. With fewer than half of HR professionals reporting that the delegation of people management activities to line managers is optimal, often citing challenges with manager capability and engagement, the need for developing skilled leaders is clear.

To address these skills gaps, HR teams are prioritising training and coaching to equip managers and leaders with the skills necessary to drive performance, navigate change and foster collaboration. In some organisations, the introduction of more advanced HR Information Systems is transforming and streamlining how HR operates, giving HR teams more time to invest in leadership and management development. As one respondent explained, introducing a new HR Management System “should streamline several HR functions, freeing up valuable time to use on upskilling/training/coaching line managers”.

Essential resources for manager development

Visit the HR & Compliance Centre (formerly XpertHR tools and resources) training resources for clear, simply written training guides on employment law and good practice specifically designed for line managers. Each training guide is accompanied by a PowerPoint presentation, which can be adapted to suit your organisation’s needs. Topics include:

• Managing poor performance
• Bullying and harassment
• Unconscious bias

4. Reviewing reward packages

A competitive compensation and benefits package is essential for organisations looking to recruit, retain and engage top talent. Many HR teams aim to review and enhance existing benefits packages, including non-financial perks like flexible working. For others, the spotlight will be on recognition initiatives, both financial and non-financial, to boost employee engagement. Transparency and market competitiveness are also top of mind, with a considerable number of HR teams planning to refine or introduce pay structures, salary frameworks and job evaluation processes. It is clear that many organisations are taking a more strategic approach to compensation and benefits, focusing on total reward rather than individual components. Our forecasts for pay awards in 2024/2025 offers deeper insights into reward priorities for 2025.

Essential resources for reviewing compensation and benefits

• Employee benefits research 2024: a changing picture
• How to introduce and manage a flexible benefits scheme
• Developing an employee health benefits package

5. Enhancing employee wellbeing

Employee wellbeing will take centre stage for many HR teams in 2025, as organisations increasingly recognise its role in driving overall performance. Approaches will vary, reflecting the different stages that organisations are at in their wellbeing journeys — from developing wellbeing strategies to promoting existing initiatives and refining current offerings. HR teams are focused on creating environments that support employees’ mental, physical and emotional wellbeing. Key initiatives include flexible work arrangements, access to mental health resources and fostering a culture that values work-life balance. Examples of practices shared include reviewing and reducing workloads, introducing a shorter working week and providing targeted support such as for menopause.

Essential resources for enhancing employee wellbeing

• Developing and implementing a wellbeing programme: Why employers need to invest in employee wellbeing
• The importance of line manager training in supporting employee wellbeing
• Strengthening the financial wellbeing of your workforce: Getting started and building the business case