EXECUTIVE SUMMARY In 2024, HR departments faced the challenge of steering organizations through rapid change, political and economic uncertainty, and the ever-evolving nature of work and the workplace. This report delves into HR’s role during this transformative year, highlighting key achievements and opportunities for future growth. Drawing on insights from 1,615 HR professionals, 238 HR executives, and 471 U.S. workers, the findings encapsulate multiple perspectives to assess HR’s effectiveness across 16 HR practice areas. This comprehensive review offers valuable insights into HR in 2024 while providing actionable insights to inform strategies for 2025 and beyond. KEY FINDINGS:

1. 1. 1. 1. Recruiting a Persistent but Common Challenge — In 2024, recruiting was the top priority for HR, fueled by the ongoing challenge of attracting top talent in a market where job openings outnumber individuals actively seeking work. Given these conditions, it is unsurprising that only a portion of HR professionals and U.S. workers viewed their organization’s recruiting efforts as effective. These staffing challenges resulted in heavier workloads for some employees, ultimately driving higher burnout rates. Employee Experience as a Strategic Priority — In 2024, employee experience was a top priority for HR. Previous research conducted by SHRM Thought Leadership identified a strong connection between employee experience, engagement, and turnover;¹ however, not all HR professionals or U.S. workers felt that their organizations excelled in these areas. Key drivers of positive employee experience include teamwork, purpose, fairness, and recognition. The current research highlights recognition and team collaboration as areas of opportunity to enhance employee experience and drive retention, which are crucial amid labor shortages. Leadership and Manager Development as a Catalyst for Growth and Key Priorities — In 2024, leadership and manager development was a key focus for organizations, seen as essential not only for individual growth but also for its broader impact on employee experience and retention, two areas critical to the other 2024 priorities. Despite its importance, however, only a portion of HR professionals and U.S. workers felt that their organizations excelled in this area, with about a third of workers reporting poor management and ineffective senior leadership. Excellence in Labor Relations and HR Function Strategy and Management — Labor and employee relations emerged as the strongest-performing HR practice area in 2024, earning the highest ratings from HR professionals, HR executives, and U.S. workers alike. Similarly, HR function strategy and management was recognized as a highly effective practice area, particularly by HR professionals and HR executives. However, neither of these HR practice areas were a top priority in 2024, reflecting their established nature as foundational to the HR function. This foundational strength will be particularly important amid the rapidly evolving regulatory and political landscape of 2025. ¹ The Case for Employee Experience, SHRM, 2024. 3 SHRM RESEARCH REPORT BETTER WORKPLACES, BETTER WORLD.
2. A Call to Shift Priorities Toward Employee Engagement and Development in 2025 — Both HR professionals and U.S. workers are aligned in identifying leadership and manager development, employee experience, and learning and development as the major priorities for 2025, signaling a shift from a recruiting focus in 2024 to a focus on employee development and engagement in 2025. Workers also highlighted the importance of total rewards in light of inflation and economic concerns, creating new challenges for HR to address in a constrained environment.
3. Strong HR Technology Important to HR Success — HR technology emerges as a pivotal 6. Strong HR Technology Important to HR Success — HR technology emerges as a pivotal yet potentially overlooked pathway to achieving 2025 priorities. The data showed a strong relationship between the perceived effectiveness of HR technology and overall HR effectiveness — when HR technology is more effective, U.S. workers are more likely to view their HR departments as effective. HR technology’s strong relationship with learning and development effectiveness further reinforces its strategic value. In sum, 2024 was defined by talent shortages, technological advancements, and a rapidly evolving landscape, driving organizations to prioritize recruiting efforts while also focusing on employee experience and leadership as well as manager development to develop and retain scarce top talent. HR excelled in labor and employee relations as well as HR function strategy and management, areas that, while not top priorities, are essential to HR’s role. Looking ahead in 2025, HR professionals and U.S. workers are calling for a shift toward employee development and engagement, with HR technology potentially playing a key role in achieving these priorities. The strong foundation in labor relations and HR strategy and management will be crucial as organizations navigate the evolving regulatory and political landscape.