There’s often a perception among non-HR folks that HR is a boring, largely administrative function that is relatively static. In reality, HR is a crucial component of any organization and a major factor in an organization’s success or failure. Moreover, the priorities of the HR function are highly dynamic. Each year brings with it new challenges, opportunities and ways of doing things that keep HR professionals constantly on their toes.
Engagement Tops the List
People-management software firm Lattice recently unveiled its 2025 State of People Strategy Report, revealing new insights about HR leaders’ priorities and strategies for the year ahead, based on survey responses from over 1,000 HR professionals and functional managers.
One of the key findings of the report is that engagement leads HR teams’ priorities for 2025, with 44% identifying engagement as a top priority. That’s a telling statistic. This suggests that close to half of HR managers believe their organization has an engagement problem or at least see greater engagement as a source of business improvement.
Engagement refers to the level of dedication, commitment, passion, interest and ownership employees feel towards their work. While highly engaged employees can be effective brand ambassadors, problem solvers, innovators and teammates, disengaged employees tend to be less productive and more prone to turnover. Lack of engagement can also rub off on other workers and lead to a toxic work environment.
Performance Management Also a Priority
Another top 2025 priority among HR professionals is performance management, with 40% of survey respondents identifying that priority.
Performance management is a continuous process of coaching and feedback between manager and employee, and it can be an essential aspect of employee growth and development.
The strong showing of performance management among survey respondents suggests a sense that this is an area of concern for many organizations. Interestingly, performance management, and dedication to employee development more broadly, are key drivers of employee engagement, meaning the two often go hand-in-hand.
Mandates for 2025
The 2025 State of People Strategy Report from Lattice highlights HR’s focus toward enhancing employee engagement and improving performance management.
With 44% of HR leaders prioritizing engagement and 40% emphasizing performance management, it’s clear that organizations see these areas as crucial to fostering a productive, motivated workforce.
How will you tackle these priorities in 2025?
Lin Grensing-Pophal is a Contriuting Editor at HR Daily Advisor.
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