The HR Monitor 2025 report by McKinsey & Company is a comprehensive survey-based study that benchmarks workforce and HR trends across Europe and the United States. It includes insights from over 1,900 companies and 4,000 employees, with a focus on helping HR leaders make data-driven, strategic decisions.
Highlights:
- Strategic Workforce Planning
- Many organizations engage in short-term workforce planning but lack a strategic, skill-based long-term approach.
- Only a small share link workforce plans to future skill needs.
- Gen AI and dynamic skills taxonomies are encouraged to make planning more effective.
- Talent Acquisition
- Hiring remains difficult despite an easing labor market.
- Low offer acceptance rates and high early attrition reduce hiring success.
- Internal mobility is underutilized.
- Gen AI tools (e.g., for job postings, resume screening) and “talent win rooms” are proposed to improve efficiency.
- Employee Development
- Development remains fragmented across performance management, training, and succession planning.
- Discrepancies exist between HR perception and employee experience (e.g., training days, feedback frequency).
- Integrated, continuous development strategies are recommended.
- Employee Experience (EX)
- ~20% of employees are dissatisfied; job security is now the top retention factor.
- Quiet quitting is a growing concern.
- HR often misjudges what matters most to employees (e.g., undervaluing peer relationships).
- A personalized, lifecycle-based EX strategy, supported by technology, is advised.
- HR Transformation with Gen AI and Shared Services
- Only 18% of large organizations use HR-specific shared service centers (SSCs).
- Gen AI adoption is in early stages (19% of HR processes in Europe use it).
- Organizations are urged to shift from manual to automated, AI-driven, and self-service HR operations for improved efficiency and strategic impact.
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