Global HR Outlook June 2025

Reflecting on 2025 at its midpoint, we are seeing companies already thinking and talking about 2026, with many trends from a year or two ago continuing in the same direction, but arguably at a faster pace. Below we reflect on what has changed and what reassuringly remains the same.

The Talent Function in Flux

We observed a year ago in this Global HR Outlook that digital savvy organizations were shedding headcount in favor of investing more and faster in products, infrastructure, and technology. Within human resources, we are seeing a profound resulting impact on the centers of excellence.

HR CoEs are becoming leaner, less centralized, and more focused on ensuring regional or specific business units get what they need. We continue to notice a move towards more of an agile partnership orientation, especially within Talent. With “skills” increasingly taking center stage, the traditional silos that have long existed between talent acquisition, talent management, learning and development, OD, culture and engagement have blurred significantly, necessitating a more fluid approach. This simultaneous convergence and divergence within the broader Talent function demands professionals who possess a deep understanding of talent matters, impeccable business partnering skills, and the ability to provide comprehensive guidance to the business.

Examples we have seen this year include:

• Decoupling of talent management for the top 200 vs. talent management for the broader population, particularly in the US. Workforce planning has often been linked to the top 200 portfolio as well. Coaching is a big part of the top 200 agenda and is deeply embedded in plans for top leadership. Meanwhile, external vendors are being deployed for the mid-lower part of the employee base with AI coaching experiencing growing appeal as a low-cost option.
• A heavy focus on the top leadership cohort, aspiring leaders, and next generation leaders for experiential learning. We also note a reimagining of career paths through offering dual tracks (management vs. subject matter experts) to retain rising talent disinterested in traditional managerial positions.
• TA and TM are converging for many organizations with a focus on executive hiring, leadership bench strength and succession, and internal mobility. Meanwhile, learning and development is being carved out with the uptake of AI, digital and more efficient automation.
• Some end-to-end talent roles are becoming more influential and product-driven. Integrating data scientists and product experts (e.g., LinkedIn and Service Now experience) directly into Talent and HR Operations teams is becoming more common.
• Rethinking of succession planning, accounting for AI’s impact on roles and the exit of senior leaders within the next decade.

The Blurring of Corporate Functions

We have noted over the past couple of years that the role of CHRO has been expanding into other areas, such as real estate and internal communications. We are now hearing examples of the HR and the tech functions combining. Many of the people leaders we speak with see this as a natural evolution, even though the notion of this was unthinkable a few short years ago.

A recent WSJ article on Moderna merging technology and human resources into a single function grabbed our attention on this topic after the company promoted its head of HR Tracey Franklin to a newly created title: Chief People and Digital Technology Officer. The logic for this was summarized in the article as redesigning teams across the company driven by what work is best done by people versus what can be automated with technology.

The other change we are noticing around the world is a rise in Chief of Staff positions, overall and specifically for the CHRO office. With CHROs often undertaking bigger and broader portfolios, the Chief of Staff position helps to drive execution. We also note that these roles often take the lead on internal communications.

Top Notch Business Partners are Always in Demand

Mid-2025, we are seeing more business-critical transformations, a heightened focus on skills, and growing anticipation of increased activity in mergers and acquisitions. This is resulting in an imperative to bring in (or grow) impactful HR leaders who can co-create strategies and roadmaps, placing the organization’s needs at the forefront. Leading multinationals are seeking out a more creatively focused partnership with HR to help re-imagine and re-think what is possible, and to design for the future. Additionally, there is an emphasis on strong execution and delivery capabilities, ensuring the efficient implementation of new strategic plans. HR is now seen much more as a thought partner which can efficiently “get things done”.

ChapmanCG’s CEO Ben Davies noted recently “there is now a heightened emphasis on hiring top notch HR business partners who are front and centre with business strategy… dancing with the business.” Given all the change we are experiencing, it is reassuring to be reminded that great HR business partnering never goes out of style.