Leadership Vision for 2025

Top 3 Strategic
Priorities for Chief
HR Officers

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Leadership Vision for CHROs in 2025
CHROs are navigating a complex landscape shaped by
several key trends. CEOs prioritizing growth through Key questions addressed:
transformation, AI deployment challenges and shifting labor • What are the major trends affecting CHROs?
market pressures on talent strategies are influencing how • What are the top priorities for CHROs in the
the best organizations are leading HR to achieve business year ahead?
goals.
• What skills and capabilities do CHROs and their
In this context, the top CHRO focus areas for 2025 are: teams need to succeed?
• Elevating HR’s impact on the organization’s growth
strategy
• Building a deep bench of change leaders
• Creating a future-ready workforce
Use this research to stay ahead, achieve your goals and
lead HR to success in 2025 and beyond.

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TRENDS / PRIORITIES / CAPABILITIES

Trends Impacting Chief HR Officers

CEOs set their sights on growth AI aspirations confront Labor market shifts put
through transformation deployment realities pressure on talent strategies

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TRENDS / PRIORITIES / CAPABILITIES

CEOs Set Their Sights on Growth Through Transformation

CEOs selecting growth as a top priority is up 25% since last year and is at its highest level since 2014.

CEO Top Strategic Business Priorities for 2024-2025 Changes at the Core of New-Era Business Strategy Shifts
Top 10 Summary of Top Three Mentions Weighted by Prevalence of Response
Growth 62%
Technology 33% Sustainability/
Resilience/ Product and Profitability
Workforce 27% ESG
agility pricing
Financial 23%
Corporate 22% Digitalization/
technology Efficiency/
Cost management 16% automation/
productivity
Environment 10% Growth rate/ AI
Customer
Customer 10% needs focus
Cost
Products and services 9% management
Efficiency/productivity 8%
n = 339 CEOs and senior business executives
0% 35% 70% Source: 2024 Gartner CEO and Senior Business Executive Survey
Q. In a few words, what is at the core of that strategy change?

CEOs are preparing their strategy for a new era: 79% of CEOs will have
their postcrisis business strategy ready by the end of 2024.

nRESTRICTED
= 416 CEOsDISTRIBUTION
and senior business executives; 307 CEOs and senior business executives
4 Source: 2024 Gartner
© 2024 Gartner, CEO
Inc. and/or its and Senior
affiliates. Business
All rights Executive
reserved. Survey
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TRENDS / PRIORITIES / CAPABILITIES

AI Aspirations Confront Deployment Realities

GenAI’s position on the Gartner Hype CycleTM
On average, business leaders expect a 22.6% improvement in
functional productivity in the next 12-18 months by using GenAI.

Generative
AI
AI implementation challenges:
• Data issues
• Uncertainty about best practices
Expectation

• Employee skills gaps

• Change fatigue

Innovation Peak of Inflated Trough of Slope of Plateau of

Trigger Expectations Disillusionment Enlightenment Productivity

n = 380 functional leaders

Source: Gartner Generative AI 2024 Planning Survey
Q: On average, what percentage change in productivity do you expect to see from the use of generative AI in your organization over the next 12-18 months?

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TRENDS / PRIORITIES / CAPABILITIES

Labor Market Shifts Put Pressure on Talent Strategies

Three Drivers of Declining Availability of Critical Talent

61% of talent management leaders agree that the demands

on talent management exceed their capacity to deliver.1

Labor shortage: Globally more than 85 million

1
jobs are projected to go unfilled by 2030.2

Talent
Supply
Mismatched skills: 23% of global jobs will
change in the next five years due to Employee expectations: 62% of candidates
industry transformation, including AI.3 say they only apply for jobs that meet the
2 majority of their EVP requirements.4
3

n = 3,435 candidates
12024 Gartner Modernizing Talent Management HR Leader Survey, n = 190 HR leaders. 2The $8.5 Trillion Talent Shortage, Korn Ferry.
3The Future of Jobs Report 2023, World Economic Forum. 42024 Gartner Voice of the Candidate Survey (Q2).

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TRENDS / PRIORITIES / CAPABILITIES

Our Research Process

2025 CHRO Priorities Research Inputs

Key Research Question:

What are CHROs’ top priorities for 2025?

2025 Gartner HR Priorities Survey

641 CHROs and

23 industries 6 regions
762 HR Leaders

2024 Gartner CEO and Senior 2024 Gartner ReimagineHR HR Secondary Research and Data
CHRO Interviews
Business Executive Survey Leader and Employee Surveys Analysis

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TRENDS / PRIORITIES / CAPABILITIES

CHRO Priorities for 2025

Top Focus Areas

Elevate HR’s impact on Build a deep bench Create a future-ready

organizational strategy of change leaders workforce

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Elevate HR’s impact on organizational strategy

TRENDS / PRIORITIES / CAPABILITIES

CHROs Have an Opportunity to Increase HR’s Influence

CEOs Are Deprioritizing the Workforce as a Focus Area CEOs Are Overlooking HR to Unlock the Value of New Investments
Mentions of Workforce in Top Three CEO Strategic Executive Committee Member the CEO Is Most Relying On to Unlock
Business Priorities the Value of Generative AI to the Business

1%
40%
Agree
32%  5%
27% Less than 1% of CEOs are
relying most on their CHRO to
unlock the value of generative AI,
20% balancing the benefits and risks.

99%
Disagree
0%
2023-2024 2024-2025

n = 339 CEOs and senior business executives; 422 CEOs and senior business executives n = 416 CEOs and senior business executives
Source: 2024 Gartner CEO and Senior Business Executive Survey; 2023 Gartner CEO and Senior Business Source: 2024 Gartner CEO and Senior Business Executive Survey
Executive Survey

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Elevate HR’s impact on organizational strategy

TRENDS / PRIORITIES / CAPABILITIES

Augmented HR Delivers New Work in New Ways

HR Work/Technology Matrix

New technology-
enhanced ways Under-leveraged Augmented
technology HR

How HR does
its work

Traditional
Capacity-focus
staff-led ways Under-equipped
staff

Traditional work New strategic demands

The work HR does
Source: Gartner
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Elevate HR’s impact on organizational strategy

TRENDS / PRIORITIES / CAPABILITIES

How to Overcome HR Value Traps

The Three Augmentation Approaches That Help Unlock New Business Value

Foundations “vicious cycle” Preservation mindset Competing solutions dilemma

Provide transformational Expand HR staff’s Formalize shared

building blocks viewpoints on value goals and new roles

Why it works:

Building blocks engage stakeholders Expanded viewpoints inspire Shared goals help process leads design
in new value prioritization. HR staff to pursue new value. complementary solutions that generate new value.

Source: Gartner
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Elevate HR’s impact on organizational strategy

Assess
Think about the organization’s big strategic bets and how HR can
enable their success. ​
Identify the talent risks that might impede these big strategic bets. ​

Plan
Help the C-suite understand the human implications of strategic
business decisions. ​
Recommended Take an active approach to C-suite conversations about workforce
productivity.
Actions
Execute
Work with other functional leaders to augment HR roles to achieve
shared goals and drive complementary value. ​
Define an HR operating model of the future for your organization
that can help deliver on HR and business goals.

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Build a deep bench of change leaders

TRENDS / PRIORITIES / CAPABILITIES

Low Confidence in Leaders and Managers to Lead Change

Leaders and Managers Are Not Prepared to Lead Change Change Agility Is Not a Strength for Most Leaders and Managers
Percent of CHROs Who Agree That Their Leaders and Managers Percent of Leaders Identifying Change Agility as a Strength
Aren’t Equipped to Lead Change
100%
28%
Disagree

50%
30%
26% 23%

72% 0%
Agree Executive leaders Senior leaders Mid-level managers

The ability to lead change gets worse as you look deeper into
the organization.

n = 446 CHROs n = 287 executive leaders, 407 senior leaders, 287 midlevel managers
Source: 2025 Gartner HR Priorities Survey Source: 2024 Gartner Leadership Bench and Leader Learning HR Leader Survey; 2024 Gartner Leadership Development
Leader Survey

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Build a deep bench of change leaders

TRENDS / PRIORITIES / CAPABILITIES

Role Modeling Is More Than Just Communication

Three Ways Leaders and Managers Role-Model Changes

1 2
How leaders communicate about How leaders personally act in
the change alignment with the desired change
“Say” “Behave”

Leader and Manager

Role Modeling

3
How the processes, budgets and
policies the leader controls reinforce
the change

“Operate”

Source: Gartner
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Build
Buildaadeep
benchbench
of change
of change
leaders
leaders

TRENDS / PRIORITIES / CAPABILITIES

How HR Can Redefine the Leadership Bench

How to Redefine the Roles of Leader and Manager

Reset Role Expectations Rebuild the Pipeline Rewire Habits Remove Process Hurdles

What Redefine effective leadership as Put the right people in the right Build long-term habits, not just Eliminate processes that get in
change leadership. roles to prepare for the future of skills, to lead change. the way of change leadership.
the organization.

How Realign leader and manager Encourage future leaders and Drive habit building through Equip HR leaders to eliminate
responsibilities to high-impact managers to self-discover if the intentional cues, maintainable low-value processes that burden
tasks. role is right for them. routines and focused reflection. leaders, managers and
employees.

Source: Gartner
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Build a bench
deep bench
of change
of change
leaders
leaders

Assess
Benchmark leader and manager confidence to lead through
change.
Assess your leadership pipeline to determine future change
leadership effectiveness.

Plan

Recommended With your head of talent management, build a roadmap to

attract, retain and deploy effective change leaders.
Build buy-in for key leader and manager investments with
Actions the broader C-suite.

Execute
With your head of L&D, train leaders and managers to not just
communicate, but also act and operationalize changes across the
organization.
Work with your HR leadership team to redesign processes that
get in the way of effective change leadership.

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Create a future-ready workforce

TRENDS / PRIORITIES / CAPABILITIES

CHROs Are Struggling to Plan Amidst Uncertainty

Talent Questions Go Beyond Skill Needs CHROs Are Not Confident in Their Ability to Deliver
Questions CHROs Face in Building a Strategic Workforce Plan Confidence in Delivering Strategic Workforce Planning Goals in the
Next 12-18 Months

• What skills and capabilities should we build, buy and borrow? 29%
• What talent segments will be the hardest to attract and retain? Confident
• Is our organizational design helping or hindering our goals?
• What leadership mindsets and behaviors must we foster?
• What culture and ways of working must we co-create?
• How have EVP expectations changed?

71%
Not confident

n = 242 CHROs
Source: Gartner Source: 2025 Gartner HR Priorities Survey

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Create a future-ready workforce

TRENDS / PRIORITIES / CAPABILITIES

Key Components of Strategic Workforce Planning

Strategic Workforce Planning Process

Understand business strategy;

define value drivers/capabilities

Develop action plans to close

Segment roles by impact on
2 6 gaps, monitor progress and
capability delivery
adjust for change
These talent gaps — and action
Strategic plans to close them — are critical
workforce for driving conversations with the
planning C-suite and the board.
Scan the environment to 5 Assess the current state of the
3
identify key factors driving workforce; define gaps against
future-state scenarios the future states
4
Construct scenarios for the
future state of the workforce

Source: Gartner
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 Create a future-ready workforce

TRENDS / PRIORITIES / CAPABILITIES

Identify Talent Risks to Overcome Barriers to Readiness

Talent Risk Assessment Heat Map
Example
Time Frame of Risk Impact Criticality of Talent Risks
Heat Map Legend
High

Risk 2 Short-Term
High — Breaches risk appetite,
should be escalated to board
Degree of Risk Impact

Medium-Term

Medium — Threatening to
Medium

breach risk appetite, escalated

Risk 1
Long-Term to relevant senior management
team at the right time

Current Capacity to Low — Under control, managed by

Manage the Risk HR and the business
Low

Risk 3

Insufficient

Low Medium High

Sufficient
Likelihood of Risk Occurrence
Source: Gartner
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Create a future-ready workforce

Assess
With your C-suite, understand the value drivers of your current
business strategy.
Assess the capabilities of your organization’s talent and consider
how culture, organizational design and the way employees are
compensated shape these capabilities.

Plan
Recommended Segment talent roles by their impact on delivering these capabilities.
Actions With your head of talent management, create scenarios for the
future state of your organization and identify gaps in the current state.

Execute
With your head of talent management, identify talent risks using the
talent risk assessment heat map.
Prepare an action plan to mitigate between three and five of the most
critical risks and escalate them to the C-suite and the board.

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TRENDS / PRIORITIES / CAPABILITIES

New Demands Move HR Beyond Its Traditional Scope

Outside HR
Traditional Scope
(e.g., payroll, compliance)
Mental Health and Well-Being
Initial Strategic Expansion
(e.g., performance mgmt.,
Human-Centric EVP leadership development)

Current Scope
Hybrid-Work Productivity

Who Delivers
the Work? Frontline-Worker Flexibility

Digital Workplace

Office Work Design

AI Augmentation
Mostly HR
Mostly HR Outside HR
Who Has the Experience?
Source: Gartner
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TRENDS / PRIORITIES / CAPABILITIES

New Demands on HR Are Different in Kind

Attributes of HR's New Demands

Conflicting Interdependent Novel

45% of HR leaders say that meeting the 50% of HR leaders say the changes 80% of HR leaders say their function
conflicting demands of stakeholders is more happening today are more difficult to is facing different challenges than those
difficult today than prepandemic. manage than prepandemic. they faced prepandemic.
Examples Examples Examples
• Employee demand for a “human deal” • Digital workplace • Hybrid work productivity
versus organizational productivity • Integrating well-being into workflows • AI work augmentation and allocation
• Flexibility for frontline workers • Talent marketplaces and “gig” careers
• Self-service vs. “white glove” support

n = 217 HR leaders n = 243 HR leaders n = 243 HR leaders

Source: 2023 Gartner HR Functional Excellence Source: 2022 Gartner ReimagineHR HR Leader Survey Source: 2022 Gartner ReimagineHR HR Leader Survey
HR Leader Survey

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TRENDS / PRIORITIES / CAPABILITIES

Model of a World-Class CHRO

Trend Watchlist
Drive Business Results

Board and CEO’s Leading Through

Win in a Dynamic Talent Leader of Enterprise Trusted Advisor
Leader of Human Evolving Stakeholder
Landscape Strategic Change & Coach
Capital & Culture Scenarios

Plan and Support Ensure Top Talent and Create Organization

Anticipate and Respond Advise and
CEO and C-Level Capabilities for Critical Agility and Resilience
to External Trends Coach the CEO
Succession Roles Capability

Build Effective Assess and Catalyze Align and Link

Embed DEI Into Talent Maximize Senior
Compensation Supported Actions to Drive Organizational Metrics to
and Culture Strategy Team Effectiveness
by Shareholders Competitiveness Stakeholder Expectations

Deliver a Compelling
Drive Culture Integrate Organizational Focus on Workforce as a Coach and Develop
Employee Value
and Purpose Levers to Sustain Change Primary Stakeholder Key Enterprise Talent
Proposition

Business Acumen Business Strategy Development

Functional Business Leader

Create a future-focused, technology-oriented, operationally capable and financially disciplined team to run the HR function.

Source: Gartner
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TRENDS / PRIORITIES / CAPABILITIES

Identify Your Gaps With Gartner HR Diagnostics

Manage the HR Function With HR Score

HR functions have the lowest average maturity

score in the following activities: critical skills needs
identification, EVP, and organization design and
change management.

Gartner HR
Diagnostics Measure Program Effectiveness With HR
Develop Yourself With CHRO Self-Diagnostic Budget & Efficiency Benchmark

Current CHROs have the lowest average mastery HR spends $2,810 per employee annually, mainly
in activities related to “Win in a Dynamic Talent on recruiting, total rewards and L&D. HR
Landscape” and “Leader of Enterprise Strategic technology gets 8.4% of the budget and is the top
Change” from the model of a world-class CHRO. investment area for the third consecutive year.

Want to see how you and your function compare with peers?
Use the CHRO Self-Diagnostic, HR Score, and HR Budget & Efficiency Benchmark tools.

Source: CHRO Self-Diagnostic (n = 105 CHROs); HR Score (n = 276 HR Organizations); 2023 HR Budget & Efficiency Benchmark (n = 600 HR Organizations)
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TRENDS / PRIORITIES / CAPABILITIES

HR Professionals Competency Model

Business Acumen Data Judgment

• Industry Knowledge • Data Foundations

• Organizational Knowledge • Data Interpretation
• Financial Knowledge • Data Storytelling

Strategic Consulting Talent Management

HR
• Consultative Problem Solving Professionals • Strategic HR Expertise
• Project Management • Employee Experience Management
• Risk Management • Change Management
• Technological Savviness

Relationship Management Agility

• Collaboration and Networking • Growth Mindset

• Persuasion and Influence • Innovation and Iteration

Source: Gartner
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TRENDS / PRIORITIES / CAPABILITIES

Address Barriers to Strategic HR Impact

What We Hear From HRBPs What HR Leaders Can Do What HR Professionals Can Do

Unclear Expectations Interest, Skills and Expectations Develop Key Skills and Competencies
“I’m not even sure what it means to be Identify HR staff best suited for strategic work and Build the competencies necessary for strategic
strategic.” communicate role expectations. effectiveness.

Tactical Work Takes Precedence HR Ecosystem Shape Strategic Decisions

“I wish I could get to strategic projects, but I Leverage shared services for transactional work, Develop strong analytical skills and use data to
spend most of my day putting out fires and ensure employee self-service is user friendly, and shape strategic decisions.
collecting data.” provide easy access to data.

HR-Business Misalignment Partnership Clarity Improve Line Partnerships

“My business unit never asks for my strategic Define partnership principles and tie Ask the right questions to challenge leader
input.” business strategy to HR outcomes. assumptions and build credibility.

Hard to Break Habits Change Management Change Management

“Even after we put in self-service, the business Involve your team and the business Leverage change management techniques to
kept coming to me for help.” in changing the status quo. ensure success.

Source: Gartner
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Actionable, objective insight
Position your organization for success. Explore these additional
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leaders
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and their teams should focus on to deliver world-class HR and achieve functional excellence. HR Score measure HR’s functional performance and maturity to rank priorities by importance to better drive business goals.
Tool
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understanding how to effectively Discover expert insights into what performance and maturity to rank
Explore a practitioner-defined
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you become a stronger HR leader. and achieve functional excellence.

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