Your HR department faces the daily challenge of doing more with less, such as working with fewer resources and reduced budgets. So, what challenges are keeping HR up at night? According to a recent survey by HR Executive Magazine, 36% of HR professionals cite hiring and retaining key talent as their biggest challenges. However, HR technology, budgets, employee engagement, and change management were also included in the list.
Gartner states, “Optimizing HR technology is a growing HR focus as organizations seek to streamline operations and enhance productivity.”
Some HR technology solutions are designed to help recruit and hire top talent, addressing two of HR’s most pressing challenges. Let’s look at five of these HR technology trends for 2025.
HR technology that eliminates friction for employees, delivering a more seamless user experience. Self-driving solutions are more manageable for employers because they’re easier to implement and administer. Listen to what Sam Faletta, CEO of Incept, a multi-channel contact center, says about this.
Artificial Intelligence (AI) will continue to gain momentum in HR, enhancing productivity, delivering time savings, and improving efficiency and the overall employee experience. According to LinkedIn, AI will help streamline key HR recruitment tasks, including resume screening for relevant job experience, scheduling interviews, conducting interviews, and creating personalized candidate experiences.
A Deloitte study found that using AI in recruitment reduced administrative hiring tasks by up to 40%, enabling HR teams to spend more time on strategic initiatives instead of wading through potentially thousands of resumes.
There’s a dramatic shift from single-point solutions to holistic, integrated solutions. Regarding the miasma of point solutions at a single employer, Josh Bersin said, “You end up with what I call the ‘kitchen drawer’ of HR software. You open the kitchen drawer, look inside, and say, ‘What’s all the stuff doing here? Where did we get it all?’” HR leaders will reduce the number of individual solutions and vendors they work with and move toward those who, like them, can do more with less.
Regarding employee loyalty and rewards programs, technological advances that reduce the cost of offering them and improve their effectiveness are becoming more commonplace. These programs are win-win for employers and employees, but they require introducing something beyond a value exchange. In 2025, you will see technology enable a more behavioral and emotional connection to the reward itself, unlocking greater effectiveness of the reward versus its cost.
Employee well-being remains a top priority for HR. HR must prioritize the physical, mental, emotional, social, and financial well-being of employees to prevent burnout, increase work-life balance, enhance employee engagement, and reduce the stress associated with financial insecurity. McLean & Company’s research indicates that 70% of HR leaders identify economic stability as a primary threat to employee well-being; however, investment in financial wellness initiatives remains limited.
Employers need to address the diverse financial wellness needs across their entire workforce with a single, holistic financial wellness platform that can meet each employee wherever they are on the journey toward financial wellness.
HR is, in many ways, the lifeblood of your company. It aims to recruit, engage, and retain top talent to help your company achieve its goals. Technology that facilitates and fosters AI, holistic tech solutions, employee engagement, self-driving employee platforms, and overall employee well-being will prove invaluable this year in helping HR and your company thrive.
Chime WorkplaceTM offers a comprehensive, holistic financial wellness suite that guides your employees through various fee-free products to help them progress along their financial wellness journeys. For more information, request a demo today.