2025 CHRO Agenda

In this episode of the “Gen AI Breakthrough” podcast, Jessica Haley and Amanda Newfield discuss the major challenges facing HR in 2025, including rising workloads, resource constraints, and persistent leadership gaps. They explore how strategic prioritization, HR tech optimization, and generative AI adoption can alleviate pressures and unlock capacity, particularly in talent acquisition and learning & development. 

Welcome to The Hackett Group’s “Gen AI Breakthrough” podcast, where top experts give actionable artificial intelligence (AI) insights, expert advice and strategies to achieve breakthrough business performance. This episode is hosted by Jessica Haley, principal and HR Executive Advisory practice group leader at The Hackett Group. Jessica interviews Amanda Newfield, HR executive advisor at The Hackett Group. In today’s episode, they will discuss the major challenges facing human resources (HR) in 2025, along with how prioritization and generative AI can help alleviate some of these demanding workloads.

To begin, Jessica and Amanda start the discussion by talking about how HR is constantly asked to do more with less. Their workload has increased by double digits, while resources and funding have decreased. Of the top 10 issues in HR today, six are directly related to talent, with the top issue being leadership. Most of these issues have been in the top 10 for years, and the problem is how HR can accomplish what it needs to do with extra demands. HR talent spends most of its time on administrative and operational tasks, which leaves very little time to focus on strategic initiatives. The demand for strategic work has far exceeded the capacity for HR talent.

To overcome these challenges, Amanda suggests the reinforcement of the need to increase focus on how to use automation and AI. Operational tasks take up so much time, and there is a lot of opportunity to automate those tasks to prioritize different demands. In the research they conducted, they found that 62% of work comes from talent acquisition and learning and development. There is an opportunity to increase HR teams capacity with AI and the development of talent acquisition. One area that could implement AI is in the use of screening resumes, which could be incredibly instrumental for recruiters and the process. Another area to use AI in HR is to document skills across the organization. This is very manual heavy, and the way forward is to have a digital opportunity with surface skills to aid the process.

Amanda states that the key things to focus on in the future for HR is talent. They are shifting over from administrative tasks to developing leaders with strategic tasks. Those are the skills that are really lacking, and there needs to be more succession planning. This can shift the workforce and workers to be able to work in these new areas. The steps needed to make these shifts depend on the organization, but she recommends that HR personnel prioritize their priorities. They can’t do everything all at once, and if they try, they will end up doing nothing. They need to focus on what matters and then make sure those things get done. HR also needs to set the right expectations within their organization.

In terms of HR tech, most organizations have shifted to a cloud-based solution. Now is the time to make that leap or bring about other solutions. Companies need to have some stepping blocks to enable what is next. There also may be an understanding that what they initially designed may not be the best solution now. If that is the case, they can lift and shift older processes that can be combined and streamlined. What HR needs to reflect on is how those systems are working for them today and simplify the processes for best practices. Technology needs to continue to be implemented to release a new capability of those products. Investing in technology is really investing in yourself and the rest of the organization. HR needs to understand that they have to develop more strategic thinking, storytelling, determine where data comes from and how to leverage it.

Time stamps:

• 0:52 – Welcome to this episode hosted by Jessica Haley.

• 3:16 – Top issues in the HR world.

• 4:59 – How do we overcome these challenges?

• 7:57 – The manual challenge in documenting skills across the organization.
  
• 8:45 – What should we focus on in the near future?

• 9:53 – Next steps in making this shift.

• 11:40 – Conversations around HR tech.