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Why CHROs must chart a strong course for the future of HR in 2025
This likely comes as no surprise: This year’s future of work trends prominently highlight the significant impact of AI and other emerging technologies on human resources. As we look toward 2025, fresh opportunities and challenges emerge for the HR landscape. CHROs are tasked with preparing their workforces to meet ambitious growth targets, while technology advancements introduce new gaps that need to be addressed. Additionally, a new generation of talent is reshaping expectations regarding technology’s role in leadership, collaboration and workplace fairness. To minimize disruption, harness AI’s full potential and achieve outstanding talent outcomes, HR leaders must develop a flexible and viable strategy.
The future of HR in 2025 includes risk, disruption and opportunity
Whether it is lower-than-expected productivity improvements from GenAI investments, generational conflict, attrition from critical roles, or new ways of working, HR is being asked to solve challenges that are severe pain points for the organization and threaten the organization’s ability to meet its strategic goals.
Harness the future of HR to close the expertise gap
Retirements are surging, and organizations aren’t developing replacement-level talent quickly enough to fill the expertise gap. In addition to the pending retirements, with AI increasingly performing functions traditionally handled by junior team members, the pipeline for building that expertise is also dwindling.
AI tools allow expert talent to extend their skills further and complete tasks more quickly, but the downside is fewer on-the-job learning opportunities. Six in 10 employees say they aren’t getting the on-the-job coaching they need to support their core job skills. This impacts business resilience.
To foster a future-ready workforce, assess which teams have the highest retirement risk, and identify the career paths where AI is reducing on-the-job learning. Then consider piloting an apprenticeship program to transfer critical skills and knowledge quickly from experts to novices and mitigate the risks resulting from large-scale retirement.
Include nudgetech in the future of HR to boost cohesion and communication
Today’s workforce comes with a wide range of cultural norms, needs and expectations, many of which are incompatible. Only 28% of employees feel comfortable being vulnerable with their colleagues — and across generations, few employees experience high team cohesion. This is harming collaboration and performance.
Leading companies will experiment with nudgetech — an emerging set of tools designed to bridge the professional communication gap and restore effective collaboration. Build cohesion in a multigenerational workforce by reviewing the organization’s current HR technology suite for potential nudgetech offerings, and then establish a working group to monitor AI for inclusiveness and adaptability. Train leaders on current workplace communication norms, and be sure they are prepared to flex as norms change over time.
The future of HR is redefining performance — and performance management
Organizations can face backlash for using algorithms to evaluate performance. But that doesn’t mean employees are satisfied with performance feedback from their managers. Only 14% of employees think algorithms can’t give fairer feedback than their managers.
Meanwhile, organizations need new ways to differentiate between true high performers and mediocre performers when AI can muddy the waters, to avoid losing high performers and high-potential employees who could have the greatest impact.
In the pursuit of fairness, assess AI-driven performance management tools in existing human capital management (HCM) packages and consider combining bots with microlearning to develop employees objectively.
Work with executive peers to establish a vision for how AI may impact performance ratings. Ask employees how they perceive GenAI’s impact on performance, and make sure to solicit high-potential employees’ perspectives when piloting AI performance evaluation tools.
The future of HR demands a principled approach
Only 21% of CIOs say they focus on mitigating the potential negative impacts of AI on employee work, and only 20% say they focus on mitigating AI’s potential negative impacts on employee well-being.
In the absence of organizational, government or vendor action, employees will be the driving force for defining boundaries and expectations around the human-AI partnership. The norms of human-technology collaboration are being shaped increasingly not by government regulation, tech-firm strategies or vendor agreements, but by organized labor and employee actions.
When developing or updating strategy around responsible AI, co-create values and vision with employees. Crowdsource use cases for piloting, and incorporate multiple avenues for collecting and evaluating employee feedback into pilots.
Future of HR FAQs
What are the emerging trends shaping the future of HR?
Emerging trends such as digital transformation, automation and nudgetech are reshaping HR by influencing workforce dynamics, communication and performance management. CHROs must adapt to these changes to maintain competitiveness and drive growth.
How can CHROs prepare for the future of HR?
CHROs can prepare by developing strategies that address retirement risks, promote multigenerational workforce cohesion and leverage technology for fair performance evaluations. Engaging employees in shaping technology use will be crucial.
What role does nudgetech play in the future of HR?
Nudgetech plays a vital role in enhancing communication and collaboration across diverse workforces. By bridging gaps in professional communication, it supports effective teamwork and performance.
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Gather alongside CHROs and human resources leaders on October 27 – 29 in Orlando to gain insight on emerging trends, receive one-on-one guidance from Gartner experts and create a strategy to tackle your priorities head-on.
27 – 29 Oct 2025
Gartner HR Symposium/Xpo™
Orlando, FL
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