In an era defined by rapid change and unpredictability, the business landscape is undergoing a profound transformation. The convergence of technological advancements, a diverse and multigenerational workforce, shifting market dynamics, and geopolitical transitions are reshaping how organizations operate.
However, the acceleration of change comes with its challenges. Research indicates that 39% of all efforts to implement business change fail due to employee resistance.
To overcome this hurdle, businesses must prioritize strategies that ensure the cohesive execution of innovations and foster collaboration across their diverse workforce. This begins with embracing a people-centric approach, which is essential for engaging employees and cultivating a culture of trust and collaboration.
Moreover, organizations must shift their perspective on talent development and management with technology permeating every aspect of the work. A long-term vision for people’s development is essential for navigating both anticipated and unforeseen changes and will better equip organizations to manage the complexities of the business environment.
As we move into 2025, the role of CHROs is evolving rapidly in response to technological advancements, changing workforce dynamics, and the need for agility in talent management. Here are the top practices that CHROs should implement to thrive in this new landscape:
Focusing on skills rather than degrees is essential for building a dynamic workforce that meets evolving organizational needs.
According to WEF, 81% of businesses will continue to rely on work experience whereas 48% of employers prioritize pre-employment tests as the most common assessment mechanism in hiring processes during the 2025-2030 period.
Developing a skills-powered career architecture that aligns employee skills with organizational needs is crucial. This framework facilitates agility and performance as roles evolve. Mercer | Mettl offers a skills library that can be leveraged to identify and map the skills required for various roles, ensuring that talent aligns with business objectives.
Successful business strategies for 2025 will hinge on the integration of objective, data-driven talent insights into decision-making processes. These insights serve as the cornerstone of effective talent management, enabling organizations to anticipate business outcomes and collaboratively plan for changes with their workforce.
Leveraging analytics for decision-making and gaining insights into workforce capabilities, performance, and engagement levels helps enable informed decision-making. Regularly assessing employee skills and competencies to identify gaps and opportunities for development ensures alignment with organizational goals and fosters continuous improvement.
Staying ahead of technological trends, continuously monitoring emerging technologies that can impact HR practices and being proactive in adopting solutions is crucial for maintaining a competitive edge in talent management.
CHROs must cultivate a culture of agility and adaptability, empowering employees to take ownership of their roles and contribute to the organization’s success. By fostering an environment where employees feel valued and engaged, businesses can mitigate resistance to change and drive innovation.
According to the WEF Future of Jobs Report 2025, 170 million jobs are projected to be created by 2030 while 92 million jobs will be displaced owing to technical advancements.
This would mean a net growth of 7% of total employment, or 78 million jobs. Thus, encouraging employees to engage in continuous education and professional development fosters an environment where learning is valued, and employees feel empowered to grow. Promoting a culture of lifelong learning and creating structured learning and development programs that allow employees to upskill and reskill in line with changing job requirements is vital and helps maintain a competitive workforce.
Developing policies that promote diversity, and inclusion is essential for ensuring that all employees feel valued and have equal opportunities for advancement. Organizations must create inclusive environments that encourage open communication and knowledge sharing and foster a positive workplace culture. Today, 47% of employers emphasize the potential of tapping into diverse talent pools to remain ahead of the curve.
As the workforce becomes increasingly multigenerational, harnessing each generation’s diversity, strength, and perspectives can lead to innovative solutions and improved business outcomes. Facilitating mentorship programs and collaborative projects that bring together employees from different generations can help leverage diverse perspectives for innovation and strengthen team dynamics.
Effective succession planning not only safeguards institutional knowledge but also fosters employee engagement and retention by providing clear career pathways. By proactively identifying and developing internal talent, organizations can mitigate the risks associated with unexpected departures, retirements, or promotions.
However, retention strategies go beyond offering training programs and competitive salaries. Employees prioritize the workplace where they feel trusted and respected and have opportunities to develop. The sentiment is echoed by Gallup’s latest State of the Global Workplace report which states that employees actively engaged at work are 87% less likely to leave their companies.
Using frameworks to identify critical roles within the organization and developing succession plans for key positions is crucial for ensuring business continuity and leadership stability. Implementing structured programs that prepare high-potential employees for leadership roles ensures a strong pipeline of future leaders, supporting long-term organizational growth.
In this new era, successful businesses will prioritize their people, recognizing that a well-managed, diverse workforce is the key to unlocking innovation and achieving sustainable growth. In conclusion, the journey towards long-term productivity in 2025 begins with a commitment to understanding and investing in the people who drive organizational success.
CHROs can effectively navigate the complexities of the modern workforce by adopting these key practices. By embracing this people-led roadmap, businesses can unlock their full potential and navigate future challenges with agility and foresight.
Originally published March 12 2025, Updated March 12 2025
Vinita Rakheja is a seasoned professional with over 5 years of experience in the B2B industry, specializing in product marketing. She has been associated with Mercer | Mettl since 2024 and leveraging her expertise to drive successful marketing strategies and initiatives. Her deep understanding of the B2B landscape, coupled with her strong analytical skills and creative mindset, enables her to effectively position and promote products.
The accelerated pace at which businesses are rushing toward digitization has primarily established that digital skills are an enabler. It has also established the ever-changing nature of digital skills, and created a need for continuous digital upskilling and reskilling to protect the workforce from becoming obsolete.
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