In this episode of The Herbein Conversation Podcast, host Hannah Kubik sits down with Karen DiGioia, Director of Client Services in our Human Capital & HR Consulting practice, to explore the biggest HR trends shaping 2025. Together, they compare national insights from SHRM’s 2025 State of the Workplace Report with real-world responses from Herbein’s HR Benchmarking Survey.
Key topics include:
- The gap between AI-powered HR tools and actual adoption
- The importance of regular coaching and feedback for employee engagement
- How burnout and work-life balance are impacting mental health
- Succession planning amid Baby Boomer retirements and workforce gaps
Tune in to hear what HR leaders are prioritizing—and what still needs work—as we move into a transformative year for human capital management.
* Click here to download the full HR Benchmarking Survey Report on our website.
Transcript
Hannah Kubik: Hello and welcome to another episode of the Herbein Conversation Podcast, where we dive into some of the most pressing issues impacting the modern workplace.
I'm your host, Hannah Kubik and today I'm joined by Karen DiGioia, director of client services in our Human Capital and HR Consulting practice.
Today we're breaking down the biggest HR trends for 2025 and how they compare to the real-world insights we gathered in our HR benchmarking survey. Plus, we'll look at key takeaways from the SHRM 2025 State of the Workplace Report to see how organizations are adapting or struggling to keep up.
So, let's dive in. One of the biggest predictions for HR in 2025 is the rise of AI powered HR management, especially in workforce planning, talent acquisition and predictive analytics. But our survey tells a different story. Only 8% of HR leaders polled said they're currently using AI in their hiring processes, and just 13% are considering it. Karen, with AI being such a major industry trend, why do you think organizations are hesitant to adopt it?
Karen H. DiGioia: That's a great question, Hannah. I think it comes down to a variety of factors, including concerns about AI bias, general lack of understanding about the capabilities. But at the base, I think there's also a comfort factor. Many HR teams are used to traditional hiring methods and are still adjusting to technology driven tools. In the end, HR is about people, so a reticence to lean on technology too heavily for certain things isn't really surprising.
However, leveraging AI and technology overall appropriately for things like drafting, job descriptions, doing some initial research, brainstorming - those kinds of things can really free up time for the strategic work of HR. The things that really bring value to the organizations. AI can provide a good jumping off point, but for a variety of tasks it should never be the final word - really for nothing should it be the final word.
Just last week we used it on my team to develop an Excel formula for something we could have done for ourselves. It had some complexity to it and probably would have taken us 20-25 minutes - not really value add to our clients to spend 20 minutes building an Excel formula. AI did it for us in three seconds. We tested it out. It was right. And we moved on to the things that could really provide value.
Hannah Kubik: That is awesome, and that aligns with what SHRM found. Their report noted that HR technology is a critical, yet overlooked area, with only 43% of HR professionals rating their organization's HR tech as effective.
So, while the data shows a clear opportunity for improvement and process efficiencies in areas like you mentioned, many organizations just aren't there yet.
Pivoting to another trend in 2025 that continues to dominate the conversation is employee engagement and specifically how organizations are giving and receiving feedback. But here's what our survey revealed…44% of HR leaders said their managers rarely conduct structured coaching and goal setting sessions with employees.
Karen, what impact does this lack of structured feedback have on engagement and retention?
Karen H. DiGioia: Feedback is critical. You know, from my perspective, you look at it as a road map. If you don't know where you're going, how are you going to get there? And without feedback, employees don't know where they're going. Good and regular feedback is really a win-win. Employees want and need feedback, not just once a year, but on a consistent, really daily basis. It helps them to feel valued, stay engaged, but it also ensures that they know what success looks like and what's expected of them.
Just as importantly, it benefits employers too. When leaders have regular conversations with their team, they ensure that there's an alignment between expectations and performance. It also provides leaders with real time insight into what's working, what's not, and what employees really need to succeed. Without that loop on both sides, you're kind of flying blind and that can lead to impeded performance and preventable turnover…and that's impeded performance both for the employee and for the organization.
Employees that aren't working at their max result in an in an organization that isn't performing at its max. Organizations that don't have regular feedback and engagement programs really should make it a priority in 2025.
Hannah Kubik: Absolutely, and again, SHRM’s report backs that up, showing that 42% of turnover intent is tied to poor engagement. And it's not just about the check ins recognition, transparency and development all play a role here.
Before we move on, just a quick heads up to our listeners that there will be a follow up episode focused solely on engagement and how organizations can improve their practices to not only see an increase in retention, but also be more attractive to job seekers, job seekers. So be sure to stay tuned for that one.
So, transitioning now to a topic that's tightly connected to engagement - burnout and work-life balance. So in our survey, only 14% of HR leaders cited work-life balance as a primary retention factor, but when you dig deeper, you realize how entwined these issues are.
Karen H. DiGioia: That's so true, Hannah. Burnout doesn't happen overnight. It's usually the result of work-life balance, work-life integration, whatever you want to call it, that’s off for a long period of time. You know, truly there are seasons where work naturally takes priority. Year-end deadlines, special projects, audits, things like that.
But other times, you know, life starts to get heavier. And that needs to take the front seat. Whether it's you know needing to care for a sick family member, childcare challenges, personal health issues, the ability to shift focus when needed is what that balance is all about.
It's like a seesaw, and real problems and burnout happen when both ends of the seesaw are up. So when that happens, you know, if you really picture a seesaw, what's going to happen? It's going to break in the middle. Because that's the only way you can end up with both ends up.
Hannah Kubik: True, true, and that's especially relevant when we look at the growing mental health toll. You know, according to SHRM again, mental health related leaves of absences rose 33% from 2022 to 2023. And if that wasn't alarming enough, a recent analysis from ComPsych shows a 300% increase in mental health related leaves between 2017 and 2023. To me, that's a clear sign that the pressures employees are facing just aren't slowing down.
Karen H. DiGioia: Exactly burnout leads to so many things. Disengagement, absenteeism, lower performance, employee turnover. By addressing it proactively through flexible work policies, workload monitoring, mental health resources - those things can go a long way, both for the organization as well as for employees.
Even small changes like encouraging leaders to model boundaries. Boundaries like limiting after hours emails, respecting time off whenever possible, and checking in with employees. Checking in how are things going and honestly meaning it and wanting an answer to that question. Those things can send strong messages to employees that that work life balance is important to the manager, to the leaders, to the organization, and the well-being on the part of employees is valued by the organization.
Hannah Kubik: Well said and in addition to engagement, another area getting lots of attention is succession planning. Organizations are staring down a major demographic shift, and many still don't have a solid plan in place. Our benchmarking survey shows that 48% of organizations don't have written succession plans for key staff.
Karen H. DiGioia: That's a huge risk for organizations if they aren't already, organizations need to face the realities of demographics. The baby boomer generation makes up a massive portion of the workforce and generations coming after are much smaller in size.
So when boomers retire, there aren't as many ready to fill the gaps that they'll leave.
This is true at every level of organizations, but most significantly from mid- management levels on up.
According to the US Census Bureau, 60% of boomers are expected to retire by 2030 now. 2030 sounds like a long way off, that’s just five years from now. The Bureau of Labor Statistics estimates that 9.5% of the US labor force will be 65 or older by then. That puts enormous pressure on organizations to develop internal pipelines now.
Hannah Kubik: Yeah, yikes. And correct me if I'm wrong, but that's where succession planning and retention intersect. It's not just about having a plan on paper - it's about making sure you're retaining the high potential talent who will be ready to step into the leadership roles.
And Karen, you have an article coming out in May on retention that hits on this topic perfectly. You point out that retaining talent requires more than just compensation. It involves building a culture that values trust, offers flexibility, gives gratitude and recognition, and provides options for employee growth and development.
Karen H. DiGioia: Exactly. Organizations really need to take a two-pronged approach to retention; retaining talent ready to step into leadership roles, but also looking at creative ways to retain talent that might otherwise be planning to retire.
When I say creative approaches, I mean things like modified work weeks, consulting arrangements, things like that that'll provide a transition between work and retirement. Employees don't need to go from, you know, 100 to 0. You can go to 100 to 75 to 50 to 25, ultimately to 0.
By taking a two-pronged approach to retention, you really have a bridge to effective succession planning. Figuring out how to slow the leak at the same time that you're looking for ways to fill the bucket faster. Organizations that treat the two parts as connected strategies will be in a much stronger position moving forward.
Hannah Kubik: I love that slow the leak it just gives a really good visual to the issue. So, we covered a lot of ground today from AI adoption to employee engagement, burnout and succession planning. And the big take away I think we could say is that organizations that proactively respond to these trends now will be far better positioned for the future.
Karen H. DiGioia: I couldn't agree more, Hannah. Whether you're building a feedback culture, navigating workload planning, or developing leaders, the time to act is now.
There are resources and partners out there to help you take the next step.
Hannah Kubik: Well said and I think that's a perfect way to wrap today's episode of The Herbein Conversation podcast. Karen, thank you so much for joining me today and for sharing your expertise and thank you to our listeners.
Please remember to check out our full HR Benchmarking Survey Report available on our website and the SHRM 2025 State of the Workplace report for deeper insights. That's where we pulled some of the statistics that we shared today. And if you found this discussion valuable, please be sure to listen to our other episodes in the series available on our website, Apple, Spotify and other platforms where you get your podcasts. Until next time!
The future of HR is unfolding fast and now is the time to prepare. Whether you're exploring AI, revamping your engagement strategies, or facing the realities of succession planning, Herbein's Human Capital & HR Consulting team is here to help you make informed, people-first decisions.
