“The combination of a disjointed legacy IT landscape plus a fragmented product landscape created a number of inefficiencies,” explains Andreas Kleiner, American Modern CEO. “We said, ‘Let’s go in one big bang, and get everything on one platform and at the same time completely revamp our product landscape.’” (Credit: Panithan/Adobe Stock)
A new survey of human resources professionals arrives at a pivotal time, as HR leaders are facing top-down mandates, widening cultural divides, and the rapid rise of artificial intelligence — all while being tasked with driving productivity and influencing key business decisions. And, as the report suggests, some significant changes in the workplace might be necessary to ensure future success.
The “2025 HR Insights Report” from Leapsome, an AI-powered people platform, and developed in partnership with research agency Opinium features insights from a survey of 1,000 HR decision-makers across the United States, the United Kingdom, Germany, and the Netherlands.
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“HR teams are being pulled in every direction — but they’re not just holding things together, they’re guiding the business forward,” says Luck Dookchitra, VP People at Leapsome. “They’re using people data to lead high-stakes conversations — and pushing back when leadership forgets what actually drives performance: trust, inclusion, and alignment.”
Here’s a breakdown of the three key insights from the report:
1. Cultural shifts are threatening people-first HR.
A staggering 92% of HR leaders report internal resistance when championing people-centric initiatives like DEI, flexibility, and wellbeing. Return-to-office mandates are especially contentious, with 56% feeling pressured to enforce them, despite 81% considering other working models more effective for collaboration.
In the case of RTO, for example, “forcing employees back without a clear communication strategy and plan can do more harm than good,” according to the report. “HR leaders (who are closest to the workforce) see this firsthand: RTO mandates don’t guarantee innovation or productivity. In fact, most agree that workplace flexibility is linked to business impact.”
The report suggests that HR’s role in the RTO discussion is to bridge the gap between management and employees, including “clarifying the ‘why,’ involving teams in the process, and ensuring your strategy feels intentional — not reactive.”
2. HR is under pressure to prep the workforce for AI — fast.
Nearly three-quarters (73%) of companies are restructuring roles to integrate AI, with 85% of HR leaders involved expecting major changes this year. But there already are signs of employee resistance, with 64% reporting AI skills gaps as an urgent problem.
The report emphasizes that “effective AI plans don’t start with tech — they start with people.” That includes identifying skills gaps, investing in AI training, making hiring decisions that support long-term AI adoption, and leading with transparency.
“Change is happening fast — but HR can help people keep up,” the report notes. “What’s needed now is a clear view of current skills, a plan to close the gaps, and a communication strategy that brings everyone along.”
3. As HR’s role expands, so does its power to drive change.
Nearly two-thirds of HR leaders say they’re accountable for building high-performing teams, which is the No. 1 priority for CEOs in 2025. With 85% now owning or influencing key business decisions, the role of HR has grown far beyond support. Today, HR is guiding strategy, driving outcomes, and being measured by its impact.
The report cites creativity, innovation, and task completion as the top three performance indicators used by HR professionals, with only 29% still tracking hours worked.
“Once you start measuring outcomes, one thing becomes clear: performance isn’t just about what people do, but how they feel while doing it,” according to the report. “Emotions like hope, optimism, and happiness are among the strongest predictors of productivity, and the data backs it up. People leaders say the biggest productivity drivers are trust, autonomy, effective development, and streamlined workflows.”
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