Labor shortages, the skills gap, and political changes are top of the agenda for the US' biggest HR group in 2025
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- The Society for Human Resource Management, known as SHRM, is the world's largest HR association.
- These are the themes that SHRM anticipates will most impact businesses and HR professionals in 2025.
- Job retention, the skills gap, and how to manage polarizing workplaces are top of the agenda.
2025 holds plenty of challenges for employers and HR professionals. Labor shortages are making hiring a nightmare; they're anticipating new regulations and tariffs under the Trump administration, and they have to skill up workforces for AI if they don't want to get left behind.
The Society for Human Resource Management is there to help them.
SHRM is a member-driven organization that researches the biggest issues and innovations impacting today's workplaces and helps give business leaders and HR professionals the tools they need to build a "more civil and productive workplace."
The US-based group has nearly 340,000 members in 180 countries.
SHRM released an outlook of the areas it will be focusing on to best help HR professionals in 2025. These are some of the themes they say will shape the future of work next year.
The ongoing labor shortage
The job market is strong, but the reality for job seekers and employers alike is more complex.
On the employer side, job openings are outpacing active job seekers. That has left businesses struggling to fill openings. Many employers are also "labor hoarding" in an attempt to manage quit rates and prevent labor shortages many experienced after the pandemic.
1.7 million Americans are missing from the workforce compared to February 2020, according to the US Chamber of Commerce.
Supporting businesses as they navigate talent acquisition and retention is a key focus for 2025, SHRM said in its yearly overview.
One of the organization's suggestions for employers was to look at untapped talent pools, such as veterans, workers with disabilities, military spouses, and caregivers. Addressing barriers like outdated policies and insufficient flexibility could help maximize workplace recruitment and retention, SHRM said.
Political changes
The new administration could bring about new regulatory shifts, creating a wave of uncertainty for employers.
SHRM anticipates that businesses will need assistance adapting to new rules and policies and understanding their workforce impact.
2025 could also see a rise in polarized workplaces in connection to "conservative trends in federal courts and agencies," SHRM said in its outlook. Changes could impact workplace diversity initiatives, and the ripple effects of proposed tariffs could hit talent management and compensation strategies.
The organization also highlighted that its civility research unit found nearly 223 million "acts of incivility" per day following the 2024 election.
Common examples of incivility in the workplace include "intentionally interrupting or speaking over others, people being rude or inconsiderate, and gossiping or spreading rumors," according to SHRM.
The group said it would be focusing on equipping chief human resources officers (CHROs) with the tools and knowledge they need to foster resilient and inclusive workplaces.
The skills gap
AI holds huge potential for organizations, but to truly capitalize on the technology, investments must also extend to the workforce.
Currently, workers lack key skills like digital literacy and technical competence to collaborate with AI, creating a need for targeted upskilling and reskilling programs, SHRM said.
The impact of AI on the workforce will be more dramatic than previous technology shifts, SHRM President Johnny C. Taylor Jr. told Business Insider in August.
"We are not being as transparent as we should be with human beings workers about how significantly AI is going to change how we work and what work we do," said Taylor.
SHRM's outlook said that one in eight jobs has already been displaced by AI, and it added that addressing worker concerns about job security will also be a focus this year.