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Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

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OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation

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Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
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HR leaders used to be obsessed with recruiting. Now they’re trying to develop the talent they already have

Brit Morse
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Brit Morse
Brit Morse
Leadership Reporter
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Brit Morse
By
Brit Morse
Brit Morse
Leadership Reporter
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March 13, 2025, 7:05 AM ET
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CHROs are shifting priorities from recruiting talent to developing it internally.
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If 2024 was all about discovering new talent, human resource leaders are using 2025 to focus on cultivating the employees they already have. 

Last year, the number one priority for top HR executives was recruiting, and figuring out ways to hire workers with in-demand skills like AI expertise, according to the 2025 State of the Workplace released by the Society of Human Resource Management (SHRM). But this year, recruiting fell to seventh place, showing that CHRO priorities are changing drastically in 2025.

Instead, leadership and manager development took the top spot among focuses for HR professionals, according to separate study from SHRM, with 51% of CHROs saying it was their main concern. That was followed by organization design and change management at 30%, employee experience at 28%, talent management at 27% and learning and development at 24%. 

“It’s really about ensuring that the employees you have at your organization are working towards being productive, and that you can retain that talent,” says James Atkinson, VP of thought leadership at SHRM. “We’re seeing a focus from recruiting outside the organization to really building up and developing talent within the organization itself.” 

The new emphasis on existing employees comes as HR practitioners are forced to manage their organizations through particularly volatile times, according to Johnny C. Taylor, president and CEO of SHRM. “As organizations continue to navigate talent shortages, economic fluctuations, and evolving workplace dynamics, HR leaders are shifting their focus to long-term workforce development and engagement strategies,” he says. 

When it comes to exactly what qualities HR leaders want to encourage among their managers, around 40% of CHROs who named leadership development as a top priority said they were interested in teaching softer skills, like the ability to inspire workers and manage conflict, the second study found. 

Out of companies that ranked employee experience as a top concern, 40% said they were focused on improving employee satisfaction, engagement, and productivity, as opposed to other issues like workplace culture (15%), and RTO strategy (5%). And overall, 59% of CHROs are planning to place more focus on employee well-being in 2025, according to the CHRO study. 

HR leaders have good reason to worry about their workers. Around 35% reported heavier workloads in 2024 due to unfilled roles, and 61% reported feelings of burnout, according to the state of the workplace study. 

“There’s going to be an emphasis on that human-centered leadership in 2025,” says Atkinson. “Leaders need to be equipped to lead change, but also equipped to engage with their employees as well.”

Brit Morse
brit.morse@fortune.com

Around the Table

A round-up of the most important HR headlines.

The U.S. Department of Education is letting go of more than 50% of the workforce, or roughly 1,300 workers across the agency. New York Times

McDonald’s is bringing AI to its restaurants, to help target order accuracy and find equipment issues or failures. Wall Street Journal

Undergraduate students are starting to unionize across multiple campuses, and while the efforts are still rare, when they do pop up they are overwhelmingly popular. Bloomberg

Watercooler

Everything you need to know from Fortune.

Costly workplaces issues. Employee disengagement and burnout resulted in over $5 million in costs annually to the average 1,000-person U.S.-based company, according to a recent study. —Sara Braun 

A big job. Kohl’s new CEO has a huge turnaround job ahead of him, and wants to bring a heavier focus on beauty to the brand, following Sephora’s success. —Phil Wahba

A plea for clarity. David Solomon said headwinds from tariffs are hampering dealmaking activity, and business chiefs are eager for more clarity on where policy is headed. —Todd Gillespie and Bloomberg

This is the web version of Fortune CHRO, a newsletter focusing on helping HR executives navigate the needs of the workplace. Sign up to get it delivered free to your inbox.
About the Author
Brit Morse
By Brit MorseLeadership Reporter
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Brit Morse is a former Leadership reporter at Fortune, covering workplace trends and the C-suite. She also writes CHRO Daily, Fortune’s flagship newsletter for HR professionals and corporate leaders.

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