Leadership development tops priorities for HR professionals in 2025

Leaders today face numerous challenges that impact their decision-making and organizational direction. In the US, a significant concern for 41% of HR professionals is ensuring robust leadership development, which is crucial as they navigate increasing workplace demands and uncertainties. According to the SHRM 2025 State of the Workforce Report, leadership development has risen to the forefront, indicating a collective recognition of its importance in confronting evolving challenges. Moreover, economic concerns are prevalent among leaders, with 52% reporting worries about global recession and 33% about outperforming key competitors. Small business leaders express heightened anxiety, with 67% indicating that inflation is a major issue, followed by taxes, regulations, and tariffs. This climate of economic uncertainty is underscored by data from surveys indicating that 72% of Americans are apprehensive about tariffs, while globally, 73% express concern regarding inflation. Talent acquisition and workforce management issues have also surfaced prominently. Over half of leaders (54%) identify attracting and retaining top talent as a major challenge, while 41% prioritize developing the next generation of leaders. Additionally, maintaining an engaged and resilient workforce has become increasingly critical, reflecting a shift in workplace dynamics and employee expectations. Small business leaders particularly voice a need for reliable employees, pointing out the ongoing talent scarcity. Lastly, the integration of AI and digital transformation presents a growing field of concern among leaders. With 29% focused on leveraging AI effectively and 25% on navigating digital transformation, these technological advancements are reshaping business landscapes. Encouraging employees to engage with AI responsibly while protecting intellectual property signifies a strategic approach to adopting innovation. Addressing these multifaceted leadership challenges requires organizations to focus on developing skills, fostering innovation, and creating strategic responses that enhance resilience and adaptability in an ever-evolving marketplace.