Why 2025 is the toughest year yet for HR leaders — A look on International HR Day

Today, as the world celebrates International HR Day 2025, HR leaders find themselves standing at a critical crossroads. Never before has their role been so demanding, yet so essential. The fast-paced rise of Artificial Intelligence, shifting employee expectations, complex regulations, and the constant need to drive business agility are just a few of the pressures weighing heavily on their shoulders. 

This year, more than ever, HR professionals are feeling the heat—and the stakes couldn’t be higher. Drawing on recent research and expert insights, we explore the top ten reasons why HR leaders are among the most stressed executives in 2025. Understanding these challenges isn’t just important for HR—it’s crucial for every organisation striving to thrive in today’s turbulent landscape.

1. Balancing innovation with human needs

Artificial Intelligence is revolutionising HR, from recruitment algorithms to employee analytics. However, according to a Deloitte survey, 74% of HR leaders report that employees are anxious about how AI will affect their jobs, and 62% of HR professionals themselves express concerns about managing AI’s ethical implications and operational impact. The pressure on HR to harness AI benefits while mitigating fears and ethical risks is a significant source of stress. As one HR leader put it, “We are the bridge between the new tech and the people it affects.” 

2. Workforce polarisation 

The modern workforce is a patchwork of generations, employment types, and cultural expectations. Deloitte reports that 85% of HR executives are redesigning work to deploy skills flexibly across projects and geographies. Yet managing this diversity strains HR resources and complicates leadership approaches. Polarisation can lead to cultural fragmentation and reduced cohesion, intensifying HR’s role as the cultural steward of organisations. 

3. Employee well-being 

Employee well-being is an increasing priority, yet it remains a persistent challenge. DHR Global’s research reveals that 82% of employees experience burnout to varying degrees, citing long hours, workload, and blurred work-life boundaries. HR leaders bear the brunt of this crisis, tasked with creating and maintaining support programmes amidst resource constraints. The stress of “holding up the organisation’s mental health” weighs heavily on HR teams, particularly as mental health stigma still lingers in many workplaces. 

4. Leadership development and succession planning

Despite their strategic importance, leadership development programmes often fall short. Gartner’s research highlights that 75% of HR leaders believe managers are overwhelmed by expanding responsibilities, while 70% feel their current leadership training is inadequate for future needs. The pressure to cultivate next-generation leaders who can navigate complexity and uncertainty is a major source of stress. HR must balance immediate operational demands with long-term leadership investment, often under tight budgets. 

5. DEI initiatives under pressure

DEI initiatives, while critical, face headwinds from shifting political climates and corporate resistance. The recent rollbacks of DEI programmes in some regions and sectors have made HR’s mission more challenging. According to Hacking HR Lab, many HR leaders feel frustrated by the backlash, which risks undoing years of progress. This dynamic creates stress as HR strives to build inclusive environments that are both welcoming and legally compliant. 

6. Talent Retention 

The “war for talent” continues unabated. Paycor’s survey reveals that 71% of businesses rank finding quality workers as their top recruitment challenge, with 20% of employees actively looking to change jobs. HR leaders struggle to craft compelling Employee Value Propositions that retain top talent, especially in sectors facing skill shortages. The added pressure to reduce turnover costs while maintaining morale adds to HR’s stress load. 

7. Managing hybrid and remote workforces

Hybrid work models are now standard, but managing distributed teams remains a headache for HR. Ensuring productivity, fostering engagement, and maintaining culture across physical and virtual spaces is a complex balancing act. A BSI report highlights the need for HR to develop new policies and communication strategies that address hybrid work’s nuances. HR leaders often feel stretched thin as they attempt to meet diverse employee expectations. 

8. Data privacy and cybersecurity concerns

The digitisation of HR processes increases vulnerability to data breaches. Protecting sensitive employee data from cyberattacks is now a top priority but also a significant source of anxiety. BSI’s research points to a rising number of cyber threats targeting HR systems. HR professionals must implement robust security protocols and ensure compliance with data privacy laws, often without sufficient technical support. 

9. Complex compliance requirements

Labour laws and data privacy regulations are evolving rapidly across jurisdictions. HR leaders face the daunting task of staying ahead of these changes to avoid costly legal risks. TheHREmpire notes that the regulatory burden, especially for multinational firms, is growing, requiring constant vigilance and adaptation. This ever-shifting compliance landscape adds to HR’s operational pressures. 

10. Change management and employee fatigue

Organisational change is accelerating, but employees are increasingly fatigued by constant transitions. Gartner finds that 74% of HR leaders report their workforce is suffering from change fatigue, and 73% say employees feel overwhelmed by ongoing disruption. HR leaders must help managers lead change effectively, a responsibility that often falls on already stretched teams. Balancing stability with agility creates ongoing stress in the HR function. (Source: Gartner, gartner.com)

From technological disruption to workforce dynamics and regulatory pressures, these ten challenges shape the HR landscape today. By prioritising mental health, embracing new leadership models, and leveraging data-driven strategies, HR can turn these pressures into opportunities for growth and transformation.