2025 EBOOK
HR Field Guide
to the Future
We asked 200+ HR and business leaders about the most pressing challenges on
the talent horizon. Their responses revealed their level of organizational readiness
for the forces sure to drive HR and business action over the next half-decade.
We’re putting these forces in historical
context, while also providing actionable
advice for HR teams trying to assess
their risk, prepare their teams, and better
understand the ramifications of inaction.
Table of contents
Using our initial research for guidance, we broke the survey into five distinct sections:
01. 02. 03.
Dealing with Handling human Guarding against
talent shortages + technology generational drift
integration
04. 05.
Contending Practicing
with corporate stakeholder
backlash capitalism
The Predictive Index | HR Field Guide to the Future 2
01
Dealing
with talent
shortages
The notion of a widespread talent shortage might seem counterintuitive,
given the prevailing concerns about AI coming for human jobs. How
can there be talent shortages in industries where technology is
threatening our very livelihoods (or so we’ve been told)?
Companies are training
their people, but not
necessarily in new skills.
The reality is talent shortages are nagging A majority (55%) of respondents are on top of
many industries, from tech to construction and peer mentoring. But they’re coming up short in
manufacturing, and not because the workforce is addressing skills gaps and AI understanding
simply shrinking. Labor participation rates have among their people.
stayed relatively flat over the past half-decade, yet
some prognostications estimate that by 2030, the A common misconception around AI is that its
global talent shortage could equate to around $85 emergence will supplant humans entirely. In many
trillion in lost revenue. cases, there will be a greater need for people with
strong social and emotional skills, sharpened
As an HR leader, it’s imperative that you through training that focuses on the behavioral
understand the factors driving a shortage in your traits that best complement generative AI.
field, its potential long-term effects, and your level
of short-term vulnerability. Preparation can take
many forms.
Which of the following are part of your internal talent strategy?
Skills gaps analyses 13%
AI training 29%
L&D programs for
43%
current employees
Peer mentoring 55%
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90+ percent say candidate
experience is an essential
part of the employer brand.
Survey respondents resoundingly agreed: Gain that advantage through a thoughtful hiring
A healthy brand is a harbinger of future process, alignment around cultural and behavioral
profitability. Quantifying the health of a fit, and a cohesive experience that starts when
brand is more art than science, but perception someone arrives on your site, continuing all the
matters a lot. way through their job application and onboarding.
That includes the perceived attitude toward In fact, the way you disqualify people - how quickly
candidates - those with a future at your company do you let them know (if you let them know at all)?
and those who don’t advance past screening. - may say more about your brand than any perks
you grant your new hires or existing employees.
Some developments are well beyond HR’s control.
The candidate experience, however, is something
proactive organizations can turn into their
competitive advantage.
Is the candidate experience an essential component of the employer brand?
90%
agree
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Companies are
(over)reliant on new
tech to fill talent gaps.
The notion that emerging technology can replace Your existing talent, especially the top performers,
traditional labor is not without merit, but it’s represents your easiest avenue to unlocking the
generally reductive. benefits of any new tech.
Talent shortages are layered. Each industry will Focus on training people in the skills needed
experience them differently, and HR teams must to work alongside such enhancements, while
therefore move to plug talent gaps tactically. That leaning into their behavioral strengths.
means not simply assuming the void will be filled
by new tools.
Your best weapon against any talent shortage
(temporary or prolonged)? Retention.
75%
say emerging
technologies
will offset talent
shortages
HR PREP STEPS
Revise your recruitment and training metrics to prioritize the skills that matter most
moving forward. Put yourself in the shoes of a candidate, and reassess every step of
the user experience, from search to onboarding.
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02
Handling
human + tech
integration
We know with relative certainty that companies will accelerate
their adoption of AI and automation technologies in the coming
decade, applying them to increasingly complex tasks.
Leaders are split
on evolving HR policy
for the sake of AI.
Doctors may use AI to assist with diagnoses, Healthy businesses will remain vigilant and
while retail workers shift to managing automated proactive about what tools their people are using,
systems as part of their daily routines. and how they’re using them.
This rapid pace of advancement complicates They’ll apply guardrails that are consistent with
the role of HR considerably. existing policies, while self-educating, just as they
would with new payroll tech or applicant tracking
More than half our respondents (51%) recognize systems, before rushing to update user policy.
the need for revising policy as generative AI
advances assist - but also expose - their people
and processes.
Is traditional HR guidance enough for implementing generative AI?
51% 49%
say HR policies say current
need to evolve HR practices
for AI are enough
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But most everyone
agrees security measures
should be sharpened.
Few people (12%) deny that with new tech come Then lean on the experts in their fields for
new vulnerabilities. Adoption will almost always support. Equip security and IT teams with
outpace available guidance. ample resources and training to help protect
the company against known threats and
HR teams need to first fully understand the potential vulnerabilities.
scope of what their people are using. You can’t
pinpoint your exposures without knowing what
you’re up against.
Do generative AI advances require re-evaluating your company’s vulnerabilities?
88%
agree evolving
tech demands
stronger security
The Predictive Index | HR Field Guide to the Future 9
When it comes to using
new tools, leaders should
lead by example.
There’s nuance to this issue, but generally, But after-hours may mean something completely
people are in agreement about who should different from one company to another - or even
serve as the models for tech use - new or from one geographically dispersed team to the
otherwise. In that sense, the rules around next. So it’s up to leadership and HR to determine
ChatGPT and Slack are no different from those and communicate those guidelines, then
applying to workplace decorum. model them.
Should leadership serve as the model for after-hours technology use?
87% AI
agree leadership
sets the standard
for after-hours
tech use.
HR PREP STEPS
Define what constitutes required tech, and provide guidelines for adoption,
integration, and collaboration. Conduct assessments, implement surveys, and
engage in regular conversations with employees to gauge how integration is going.
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03
Guarding against
generational
drift
We’re entering an unprecedented era in workplace culture. Onboarding
fresh talent will have limited payoff if it comes at the cost of alienating
more tenured employees who don’t feel like they’re part of the plan.
Aligning on values is
increasingly important
to business health.
The most forward-thinking businesses are People need to feel like they’re marching toward
figuring out ways to unify the 4+ generations that something. Codify and commit to a series of
will share spaces over the next decade. shared values, and you’ll leave less room for
ambiguity and argument.
These companies will rally their people around a
common mission and vision. And they’ll do it with Folks can feel confident in the collective vision.
HR as the bridge. The most productive, profitable businesses will
thrive not because everyone is always ethically
Many HR and business leaders still seem to think aligned, but because their purpose - whatever it
companies can succeed without a commitment may be - is plain and clear.
to shared values. But by 2030, with more
millennials in leadership roles, the demand for
a more engaging, and satisfying work experience
only figures to increase.
Does aligning company values predict organizational health?
61%
agree value
alignment is key to
organizational health
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A clear mission is not
just a nice motivator - it’s
a competitive must-have.
Ninety-one percent of respondents agree: Assume your top talent talks to other top talent.
Communicating a clear mission and vision is a The best people know what a high-functioning,
competitive differentiator. It’s also an attainable forward-thinking company looks like, whether
win for any evolving organization. they’re happily working for it or actively seeking
to join one. Your company’s reputation may
It means aligning everyone from the hiring teams precede itself.
to salespeople to articulate the same goals and
plan. Mixed messaging may not seem like a
matter of employee engagement, but in the era of
the global workforce, more professionals operate
like free agents. And if you’re not careful, threats
to that messaging can emerge from within.
Is clear mission and vision communication
a competitive advantage?
91%
say clear mission
and vision give a
competitive edge.
HR PREP STEPS
Connect roles (new or existing) to the skills and behaviors that will lend to success
in them, and make it clear how they apply to the company’s mission and goals.
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04
Contending
with corporate
backlash
The employer-employee dynamic is constantly shifting,
but perhaps never more than in the past half-decade.
HR and business leaders
see flexible working as key
to employee satisfaction.
Many employers have wielded return-to-office Agility and empathy will be hallmarks of healthy
mandates as a show of force, with mixed businesses in the coming decade. While certain
results. Employees have exercised their own industries and roles will afford more flexibility
agency by leveraging competing offers, quitting than others, business leaders who hold the line
(quietly or not so quietly), and expressing their purely for the sake of policy or tradition will fall by
dissatisfaction with traditional notions of work. the wayside.
Structured hybrid models have steadily increased.
The consequences of inaction on this issue might
“Flexible” can mean different things at different be particularly dire.
places, for different people, but a resounding
majority (91%) sees the correlation with employee Ultimately, it’s a matter of competitive standing
satisfaction and organizational health. - if every other employer in your field is offering
hybrid or ad-hoc working arrangements, you
Understanding how your people are simply won’t be able to retain talent if you don’t.
behaviorally driven can offer insight into their
potential preferences, but there will be no one-
size-fits-all solution when it comes to the modern
workplace setup. Do flexible work options boost
satisfaction and health?
91%
agree flexibility
fuels satisfaction
and health.
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Evolving your hiring
and team-building
practices is essential.
In a similar vein, the companies whose hiring Expand the criteria you use to evaluate candidates
practices stay stagnant won’t fare well with the to include cognitive or behavioral data and you’ll
next generations of available talent. In the same unlock newfound insights into why people work
way your employer brand can reflect how you certain ways. You can apply the same concept to
value customers and candidates, your hiring team building, to great effect. Just one addition
practices are a peek behind the curtain of day-to- alters the behavioral profile of the group.
day company operations.
“ Top performers are seeking
autonomy and want to make
an impact. They don’t want
to feel like just a number or
a cog in a machine.
MATT POEPSEL, PhD
Vice President & Godfather of Talent
Optimization at The Predictive Index
HR PREP STEPS
Make behavioral awareness and workplace flexibility a part of your company’s
mission. HR and business leaders who recognize and leverage people’s behavioral
preferences will broaden their organizational appeal.
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05
Practicing
stakeholder
capitalism
The concept of stakeholder capitalism holds that the employee can cash
in their accrued capital for better compensation and better working conditions.
Ensuring employee
safety is organizational
job one.
Stakeholder capitalism can benefit job creators, That means using technology to enhance security
too. They can practice it by catering to for on-site and remote employees alike, but it also
a broader swath of the employee population, means fostering a culture of support and open
appealing to more job seekers who share their communication, through outlets like employee
values and commitment to a stated mission. resource groups.
Research suggests that doing so leads to better
treatment of employees. Psychological safety isn’t easy to attain, but it’s
a widely agreed-upon necessity for a harmonious
Safety is a recurring theme among modern workplace - and therefore a worthy goal for
jobseekers, one that resurfaces regularly in proactive organizations.
employee engagement data, and one business
and HR leaders agree is a near-unanimous priority
(97%) over the next few years.
Employers can advance their own capital by
taking simple steps to make people feel included,
seen, and secure.
Does workplace safety
predict organizational health?
97%
say workplace
safety predicts
organizational health.
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Over the next decade,
more companies will
embrace social responsibility.
What’s the role of business when it comes to It’s an opportunity companies can capitalize on
social issues? There are no easy answers to that without compromising their customer base or
question, but the path of least resistance has profit margin.
generally been the status quo. Take no sides, risk
no business losses. Embracing social responsibility can be subtle.
And the organizations that strike this balance will
But what does that approach say to your serve notice - both through their customer activity
employees? and talent acquisition.
Research suggests that finding purpose
YOUR COMPETITIVE ADVANTAGE
in one’s work, and working for a company
whose organizational purpose includes social
responsibility, are increasingly intertwined. OFFERING
FLEXIBILITY
EMBRACING
SOCIAL
86%
RESPONSIBILITY
ATTRACTING
TALENT BUILDING
PURPOSE
say social responsibility gives
companies a competitive
edge in attracting talent.
HR PREP STEPS
Take advantage of that seat at the decision-making table. As an HR pro, you have
the pulse of the people at your organization, and the ear of other business leaders.
Use powerful people data to inform sound business decisions.
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Assessing your
threat level as
a business
Run back through the five forces we’ve covered. How prepared is your business for each threat?
What are the ramifications of being unprepared?
Every organization’s situation is unique, but we can feel confident about a few things:
• Companies that don’t deal with talent shortages will see performance suffer.
• Integrating new tech without adequate people training will sew disengagement.
• Failing to unite different generations at work will lead to alienation and attrition.
• Refusing to evolve for the sake of corporate tradition will stunt growth.
• And ignoring stakeholder capitalism will limit your impact.
Address these challenges head-on, however, and you’ll not only reinvigorate your current
people - you’ll start attracting new ones.
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