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CHRO priorities in 2025: From pressure to possibility 

CHRO Priorities Blog
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See other posts from by Melanie Murphy CMO

It’s 2025, and the CHRO is no longer the ‘people person’. You’re the culture architect, the AI translator, and the shock absorber—all rolled into one. So how do you lead when the rulebook’s been set on fire? 

Work has changed forever—but many HR strategies haven’t. 

Today’s talent has new expectations. AI is reshaping recruitment. Budgets are even more squeezed. And stakeholders want faster results. But beneath these headline stressors lies an undeniable truth:  

HR is no longer a nice-to-have; a support function. It’s strategy in motion.  

In this shifting world of work, CHROs aren’t just running HR. They’re steering the strategic direction of the entire company. The pressure is real, but so is the potential—if you’re brave enough to seize it. 

Exploring the key findings from SHRM’s recent CHRO Priorities and Perspectives report, this blog outlines how forward-thinking CHROs can reimaging their function as critical to business growth in 2025. 

Leadership development: Much more than mandated training 

According to the SHRM report, leadership and manager development is this year’s top priority for CHROs—cited by 51% of 212 respondents. While this finding isn’t exactly surprising, it is significant, signaling a shift from capability building as a ‘nice-to-have' to a core strategic focus.  

But to deliver meaningful impact, a company-mandated L&D module won't cut it. You need to build emotionally intelligent, change-literate leaders who can model your values, adapt quickly, and create conditions where both performance and belonging thrive. 

They need to live your culture—not just quote your mission statement.  

Here’s the shift:  

From 'formal training' to everyday modeling 

From 'knowing the values' to living the culture 

From 'HR initiative' to organizational DNA 

And because culture is lived out loud—shaped by behavior, not intentions—this mindset needs to show up on your careers site, in your EVP, and across every candidate touchpoint. It’s all about clarity and consistency. 

Financial pressures: Using culture to balance the books 

CHROs are feeling the squeeze from both sides. 31% report shrinking budgets, while 61% say wage inflation and operational costs are eating their margins.  

On top of these financial pressures, over half (51%) of CHROs report employee engagement challenges—citing attraction and retention as their biggest talent concern in 2025.  

So, what do these seemingly separate challenges have in common?  

Culture is the solution.  

When activated authentically, culture becomes your lowest-cost, highest-yield tool for attracting and retaining talent that will thrive in your company—and repelling talent that won’t. 

This is where the Give & Get methodology comes in: Reframing your EVP from a promise of perks to a transparent value exchange: 

  • Give: What employees are expected to contribute to their role (such as hard work, long hours, and adaptability) 
  • Get: The rewards employees receive in return (meaningful work, careers progress, and a sense of achievement) 

Companies that are brave enough to articulate their real culture—whether that’s a high-performance environment or highly collaborative culture—will not only attract the right people, but repel the wrong ones.  

Your specific brand of difficult is what makes you different.” — Give & Get Employer Branding 

You’ll reduce recruitment costs, increase trust, and boost performance. And as you're sharing an authentic reflection of your culture from the start, you’ll meet candidate expectations and increase retention rates. 

In short: When told transparently, culture is not only a cost-saving measure. It's your competitive advantage. 

AI + empathy = Your competitive advantage 

The vast majority (90%) of CHROs expect AI to become deeply embedded in the workplace by the end of 2025. 87% see AI playing a critical role in boosting productivity, and 83% believe it will become more prevalent in managing day-to-day HR tasks.  

But at the same time, 50% of CHROs are also expecting a rise in human-centered leadership. 

This is not a contradiction—it's a dual call to action.  

AI will absolutely revolutionize productivity, automate admin, expedite task management, and personalize experiences. It should be used, embraced, and scaled.  

But AI won’t separate good companies from great ones. It’ll be your humanity: empathy, trust, and transparency.  

As the pace of change continues to increase, and the need for transformation remains constant, your organizational culture must be designed to adapt—not just cope. That means companies that use AI to amplify their people—not replace them—will achieve productivity gains, while staying true to their cultural DNA.   

What’s next for CHROs?  

2025 won’t ease the pressure. But the best CHROs are turning that pressure into progress—using culture to build belonging, engagement, and a reputation that retains. 

Lead the culture. Don’t just manage the workforce. 

Ready to build a career site and employer brand that actually wins in 2025? 

Book a strategy call with Happydance and let’s turn your EVP into your greatest competitive advantage. 

 

Watch ‘Culture Eats Competition for Breakfast’ by Bryan Adams 

As CHROs shift from HR operators to strategic architects, the question isn’t whether culture matters—it's how you can transform culture into your most effective business asset. 

In his bold TEDx Talk, Culture Eats Competition for Breakfast, Bryan Adam explores how to create a company culture that performs under pressure. You’ll walk away with fresh thinking, practical tools, and the courage to reframe culture not as a cost, but as your highest-yield advantage.  

Watch now

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