General HR Archives - AIHR Online HR Training Courses For Your HR Future Tue, 03 Jun 2025 14:04:03 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.1 15 Common HR Stereotypes vs. What It’s Really Like https://www.aihr.com/blog/hr-stereotypes/ Fri, 16 May 2025 08:32:08 +0000 https://www.aihr.com/?p=98405 If you work in Human Resources, you’ll likely be familiar with the many HR stereotypes that others have about what your job is and what you spend your time doing on a daily basis. HR departments often get a bad rap, and this can prevent the rest of the organization from embracing the department, as…

The post 15 Common HR Stereotypes vs. What It’s Really Like appeared first on AIHR.

]]>
If you work in Human Resources, you’ll likely be familiar with the many HR stereotypes that others have about what your job is and what you spend your time doing on a daily basis. HR departments often get a bad rap, and this can prevent the rest of the organization from embracing the department, as well as deter people from pursuing a career in HR.

However, according to the CIPD’s U.K. people profession analysis, the HR profession grew by a staggering 42% in recent years, compared to just 10% for the general workforce. This sharp rise suggests that despite the stereotypes, there’s a growing recognition of how essential HR is to modern organizations.

In this article, we explore some of the common HR stereotypes and myths, the consequences of these, and how HR can build a more positive reputation. 

Contents
Why stereotyping exists
Common HR stereotypes and HR myths
The consequences of HR stereotypes
How HR can combat these stereotypes
How to build a positive HR reputation


Why stereotyping exists

It’s human nature to make generalized associations from our surroundings and cultural influences. We form these simplified perceptions of reality from our own observations and experiences, from what we see depicted in media or entertainment, or from what we hear and learn from others.

Stereotyping even occurs unconsciously when the mind tries to process and organize the vast amount of information it takes in by sorting it into categories. In other words, stereotyping is a type of bias or a cognitive shortcut.

There are numerous types of stereotypes, which are typically based on:

  • Sex and/or gender identity (e.g., boys like to play with trucks, and girls like to play with dolls)
  • Race, ethnicity, nationality (e.g., Germans are the most hardworking nation in Europe)
  • Age (e.g., all older people are bad with technology)
  • Socioeconomic status (e.g., low-income people are less competent)
  • Groups of individuals (e.g., software developers are introverted geeks)
  • And more.

In the context of jobs and careers, particular traits are often presumed for people in certain lines of work. 

For example, many people might assume that all accountants are boring people who dress in plain suits, wear glasses, and are great with numbers. Similarly, you might assume that an artist is someone highly creative who is quite liberal in their beliefs, a little disorganized or scattered in their day-to-day life, and dresses eccentrically. 

Stereotypes exist around any career or profession, and HR professionals are no exception. The first thing people think of when they think “HR” is often paperwork, bureaucracy, red tape, outdated procedures, delays, or conflict. At the same time, they expect HR professionals to be warm, approachable, “people” people. But if you work in HR, you know firsthand that this doesn’t reflect the full picture. The reality is far more complex and valuable than those surface-level assumptions.

Common HR stereotypes and HR myths

Here are some of the common misconceptions about HR, where they might originate from, and what the reality or ideal scenario is.

1. HR has little responsibility beyond administration and bureaucracy

The stereotype: HR is seen as the department responsible for paperwork and simple administrative tasks.

The reality: Documentation, record-keeping, compliance, and oversight of policies and procedures are crucial functions of Human Resources, so there are many administrative tasks to be done. However, HR’s main responsibilities are strategic. Employees, as well as managers and leaders, may not be aware of all HR’s business-centred work.

The overall purpose of HR is to figure out how to get the best out of employees to help the organization achieve its goals. HR should play the role of a business partner and be relied on to design and implement changes and courses of action needed to move the company forward, which will positively impact the bottom line.

2. HR operates in isolation

The stereotype: HR is autonomous and doesn’t need to collaborate with other departments.

The reality: Due to the classified nature of some HR work, there are certain boundaries with other departments to maintain confidentiality. However, HR can’t and doesn’t work entirely alone. In fact, HR must collaborate with all departments, working closely with managers and leaders to share information and support organizational growth through HR strategy. Using HR software to streamline HR processes can improve communication across departments.

3. HR lacks business and data knowledge

The stereotype: HR probably doesn’t understand how their company makes money, let alone how to make data-driven decisions.

The reality: This HR stereotype is largely due to HR’s focus on the organization’s employees, not the product or service the organization sells. The truth is that HR needs strong business acumen and data literacy to be able to truly contribute to the organization and be a strategic partner to the leadership. T-shaped HR professionals—who possess core competencies including business acumen, data literacy, and digital agility—are fast becoming the future of HR.

HR professionals need to thoroughly understand their organization and its industry. For example, you can’t successfully recruit the right talent for a position if you don’t have a solid understanding of the role, the industry, and the market.

As technology advances, HR has also become increasingly data-driven in analyzing organizational problems and making evidence-based decisions. For example, calculating the employee turnover rate, seeing where your organization sits against industry benchmarking, and then taking action to decrease turnover.

4. HR doesn’t really listen to or take action on employee complaints

The stereotype: HR just processes employees’ complaints and does nothing about them because they don’t really care about employees.

The reality: In organizations with small or non-existent HR departments, there won’t be staff who can follow up on complaints, and sometimes, HR professionals who lack training won’t handle a complaint correctly.

However, in businesses with more mature HR departments, HR professionals take complaints seriously and follow clear procedures to address them. This includes listening actively, investigating fairly, and documenting outcomes, often under legal and ethical obligations to do so. While not every situation can be resolved perfectly, good HR teams focus on making employees feel heard and following through where action is possible.

5. HR only acts in the company’s interest

The stereotype: The HR department only cares about protecting the company. Since HR is responsible for communicating and implementing company policies, employees can see it as biased toward management.

The reality: Capable HR professionals work with staff to resolve issues and ensure they’re treated well while at the same time balancing the organization’s goals. They can adhere to company policies while still advocating for the workforce.

HR should regard employees as internal consultants who provide valuable insight that can be shared with management. When HR is able to empathize and see the big picture of any issue, it serves the interests of both parties.

The core role of HR is to manage and nurture people, which is in the company’s interests. This means listening to what employees have to say, recognizing and rewarding them, responding with care, taking appropriate action, and helping them develop in their careers.

6. You don’t need any special skills to go into HR

The stereotype: Anyone can do HR. They’re usually people who didn’t get a job in sales or marketing.

The reality: To succeed as HR professionals, people need to have various specific competencies, such as business acumen, data literacy, and specialization in one or more HR functions. They also must be strong in soft skills like communication, emotional intelligence, and conflict resolution. What’s more, his field requires HR professionals to be constantly developing these skills while building new ones, particularly as technology and AI change HR roles.

Break the stereotype. Build the skills.

Modern HR is anything but a generic discipline. From data literacy and business acumen to coaching, conflict resolution, and digital transformation, HR professionals need a unique mix of hard and soft skills that they must build and sharpen over time.

With AIHR’s Full Academy Access, you can develop this full skill set in one place. Get unlimited access to all our certification programs and grow into the kind of HR professional the future depends on.

7. HR just spoils all the fun

The stereotype: HR is the “fun police” and punishes people for making innocent jokes and pranks.

The reality: HR is in charge of enforcing employee conduct rules and is typically involved when someone has to be disciplined or terminated. While HR professionals do not want to micromanage employees’ behaviors or interactions, they do play an essential role in creating and maintaining a healthy company culture for all and nurturing an inclusive environment where all employees feel safe and informed at work. 

It’s important to remember that HR is often also responsible for organizing welcome weeks for new hires, team-building activities, company-wide retreats for remote businesses, early finish Fridays, fundraising events, Christmas and summer holiday parties, and much more. 

8. HR is all about hiring, reprimanding, and firing employees 

The stereotype: HR’s main tasks are to hire, reprimand, and fire employees.

The reality: These are the HR roles that are the most obvious to employees, and little thought goes into what else is in their scope of responsibility. But there’s so much more to HR than hiring and firing. The HR department oversees the entire employee life cycle. They’re behind the strategy for how staff are sourced, hired, onboarded, managed, and developed while supporting the company’s mission and goals to lead it to success.

9. All HR cares about are policies and procedures 

The stereotype: HR is always focused on policies and doing things “by the book” just to complete their checklists.

The reality: Designing, implementing, and following clear-cut policies and procedures is one of HR’s responsibilities, and this helps the organization remain compliant with ever-changing laws at the local, regional, national, and global levels. HR ensures that organizations fulfill their legal and ethical obligations to protect employees and the business, but this is just one role amongst many. Employees often lack a good understanding of this, seeing HR as a rule creator and enforcer.

10. There’s no creativity involved in HR

The stereotype: The HR profession is very uninspired and boring since it’s all about administration and policies.

The reality: Again, this stereotype comes from a view of HR that is limited to what it produces externally, not what it does behind the scenes. Fostering creativity in business has become all the more important in recent years because of continuous change happening in the economy, global competition, and the expansion of flexible work options.

HR managers often need to be creative and think outside of the box to support innovation and come up with improvements and solutions to problems. For example, this would be redesigning policies to fit the hybrid work environment or innovating an organization’s benefits offering to reflect the evolving labor market and employee expectations.


11. HR professionals are all people persons 

The stereotype: HR professionals love people and want to help them, and that’s why they’re in HR. Therefore, HR is not inherently business-oriented.

The reality: It’s more important for HR professionals and teams to be able to see the big picture and to be strategic about building a productive workplace. HR is about organizing people within processes to achieve results. A desire to work with people is necessary, but HR professionals must also be up for the challenge of deciding how to best hire, manage, and develop them to solve business problems.

12. Technology is going to replace HR 

The stereotype: Advancement in AI and HR automation is rapidly changing HR, and the entire function will soon be replaced by technology.

The reality: Technology is undoubtedly changing HR, but not replacing it. Repetitive, low-level HR processes are continually being redefined and streamlined so they can be automated or take less time to complete. This frees up HR professionals to focus on more strategic, people-centered tasks that create the most value for the business, and advanced technology is not a substitute for this. 

As technology advances, it will make HR more efficient and present further opportunities for the team to become more involved in business strategies. 

13. HR is only there to protect the company from lawsuits

The stereotype: HR exists to protect the business from legal issues that may arise. 

The reality: HR does play a role in protecting the company from lawsuits because these can damage the company and employer brand, which can ultimately lead to the entire company going down and taking all its people with it. 

However, HR also exists to protect the employees within that organization from being mistreated. It’s not in their interests to ignore issues and complaints and allow them to fester because this can have a critical impact on the company culture, turnover rates, and morale of the employees. 

Part of HR’s role is to find a healthy balance between protecting the company and its people. In the past few years, we’ve seen a great emphasis on employee wellbeing, with HR teams keen to work with managers and take care of employees’ physical and mental health. 

14. HR doesn’t understand the challenges other departments face

The stereotype: HR professionals are not well-informed about the nature of other departments’ work or the challenges the business faces as a whole.

The reality: Traditionally, HR wasn’t expected to fully grasp the inner workings of other departments, but that’s changing. Today, competent HR professionals make a considered effort to learn the ins and outs of the business because this is essential for understanding the challenges it faces and how HR can tackle these within its function. That’s also why more organizations are giving HR a seat at the table and recognizing its strategic value.

15. HR slows things down with too much red tape

The stereotype: HR is old, outdated, and obstructionist. They delay processes (such as hiring, promotions, and training) with too much red tape.

The reality: HR has procedures in place to protect the organization and its employees, which is why it can take longer than managers and employees would like to complete tasks such as promoting someone or rolling out a training program. However, technology is helping HR improve the efficiency of all its processes. When managers work collaboratively with HR and communicate effectively, it creates a more productive, beneficial relationship.

The consequences of HR stereotypes

There can be some element of truth in most stereotypes. Still, a limited view or misconception of reality is inaccurate and can be harmful when it causes the wrong response. HR stereotypes can have negative consequences for HR teams, including the following: 

  • Lack of trust in HR from both the business and employees: If managers and employees don’t believe the HR department has their best interests at heart, it’s difficult to establish trust and create a healthy working relationship.
  • Deterring talented people from pursuing a career in HR: Perceptions of HR being admin-heavy, old-school, and bureaucratic can put people off working in HR, shrink the talent pipeline, and lead to HR teams missing out on recruiting talented people. 
  • HR not being able to realize its full value: Another consequence of HR stereotypes is that they reinforce the idea that HR does not positively contribute toward or drive business performance, which can lead to leadership teams overlooking their HR departments and HR not being able to fulfill its potential. 

How HR can combat these stereotypes

Here are some ways to counter HR stereotypes and their negative effects. These can be used by an individual HR professional or as an overall HR strategy for your organization. 

Improve communication about the role of HR to your employees by:

  • Increasing genuine interactions with employees and one-on-one conversations that encourage a more co-worker-type relationship
  • Seeking out ongoing, honest feedback from employees and demonstrating that you understand what’s going on with them enough to act on their ideas or complaints
  • Ensuring employees have equal representation throughout the conflict resolution process
  • Offering a more complete picture of changes being made that affect employees. For example, explain why you’re making these changes and how they’ll benefit employees.

Strengthen the relationship between HR and other departments by:

  • Creating genuine partnerships by dedicating an HR representative to work with each team and understand what they’re doing and the challenges they face
  • Aligning HR initiatives with individual departments by connecting with managers on a regular basis to maintain clear communication. This will help employees experience HR as consistent throughout the organization.

Use data to demonstrate your impact on the leadership by:

  • Knowing what type of data leadership requires and producing related reports as often as needed
  • Explaining how HR’s role in effective human capital management improves retention and employee engagement statistics for better productivity.

Exercise your current abilities and continue upskilling yourself to create more influence by:

  • Communicating clearly in every interaction and showing enthusiasm for HR initiatives
  • Being flexible and compassionate toward employees and management, so people know they are heard
  • Striving for impartiality to find the right balance between representing the company and being a voice for employees
  • Using creativity to come up with new ideas and resolutions to problems
  • Developing new or enhanced skills in data literacy, AI, communication, leadership, or other areas to expand what you have to offer, for example, by gaining an HR certification.

How to build a positive HR reputation

Building a more positive reputation helps HR shift how it’s perceived—both internally and externally—by showing the real value it brings to the organization. When employees and leaders experience HR as approachable, effective, and strategic, it becomes easier to break down outdated stereotypes.

Here are some tips to help build a better HR reputation and improve your credibility within the organization:

  • Align the value HR offers with business outcomes: Educate leaders on what the new role of HR is today and use data and metrics to demonstrate the value it can bring to the business. Build relationships with stakeholders and discuss how the relationship will work going forward. 
  • Establish HR’s power and authority within the organization: For HR stereotypes to shift, the HR function needs to be legitimized within the organization. HR should work to clarify its positioning within the business, educate people on HR’s capabilities, and use real examples to demonstrate how HR has positively contributed to other organizations. 
  • Set transparent standards and targets: HR should work with the business to agree on acceptable service standards and benchmark these against the industry. Stakeholder feedback should be measured against these set criteria, and dashboards can be used to show progress. 
  • Demonstrate the value HR is providing: Don’t let HR’s contributions fade into the background. Use data and metrics that show the impact and results HR has on the organization, share success stories, and make HR’s impact visible. This will help to boost the credibility of the HR team and drive informed conversations on HR’s performance. 
  • Build skills and competencies that help HR professionals deliver: Be clear on the skills and competencies that help HR deliver. Focus on developing T-shaped HR professionals who have a breadth and depth of skills that will help them be effective as technology continues to shape the future world of work. 
  • Find a healthy balance between investment in HR and desired impact: For HR to drive strategic value in the business, it needs investment in structure, skills, and systems to make this possible. Forecast HR investments in line with plans, implement financial controls, and build a strong business case to demonstrate why HR needs investment and the return this will yield. 

Closing thoughts

The role of HR has greatly transformed over the past few decades, but HR stereotypes have continued to persist throughout these changes. Those who work in HR know it’s a challenging job that requires a wide skill set, and stereotypes held by business leaders don’t make it easier. 

Open communication, a strong visible presence, and a proactive willingness to help employees, managers, and leaders across the organization can help dispel myths, redefine HR, and establish the department as a people champion with the power to drive engagement, performance, and development. 

The post 15 Common HR Stereotypes vs. What It’s Really Like appeared first on AIHR.

]]>
Monika Nemcova
33 HR Blogs You Should Follow [2025 Edition] https://www.aihr.com/blog/hr-blogs/ Thu, 24 Apr 2025 14:44:05 +0000 https://www.digitalhrtech.com/?p=20083 Reading well-researched content from your favorite HR blog is an excellent way of continuous learning, getting inspiration, and staying on top of emerging trends. With so many HR blogs out there, however, choosing which ones to read can become a time-consuming affair. To help you with this – and save you time – we’ve done…

The post 33 HR Blogs You Should Follow [2025 Edition] appeared first on AIHR.

]]>
Reading well-researched content from your favorite HR blog is an excellent way of continuous learning, getting inspiration, and staying on top of emerging trends. With so many HR blogs out there, however, choosing which ones to read can become a time-consuming affair.

To help you with this – and save you time – we’ve done the heavy lifting. We’ve selected 33 HR blogs and newsletters that we believe are worth a browse. Some of them may be familiar to you, others may not, but there’s something for everyone on our list.

Happy reading!

Contents
AIHR
FactorialHR
Improve Your HR (The Evil HR Lady)
Ongig
Paycor
BerniePortal HR Blog
HiBob
Glassdoor for Employers
Training Magazine
People Managing People
Built In
Hppy
HR Bartender
WebMD HealthServices
ADP Resource Center
HR Dive
Namely
The Employer Handbook
TalentCulture
O.C. Tanner
Cornerstone
CareerPlug
Select Software Reviews
CultureAmp
Dr. John Sullivan
HRZone
Workleap
Vantage Circle
Human Resources Today
Unleash
Charthop
Harver
HR Executive


1. AIHR blog

AIHR logo

At AIHR, we focus on all things HR, including policies and processes, the latest technology, complex HR matters, people analytics, business cases, and opinion pieces. We aim to make our content as practical as possible by including plenty of examples, actionable tips, illustrations, as well as input from industry experts.

What’s more, we run an HR Glossary to help you navigate all the HR terminology you need to know.

How often do we publish?
Usually, there is a new piece of content three or four times a week.

Where do I subscribe?
You can subscribe to the newsletter and browser notifications here and follow us on Linkedin.

2. FactorialHR

FactorialHR Logo

If you want to find practical information on holidays in different U.S. states, read interviews with HR practitioners, or get how-to guides on different HR processes, the FactorialHR blog is an excellent resource for you. It also has a handy search function to help you find just the right article on whatever topic you’re interested in.

How often do they publish?
Several times per week.

Where do I subscribe?
Bookmark the blog here.

3. Improve Your HR (The Evil HR Lady)

If you’re looking for real-life HR questions – like “How can I change a company’s racist culture?” or “How to have the ‘Bathroom conversationat the office” – answered honestly and with a good dose of snark, Improve Your HR (formerly the Evil HR Lady) is your go-to blog.

Suzanne Lucas – the brain behind the blog – helps HR professionals demystify their Human Resources department. She’s direct, has a wealth of advice, and reading one of her articles is guaranteed to make you smile.

How often do they publish?
Every couple of days.

Where do I subscribe?
You can subscribe here (column on the right-hand side).

4. Ongig

Ongig Logo

Ongig specializes in helping organizations create effective and inclusive job descriptions, which extends into their blog. There, you’ll find plenty of resources on how to write better job titles, ads, and descriptions, as well as diversity and inclusion statements. Expect to find a mixture of fun, lighthearted posts, including “15 Funny HR Quotes [to make you Laugh or Cry!]” and “12 Job Title Ideas for ‘Someone who does Everything.”

How often do they publish?
A few times each week. 

Where do I subscribe?
Check out the blog here.

5. Paycor

Paycor Blog logo

If you’re interested in compensation and benefits, compliance, or people management, Paycor’s blog is a great resource to follow. The HR & Payroll software company publishes insightful and practical articles aimed mainly at HR practitioners from small & medium businesses. A handy search function helps you find the most relevant content.

What’s more, their One Minute Takeaway section summarizes the most important points of the article, which helps you better retain what you’ve just read.

How often do they publish?
Several times a month.

Where do I subscribe?
When you open an article, you can subscribe on the right-hand side.

Elevate your learning journey

If you’re here, you’re already doing what great HR professionals do – staying curious, informed, and ahead of the curve. Reading blogs is a powerful way to keep up with trends, spark new ideas, and refine your thinking.

But what if you could take that momentum further?

With AIHR’s Full Academy Access, you can go beyond inspiration and turn insight into action. This plan gives you unlimited entry to every certificate program we offer, covering everything from HR analytics and digital transformation to L&D and strategic talent management, supercharging your upskilling journey.

6. BerniePortal HR Blog

If you’re a people professional who wants to stay up to date with emerging HR trends, compliance updates, recruitment, and retention – basically everything you need to help keep your organization running smoothly – then you might want to hop over to the BerniePortal HR Blog.

The page has a very easy way to search for a particular topic, and for U.S.-based People professionals, it has an elaborate compliance section.

How often do they publish?
Once or several times a month.

Where can I subscribe?
You can go to the blog homepage, scroll down a bit, and subscribe on the right-hand side.

7. HiBob

HiBob’s blog hosts a wealth of HR resources on a variety of topics, like culture, strategic HR, performance, and hybrid work. Whether you’re just starting out your HR career or you’re a seasoned professional, you’ll find practical, helpful advice in the articles and guides.

How often do they publish?
There is typically at least one new piece of content per week.

Where do I subscribe?
You can find a monthly newsletter subscribe box on the Resource Center homepage.

8. Glassdoor for Employers

Glassdoor for employers logo

You probably know Glassdoor as the platform where employees and former employees review their employers and as a job board. However, they also have a platform for those who are on the other side of the employee-employer relationship: Glassdoor for Employers.

Their content is mainly focused on recruiting and retention, and with all the feedback left by employees through their platform, you can imagine they’ve got excellent advice to share. But Glassdoor for Employers also has useful tips on how to improve your company’s Glassdoor profile, which can definitely come in handy for your employer branding efforts.

How often do they publish?
They usually publish several articles each month.

Where do I subscribe?
You can subscribe here

9. Training Magazine

Training Magazine logo

Training Magazine is a great resource for everything related to professional development and news for training, HR, and business management professionals. 

Expect to find a mixture of specific L&D-related content, topical subjects like ‘Should U.S. companies adopt a four-day work week?’, ‘4 wellness-driven ways to optimize a training room’, and also some unexpected content, ‘How to get creative juices flowing with flower arranging.’  

How often do they publish?
Several times a week.

Where do I subscribe?
You can bookmark the page here.

10. People Managing People

People Managing People delivers actionable advice on HR strategies, leadership, and organizational development. The blog features articles, guides, and podcasts aimed at enhancing management practices and employee engagement.

How often do they publish?
The blog is updated with fresh content several times a month.

Where do I subscribe?
Go to the People Managing People homepage and click the subscribe button in the top right corner.

11. Built In

Builtin Logo

Connecting people with tech companies based on shared values, Built In isn’t your typical job board, nor is it a usual HR blog. You can find a lot of high-quality content focused on different areas and aspects of technology, but also on topics like remote work, recruiting, people management, employer branding, or diversity and inclusion. If you’re looking for well-researched, actionable articles to read, Built In is the right place for you.

How often do they publish?
Multiple times per week.

Where do I subscribe?
You can subscribe here.

12. Hppy

Hppy Logo

Hppy is a platform that features articles from various contributors that have HR expertise, are industry experts or experienced professionals, as well as individuals passionate about HR. Their content focuses on employee engagement, talent management, workplace happiness (hence the name), and the latest HR trends. 

A lot of the pieces featured on Hppy are case studies and articles based on real-life experience in the HR industry, but there are also opinion pieces on various workplace issues. 

How often do they publish?
Multiple times per month.

Where do I subscribe?
Check out the blog here

Top HR blogs to follow.

13. HR Bartender

HR Bartender logo

Sharlyn Lauby, a.k.a. The HR Bartender, focuses on topics related to the workplace, not just Human Resources. On her blog, she often answers reader questions about anything from what happens during an employee investigation to providing job references during interviews.

Lauby’s articles are characterized by their practical content and casual tone. She also has a podcast where she interviews HR influencers about how to be a better leader and manager, the employee experience, and career advice.

How often do they publish?
Between two and four times per week.

Where do I subscribe?
You can subscribe here (scroll to the bottom of the page).

14. WebMD HealthServices

WebMD Health Services offers a blog that’s rich with insights on employee wellbeing, engagement, and workplace culture. The content includes practical tips for HR professionals, such as recognizing signs of struggle in high-performing employees and participating in stress awareness initiatives.

How often do they publish?
There’s new content each week.

Where do I subscribe?
Scroll to the bottom of the WebMD Health Services blog homepage to enter your email address and subscribe.

15. ADP Resource Center

ADP is one of the world’s largest and oldest HRM software and service providers, so you can be sure that they know what they’re talking about with regard to HR. Their Resource Center features content and research on the workforce, pay, performance, health & safety, and more. ADP puts the information into a broader context of employment laws and guidelines, making the articles very constructive.

How often do they publish?
Several times per month.

Where do I subscribe?
Check out the Resource Center here.


16. HR Dive

HR Dive logo

More than a blog, HR Dive is a leading industry publication and platform that provides an original analysis of all the latest events and trends in the HR industry. The platform features fresh (U.S.) news about anything related to the world of work and the labor market. What’s more, it also has dedicated sections for Talent, HR Management, and Learning, to name a few. 

How often do they publish?
Several times a day on weekdays. 

Where do I subscribe?
You can subscribe to the HR Daily Dive and Talent Daily newsletters (which you’ll get every day) or to their dedicated Learning, Compliance, Compensation & Benefits, and Diversity & Inclusion weekly newsletters here.

17. Namely

Namely’s articles are a great and comprehensive read, especially if you want to keep up-to-date with breaking news in the HR industry and are interested in payroll, benefits, and compliance.

How often do they publish?
Usually at least once per month.

Where do I subscribe?
You can subscribe here

18. The Employer Handbook

Where other HR blogs don’t want to talk about the ‘boring’ legal side of things, the Employer Handbook only talks about the legality of tricky HR questions. And Eric B. Meyer, the author of the blog, has a way of making the so-called dull stuff interesting and sometimes even fun. As he puts it himself, “if you want a nerdy employment-lawyer brain to help you solve HR-compliance issues proactively,” he’s there to help.

How often do they publish?
Several times a week.

Where do I subscribe?
You can subscribe here (on the right-hand side).

19. TalentCulture

Alongside their #WorkTrends podcast, TalentCulture also publishes valuable written content on HR strategy, technology, leadership, and more. You’ll discover a wealth of information on emerging trends in the world of work, as well as the role of HR leaders in business. In short, Talent Culture would be a brilliant addition to your HR blogs reading list.

How often do they publish?
New articles come out several times a month.

Where do I subscribe?
Subscribe to the newsletter here.

20. O.C. Tanner

O.C.Tanner logo

Focused on employee recognition and organizational culture, O. C. Tanner’s blog helps HR professionals build employee-centric companies and a positive work environment.

Don’t forget to check out their annual Global Culture Report. The research provides valuable insights into how culture impacts productivity, performance, and overall employee engagement.

How often do they publish?
New content is added several times a month.

Where do I subscribe?
Go to the bottom left side of the footer on the Resources page.

21. CareerPlug

CareerPlug logo

The CareerPlug blog aims to help non-HR people (think small business owners, franchise operators, etc.) hire better. But, in our opinion, the resources on this page (blogs, case studies, research reports) can also be of great value for those starting out in HR, talent acquisition, or recruitment.

The CareerPlug offers a wealth of information on all things hiring. From ‘How to hire seasonal employees’ and ‘How to build a great hiring process step by step’, to ‘Ask a hiring expert: How to create an ideal candidate profile’, and everything in between.

How often do they publish?
Several times a month.

Where can I subscribe?
Subscribe to the blog here.

22. Cornerstone

Cornerstone Logo

If you’re looking for expert views on HR topics like learning & development, AI, talent management, company culture, and leadership, have a look at the online magazine published by the well-known talent management system provider Cornerstone OnDemand. Their thought-provoking articles will always leave you with something to reflect on, making their resource center stand out among other HR blogs.

How often do they publish?
You can find new content on the blog multiple times a month.

Where do I subscribe?
You can visit the blog here. If you download any of Cornerstone’s ebooks or whitepapers, you will automatically be added to their mailing list, which includes links to recent and relevant articles.

23. Select Software Reviews

Select Software Reviews is a go-to resource for HR professionals seeking in-depth analyses of HR and recruiting software, as well as general HR advice. The blog offers expert-vetted recommendations, practical guides, and the latest trends in HR technology, helping teams make informed decisions.

How often do they publish?
New content is added weekly.

Where do I subscribe?
Visit the Select Software Reviews blog and scroll down for the subscription option to receive their weekly newsletter.​

24. CultureAmp

CultureAmp Logo

The blog of the People & Culture platform CultureAmp shares expert insights on performance management, DEI, employee development, and employee engagement for HR professionals and people leaders. Their content is educational and answers the what, why, and how of various HR-related topics, providing you with concrete steps to take in your organization.

How often do they publish?
A few times a month.

Where do I subscribe?
You can subscribe here in the footer.

25. Dr. John Sullivan

Dr. John Sullivan logo

If you’re looking for thought-provoking content about recruiting, HR strategy, HR metrics and analytics, retention, and other topics from the world of HR, take a look at Dr. John Sullivan’s blog. DJS is an internationally known HR thought leader from Silicon Valley who specializes in strategic Talent Management solutions.

After writing more than 1,200 articles, multiple books, and launching his own podcast, you can be sure to find a treasure trove of knowledge here. 

How often do they publish?
Typically, there is a new article once a week.

Where do I subscribe?
You can bookmark the blog here.

26. HRZone

HRZone logo

HRZone is the go-to destination for HR professionals and business leaders seeking advice, guidance, the latest trends in the world of work, and how the landscape of HR is gradually evolving. You’ll find articles, whitepapers, and reports on numerous topics and themes, including technology, talent management, diversity, well-being, training, leadership, and more, written by a mix of HR leaders, consultants, and industry commentators. 

How often do they publish?
At least once a week.

Where do I subscribe?
You can join the newsletter here (scroll down a bit and on the right-hand side).

27. Workleap

Workleap logo

Workleap’s blog focuses on providing actionable advice to managers to help them perform more effectively in their roles and improve employee productivity, development, and engagement. You’ll find topics like “How to give effective employee feedback” and “Having difficult conversations: a manager’s guide to tough talks” all covered in an approachable and accessible way. 

How often do they publish?
At least once a month.

Where do I subscribe?
Visit the blog here.

28. Vantage Circle

VantageCircle Logo

Vantage Circle’s mission is to help companies build winning work cultures through innovative employee engagement solutions, hence why the majority of articles you’ll find on their blog are centered on improving company culture. There’s also a podcast, in-depth guides, ebooks, and webinars to browse.  

How often do they publish?
Several times each month.

Where do I subscribe?
At the end of each article, you’ll find a sign-up box so you can get exclusive content delivered straight to your inbox.

29. Human Resources Today

Human Resources Today Logo

Strictly speaking, Human Resources Today is an aggregator, not a blog. In fact, it is an HR content aggregator that enables you to gather articles from multiple sources, such as your favorite HR blogs, on topics that interest you or that you’d like to stay up to date on. Very convenient, isn’t it?

Topics include employee benefits, talent acquisition, payroll, metrics, and many more. 

How often do they update their page?
Daily.

Where can I subscribe?
You can leave your email and sign up here to stay up to date on your chosen topics. Find the subscribe box on the right-hand side of the page.

30. Unleash

Unleash Logo

Unleash is a global digital media business delivering the latest news, analysis, and market trends for HR. You might know them as the organizer of a series of leading HR conferences, UNLEASH.

They publish interesting, up-to-date articles on everything related to the workplace and often discuss trending topics like the metaverse and emerging technologies and the digital workforce.

How often do they publish?
A couple of times per week.

Where do I subscribe?
Scroll down a bit on the homepage and find the sign up banner.

31. Charthop

Charthop’s blog is a great place to learn about data-driven HR, compensation strategy, and workforce planning. The articles show readers how to leverage company and people data to shape their people operations.

They provide actionable advice, use plenty of real-life examples, and are easy to read, making the blog an excellent resource for any HR professional.

How often do they publish?
There’s a new article at least once per month.

Where do I subscribe?
On the bottom of the blog home page.

32. Harver

The Harver blog is a rich source of easy-to-read, high-quality articles on all things related to hiring and recruitment. Their posts often give practical tips on how to get started with a certain process within your organization or how to improve it. Although they specialize in the volume recruitment space, a lot of the information and advice can be related to any organization when it comes to improving your hiring strategy.

They also regularly publish ebooks, whitepapers, and webinars, which you can download for free.

How often do they publish?
Typically, there is a new piece of content a couple of times a month.

Where do I subscribe?
You can subscribe to Harver’s community of readers here.

33. HR Executive

HR Executive provides news and analysis tailored for senior HR professionals and executives. It covers a broad range of topics, including executive leadership, strategic HR, and industry trends.

How often do they publish?
New articles and insights are published several times a week.

Where do I subscribe?
Visit the HR Executive page and scroll down to the footer to sign up for their newsletter.


Before you go

We are lucky to live in a time where it is relatively easy to stay abreast of the latest developments in the world of work and Human Resources, to find inspiration and practical advice, or sometimes to just read a light-hearted article about funny work stories to brighten up our day. That way, you’re learning and improving your HR knowledge and skills every day.

The post 33 HR Blogs You Should Follow [2025 Edition] appeared first on AIHR.

]]>
Monika Nemcova
HR Project Management: A Practical Guide https://www.aihr.com/blog/hr-project-management/ Fri, 11 Apr 2025 08:19:57 +0000 https://www.aihr.com/?p=117397 Today, HR does so much more than hire, manage, and retain employees—they are deeply involved in creating policies, procedures, and initiatives that impact an organization’s bottom line. HR project management is a smarter way of working that enables HR teams to carry out their tasks and plans in an organized, efficient manner.  Let’s explore what…

The post HR Project Management: A Practical Guide appeared first on AIHR.

]]>
Today, HR does so much more than hire, manage, and retain employees—they are deeply involved in creating policies, procedures, and initiatives that impact an organization’s bottom line. HR project management is a smarter way of working that enables HR teams to carry out their tasks and plans in an organized, efficient manner. 

Let’s explore what project management in HR looks like, its benefits, how to apply project management elements to HR, along with useful tools you can utilize in your organization.

Contents
What is HR project management?
HR project management examples
Benefits of project management in HR
How to apply project management in HR
HR project manager job description
HR project management tools


What is HR project management?

HR project management refers to using and applying project management skills and techniques for HR purposes to streamline work, track the progress of a project, meet deadlines, and measure success so that you achieve your project goals.

Project management techniques can help HR track individual responsibilities for each team member, record progress on a shared spreadsheet, create project instructions, set milestones and end goals, and facilitate time management. The main aim is to apply project management skills to HR projects through all their phases and make them successful. Furthermore, formal project management processes and tools help lower risk and increase the success rates of a wide range of HR tasks.

To summarize, strong project management can help HR:

  • Manage budgets, timelines, and people
  • Attract new talent
  • Communicate effectively with employees and stakeholders
  • Plan and execute training and team bonding initiatives
  • Develop change management plans.

You can apply this approach to many HR projects, including implementing a new HRIS, rolling out a new salary review cycle, planning team-building events and retreats, creating intern recruiting programs, optimizing virtual onboarding programs for remote employees, and more.

Agile HR in project management

Agile HR—also known as the adaptive approach—is a way of managing projects that focuses on continuous, small improvements rather than aiming for one big rollout. Instead of waiting until the end of a long process to find out what’s working and what’s not, agile HR encourages you to test ideas quickly, get feedback early, and adjust as you go.

The goal is to stay flexible. With an agile approach, HR teams can respond faster to organizational changes, shifts in employee needs, or new business goals. It’s about building systems and processes that can evolve rather than locking into a plan that’s hard to change.

For example, let’s say you want to improve your onboarding process. With agile HR, you’d first identify what needs fixing. Then, you’d form a small team, set specific goals, and work in short cycles (called “sprints”) to test new solutions. After each sprint, you’d review what worked, tweak what didn’t, and repeat—gradually improving the process over time.

HR project management examples

Project management has five distinct stages: 

  • Initiation: The start of the project, defining core goals, and assessing if you have the resources you need to complete the project.
  • Planning: Planning what tasks need completing and in what order, creating a budget, and allocating resources.
  • Execution: The heart of the project is where you implement your plan and fulfill all tasks. 
  • Monitoring & control: Monitoring what the team does and tracking the time taken to complete tasks to predict the scope of future projects. 
  • Closure: Delivering the final product and evaluating the team and individual performances. 

Here are some examples of what these stages may look like when managing a typical HR project.

Project: Launching a new careers page

  1. Initiation: What is your goal for creating a new careers page? To educate candidates on the organization or what a typical day looks like in a particular role? To increase the volume and quality of applicants and reduce attrition? And what resources will you need to complete this project? 
  2. Planning: Break this project into smaller tasks, such as planning what elements will make up your new careers page, writing new copy or creating videos for it, publishing it on the website, and your proposed launch date. Who will complete these tasks, and how long will they take? 
  3. Execution: Assign tasks to relevant team members and begin methodically working through them. 
  4. Monitoring & control: The project manager should monitor all team members’ progress, be a point of contact should any issues arise, and check the finished product meets desirables.
  5. Closure: The new careers page is launched. Each team member self-evaluates their performance, and the group performance is analyzed to see what went well and what could be improved next time.
HR Project Management

Project: Planning a team-building event

  1. Initiation: What are you hoping to achieve with the team-building event? For new members of the team to integrate with the existing members? For everyone to learn how to communicate more effectively? To build trust? To help the team work together more effectively and productively? Get clear on your goals and priorities for this event. 
  2. Planning: What day will the event take place? Will it happen on-site, somewhere else, or will it be remote? Which team members are invited? What supplies will be needed (workbooks, stationery, refreshments, etc.)? What is your overall budget? Break this down into smaller categories so that you know how much you can spend on each area. 
  3. Execution: Distribute tasks to relevant HR team members, liaise with department managers in question, and start creating the event. Book a location and transport (if needed), create or purchase any required equipment, and design an itinerary for the day.    
  4. Monitoring & control: Ensure everyone is playing their part and everything is in place before the event. Have one or two HR members attend the event to monitor how attendees respond to it.   
  5. Closure: The team-building event happens. Afterward, each team member evaluates their performance in planning and executing responsibilities, and the team can discuss key takeaways. You can also send surveys to all employees who attended the event to see if the initial goals were met.
Master the art of getting things done in HR

The success of any HR project lies in the execution—and that takes more than enthusiasm. It requires the ability to turn ideas into action, manage multiple moving parts, and align HR efforts with broader business goals.

With AIHR’s HR Generalist Certificate Program, you’ll gain the skills to build structured HR processes, lead critical initiatives, and make measurable contributions to your organization.

Benefits of project management in HR

Project management in HR offers a wide range of benefits that support the effectiveness of the HR function and its contribution to the wider organization.

Keeping focus and alignment

Project management is rooted in defining goals and guiding a team in successfully completing those goals. When you have goals that are clear and broken down into smaller, manageable tasks, team members stay focused and motivated because they know what they’re aiming to accomplish.

Better collaboration

Instructing employees to “work together” is unlikely to result in the desired change, and this is where a project manager and project management framework can help. 

When all roles within the project are clearly defined, the collaboration between team members becomes smoother and more cohesive. You prevent confusion about who is responsible for particular tasks. This becomes critical with projects that require the collaboration of two or more departments. For example, launching a new careers page would involve HR and IT. A recruitment campaign might need HR as well as the Marketing team. 

Two departments that often collaborate on projects together are Sales and Marketing—whether it’s launching a new product or trying to meet sales targets—yet there is often a disconnect between these teams. But when Sales and Marketing departments work together effectively, it leads to growth and a boost in business performance.

Tools like project reports and dashboards, as well as clear instructions and milestones all facilitate better communication and collaboration across teams, and improve confidence from leaders.

Improving productivity and managing workload effectively

A clear understanding of all tasks, along with Gantt charts, helps manage the workload of everyone involved in a project, and transparent processes create room for greater efficiency and productivity.

HR teams often work on numerous critical projects simultaneously; therefore, project management skills and procedures can boost productivity across the entire organization. For instance, a European bank rolled out agile project delivery techniques to its HR team, which helped distribute the talent pool more effectively and boost productivity by close to 25%.

Project managing practices also encourage and empower the use of time management and tracking tools to measure a team’s productivity. These tools can help predict how long future tasks will take more accurately and pinpoint over- or underperforming employees.

Efficient use of resources

Project management for HR provides a solid overview of any project and its goals, enabling managers to prioritize where and when they invest finite resources, including time and money. This helps HR teams to stick to a schedule and budget and use resources in the most efficient way.

Driving change more effectively

Whether rolling out a new HRIS, updating policies, or launching an employee engagement initiative, project management helps drive change with less friction. Structured timelines, stakeholder mapping, and regular check-ins help ensure initiatives are implemented smoothly and with buy-in.

Building HR’s strategic role

Well-managed HR projects give leaders better visibility into the department’s work and its impact on the organization. By clearly mapping how projects connect to company goals, HR can build trust with senior leadership and play a more strategic role in decision-making.

Managing risk and accountability

Projects don’t always go as planned, but with project management practices in place, HR teams can spot issues early and take action before they grow. By setting clear timelines, defining responsibilities, and tracking progress, it becomes easier to identify bottlenecks, manage risks, and keep everyone accountable.

This structure also makes it easier to learn from past projects. When teams regularly review what worked and what didn’t, HR becomes better equipped to manage future initiatives and avoid repeating the same mistakes.


How to apply project management in HR

There are certain aspects of project management that can help improve the way HR teams work. Here’s how to apply project management practices to HR.

1. Define the scope of your project before starting

The first step is to get clear on the big-picture details of your project. Here are some helpful questions to ask:

  • What is the size of the project?
  • What are the project goals?
  • What resources do we need to achieve these goals?

The answers to these questions will help you create realistic timelines and roadmaps to successfully complete the project.

It can also be helpful to prepare a project scope statement template that you can use for each project. Here’s an example of what this would look like:

Project name

Accurately describe the project, for example, “New careers page to improve volume and quality of candidates.”

Project scope statement

Summarize the goals and objectives of the project. These should be measurable and achievable within your proposed time frame. For example, “Increase the volume of candidates by 25% and the quality of hire by 30% by April 2026.” 

Introduction/background to the project

What current issues do you need to address?
What is the proposed solution?
When will work be commencing?


For example:

The careers page currently has a loading time speed of 8 seconds and a conversion rate of 1%, which results in an average of 100 applicants per month. In addition, the quality of hire is currently 65%.

To improve the volume and quality of candidates, the HR team decided to revamp the careers page to boost the employer brand and give candidates an idea of what a typical day looks like in a particular role and the skills and behaviors they need to perform. We received instructions to commence work on this project on April 28th, 2025.   

Business case

What impact and benefits will the project have on the business? In other words, why is it needed?

Deliverables

These are the outcomes that lead to the successful completion of the project. For example, increasing the page loading speed of the careers page or increasing the conversion rate of people landing on the page and completing a job application. 

2. Create a timeline

The next step is to determine a timeline for your project. Estimate how long it will take to put together a plan, accumulate the resources you need, fulfill all tasks, and complete the project. Plot out all of these segments into your timeline, along with project milestones and a clear start and end date. Remember to factor in some buffer time in case of unexpected hurdles along the way.

3. Assemble & manage the team

Now, you’re ready to put together a team. The HR project manager needs to carefully assign roles and responsibilities to people who can help make the project a success. This means they need to be skilled in the work they’re completing, able to meet deadlines, and able to communicate and collaborate effectively with others. 

If team members need any additional training or coaching to help them fulfill certain aspects of the project, it’s important this is completed sufficiently in advance to avoid delays. To help the team bond and grow, consider organizing team building events, workshops, and meetings with external experts. 

Finally, the HR project manager is responsible for managing the team throughout the project. This includes dealing with absences, interpersonal conflicts, and poor communication between team members. It’s crucial that any problems are resolved quickly to build trust and respect.

4. Prepare for challenges

Having a plan is important, but there will inevitably be unexpected challenges and changes in circumstances that require you to adapt your original plan. This is why it’s imperative to treat your project plan as a dynamic guide rather than a rigid set of rules that must be followed no matter what.

If your plan does need to change, consult proposed changes with the project team to ensure everyone is on the same page.

5. Hold regular project status meetings

To ensure HR project management is a success, the team should regularly provide and receive updates on progress throughout the different project phases. 

Ensure team members know what to prepare for meetings and what questions they may need to answer. This facilitates productive meetings where issues are identified and solved before they become larger obstacles and team morale is boosted by sharing each other’s success. 

6. Help team members develop project management skills

Encourage and support team members in learning and developing project management skills such as stakeholder management, planning, proactive issue resolution, and change management. Skills like these lend to well-equipped team members who can effectively manage various HR projects.

7. Consider using a project management tool

There is a wide range of HR project management tools and software to help organize and manage multiple projects and keep all team members connected. The right tool will help you track progress from the start through to the completion of any project. 

With so many tools on the market, we’ve compiled a useful section below of our favorite HR project management tools, many of which have free trials available. You can check out the full HR project management tools section below.

8. Conduct project evaluations

After you’ve completed the project, it’s beneficial to evaluate what went well and what didn’t so that everyone can learn from mistakes or oversights and improve next time. Conducting a project evaluation means you will have a list of recommended improvements before the next project begins.

9. Hire an HR project manager

If you recognize the benefits of an HR project management approach and want to adopt it as a department, hiring a dedicated HR project manager is the next logical step. 

An HR project manager will plan and oversee the implementation of a diverse range of HR programs within your organization. There may be someone on your team interested in and suited to the role, or you may need to hire externally.

You can learn more about the role of an HR project manager in the next section.

HR project manager job description

As HR projects become more complex and cross-functional, some organizations are creating a dedicated role to manage them: the HR Project Manager. While not yet standard in every company, it’s a growing position—especially in larger or fast-moving organizations—where there’s a clear need for someone to coordinate efforts, keep timelines on track, and drive results.

What does an HR Project Manager do?

An HR Project Manager is responsible for planning, directing, and implementing HR programs that help the organization achieve its goals. 

Here are some of the main responsibilities of an HR Project Manager:

  • Defining the scope of a project, setting goals and deliverables with stakeholders
  • Creating detailed plans, timelines, milestones, and budgets for all projects
  • Putting together winning teams, developing, leading, and managing team members (including HR professionals and external vendors)
  • Monitoring the progress of projects, tracking performance, and resolving issues
  • Ensuring project deliverables are completed on time, are of high quality, and meet expectations
  • Communicating the status of projects with senior management and stakeholders
  • Developing and maintaining project documentation
  • Using project management tools and software to improve efficiency, collaboration, and effectiveness
  • Managing project budgets and expenses
  • Conducting project evaluations to assess success and highlight areas for improvement.

HR Project Manager skills & competencies

  • Project management
  • Operational excellence
  • Change management
  • Networking
  • HR governance
  • Customer-focused
  • Data-driven
  • Leadership
  • Analytics translation
  • Digital culture architect
  • Strategy co-creation
  • Develops & coaches
  • Manages conflict
  • Strong communication and interpersonal skills

HR project management tools

The larger and more complex a project is, the more likely it is you’ll need to utilize project management tools that empower your people. A report by Monday.com found that 82% of companies surveyed use work and project management software to make the business more efficient. 

Let’s explore some useful project management software for HR that can help save valuable time and standardize processes. 

  • HR project plan templates: An HR project plan template can help you navigate any HR process, from developing a streamlined onboarding process to implementing a new learning management system. Useful HR project plan templates include:
    • RACI matrix: To clarify who’s Responsible, Accountable, Consulted, and Informed.
    • Gantt chart: For visualizing project timelines and dependencies.
    • Project task list template: To keep tasks organized and easy to track.
    • Kanban board: For managing workflows and tracking progress at a glance.
  • Monday.com: With customizable dashboards that allow visual boards to organize and track projects like onboarding and training programs, built-in collaboration features, and project management templates to work from, Monday.com offers powerful project management for HR.
  • Asana: Asana provides HR teams with a centralized hub to manage projects from start to finish. It offers clarity on task assignments and deadlines, helping to identify and address workflow bottlenecks. Features like workflow builder and performance tracking support streamlined HR operations. ​
  • Trello: Famous for its virtual pinboards, Trello allows HR teams to organize tasks into different boards, as well as lists within those boards, to indicate which stage of the process they’re in. You can tag team members to notify them of a task to complete or to provide comments on something that needs improvement. This structure is ideal for managing multifaceted HR projects across teams.
  • Jira: Jira assists HR teams in planning and tracking project work. You can align work to business goals, visualize work with lists and boards, create workflows for any process, and gain visibility on your progress with real-time data and insights. The Atlassian Intelligence feature suggests tasks to help complete your next big idea or project.
  • ClickUp: ClickUp consolidates HR projects, documents, and communications into one platform. It offers customizable templates for various project types, automated progress tracking, and AI-powered workflows to keep HR initiatives on schedule.
  • Wrike: Wrike enables HR teams to streamline workflows with the automation of routine tasks, tailored workspaces, and real-time dashboards. The platform helps you plan and pivot on projects as needed, track progress with 360° visibility using dashboards, Gantt charts, and tables, enhance efficiency with automatic approvals, and reduce risk with AI recommendations. 
  • Airtable: By tracking progress across projects, offering visibility into resource allocation and utilization, defining repeatable processes to create predictability in your workflows, Airtable helps HR teams build project management into their most critical business processes. 

Over to you

Effective project management in HR leads to more efficient and productive ways of working, and increases the chances of bringing any project to successful completion.

You don’t need to adopt the full HR project management approach to make use of some of its elements, like scoping your project, conducting project status meetings, and adding evaluations to your workflow. Experiment with HR project management templates and tools to help you take control of your next project, and lead your team to success.

The post HR Project Management: A Practical Guide appeared first on AIHR.

]]>
Monika Nemcova
AI in HR https://www.aihr.com/blog/ai-in-hr/ Wed, 12 Mar 2025 10:55:56 +0000 https://www.aihr.com/?p=58582 Artificial intelligence (AI) in HR refers to the use of technologies such as machine learning (ML), predictive analytics, and natural language processing (NLP) to help automate and perform HR tasks that typically require human judgment.  For example, HR practitioners and teams can use AI to streamline recruitment, payroll, and benefits administration, draft policy documents and…

The post AI in HR appeared first on AIHR.

]]>

What is AI in HR?

Artificial intelligence (AI) in HR refers to the use of technologies such as machine learning (ML), predictive analytics, and natural language processing (NLP) to help automate and perform HR tasks that typically require human judgment. 

For example, HR practitioners and teams can use AI to streamline recruitment, payroll, and benefits administration, draft policy documents and contracts, and provide real-time HR support to employees. It also enables data-driven decision-making for training, retention, and workforce planning while helping to reduce bias and improve the experience for both candidates and employees.

AI can be applied on multiple levels, with individuals, the HR team, and the organization as a whole, with different benefits and risk levels.

For example, at the individual level, AI helps to save time and improve quality with low risk. At the team level, AI complements existing skills, collaborating to improve workflows and processes with more complex but manageable risks. At the enterprise level, AI supports large-scale decision-making that impacts business strategy, but the stakes and potential risks are much higher.


Types of AI in HR

AI has different subsets and types, each with varying purposes, and can be used to complete or support a range of tasks. 

Here are some of the different types of AI in HR and what they’re used for. 

  • Generative AI: Generative AI uses large datasets to create new content, such as text, images, and video. HR practitioners can use it to generate personalized candidate outreach, craft job descriptions, create learning materials, and assist with workforce planning by providing insights into complex data sets. Widely used generative AI tools include ChatGPT, Copilot, and Perplexity.
  • Conversational AI: HR chatbots and virtual assistants powered by Natural Language Processing (NLP) help HR teams provide instant, 24/7 support to employees and candidates. These AI tools can answer HR policy questions, guide employees through benefits enrollment, offer personalized learning recommendations, and enhance engagement by making HR more accessible.
  • AI voice technology: Virtual HR assistants like Grace use AI voice technology to offer 24/7 support, manage inquiries, and escalate more serious issues to a real person, improving the overall response times and accessibility.
  • Machine learning: Machine learning enables AI to learn from data and improve over time. In HR, it can predict which employees might leave, match candidates to jobs, and recommend fair salary ranges. Some machine learning models are trained with specific examples (supervised learning) to make predictions, like whether a candidate is a good fit for a role. Others find patterns in large datasets without prior instructions (unsupervised learning), helping HR uncover trends such as why certain teams have higher turnover.
  • Natural Language Processing (NLP): A type of AI that helps interpret written and spoken languages and can be used in HR to analyze employee surveys and sentiment in feedback, performance reviews, and even interview transcripts. Identifying trends in employee sentiment allows HR teams to proactively address workplace concerns.
  • Automation AI: Automation AI helps HR teams outsource repetitive administrative tasks, such as screening resumes, processing payroll, and tracking compliance. This reduces the risk of human error and improves accuracy and efficiency.
  • AI agents: An emerging type of AI where autonomous systems can take action, make decisions, and perform HR tasks with minimal human intervention. In HR, AI agents can proactively monitor employee performance, suggest career development opportunities, schedule learning programs, and even guide new hires through onboarding processes.
Types of AI in HR include generative AI and NLP but also emerging technologies like AI agents.

How is AI used in Human Resources?

AI is reshaping HR by making processes smarter and faster. From analyzing workforce data trends to improving talent management and employee development, AI is helping HR teams work more efficiently while enhancing the employee experience. Whether it’s automating routine tasks or supporting business decisions, AI is becoming an essential tool across the employee lifecycle.

Here’s how HR departments are applying AI in practice.

Recruitment and hiring

Recruitment and hiring were some of the first areas where AI was applied to improve processes. Subsequently, AI has been incorporated into various parts of the recruitment process, from sourcing and pre-selection to interviewing and developing fair compensation. For example, AI-driven applicant tracking systems (ATS) can be used to scan resumes to identify key qualifications and match candidates to job descriptions.

ChatGPT is also useful in recruiting. Recruiters and talent acquisition professionals can use ChatGPT for various tasks across the stages of the hiring process, including:

  • Writing job descriptions and job postings 
  • Boolean string generation
  • LinkedIn posts
  • Providing pre-interview briefings to candidates
  • And so much more.

Onboarding and offboarding

Great employee onboarding can improve retention by 82%. AI-driven onboarding platforms can support organizations and HR in creating an engaging experience for their employees by ensuring the necessary forms are filled in, relevant policies are shared, and training sessions are scheduled. For example, Levity enables organizations to automate their entire onboarding workflow with the help of AI.

Offboarding is no different. When an employee leaves the company, an AI-powered solution can, for example, send out an exit survey, documents related to the return of company assets, and emails to revoke the employee’s access to various systems. Introist provides an automated employee offboarding experience including notifications, personalized communication, and scheduling exit interviews.

Turn AI into your HR advantage

AI isn’t here to replace HR professionals—it’s here to enhance their impact. Whether it’s automating administrative tasks, optimizing recruitment, or improving workforce planning, using AI in HR can help you work more effectively and with more impact.

AIHR’s Artificial Intelligence for HR Certificate Program teaches you how to apply AI in real-world HR scenarios. Gain hands-on experience with generative AI and create an AI strategy that brings results.

Workforce planning

AI can also be very useful in workforce planning. Analytics platforms equipped with AI capabilities can crunch vast amounts of employee data to uncover trends, predict turnover, and highlight potential skills gaps. This, in turn, enables HR professionals to develop targeted training programs and solid succession plans so that their workforce is ready to meet future business needs. 

Quinix, for example, has created an AI-powered forecasting and automation solution that lets companies analyze thousands of data points to anticipate peak and down periods in demand and automatically schedule the exact number of employees they need.

HR chatbots and virtual assistants

Chatbots and virtual assistants are among the more commonly known types of artificial intelligence in HR. A chatbot that serves as an HR assistant can respond 24/7 to employee queries about, for example, leave policies and benefits.

These simple tools can improve an organization’s overall employee experience while saving HR teams from answering frequently asked questions or providing commonly requested information. 

DRUID has developed conversational, AI-driven agents that can support HR teams with various processes, including recruitment and onboarding, compensation & benefits, and admin tasks.

Learning and development

There are also various applications of AI in learning and development. For example, AI can enable personalized learning experiences for each employee. AI tools can analyze the learner’s performance and adapt the curriculum or content to their needs and preferences. 

Other examples include automated learning content creation, predictive analytics, and intelligent tutoring systems. Novoed has created an AI system that can personalize the learning experience for teams. It analyzes learners’ profiles, preferences, and activities and gives employees tailored course recommendations to map their unique needs and interests. The tool also has AI-driven chatbots that offer learning support.

AI in HR analytics

AI in HR analytics enables organizations to gather and analyze large data sets on employee performance, engagement, turnover, and culture, identifying key areas for improvement. This allows businesses to make more informed data-driven decisions about managing their workforce.

For instance, AI can help HR predict turnover by analyzing past exits, performance trends, and sentiment data. If patterns indicate that employees who lack mentorship are more likely to leave, HR can refine its retention strategy by introducing structured mentorship programs or career growth plans.

AI can also help with compensation benchmarking by analyzing industry salary data and internal pay structures to ensure competitive and equitable salaries. That way, HR teams can address pay gaps and improve retention by offering better compensation packages.

ChatGPT has also emerged as a useful AI tool for people analytics, enabling HR teams to process data, summarize trends, and suggest key insights without requiring coding or advanced technical skills. With ChatGPT and other generative AI tools, HR professionals can identify patterns and make decisions based on data, all without relying on data scientists or complex analytics tools.

AI in talent management

AI is improving talent management by making performance tracking, career development, succession planning, and retention strategies more precise and data-driven.

For example, AI can measure key performance indicators (KPIs) like task completion rates, response times, and peer feedback to provide real-time insights into an employee’s strengths and areas for improvement.

Career development and internal mobility are also great AI in HR use cases. Platforms like Gloat and Eightfold AI recommend internal job opportunities, mentorship pairings, or upskilling programs based on an individual’s experience and aspirations. This helps HR match employees with growth opportunities that align with both personal career goals and company needs.

By integrating AI into talent management, HR departments can track performance with real-time data, personalize career development, identify future leaders, and proactively address retention risks—all leading to a more engaged and strategically managed workforce.

​​AI-based coaching

AI-based coaching is a technology-assisted coaching process that uses artificial intelligence to provide personalized feedback, guidance, and development support to employees.

  • AI-supported coaching uses AI-based assessments to test skills and knowledge and AI-driven tools that provide information to the real-life coach to improve the mentoring relationship. This makes the coach more effective and improves the quality of the coaching sessions.
  • AI-augmented coaching enables coachees to utilize AI-based tools between sessions with their human coach, promoting further development, offering continuous coaching, and making the coaching process more scalable than traditional models. 
  • With the AI-as-the-coach practice, coachees only engage with AI, and they have limited or no interaction with a human coach. This process makes coaching more accessible and scalable.

AI for HR business partnering

As generative AI evolves, it will enable HR professionals to successfully align HR objectives with the strategic objectives of the business. While AI has primarily been used to automate repetitive HR tasks, its potential extends far beyond basic automation to supporting more complex, strategic HR functions.

To maximize AI’s impact, HR professionals need to develop analytical and digital skills to interpret AI-driven insights and integrate them into business discussions. AI enhances decision-making, but HR remains critical in ensuring that strategies are people-centered and aligned with organizational goals. Effective use of AI allows HR to become a true business partner, directly shaping workforce strategies that drive success.

Benefits of AI in HR

Artificial intelligence in HR offers numerous opportunities to enhance efficiency, improve decision-making, and create more personalized employee experiences. Let’s explore some of the key benefits AI brings to HR.

Improved efficiency and productivity

With AI taking on repetitive administrative tasks, HR teams have more time to focus on more strategic tasks that add value to the business. An example of this in action is at Unilever, where the company had to sort through more than a million applications each year. Using machine learning tools to analyze videos and responses by applicants, they streamlined their hiring process. Unilever’s time-to-hire was reduced by 75%, and they reported a notable increase in the diversity of candidates. 

Artificial intelligence in HR can also improve employee efficiency and productivity. For example, managers have access to more data to see what employees have achieved and give more helpful, detailed feedback, fostering a culture of continuous improvement.

General Electric (GE) has implemented an AI tool called “Wingmate,” developed in collaboration with Microsoft, to enhance employee performance and productivity. Wingmate assists employees by summarizing manuals, resolving quality issues, and drafting communications. Within three months of its launch, Wingmate was queried over half a million times, indicating significant employee engagement.

Better structured processes

AI in Human Resources is a valuable tool for streamlining and structuring processes, for example, helping you deliver a personalized, seamless onboarding experience for new hires. This includes:

  • Automatically creating, sending, and managing digital documents
  • An instant messaging system to field questions around the clock
  • Analytics to assess the performance of new employees
  • Real-time compliance monitoring to make sure required training is completed and documents submitted
  • Offering customized training paths related to new hire’s competencies and role
  • Creating valuable reports that identify trends in your onboarding workflow. 

A global professional services firm collaborated with JIFFY.ai to automate 80% of its onboarding activities. This automation made the process faster and more seamless, improving the overall experience for new hires and allowing the HR team to focus on strategic tasks.

Reduced costs

Automation of repetitive, routine tasks and improved workforce planning can result in significant cost savings. For instance, a leading quick-service restaurant chain partnered with Intelmatix to optimize its staff scheduling process. The AI-powered workforce scheduling solution minimized staff overtime expenses and idle hours by 25%. This optimization ensured that the right number of staff was allocated to meet hourly demand, resulting in better customer service and reduced unnecessary labor costs.

Manipal Health Enterprises implemented MiPAL – a virtual assistant that automatically responds to queries from employees regarding leave, payslips, and other issues – which reduced new hire turnover by 5% annually, and saved over 60,000 hours for employees and the HR team. This ultimately led to substantial cost savings for the company.

Less repetitive and time-consuming tasks for People Teams

AI is able to serve as a brilliant digital assistant that takes care of manual, time-consuming HR tasks (helpdesk support, scheduling meetings, creating documents, etc.), freeing up their valuable time for more important work that drives the business forward. HR professionals can then focus on creating a more positive, welcoming workplace where everyone feels heard and appreciated, leading to greater efficiency and a thriving culture with strong human connection.  

Ambassador Cruise Line used SageHR to automate tasks like reporting, shift scheduling, and booking leave so that the HR team could focus on more strategic efforts. Meanwhile, Mastercard was able to reduce friction in interview scheduling by partnering with Phenom and using AI scheduling, which led to an 85% faster scheduling, with 88% of interviews scheduled within 24 hours of request. 

More data-driven decision-making

AI helps HR identify top talent in their workforce, close skills gaps, anticipate turnover risks, and effectively manage talent for the future. With this knowledge, HR can prepare and plan for likely outcomes and adjust talent management strategies based on the organization’s current needs and long-term objectives. 

RingCentral partnered with Findem’s talent search solution to combine trillions of external data points with their own internal data to automate candidate matching, outreach, and various other hiring processes. This led to a 40% increase in their pipeline, a 22% increase in quality, and a 40% increase in interest from underrepresented groups.


AI for daily use: ChatGPT for HR

ChatGPT is a popular AI-powered tool that generates text and other content formats, proving to be useful for many tasks in HR.

Here are a couple of examples of how individual HR practitioners can use ChatGPT in their daily work:

  • Handling routine HR questions: HR professionals often receive repetitive employee inquiries about policies, benefits, PTO, and payroll. Instead of responding manually to each question, they can use ChatGPT to draft standardized answers or create an internal chatbot that automatically addresses common HR queries, freeing up time for other tasks that require more human touch.
  • Writing HR documents more efficiently: ChatGPT can help HR professionals quickly draft job descriptions, offer letters, performance review templates, policy updates, and internal communications. For example, instead of starting from scratch, an HR practitioner can input a few key details and let ChatGPT generate a well-structured job description, which they can then review and customize.
  • Supporting the hiring process: HR practitioners can use ChatGPT to analyze job descriptions for biased language, generate interview questions based on role requirements, and even summarize candidate resumes to speed up screening. This can help recruiters focus on evaluating talent rather than spending excessive time on administrative tasks.
  • Simplifying HR data analysis: HR professionals can use ChatGPT to summarize key insights from employee surveys, performance reviews, or exit interviews without manually sifting through large volumes of text. For example, instead of reading dozens of exit interview transcripts, HR can ask ChatGPT to highlight common reasons for turnover and suggest potential improvements.
  • Improving employee communication and engagement: HR professionals can use ChatGPT to draft clear, engaging emails about company initiatives, policy changes, or engagement programs. It can also assist in brainstorming new ways to improve employee satisfaction, such as suggesting ideas for a recognition program or drafting pulse survey questions to gather feedback.

Want more ready-to-use ideas? Download our ChatGPT Prompts for HR Guide and get 12 customizable prompts that can help you save time, streamline tasks, and boost your daily productivity.

DOWNLOAD FREE GUIDE

ChatGPT limitations

It’s important to note that ChatGPT does have some limitations that you must keep in mind when working with the tool:

  • Providing incorrect information that looks correct at first glance
  • Culturally insensitive or biased answers due to being trained primarily with English/Western data
  • Lack of sources and references, which makes it difficult to verify the accuracy of the information provided
  • Potential security risks with confidential information being shared via ChatGPT.

Here are some examples of effective ChaptGPT prompts for HR to use. 

  • “Create a job description for a [ insert name of position ] at a [ insert industry of your company ] company. Include [ A, B, C, D & E ] responsibilities.”
  • “List 3 interview questions to test a candidate’s communication skills in a [ insert name of position ] role. For each question, indicate the answer a low-skilled candidate would give and the answer a high-skilled candidate would give.”
  • “List 4 frequently asked questions by new hires in a [ insert name of position ] role.”
  • “List 5 steps HR should take when creating a competitive compensation strategy for a [ level of seniority ] at a [ size of company ] company in [ location ].”
  • “Create an employee exit checklist for HR.”

Adoption of AI in HR: Challenges, adoption personas & best practices

Challenges of AI in HR

While AI’s potential to transform HR is undeniable, it also comes with challenges that cannot be ignored. Understanding these challenges is key to using AI responsibly and effectively in the workplace. Let’s take a closer look.

Inherent risks of AI 

AI technology poses direct risks that stem from how it works, its capabilities, and its limitations. These include bias and fairness risks if the technology has been trained on biased data. This can lead to unfair decisions in the hiring process and performance evaluations, leading to legal risks and a less inclusive workplace.

Some AI systems lack transparency regarding decision-making, which can lead to a lack of trust between candidates, employees, and HR, and decisions become hard to justify in legal contexts. When left to operate autonomously, AI technology can behave unpredictably, which can result in incorrect hiring decisions and mismanagement of talent. 

Application-based risks 

Application-based risks are those that come from the use and application of artificial intelligence systems. In other words, how the technology is used and managed by humans using AI in their work. This includes when AI makes choices that do not align with your company’s values or ethics, which can negatively affect your company culture and decrease morale and trust

For instance, using AI to manage mass layoffs or taking actions without considering essential context (as seen with Uber’s algorithm increasing fares despite market disruptions) can severely harm a company’s reputation and public trust.

Finally, there’s a fine balance to be found between using AI-powered tools and using human insight, empathy, and emotional intelligence. Over-reliance on AI in HR can damage a business’s relationships with its workforce and lead to poor decision-making.   

Compliance-related risks come from the legal standards companies are required to adhere to, particularly around data protection and employment laws. AI poses several risks, including data privacy violations when sensitive personal employee data is being collected, used, and stored, discriminatory results (where one group is favored over another based on age, gender, race, etc.), and upholding certain laws that require organizations to properly document how their AI systems work and how they make decisions and ensure these are made fairly and legally.

Failure to manage these risks can result in legal fines and challenges, reputational damage, and the erosion of trust between candidates, employees, and the organization. 

The AIHR AI risk management framework

Below is an image of our AI risk management framework, which helps businesses manage these risks across all levels. It comprises four interrelated parts, each one addressing the most significant AI risks. 

The first two parts—internal and external environment—focus on organizational internal and external risks. Data governance, the third part, is necessary for addressing both of these risks. The fourth part of the framework outlines the levels—policy and philosophy, practice process and systems, and individual behavior—where these risks must be managed.

Actions for HR

  • Train HR professionals in your team in how to effectively use AI in their day-to-day role, and make sure they know the cases where human input is essential
  • Use diverse data to train AI models, adjust algorithms, and reduce bias
  • Monitor and conduct regular audits of AI decisions, ethics, and data handling
  • Ensure a human reviews AI-driven decisions to check for errors, especially in critical areas like recruitment and performance evaluation
  • Opt for explainable AI models where possible
  • Be open and honest with candidates and employees about how you use AI to make decisions 
  • Have data protection policies in place and train employees on these policies
  • Only collect and use the data that you need
  • Protect sensitive data using encryption and secure access controls
  • Work with legal experts to ensure compliance with relevant laws and regulations
  • Maintain detailed records on how your AI systems are used that meet legal requirements
  • Ensure AI tools align with company values and ethical guidelines
  • Be thoughtful with your use of AI and ensure there is human involvement in more sensitive decisions that require empathy or complex judgment.

The 4 AI adoption personas

HR professionals can be categorized into one of the following four adoption personas. Each persona has different shared behaviors and motivators for (or against) adopting AI, which enables HR to take targeted actions to accelerate adoption across the team and as part of their own learning

  1. The Skeptical Avoider: This persona doesn’t actively use AI because they don’t see it as valuable or necessary in their role. Therefore, they lack motivation to prepare themselves for a future where AI is heavily adopted in HR, may hold a negative view towards artificial intelligence in HR, and risk being left behind. The Skeptical Avoider benefits from seeing the value of AI in practical use cases and applications and being encouraged to adopt AI in low-risk day-to-day tasks. 
  2. The Reluctant User: This persona is typically in a workplace where AI is being actively used in daily HR processes, but they use it reluctantly and minimally, usually because they don’t understand it or have trouble integrating it. HR leaders should raise awareness of the benefits of using AI to these users and start with low-risk, high-impact AI applications to build trust.   
  3. The Active Explorer: This persona utilizes AI for tasks such as research, content creation, and task automation. Although they see the benefits of full adoption, they lack opportunities to experiment with AI and lean heavily on self-learning to deepen their knowledge. These users need more opportunities for hands-on practical use of AI and to demonstrate the resulting efficiency gains while getting any concerns that result in hesitancy addressed.
  4. The Adoption Champion: The final persona actively uses AI across multiple HR practices, including personal productivity and better decision-making, and is eager and willing to experiment with new technologies and tools. They are typically found in companies that make significant investments in AI and help to champion the use of AI in their organizations. HR should leverage these users’ enthusiasm to drive broader adoption of AI across the company, highlight any compelling success stories, and ask for their input on the early adoption of new technologies.

The future of AI in HR

The future of AI in HR not only holds significant promise, but also inevitable transformation within the HR profession. As AI continues to reshape how HR professionals operate, it will be imperative for them to develop new skills to remain relevant and drive business value. 

With 76% of HR leaders stating that organizations that fail to adopt AI in the next few years will not be as successful as those that do, it’s clear that AI is changing the HR field. Here are some of the key roles HR professionals will need to play in the AI-powered future and its impact on the HR profession.

1. HR’s role in AI adoption

AI will not only become ubiquitous across the employee life cycle but also form part of the workforce that HR needs to manage. Currently, the workforce consists of traditional employees, gig workers, vendors, or contractors who conduct the work. In the future, HR will also need to manage co-bots working alongside employees to get work done.

Generative AI will be able to take on full responsibility for specific tasks and activities, which will impact work design and how HR develops capacity planning in the future. To manage the workforce of the future, HR professionals will need to understand the value AI bots bring and determine how they can be incorporated into workforce plans.

2. HR’s role will change

As AI removes most of the repetitive, operational work, HR will shift its priority to supporting the adoption of AI across the organization and providing more strategic value to the business. 

This will likely mean job displacement for admin-heavy roles. Businesses must think about creating reskilling and upskilling programs to help these employees transition into new roles that consist of tasks and responsibilities that utilize the creativity, empathy, strategic thinking, and emotional intelligence of humans. New, broader roles will emerge that combine business knowledge and technological expertise. 

HR professionals will need to develop new skills to adapt to this change. Key skills include: 

  • Business acumen: Truly understanding the business is the starting point for aligning HR solutions with business needs. 
  • Communication skills: HR professionals must be able to connect well with all kinds of people and leave a professional and positive impression.
  • Delivering through technology: Being able to effectively implement technology into HR solutions to drive efficiency, scale, and business impact. 
  • Active listening: Active listening goes hand in hand with empathy, the ability to see situations from the perspective of all stakeholders. This is an important skill when navigating the adoption of AI across the business. 
  • Generative AI skills: Being able to integrate AI into their daily activities and understanding how to work with AI technologies responsible for adjacent tasks.
  • Problem-solving skills: Finding new solutions within a digitally enabled workforce that helps the business win in the marketplace.  
  • Curiosity: Asking questions, staying open-minded, wanting to learn, and being curious.

To support this shift, HR teams need a clear understanding of which AI skills are relevant for each role and how to develop them. Our AI Skills Framework is a practical tool that can help you do just that. It includes role-based AI skill requirements, a skills gap analysis template, and a development plan to guide learning and adoption across your team.

Not all HR professionals need the same AI skills—what’s required depends on their role and how they interact with AI.

3. Driving responsible AI use

HR will need to become the gatekeepers for the responsible use of AI across the organization, now and in the future. In addition to the actions listed above, there are several ways that HR practitioners can contribute to a responsible adoption of AI:

  • Assemble a task team to develop guardrails and guidelines 
  • Experiment with the use of AI, but do so incrementally 
  • Build trust and transparency in the technology, but be aware of its limitations 
  • Contribute to the bigger discussion on the AI future.

AI tools for HR

Here are some leading AI tools for HR teams to test out across various HR functions.

Will AI replace HR?

According to research by Personio, 61% of business leaders believe HR will be taken over by AI in the future, and many employees in these roles share their concerns. But are their beliefs grounded in facts, or is this a simple case of business leaders not having a clear understanding of what exactly their HR teams do, and the value they provide? 

As we’ve already discussed, HR is already changing and will continue to change as AI tools develop and are utilized in a greater way across HR processes. AI will undoubtedly be an asset as it reduces repetitive tasks, but it will not be able to replicate the real relationships and in-person connections that HR teams nurture. Jobs consisting solely of significant simple, repetitive, administrative tasks are likely to be automated, but roles that require more problem-solving and human interaction – which is most HR roles – are far less likely to be automated. 

Here are some of the most common HR roles divided into three categories from high-risk to low-risk: 

  • High-risk: HR Administrators, DEIB Consultants, and Payroll Team Leads. 
  • Moderate risk: L&D Specialists, HRIS Analysts, and HRBPs.
  • Low risk: Senior HRBPs, HR Specialists, and Data Scientists.

For HR professionals who do fall into the high-risk category, there are steps you can take to make yourself a more valuable asset, including upskilling or broadening your skills, learning how to apply your skills in different contexts, and considering moving into a role that requires more critical thinking and problem-solving skills.

But contrary to many beliefs, HR is going to become more important to the business, even as AI adoption grows. In fact, 73% of business leaders believe this to be true. Why? Because once the repetitive, low-value tasks are taken care of, HR teams will be able to focus on more business critical matters, including fostering a great workplace culture, increasing retention, and working directly with business leaders to meet long-term organizational goals. 

So, it’s important that HR teams start showing business leaders the value they bring to the table, and equally critical that business leaders invest time in understanding the value HR provides. Every organization is driven by its workforce, which means that people are your greatest asset, and HR’s primary focus is on building and developing relationships with those people.

Artificial intelligence for HR certification

An HR certification can help practitioners build AI knowledge and skills and facilitate real-world applications. 

AIHR’s accredited Artificial Intelligence for HR Certificate Program includes hands-on learning to help build, practice, and apply AI skills in HR. The program covers:

  • Introduction to AI for HR
  • Mastering prompt design
  • Using generative AI in HR
  • AI strategy for HR.

With a mix of video lessons, hands-on exercises, and assignments, AIHR caters to all learning styles. Plus, all programs are 100% online and self-paced, which means AIHR members can learn at their own pace around their existing commitments.

AIHR’s Resources Library also contains off-the-shelf templates, playbooks, guides, and tools that serve as a great starting point and are included in the course subscription. Our AIHR Copilot is trained on AIHR’s 1,000+ articles, 500+ hours of video lessons, and 100+ downloadable resources, and is there to give you fast, trustworthy, expert-level answers to your burning HR questions. You’ll also become a part of our thriving community of 5,000+ ambitious HR professionals from all over the world, where you can have thoughtful discussions, share ideas, and build genuine connections. 

Full access members will also receive a personal coach who will assist and help them reach their learning goals and career potential.

FAQ

What can AI do for HR?

Through generative AI, HR chatbots, AI voice technology, natural language processing, automation, and AI agents, artificial intelligence is able to complete repetitive HR tasks, assist in decision-making, mimic human creativity, comprehend questions and provide helpful answers on demand, predict outcomes, and interpret written and spoken languages all with minimal human input. This makes it useful in HR functions across the employee life cycle.

How can AI help HR?

AI can help HR in numerous ways, and this capacity is only set to grow as the technology evolves. The main benefits include improving efficiency and productivity, streamlining and structuring processes, reducing time-consuming tasks and costs, and facilitating more data-driven decision-making.

What is the best AI tool for HR?

The best AI tool for HR depends on what your needs and goals are. You’ll find AI tools across all HR functions, including talent acquisition, onboarding, performance management, learning and development, employee engagement, talent analytics, career management, and general productivity. Many AI tools offer trials and integrate seamlessly with your existing HR tech stack.

How can genAI help HR?

Generative AI helps HR create valuable materials, including text, images, and video, by analyzing large datasets and generating original content. This technology can be used to draft compelling job descriptions, create personalized outreach emails and rejection letters, serve as virtual onboarding assistants, provide customized learning and development suggestions for employees, uncover key patterns and insights in data, and much more. 

The post AI in HR appeared first on AIHR.

]]>
Monika Nemcova
People Operations: 9 Key Responsibilities https://www.aihr.com/blog/people-operations/ Fri, 28 Feb 2025 11:02:06 +0000 https://www.aihr.com/?p=75173 People Operations is a relatively new way of managing your workforce that emphasizes putting people first. It’s an approach with many benefits for both employees and the organization they work for.  But what exactly is People Operations, and how does it differ from a more traditional HR department? What does a People Ops team do,…

The post People Operations: 9 Key Responsibilities appeared first on AIHR.

]]>
People Operations is a relatively new way of managing your workforce that emphasizes putting people first. It’s an approach with many benefits for both employees and the organization they work for. 

But what exactly is People Operations, and how does it differ from a more traditional HR department? What does a People Ops team do, and what roles are typically a part of it? Let’s find out!

Contents
What is People Operations?
People Operations vs HR
What does People Operations do?
People Operations department and roles
Best practices for People Operations management
FAQ


What is People Operations?

People Operations, also referred to as People Ops or POPs, is a holistic, employee-centric approach to supporting and managing your workforce. The term was coined by Laszlo Bock—former HR Director at Google—who explored this in more depth in his book, Work Rules!

People Operations teams aim to create the best employee experience possible by developing and implementing strategies to promote employee development, engagement, satisfaction, and wellbeing. An important part of this is aligning people’s individual development and goals with the organization’s overall mission and objectives.  

A successful People Operations department helps improve company culture and increases employee dedication and retention. This, in turn, will lead to a healthier, happier workforce that is more productive and fuels business growth.

People Operations vs HR

Although People Operations may sound the same as Human Resources, there are some key differences, especially compared to the more traditional HR departments. 

The table below provides a (non-exhaustive) overview of how People Ops differs from HR. 

People Operations
Traditional HR

Focused on maximizing the value of employees while also ensuring compliance.

Focused on enforcing compliance and reducing liability.

Consulted on strategic decisions and part of the conversation.

Informed about decisions and told to execute.

Takes a more expansive, holistic view of the business and uses people strategies to achieve goals.

Operates within established HR frameworks, focusing on standard practices and defined processes.

Proactively creates new systems and programs to improve ways of working.

Responds to issues as and when they arise.

Creates goal-based reward systems that encourage employee initiative and dedication.

Updates and maintains the employee database and enters pay changes per manager request.

Support the current workforce so that there is less turnover.

Hire a replacement when a position is vacant.

People Operations connects all departments.

HR departments tend to operate separately from other departments.

While there can certainly be differences between People Operations and traditional HR, things are often not as black and white as this table suggests. 

Many modern HR departments have already embraced (parts of) the People Operations approach and are very proactive and employee-centric in their function. However, they are still called ‘HR’ for different reasons. Additionally, some organizations are adopting the term People and Culture to emphasize a focus on employee experience, engagement, and organizational values, further blurring the lines between these roles.

What does People Operations do?

While the exact tasks and responsibilities of a People Operations team will depend on its size, maturity, and the size of the organization it is in, there are some typical People Ops priorities and responsibilities, including:

1. Connecting individual employee performance with company goals

People Operations is responsible for helping employees understand their primary role in the wider organization. They also continuously reiterate how people are contributing to the company’s goals. Part of the People Ops job is to design work that encourages engagement and motivates employees to continue improving their skills, knowledge, and expertise.  

People Ops should also be involved in determining the organization’s primary goals, discuss how achievable they are, and flag any immediate concerns.

2. Mapping the employee journey and life cycle

Employee journey mapping is about identifying the “moments that matter” in the employee journey at your organization. This includes moments such as: 

The People Ops team is responsible for mapping and continually improving these key moments – supported by employee feedback. Together, these moments make up a significant part of the overall employee experience.

Regularly communicating with employees throughout their journey also helps to promote an inclusive, supportive work culture and ensures everyone is heard. But to build trust, there must be consistency across the entire employee life cycle, which is what People Operations strives to do.

3. Employee recognition

Research by Gallup shows that when larger companies double their employee recognition efforts, they experience a 22% decrease in absenteeism and a 9% increase in productivity. Other benefits include increased engagement, lower turnover, and a better bottom line. 

These are just some of the reasons why employee recognition matters and why People Operations should focus on it. A recognition program can come in different forms, including:

  • Manager-to-employee recognition 
  • Peer-to-peer recognition
  • Team recognition
  • Company-wide recognition 
  • Or a combination of these.

Regardless of the system or method(s) you choose, the priority should be creating a culture of recognition and ensuring that employees feel appreciated for their work.

Equip your HR team to drive business impact

From change maangement to employee engagement and development, People Operations is at the heart of modern HR. Keep up with the evolving field of HR by building the skills you need to create impact.

With AIHR Full Academy Access, you can continuously upskill with unlimited access to world-class HR training. Expand your expertise, boost your career, and add value to your organization.

4. Continuous engagement

High employee turnover and burnout rates can severely impact your bottom line, and this is just one reason why keeping your staff happy and healthy at all times should be a key priority for POPs. 

There are many employee engagement strategies you can use for this, fostering employee recognition (as mentioned above) being one of them.

However, to effectively engage employees, it is important to understand the core drivers of engagement – cultural, physical, and digital. As such, the People Ops team knows and addresses your employees’ pain points and regularly speaks to them to understand what they need and want in the workplace. 

5. Employee development

People Operations is responsible for spearheading employee learning and development (unless the organization has its own L&D department). This includes: 

Focusing on continuous learning helps build a cohesive and collaborative culture where all employees feel competent and valued. Skilled employees also tend to be more motivated, productive, and consistent in their work performance, hence helping the organization succeed.

For a development plan to be effective, it is crucial to have the support and active involvement of the employees it’s for. This includes diving into what skills they need to do their job, what would help them perform better at work, what professional goals they have within the company, and what support they need to help them develop. 

6. Building employee trust

There are multiple ways a People Ops team can go about building trust between the employees and the organization, starting with: 

  • Being transparent with employees: For example, in today’s world, information on company culture, salaries, and benefits is readily available through social media or places like Glassdoor. This means People Operations needs to ensure transparency, particularly during the early stages of the employee life cycle. Distrust often arises due to a lack of communication. In other words, it’s up to the People Ops team to build this trust from the start by communicating regularly and effectively. 
  • Collecting – and acting on – employee feedback: This is another excellent way to build employee trust. Check in with employees (through surveys, in-person discussions, etc.) to gauge how they are feeling and how they feel about the company. Once you gather and assess this feedback, it is important to pitch suggested changes and improvements to employees and once again obtain their input. This contributes to an inclusive culture where employees feel heard and involved in the entire process.

7. Change management

People Operations teams are also (partially) responsible for managing changes across the business. This can include system updates, a move from manual to digital ways of working, employees switching teams, management shifts in business objectives, changes based on internal findings, and more. 

Overseeing and managing these types of organizational transformation can ensure that the adoption goes smoothly. It helps everyone in the company adjust quickly and ensures no (or minimal) impact on output and the broader business goals.

8. Culture development and transformation

Another key priority of People Ops is championing the company culture and its values. POPs is well positioned to build a more ethical and diverse organizational culture and (co)manage cultural transformation if the current culture isn’t aligned with the company’s vision and objectives. 

9. Supporting hybrid and remote work 

Despite the seemingly ongoing push from many (large) organizations for their people to return to the office, many employees still work (partially) remotely. 

According to the recent Gallup’s Indicators report, in the U.S. alone, 55% of those in remote-capable jobs are expected to work in a hybrid way, and 26% are expected to work exclusively remotely. While the advantages of hybrid work are significant for employees (think of a better work-life balance, less burnout or fatigue at work, and better use of their time), there are also some challenges that come with this setup. 

According to the same Gallup indicator, remote and hybrid employees mentioned:

  • Feeling less connected to the company’s culture
  • Less cross-functional collaboration and communication
  • Reduced collaboration and weaker relationships with their team members
  • Less access to work resources and equipment
  • More difficulty coordinating tasks, timelines, and schedules with their team members.

These are just a few examples of things that People Ops should be aware of and address if necessary to ensure that all employees feel supported and benefit from a great employee experience.


People Operations department and roles

As mentioned earlier, every People Operations team will look different depending on the size of the company, the budget available to hire people, and the organization’s POPs maturity.

Here’s a brief look at some typical roles you can come across in People Operations and their primary responsibilities: 

People Operations Manager

A People Operations Manager manages the team’s overall work, similar to a Project Manager. It’s their job to oversee the team and ensure they work efficiently together within and across departments in a streamlined way.

People Operations Coordinator

People Operations Coordinators usually perform administrative and organizational duties and assist in project management. They ensure that the company’s day-to-day operations run smoothly.

Director of People Operations

A Director of People Operations leads, coaches, and oversees the entire People Operations team. Together with business leaders, they develop and drive forward a people strategy across the company. They also ensure that all policies and processes focus on supporting and improving the employee experience throughout the life cycle.

People Operations Specialist

A People Ops Specialist is responsible for running data checks, ensuring all HR records are accurate and up to date, and all queries are answered promptly. They provide onboarding support for new hires and often work alongside other teams, including recruitment. Excellent communication and customer service skills are essential for this role.  

People Operations Analyst

A People Operations Analyst is typically in charge of researching, identifying flaws in processes and operations, and proposing improvements and changes. Analysts are (co) responsible for ensuring that the company is always compliant and follows regulations, thereby reducing liability risk. 

Best practices for People Operations management 

Since People Operations is still a relatively new concept for many, it can be hard to figure out how to get started and how to proceed. 

Here are some best practices to consider for managing People Ops: 

  • Structure your People Operations team with intent: Clearly define the various roles and subsequent responsibilities within people operations. This creates clarity and manages expectations both inside and outside the People Ops team. Remember that you don’t necessarily have to hire a full People Ops team immediately, either. You can slowly transition by identifying and aligning with one or two business priorities first and looking into training options for your current staff to help them better understand the new approach, for example.   
  • Standardize processes but stay flexible: Develop and document SOPs (Standard Operating Procedures) for different parts of the employee life cycle, such as hiring, onboarding, performance reviews, and offboarding. Have clear policies and checklists, but be willing to adjust as the company and its employees’ needs evolve. 
  • Maintain a strong HR tech stack: A well-built HR tech stack considerably improves the (digital) employee experience. Two elements to consider in particular in that regard are:
    • Integrations: A set of tools that can’t communicate with each other is counterproductive. Ask potential vendors if integrations exist for the tools you already use or if they can build custom integrations.
    • Ease of use: Both People Operations and an HR tech stack aim to improve efficiency and create an excellent user experience. Therefore, your tech stack must be easy to navigate and run smoothly.          
  • Balance employee experience with compliance: People Operations management is also about constantly trying to strike a balance between creating a holistic, employee-centric approach to supporting your workforce and HR compliance. This means making sure that both the organization and its people follow the applicable policies, processes, and procedures to minimize legal and regulatory risks.  
  • Strengthen cross-departmental collaboration: People Operations management isn’t just about simply managing the workforce—it’s about working closely with other departments to align people strategies with business objectives. Focus on fostering strong relationships with leadership, finance, operations, and other teams to ensure that workforce planning, talent development, and company culture support overall organizational goals. Effective collaboration helps create a more cohesive, agile, and strategically aligned workplace.
  • Ask for employee input: Naturally, an employee-centric approach requires (a lot of) employee input. Ask your employees for feedback about the company as a whole and your people operations efforts in particular. You can do this via employee pulse surveys, stay interviews, manager one-on-ones, and employee focus groups
  • Make data-driven decisions: To optimize your People Operations efforts, you want to track your activities to make decisions based on data and evidence. Calculating your employee turnover rate or measuring employee productivity and (new hire) satisfaction levels, for instance, is an excellent start. Monitoring this data on an HR dashboard allows you to easily see what is working and where there is room for improvement.

A final note

No matter how you look at it, when your employees are engaged, feel appreciated, and taken care of, you will likely create an exceptional organizational culture and a fantastic reputation as an employer. 

A People Ops approach can help you achieve all of this and more, but whether you decide to build a separate People Ops team or have your current HR team move toward this method one step at a time doesn’t matter all that much, as long as you move in the right, people-first direction.


FAQ

What is People Operations in HR?

People Operations, or People Ops, refers to a way of workforce management that focuses on people over processes. It emphasizes the importance of a great employee experience and the alignment of individual employee goals with those of the company. 

What does a People Operations Manager do?

A People Operations Manager focuses on aligning people strategies with business goals by improving employee experience, optimizing HR processes, and fostering a strong company culture. They go beyond traditional HR functions by driving engagement, workforce development, and cross-department collaboration to create a more efficient and people-centric organization.

What is the difference between HR and people operations?

Generally speaking, a traditional Human Resources department focuses more on processes and tends to be more reactive, while a People Operations team takes an employee-centric approach and tries to act proactively as much as possible. 

The post People Operations: 9 Key Responsibilities appeared first on AIHR.

]]>
Monika Nemcova
Workforce Forecasting: Your 5-Step Guide To Predict Staffing Needs https://www.aihr.com/blog/workforce-forecasting/ Mon, 13 Jan 2025 09:06:41 +0000 https://www.aihr.com/?p=257949 Workforce forecasting is an essential part of a company’s overall workforce management process, as it’s critical for a business to know how many people it requires to meet its needs. Accurately forecasting workforce needs helps organizations avoid talent shortages, reduce turnover, and remain competitive. This article discusses the importance of workforce forecasting, different methods you…

The post Workforce Forecasting: Your 5-Step Guide To Predict Staffing Needs appeared first on AIHR.

]]>
Workforce forecasting is an essential part of a company’s overall workforce management process, as it’s critical for a business to know how many people it requires to meet its needs. Accurately forecasting workforce needs helps organizations avoid talent shortages, reduce turnover, and remain competitive.

This article discusses the importance of workforce forecasting, different methods you can use, and best practices to observe to ensure effective workforce planning.

Contents
What is workforce forecasting?
Why is workforce forecasting important?
How workforce forecasting works
5 steps to take for effective workforce forecasting
9 examples of workforce forecasting methods and models
Best workforce forecasting practices for HR
Tools and software for effective workforce forecasting


What is workforce forecasting?

Workforce forecasting is the process of estimating an organization’s future staffing needs to help ensure it has the right people with the right skills at the right time.

Forecasting involves looking at historical data and identifies trends over time, allowing you to see where and when your team needs help. It can also help align your company’s workforce capacity with its strategic goals.

Key aspects of workforce forecasting include forecasting workforce management, demand, and scheduling. Workforce management forecasting focuses on operational parts of the business (e.g., scheduling and shift planning), while workforce demand forecasting estimates future demand for specific roles, skills, or headcount.

Workforce scheduling involves the accurate, efficient distribution of resources and workload, such as assigning employees to certain shifts or schedules. This provides a balance between workforce supply and demand and can help prevent employee burnout by decreasing the amount of extra shifts or overtime.

HR’s top burning question

How does workforce forecasting differ from traditional workforce planning?

AIHR Subject Matter Expert, Dr Marna van der Merwe, says: Workforce forecasting and workforce planning differ in their focus, time horizon, objectives, and methodologies. These include:

  • Focus and objectives: Workforce forecasting focuses on anticipating and predicting future workforce needs, based on predominantly external factors like changes in labor demand and supply, market conditions, industry changes, technology advancements, and workforce demographics. Workforce planning focuses on aligning workforce strategies with anticipated forecasting, organizational strategy, and business goals. This informs strategies related to recruitment, retention, and talent management and development.
SEE MORE

Why is workforce forecasting important?

Workforce forecasting allows companies to anticipate future labor needs to keep business running without major disruptions. By understanding and forecasting staffing needs, management can allocate resources to staff in each department more effectively.

This is essential for strategic workforce planning, effective HR allocation, and minimizing operational slowdowns or interruptions. Work scheduling practices can also affect employees. Those with unpredictable schedules have up to a 42% likelihood of quitting in six months, compared to a 24% turnover rate among those with more stable schedules.

Other key benefits of workforce forecasting include:

  • Syncing staffing levels and long-term business needs: This ensures the right number of staff with the right skills at the right time to help achieve business objectives.
  • Supporting talent forecasting for long-term growth: More effective resource allocation can reduce excess hiring and training expenses, aiding in cost-effectiveness.
  • Preventing staffing shortages: Efficiently forecasting staffing needs can help companies avoid staffing shortages and operational disruptions. 
  • Improving job satisfaction: Through better resource allocation, effective workforce forecasting can increase job satisfaction, employee engagement, and retention. 
  • Ensuring legal compliance: Accurate workforce forecasting can minimize legal risks through proactive planning for workforce changes that might impact regulatory requirements.

HR top burning question

How does workforce forecasting influence Human Resources planning?

AIHR Subject Matter Expert, Dr Marna van der Merwe, says: Workforce forecasting is a data-driven approach that helps HR align strategies and initiatives with the anticipated long-term needs of the business. It ensures HR is responsive to changes and future-proofs HR strategies. In particular, it is crucial for:

  • Budget and resource allocation for headcount, compensation and benefits, and investments in tools and technologies
  • Succession planning and talent pipelines ensure business continuity of critical roles in the future
SEE MORE

How workforce forecasting works

The process of workforce forecasting involves three primary components:

  1. Data analysis: Data analytics can help predict future workforce needs. Use and analyze historical data, market trends, and predictive analytics to assess previous staffing patterns and identify skills gaps and turnover trends.
  2. Technology tools: Where possible, software should integrate with HR systems and automate repetitive tasks. It should also offer simulation, scenario planning, and complex data analysis to help predict future issues and needs.
  3. Communication and collaboration: Include and communicate with cross-functional teams and key players in your workforce forecasting efforts to help align goals and strategies.

HR top burning question

What tools and techniques are commonly used in workforce forecasting?

AIHR’s Chief Scientist (HR & OD), Dr Dieter Veldsman, says: Various tools and techniques can help with effective workforce planning, and organizations must choose the approach best aligned with their unique needs and operating environment. Some larger ERP systems (e.g., Workday, SAP SuccessFactors, and Oracle) include workforce forecasting tools. Their primary benefit lies in their ability to integrate seamlessly with financial data, providing a holistic view of both costs and headcount predictions over time.

SEE MORE


5 steps to take for effective workforce forecasting

Here are five steps involved in workforce forecasting you can use in your organization:

Step 1: Assess the current workforce

Start by thoroughly analyzing your current workforce. This involves evaluating the number of employees, their skills, roles, and overall performance. Look for gaps in skills or knowledge, and identify areas where additional training or hiring may be necessary.

Regularly updating this assessment ensures your data remains accurate and reflective of your organization’s needs. Tools like skills inventories and performance management systems can streamline this process, giving you a clear picture of your workforce’s strengths and weaknesses.

A 5-step process for workforce forecasting.

Step 2: Identify business goals

Workforce forecasting should align with your company’s strategic objectives. Begin by defining your organization’s long-term and short-term goals—such as expanding into new markets, launching products, or increasing operational efficiency.

Use strategic planning sessions to map out how workforce needs fit into these objectives. Next, establish measurable Key Performance Indicators (KPIs) to guide your efforts, such as reducing turnover, improving employee productivity, or achieving specific revenue targets.

Step 3: Forecast demand

Anticipate future workforce needs based on historical data, market trends, and business growth projections. Data analytics tools can help you understand how factors like seasonal demand, technological advancements, or industry-specific trends might affect staffing.

Also, work closely with department leaders to gain insights into specific needs for roles, skills, or team sizes. Use predictive analytics and scenario planning to explore various future possibilities, ensuring your forecast considers both best- and worst-case scenarios.

Learn the skills you need for effective workforce forecasting

To conduct effective, accurate workforce forecasting, you need strong analytical skills, strategic alignment, data-driven decision-making, collaboration, and adaptability.

In AIHR’s Talent Management and Succession Planning Certificate Program, you will learn to use talent segmenting and demand forecasting to support your workforce planning.

This online, self-paced certificate program will also teach you Buy, Build, Borrow, and Bot strategies to manage talent supply and how to match these strategies to talent demands in your business.

Step 4: Analyze supply

Assess your current and future talent availability to identify any mismatches between supply and demand. This involves reviewing hiring pipelines, internal talent pools, and potential challenges like retirements or high turnover in certain departments.

Be sure to also consider economic factors, such as labor market conditions and industry competition, that might impact recruitment or retention. Flexible workforce plans, including strategies for upskilling, internal promotions, or using contingent workers, can help address gaps and prepare for unexpected changes.

Step 5: Develop and implement a plan

Bridge the gap between your workforce supply and demand with a clear, actionable plan—this involves outlining steps for hiring, training, and reallocating resources to meet future needs. Additionally, include initiatives like recruiting for hard-to-fill positions, offering cross-training opportunities, or creating rotational programs to expand employee skill sets.

Make contingency plans for fluctuations (e.g., a sudden increase in demand or a dip in the labor market). Finally, communicate the plan across teams and schedule regular checkpoints to track progress and make adjustments as needed.

HR top burning question

What are the most effective methods for forecasting staffing needs, and how do you decide which method to use?

AIHR’s Chief Scientist (HR & OD), Dr Dieter Veldsman, says: Workforce forecasting align with organizational context and business strategy. While there are various approaches to workforce forecasting, they all share a common foundation: using data to make informed decisions about future workforce needs. Below are two key approaches, with most organizations using a combination of both to get the best results:

  • Using historical data to identify workforce trends: This approach relies on historical company data analysis to identify patterns in workforce fluctuations. This method uses past periods as a baseline to estimate future workforce requirements. It’s particularly effective if the organization operates in a relatively stable, predictable environment. However, it may be less effective in dynamic or rapidly changing industries, where past trends do not reliably predict future needs.
SEE MORE

9 examples of workforce forecasting methods and models

There are a variety of workforce forecasting methods and models you can use to highlight and forecast staffing and scheduling patterns. These include:

Qualitative methods

  1. Delphi method: The Delphi method uses expert consultations or surveys to gather information about the current workforce and opinions on future labor demands, which it then aggregates to forecast needs. It involves soliciting expert opinions from senior leaders, subject matter experts, and other key players who offer qualitative insights.
  2. Scenario planning: By developing future scenarios based on specific assumptions, businesses can visualize a broad scope of potential workforce needs. HR can provide input on best- and worst-case scenarios to identify various possible outcomes. This helps organizations adapt and respond to different scenarios in a timely manner.
  3. Judgmental forecasting: This method ultimately relies on HR expertise, experience, and intuition, which contributes to more subjective forecasting. This kind of forecasting can sometimes be a part of scenario planning. 

Quantitative methods

  1. Time series analysis: This method examines past trends and historical data, such as headcount trends, to predict future needs.
  2. Regression analysis: This method examines how certain factors—such as financial performance, growth, market demand, and staffing—may impact workforce needs.
  3. Workforce analytics tools: Data analytics tools or software allow organizations to automate forecasting methods by analyzing datasets to predict staffing requirements. This helps analyze past employment numbers, turnover rates, and detect growth or decline patterns.

Hybrid models 

A hybrid technique can refine workforce forecasting by blending quantitative and qualitative methods. This approach uses both data and options to identify workforce patterns and trends. Some examples include:

  1. Integrating expert judgment with statistical analysis
  2. Blending AI forecasting with human oversight
  3. Using scenario planning alongside machine learning tools.

Best workforce forecasting practices for HR

Observing the following best practices can help you maximize the effectiveness of your workforce planning and forecasting:

Start with clear goals and objectives

Understand key business goals, whether it’s filling specific skills gaps or managing seasonal workforce fluctuations. This critical first step acts as the foundation and main driver of your talent forecasting process.

Use workforce forecasting tools

Instead of relying on manual processes, use workforce management and scheduling software to help develop a strong and reliable forecasting process in a shorter amount of time. This will ensure the process is not only less time-consuming but also more efficient, effective, and accurate.

HR top burning question

What challenges does HR face when implementing workforce forecasting, and how can they be overcome?

AIHR Subject Matter Expert, Dr Marna van der Merwe, says: The business strategy and longer term organizational goals must be in place to enable accurate and value-adding workforce forecasting. If this is unclear or evolving, workforce forecasting may lack contextual relevance. Workforce forecasting requires data and technology to make accurate predictions about the future. If this is not available, workforce forecasting can become time-consuming and resource intensive and could lead to inaccuracy.

SEE MORE

Monitor data regularly

Ensure your predictions remain current and accurate by revisiting your forecasting on a regular basis. Adjust forecasts as needed based on real-time data. This will lead to more accurate predictions about future hiring needs, skills gaps, or areas where attrition might spike.

Promote cross-departmental collaboration

Partner with other departments to obtain critical input and information to help align forecasts with organizational strategies. This can help foster a more integrated approach to talent management and allow you to better anticipate workforce needs, identify potential challenges, and develop strategies aligned with the broader organizational goals.

Train HR teams

HR plays an integral role in the overall workforce forecasting process, so make sure to train your HR teams to have the skills and knowledge to use forecasting methodologies and tools effectively.

HR tip

Brainstorm different scenarios. Make it a priority to conduct brainstorming sessions and use scenario planning tools to test various future business conditions. You can then determine the best staffing solutions for your organization. Being proactive can save you time if one of your tested scenarios does end up becoming a reality.

Tools and software for effective workforce forecasting

There are many options for workforce forecasting tools and software—be sure to choose tools that will make your forecasting process simple and effective. Using unsuitable tools or software can create more work for you and fail to produce the desired results. Some workforce forecasting software and system options include:

  • ADP Workforce Now: This comprehensive workforce forecasting tool has forecasting capabilities to help streamline functions like talent management scheduling.
  • Ceridian Dayforce: This workforce management platform offers real-time data capabilities for predictive analytics you can use for staffing forecasting.
  • PeopleFluent Talent Management: This system focuses on optimizing the talent management process and includes integrated forecasting and scheduling features. 
  • SAP SuccessFactors Workforce Analytics: This system provides historical and predictive data that you can use to forecast staffing needs.
  • UKG Dimensions: Formerly called Kronos Workforce Dimensions, this platform focuses on workforce scheduling and forecasting and can help optimize labor costs and staffing needs.

HR tip

Considering the many workforce forecasting software/system options available, you can request demos for them. This allows you to review them thoroughly to ensure they meet your company’s specific needs. Once you’ve selected a software or system, run a pilot program with it to make sure it has all the necessary capabilities and include key players in the process.

To sum up

Workforce forecasting is necessary for companies to remain competitive. By using data, technology, and collaboration, you can anticipate your organization’s staffing needs and align them with long-term goals. Effective workforce forecasting supports operational stability and growth by helping to reduce turnover and improve employee satisfaction.

Best practices and the right tools also allow businesses to make workforce forecasting a proactive advantage instead of a reactive process. Whether you need to fill immediate skills gaps or plan for future growth, workforce forecasting ensures you have the right people in the right roles at the right time.


The post Workforce Forecasting: Your 5-Step Guide To Predict Staffing Needs appeared first on AIHR.

]]>
Monika Nemcova
13 HR Technology Trends To Watch in 2025 https://www.aihr.com/blog/hr-technology-trends/ Thu, 09 Jan 2025 11:06:06 +0000 https://www.aihr.com/?p=257664 Employers in the U.S. alone have invested over $5 trillion in HR technology, and 74% of companies plan to increase their HR tech budgets. Additionally, 80% of companies on Forbes’ Global 2,000 list will use algorithmic managers for hiring, firing, and training employees. The ability to use HR tech is clearly an integral part of…

The post 13 HR Technology Trends To Watch in 2025 appeared first on AIHR.

]]>
Employers in the U.S. alone have invested over $5 trillion in HR technology, and 74% of companies plan to increase their HR tech budgets. Additionally, 80% of companies on Forbes’ Global 2,000 list will use algorithmic managers for hiring, firing, and training employees.

The ability to use HR tech is clearly an integral part of a career in HR, so it’s important to keep up with the latest trends. This article discusses the advantages of human resources technology and the top 13 HR tech trends to watch in 2025.

Contents
What is HR technology?
The benefits of HR technology
13 HR technology trends to watch in 2025


The benefits of HR technology

Technology in HR has been instrumental in enabling efficiency and data-driven decision-making. It also integrates with the broader shift toward digital transformation in businesses worldwide.

When properly executed, it generally positively impacts HR, employees, and organizations as a whole. Its benefits include:

  • Addressing challenges: HR tech solutions can help address challenges like time-intensive manual processes, scalability issues, and improving the employee experience. 
  • For HR professionals: HR technology can enable greater efficiency and help improve HR decision-making through data analytics. This can also lead to higher employee satisfaction. 
  • For employees: Combining HR and technology can help create a better employee experience. For instance, employees may have more autonomy to do certain tasks and opportunities for learning and development

13 HR technology trends

Trend 1: AI and machine learning in recruitment 

Artificial intelligence (AI) and machine learning (ML) are revolutionizing recruitment by automating repetitive tasks, improving decision-making, and enhancing candidate experiences. These technologies address common inefficiencies and biases in traditional hiring methods, making them highly important to HR teams today.

Key applications

  • Résumé screening: Tools like HireVue use AI to filter resumes quickly based on skills and qualifications.
  • Reducing bias: AI focuses on candidate skills and experience, promoting diversity by ignoring demographic factors.
  • Predictive analytics: Platforms like Workday analyze data to predict candidate success and retention.
  • Chatbots: Tools like Olivia by Paradox handle tasks like answering FAQs and scheduling interviews.

Example in practice

Unilever’s adoption of AI in recruitment involves using Pymetrics to evaluate candidates through neuroscience-based games and HireVue for AI-analyzed video interviews. The company uses AI for résumé screening and video interviews, cutting hiring time by over 50,000 hours and boosting diversity.

HR’s top burning question

What are the key factors to consider when choosing an HR technology platform?

AIHR’s Psychometrics Assessments Expert, Annelise Pretorius, advises:

  • System functionality and features: Assess whether the platform can support your HR processes and objectives and meet your basic requirements.
  • Scalability: Choose a solution that can scale with your growing user base and expand capabilities. Assess features like AI, automation, and self-service options to ensure the platform is future-ready and adaptable to changing workforce needs.
  • Integration capabilities: Ensure the platform integrates smoothly with ERP, accounting, and CRM systems to maintain data consistency, reduce redundancies, and streamline processes.
SEE MORE

Trend 2: More personalized HR self-service 

Employee self-service portals have two main benefits: employees can be in charge of their data and information, and HR teams can shift their focus from administrative tasks to strategic initiatives.

HR self-service has become better aligned with individual preferences through technology such as AI. A good example of this is the experience-driven HR service model, which allows HR to balance efficiency, cost, technology, and employee engagement to deliver HR services.

Key applications

  • Personalized dashboards: Employees can view tailored content like performance goals, benefits, and learning opportunities in one place.
  • Custom benefits management: This includes tools that let employees explore, compare, and choose benefits packages based on their preferences and eligibility.
  • AI-powered chatbots: Virtual assistants that provide instant answers to HR-related queries, such as leave balances or payroll issues, without human intervention.
  • Learning recommendations: Platforms can suggest personalized training and development opportunities based on career aspirations and past activities.

Example in practice

Walmart’s One Walmart portal allows its large, diverse workforce to manage their work schedules, payroll, and benefits. Employees can also access training videos, the latest company updates (e.g., quarterly earnings), and career support resources on the platform.

Trend 3: A focus on employee experience platforms

An employee experience platform (EXP) centralizes and streamlines the interactions between organizations and their employees throughout the employee life cycle. Employees can find all the resources they need on an EXP, access training, manage daily tasks, and more. 

A frontline employee experience platform (FEXP) does the same, but specifically for frontline workers in retail and hospitality. With over 80% of the global workforce consisting of frontline workers, an increased focus on FEXP solutions is likely in 2025.    

Key applications

  • Centralized communication hubs: Employees access company updates, news, and announcements in one place, ensuring alignment and transparency.
  • Integrated learning tools: EXPs offer on-demand training, certifications, and career development resources tailored to individual goals.
  • Feedback mechanisms: Employees can provide input and share concerns through integrated surveys and feedback tools, enabling continuous improvement.
  • Wellness and support features: Tools for mental health resources, wellness programs, and access to benefits that prioritize employee well-being.

Example in practice

Toyota uses a FEXP called Firstup, which is branded One Toyota. More than 80,000 employees are registered on the platform and use it for practical purposes, such as accessing their payslips, checking their schedules, or engaging with cultural company initiatives.

HR’s top burning question

Will HR technology replace HR professionals or teams?

AIHR’s Chief Scientist (HR & OD), Dr Dieter Veldsman, says: “HR technologies will inevitably replace some tasks and activities traditionally performed by HR professionals—and this should be seen as a positive evolution. Rather than viewing these advancements as a threat, HR professionals should recognize technology as an enabler, freeing them to focus their time, effort, and expertise on high-impact work that demands a human touch.

Far from replacing HR professionals, these technologies will augment their capabilities, empowering them to achieve more. To thrive in this landscape, HR professionals must embrace technology and learn to maximize its potential. By doing so, they can amplify their impact, extend their influence, and solidify their role as strategic partners to the business.”

Trend 4: Predictive analytics becoming more commonplace

Predictive analytics in HR uses data-driven algorithms to anticipate workforce trends, optimize decision-making, and proactively address potential challenges. These tools empower organizations to avoid issues like turnover, skill gaps, and engagement dips.

Key applications

  • Turnover prediction: Algorithms can analyze historical data to help identify employees at risk of leaving, enabling targeted retention efforts.
  • Workforce planning: Trends in company growth, market conditions, and employee performance data allow you to predict future hiring needs
  • Skills gap analysis: This helps you to forecast skills your organization will need in the future and design upskilling programs to bridge these gaps.
  • Engagement forecasting: You can use this to analyze employee engagement patterns to predict dips in engagement and implement strategies to maintain morale.

Example in practice

Cisco uses predictive analytics to determine its workforce planning approach, which helps it proactively fill skills gaps and anticipate future needs. Its people leaders use internal HR and external market data to project skills needs and improve performance management.

Learn the skills you need to maximize HR technology’s potential

The ability to effectively harness HR technology requires you to analyze data, streamline processes, ensure user adoption, and align it with organizational goals.

In AIHR’s Digital HR 2.0 Certificate Program, you will learn how to implement digital projects, minimize resistance to change, and drive digital adoption.

Trend 5: Further integration of collaboration tools solutions

Integrating collaboration tools with HR systems enhances workplace connectivity, streamlining communication, project management, and employee engagement. These solutions bridge the gap between operational tasks and HR functionalities, creating a more unified work environment.

Key applications

  • Seamless communication: Collaboration tools like Slack, Teams, or Zoom integrate with HR platforms to allow employees to connect effortlessly and access HR resources without leaving their primary workspace.
  • Task management integration: Linking tools like Asana or Trello with HR systems ensures smoother project delegation and tracking, aligned with employee performance and objectives.
  • Onboarding and training: Integrations with collaboration tools allow new hires to complete onboarding tasks and access training modules, enhancing their experience.
  • Recognition and feedback: Integrated features for shout-outs, recognition, and feedback make it easy to acknowledge achievements and provide real-time input.

Example in practice

Upflex uses Google Workspace because it offers teams instant, real-time collaboration. This allows them to collaborate on documents, workspaces, and calendars without needing to deal with complicated access permissions or send email attachments.

Trend 6: The use of AI to drive learning and development 

AI in learning and development already has many applications, as the Learning and Development function has pioneered the adoption of AI in HR. Examples include providing learning recommendations, improving analytical insights, and curating content. AI will play an even bigger role in changing the employee learning experience in the next few years. 

Key applications

  • Accessibility: Generative AI advances have made learning more accessible to all employees, converting texts into Braille for sight-impaired learners and transcribing audio and video content into text for hearing-impaired learners. 
  • Coaching: AI can act as a learning coach, providing suggestions and real-time feedback to learners. Wondder, for example, uses virtual reality (VR) and AI to give input on scenarios like DEIB situations and performance discussions.       
  • Personalization: AI can use various data sources (e.g., learner interests, career goals, assessment data, etc.) to suggest personalized learning. 

Example in practice

LinkedIn Learning has introduced an AI-powered coaching system in the form of a chatbot. It allows its users to ask for guidance on specific business questions. The chatbot acts as a coach and guides members through their learning journey, recommends learning content based on the user’s job and situation, and answers specific questions.

HR’s top burning question

What are the top mistakes companies make when integrating new HR technology?

According to AIHR Subject Matter Expert, Dr Marna van der Merwe, the most common mistakes in new HR tech integration are:

  • Not having clear objectives or a business case for using the technology: This makes it difficult to show ROI and secure investment for the maintenance of and upgrades to HR technology.
  • Neglecting the user experience: Often, a lot of attention is paid to back-end integration and automation while the user experience is neglected. This means users have to access multiple interfaces or are redirected to multiple places, which can detract from the value of HR technology.
SEE MORE

Trend 7: Blockchain for secure data management 

Blockchain technology can greatly improve data security and integrity, streamline HR processes, and increase compliance with regulatory requirements. Additionally, it offers interesting benefits for employee data management, such as enhanced security, transparent and auditable records, and data privacy and consent.

Key applications

  • Certification and credentialing: Blockchain enables a secure verification and storage of training records, employee credentials, and certifications.
  • Identity verification: Blockchain-based identity verification technology allows your organization to ensure secure verification of employee identity and qualifications. 
  • Recruitment and hiring: Blockchain-based technology can also conduct background checks, verify candidate credentials, and record employment history, creating a transparent and secure process.  

Example in practice

The Estonian government has implemented a blockchain-based solution called X-Road to manage employee data and provide secure access to government services. X-Road acts as a decentralized data exchange layer, allowing different institutions to efficiently access and share employee records without compromising privacy.

Trend 8: Employee listening technologies and sentiment analysis  

Employee listening technologies help organizations gather feedback, assess employee morale, and identify concerns through tools like surveys, pulse checks, and sentiment analysis. These systems use data analytics and AI to interpret employee feedback, offering insights that improve workplace culture and engagement.

Key applications 

  • Pulse surveys: These short, frequent surveys capture employee feedback on specific topics, allowing you to act quickly on issues like work-life balance and team morale.
  • Sentiment analysis: AI-powered tools can help you analyze the language used in employee feedback, emails, or chats to gauge emotional trends and attitudes.
  • Engagement metrics: Real-time dashboards can measure engagement levels based on responses to feedback tools, offering HR and leadership actionable insights.
  • Crisis management: Through sentiment monitoring, you can detect early signs of discontent or burnout, enabling proactive intervention from HR and managers.

Example in practice

Qualtrics offers employee listening solutions through EmployeeXM, which incorporates AI-driven sentiment analysis. Qualtrics’ tools enable the analysis of open-ended survey responses, supporting the understanding of employee sentiment beyond numerical ratings.

Trend 9: Expansion of wellness and mental health tech tools

Organizations increasingly adopt wellness and mental health tech tools to support employee wellbeing. These solutions address physical health, mental resilience, and stress management to ensure a healthier and more productive workforce.

Key applications 

  • Integrated digital wellness platforms: Such platforms can consolidate all the organization’s wellness tools for employees in one place (e.g., nutrition guidance, meditation apps, fitness trackers, and mental health check-ins).   
  • Personalization: The use of AI and data analytics can allow your company to offer employees tailored mental health programs to address their specific individual needs.
  • Employee assistance programs (EAPs): Digital EAPs provide can counseling, financial advice, and stress management resources through secure apps.

Example in practice

Enterprise software and services company CoEnterprise uses the holistic wellness platform Wellable for its wellness initiatives. Its main purpose is to drive active employee participation and foster a culture of health amongst its fully remote workforce.

HR’s top burning question

What are the key factors to consider when choosing an HR technology platform?

AIHR’s Psychometrics Assessments Expert, Annelise Pretorius, explains: “Transitioning from legacy HR systems to modern HR tech platforms requires careful planning, communication, and execution to minimize disruptions and achieve the desired results. Observe the following steps:

  • Assess existing processes to identify limitations and specific needs that the new system should address.
  • Evaluate and select the appropriate platform based on scalability, integration capabilities, ease of use, and compliance features.
  • Create a transition plan with realistic timelines, resource allocation, and risk management to guide the process.
SEE MORE

Trend 10: Using AI agents to drive repetitive task automation

More companies are using AI agents to automate repetitive and time-consuming HR tasks, freeing up HR teams to focus on strategic initiatives. These agents use machine learning (ML) and natural language processing (NLP) to handle tasks efficiently and accurately.

Key applications

  • Recruitment automation: AI agents can screen résumés, schedule interviews, and send follow-up communications, reducing manual hiring efforts.
  • Succession planning: AI agents can identify high-potential employees and create development plans for future leadership roles in the organization. 
  • Onboarding: During onboarding, AI agents can streamline document collection, task tracking, and orientation scheduling, creating a seamless onboarding experience for new hires.

Example in practice

IBM Watson uses an AI agent to uncover workforce trends, analyze employee data, and identify developmental needs. Through personalized recommendations, the tool enables the company’s HR team to make data-driven decisions about training and hiring. 

Trend 11: SaaS dominance in HR solutions 

SaaS (Software as a Service) has become the dominant model for HR software solutions. In fact, according to LinkedIn, the HR SaaS market is currently valued at $20 billion and is expected to grow at a 9.8% compound annual growth rate (CAGR) between 2024 and 2031. 

Key applications

  • Simplicity, scalability, and flexibility: SaaS solutions are cloud-based, so companies don’t have to invest in expensive hardware. They are also scalable and flexible, so they can easily adjust to changing business needs. 
  • Regular, automated updates: SaaS vendors can provide maintenance and system upgrades remotely, simplifying the organization’s IT management. 
  • Easy integrations: HR SaaS vendors also integrate with third-party solutions companies may use for benefits, recruitment, payroll, and other HR functions. Ensuring core HR data are consolidated in one place.

Example in practice

BambooHR simplifies recruiting, onboarding, and record-keeping with its cloud-based SaaS platform. It automates job postings, and candidate tracking, while its onboarding tools handle paperwork and training digitally. It stores employee data on a secure central database, simplifying access to profiles and compliance records, and improving efficiency.

HR tip

When buying HR technology and building your HR tech stack, ensure the new tool(s) can integrate easily with the ones you already use. If not, ask the vendor if they can build a custom integration system for you because a set of tools that can’t communicate with one another will be counterproductive.

Trend 12: Cybersecurity and responsible AI 

As HR systems become more data-driven, it’s critical to safeguard sensitive employee data and ensure ethical AI-driven decisions. Cybersecurity measures and responsible AI practices help organizations protect data and build employee trust.

Key applications

  • Data encryption: This helps secure sensitive employee information—such as payroll and personal particulars—to prevent breaches.
  • Bias detection: AI systems can identify and mitigate biases in hiring and promotions, ensuring fair outcomes in recruitment, hiring, and talent management.
  • Access controls: Role-based access ensures only authorized personnel can view sensitive data, reducing risk and unwanted exposure.
  • Incident response: You can use tools that monitor and quickly respond to cybersecurity threats targeting HR systems, preventing or minimizing any attack’s impact.

Example in practice

Microsoft Azure provides secure cloud-based HR solutions with advanced encryption, access control, and AI bias detection. The platform protects sensitive employee data through robust encryption and multifactor authentication. It also supports integration with HRIS, enabling seamless access to analytics, recruitment, and performance management tools.

Trend 13: Hybrid and cloud-based solutions 

Hybrid and cloud-based HR solutions enable companies to access critical HR functions from anywhere, supporting a mix of in-office and remote work. These platforms provide flexibility and scalability to meet the needs of modern workforces.

Key applications

  • Cloud-based payroll: This can help you streamline salary processing and tax compliance, with secure remote accessibility to make the process more convenient and efficient.
  • Employee portals: These self-service platforms allow employees to manage their data, benefits, and schedules from any location.
  • Learning management systems (LMS): LMSs are cloud-hosted training programs offering on-demand skill-building for hybrid teams.
  • Collaboration tools: These tools facilitate integrations that support communication and project management among distributed teams.

Example in practice

Workday’s cloud-based HR platform supports payroll, talent management, and analytics. It automates payroll processes, supports recruitment and performance management, and provides real-time workforce insights, helping organizations streamline operations and make data-driven decisions.


To sum up

Trends like AI, blockchain, and predictive analytics are transforming how businesses enhance efficiency, engage employees, and solve challenges. Adopting the right tools can help you streamline operations and create a better employee experience.

To future-proof your HR strategy, focus on secure, scalable, and user-friendly tech that supports collaboration, wellbeing, and data-driven decisions. The right HR technology can not only make your job easier and more efficient, but it can also help you enable both organizational success and employee satisfaction.

The post 13 HR Technology Trends To Watch in 2025 appeared first on AIHR.

]]>
Cheryl Marie Tay
39 Top HR Conferences To Attend in 2025 https://www.aihr.com/blog/hr-conferences/ Mon, 16 Dec 2024 10:20:39 +0000 https://www.aihr.com/?p=95865 Attending HR conferences is a great investment for staying up to date with HR trends, meeting peers and experts, and learning about the newest technologies. While you begin to plan your 2025 calendar and look into your conference budget, it can be daunting to decide which ones are right for you. Luckily, we’ve compiled a list…

The post 39 Top HR Conferences To Attend in 2025 appeared first on AIHR.

]]>
Attending HR conferences is a great investment for staying up to date with HR trends, meeting peers and experts, and learning about the newest technologies. While you begin to plan your 2025 calendar and look into your conference budget, it can be daunting to decide which ones are right for you.

Luckily, we’ve compiled a list of HR conferences that have caught our attention for next year. The good news is many offer virtual options, and some are even free. With that in mind, why not pick out a few that match your goals and professional interests?

In our chronological list, we break down price, location, in-person or virtual, where it’s located, and why you should attend.

Contents
January
February
March
April
May
June
July
August
September
October
November
December

HR conferences to attend in 2025

January

From Day One: Benefits & Total Rewards | January 22

From Day One Logo

Format: Virtual

Cost: Tickets cost $49 (early bird), $99 (advance purchase) or $149 (general admission).

Why attend? Focusing on the theme Innovation in Total Rewards: How Creative Leaders Are Finding Affordable Solutions, this five-hour conference will cover topics like recognition and rewards, cost efficiency, and easing the childcare crisis. From Day One is also a recertification provider for SHRM and HRCI, which means the session is eligible for three credits from both organizations.

Visit the conference page for more info and to register.

Cannexus25 | January 27-29

Cannexus25 Promo Pic

Format: In-person and virtual options

Location: Rogers Centre Ottawa, Ottawa, Canada

Cost: Register to learn more about ticket prices.

Why attend? Known as Canada’s largest bilingual career and workforce development conference, Cannexus25 will see a national gathering of Indigenous Skills and Employment Training (ISET) program holders discussing wise practices. There will also be a special “Military-connected” stream focused on supporting veterans transitioning from military to civilian employment or further education, as well as their families.

Visit the conference page for more info and to register.

February

Talent Acquisition Week | February 3-6

Talent Acquisition Week Logo 2025

Format: In person

Location: Paradise Point Resort & Spa, San Diego, CA, U.S.

Cost: Ticket prices start at $1,595.

Why attend? As a long-standing conference, Talent Acquisition Week is the place to be for TA professionals and HR leaders. Packed with three events in one week, attendees can look forward to engaging sessions, case studies, panel discussions, and more. 

Visit the conference page for more info and to register.

CPHR Alberta HR Law Conference | February 11

CPHR Alberta logo

Format: Virtual

Cost: $425 for members and $475 for non-members.

Why attend? The CPHR Alberta HR Law Conference offers in-depth learning that will address a range of current and emerging HR law trends from some of Alberta’s top law firms, including AI in the workplace, workplace investigations, and DEIB. 

Visit the conference page for more info and to register.

World HRD Congress | February 17-19

World HRD Congress Logo

Format: In person

Location: Taj Lands End, Mumbai, India 

Cost: Email secretariat@worldhrdcongress.com or use their online registration form to learn more about registration and fees.

Why attend? Next year’s theme focuses on New HR Paradigms and how a new mindset is needed to prepare HR for the future. With multiple events to take place over the course of the conference, attendees will be able to learn and hear from a number of peers and experts, including AIHR’s Chief Scientist (HR and OD), Dr Dieter Veldsman.

Visit the conference page for more info and to register.

People Analytics World Conference | February 26-27

People Analytics World Logo

Format: In person

Location: Zurich, Switzerland

Cost: Email contact@tucana-global.com or register if you are interested in learning more about ticket pricing.

Why attend? Organized by an international community of professionals, industry leaders, and technology developers dedicated to people analytics.his event, this annual event promises to be a “pivotal gathering of HR and People Analytics professionals” who want to drive innovation and influence the future of their organizations.

Visit the conference page for more info and to register.


March

i4cp’s Next Practices Now Conference | March 3-6

i4cp 2025 Conference Logo

Format: In-person and virtual options

Location: Fairmont Scottsdale Princess, Scottsdale, AZ, U.S.

Cost: Member tickets are $3,795 for in-person and $1,295 for virtual; for non-members, tickets are $4,295 and $1,795, respectively.

Why attend? This conference will cover important current topics like generative AI and HR, addressing anti-DEI challenges, and organizational culture change. You’ll also be able to network with top HR executives in a vendor-free environment.

Visit the conference page for more info and to register.

HR Tech Europe | March 4-5

HR Tech Europe Logo

Format: In person

Location: RAI Amsterdam Convention Centre, Amsterdam, The Netherlands

Cost: Tickets start at €245 but are free for HR leaders (see if you qualify here).

Why attend? HR Tech Europe is the region’s leading HR innovation event. It focuses on medium to large enterprises across industries and is committed to driving HR success through innovative technology. Next year’s event will feature AIHR’s Dr Dieter Veldsman among its speakers.

Visit the conference page for more info and to register.

HR Vision London | March 5-6

HR Vision Logo

Format: In person

Location: Courthouse Hotel Shoreditch, London, U.K.

Cost: £1,799 for early bird tickets and £2,499 for regular tickets.

Why attend? HR leaders from around the world will gather at HR Vision London to explore the latest HR tech advancements. Attendees can look forward to learning about modern leadership, L&D, and talent acquisition strategies, as well as networking with peers and industry experts.

Visit the conference page for more info and to register.

HRWest 2025| March 11-12

HRWest Logo

Format: Oakland Marriott City Center, Oakland, CA, U.S.

Cost: Tickets cost $399 (early bird), $799 (regular), and $999 (on-site).

Why attend? With the theme HR Evolved: Thriving in Change, this conference will feature its “Super Seven” tracks of HR tech, HR strategy, talent, legal and compliance, leadership, wild, and health, wellness, and benefits. Through these tracks, you’ll learn about everything HR needs to thrive in 2025.

Visit the conference page for more info and to register.

HRcoreLAB’s 13th Summit| March 12-13

HRCoreLab Summit Logo

Format: Porta Fira Hotel, Barcelona, Spain

Cost: €1,150 for early bird tickets (register by December 20, 2024) and €1,650 for regular tickets; tickets are subject to 21% VAT.

Why attend? Touted as “the most comprehensive, disruptive and inspiring strategically orientated HR event of its kind”, the HRcoreLAB summit features the best speakers from leading organizations at study presentations, fireside chats, interactive sessions, workshops, and panel discussions. Next year’s conference will focus on agile HR, digital transformation, and how humans and AI systems can work together synergistically.

Visit the conference page for more info and to register.

HRPA’s 57th Annual CHRO Summit | March 12-14

HRPA CHRO Summit Logo

Format: In person

Location: Grande Lakes Orlando, Orlando, FL, U.S.

Cost: $1,999 for early bird tickets (register before January 15, 2025) and $2,399 for regular tickets.

Why attend? The summit will gather influential HR leaders for crucial discussions on aligning culture, talent, and strategy while navigating the political environment and seizing 2025’s opportunities. Senior HR executives and their teams will receive timely information and unique insights on the latest, most relevant public policy developments and HR practice issues.

Visit the conference page for more info and to register.


Transform US | March 17-19

Transform 2025 Logo

Format: In person

Location: Wynn, Las Vegas, NV, US

Cost: All-Access Passes start at $1,695. Prices will increase as the event’s date approaches. 

Why attend? This three-day conference—said to be at the “intersection of technology and people”—offers hands-on learning, group discussions, and expert speakers, all in a fun atmosphere and plenty of networking opportunities with people leaders, entrepreneurs, investors, and talent partners from around the world.

Visit the conference page for more info and to register.

Invest in growing your HR knowledge

85% of jobs are expected to be reinvented in the next four years. Future-proof yours by continuing to develop and enhance your HR skills.

With AIHR’s Full Academy Access, you’ll learn everything you need to succeed in your HR career. You’ll get access to all Certificate Programs and Courses, as well as an interactive Career Planner and ready-to-use templates.

April

2025 HR Virginia Annual Conference | April 13-16

HR Virginia 2025 Annual Conference Promo Pic

Format: In person

Location: The Historic Cavalier Hotel and Beach Club, Virginia Beach, VA, U.S.

Cost: Ticket prices start at $450.

Why attend? Next year’s conference theme is Navigating HR Waters, and will bring together thought leaders, industry experts, and practitioners. They will share their expertise on effectively navigating the future of work to prepare your organization for the future.

Visit the conference page for more info and to register.

HR Retail 2025 | April 15-17

HR Retail logo

Format: In person

Location: JW Marriott LA LIVE, Los Angeles, CA, U.S.

Cost: $499 for early bird tickets (register by January 31, 2025) and $999 for regular tickets.

Why attend? This conference will cover topics on retail HR specifically tailored to retail workforce needs. Hear from leading retailers about how they plan to move forward and tackle the biggest HR challenges ahead, like talent attraction, balancing competitive compensation and labor costs, and more. 

Visit the conference page to register.

HR Technologies UK | April 23-24

HR Technologies UK 2025 Logo

Format: In person

Location: ExCeL London, London, U.K.

Cost: Register your interest to receive updates on ticket prices.

Why attend? HR Technologies UK gives you the chance to meet the technology providers behind anything from full-service HCM systems to small, specific tools on the exhibition floor. You can also gain fresh insights from industry leaders in keynote speeches and seminars. Additionally, you can attend Learning Technologies, Europe’s leading workplace learning event, which will be co-located with HR Technologies UK. 

Visit the conference page for more info and to register.

CPHR HR Conference & Expo 2025 (British Columbia & Yukon) | April 29-30

HR Conference & Expo 2025 Vancouver Promo Pic

Format: In person

Location: Vancouver Convention Centre, Vancouver, BC, Canada

Cost: Ranging from $88 to $1,894

Why attend? This HR conference is focused on topics surrounding harmony, reconciliation, DEIB, reducing divisiveness, building a high-performing culture, and overcoming barriers to innovation in the workplace. You’ll get to network with hundreds of peers and fellow HR professionals, access the session recordings on-demand to earn more CPD hours and visit Canada’s largest HR Expo featuring the latest products and services.

Visit the conference page for more info and to register.

HCI Spark HR 2025 | April 30-May 2

HCI Spark HR 2025 Promo Pic

Format: In-person & virtual options

Location: Lake Buena Vista, FL, U.S.

Cost: Tickets are $1,595 if you register before 31 December 2024 and $1,795 afterward.

Why attend? This HR conference covers timely topics like employee engagement, retention, manager development, and leadership. You’ll gain valuable insights into best practices for keeping remote workers engaged and productive, fostering intergenerational collaboration, and using AI and DEIB initiatives to personalize and enhance employee interactions.

Visit the conference page for more info and to register.

May

HR Tech Asia 2025 | May 5-8

HR Tech Asia 2025 Promo Pic

Format: In person

Location: Suntec Singapore Convention & Exhibition Centre, Singapore

Cost: Register to learn more about ticket prices.

Why attend? An established HR conference, HR Tech Festival Asia expects thousands of attendees whose main goal is to learn about the latest HR tech and how it can bring their organizations into the future. This conference offers HR professionals of any caliber the opportunity to refine their skills and learn alongside each other. 

Visit the conference page for more info and to register.

UNLEASH America | May 6-8

Unleash America logo

Format: In person

Location: Caesars Forum, Las Vegas, NV, U.S.

Cost: $1,595 for a general attendee pass before January 31, 2025, and $1,995 afterward.

Why attend? Join other HR professionals from around the world and learn from inspirational keynote speakers who will discuss HR innovation and the future of work. What’s more, Unleash’s Expo will give you an insight into what’s next in HR tech.

Visit the conference page for more info and to register.

WorkHuman Live | May 12-15

WorkHuman 2025 promo pic

Format: In person

Location: Gaylord Rockies Resort & Convention Center, Aurora, CO, U.S.

Cost: Ticket prices start at $1,117 (register by January 12, 2025) and $1,195 (register by April 13).

Why attend? This conference brings together HR leaders, top researchers, and thought leaders for a comprehensive dive into how to succeed in the future of HR through workshops, talks, and networking. 

Visit the conference page for more info and to register.

HRcoreNORDIC | May 14-15

HRCoreNordic Logo

Format: In person 

Location: Copenhagen Marriott Hotel, Copenhagen, Denmark

Cost: Ranging from €795 (early bird tickets) to €1,590

Why attend? This HR conference focuses on the future of work and HR best practices in Scandinavian organizations. You can look forward to in-depth looks into topics like AI in HR, HR agility, trend analysis, cultural and digital transformation, upskilling initiatives, international mobility, and many other crucial aspects of HR.

Visit the conference page for more info and to register.

ATD25 | May 18-21

ATD25 Promo Pic

Format: In-person and virtual options

Location: Walter E. Washington Convention Center, Washington, DC, U.S.

Cost: Tickets start at $1,895 (virtual) and $2,095 (in-person) for members, and $2,295 (virtual) and $2,495 (in-person) for non-members.

Why attend? ATD25 will cover multiple learning tracks, including future readiness, instructional design, talent strategy and management, and leadership and management development. You’ll benefit from the expertise of thousands of HR professionals worldwide, including AIHR’s Dr Dieter Veldsman.

Visit the conference page for more info and to register.

International HR Summit | May 20

Format: In-person

Location: Baku Marriott Boulevard Hotel, Baku, Azerbaijan

Cost: $150

Why attend? This unique event is dedicated to the latest trends in Human Resources, the integration of artificial intelligence in leadership, and the transformation of workplace culture. It will serve as a joint platform for exchanging insights, discussing future challenges, and exploring innovative strategies for HR excellence. With the theme “Humanify AI: Leading Change Together,” the summit highlights the balance between technology and human-centered leadership in shaping the future of work.

Visit the conference page for more info and to register.

22nd EAWOP Congress| May 21-24

22nd EAWOP Logo

Format: In person

Location: O₂ universum, Prague, Czech Republic

Cost: From €440 for early bird tickets (register before 31 March 2025) to €595 for onsite tickets.

Why attend? The 22nd EAWOP (European Association of Work and Organizational Psychology) Congress features the theme Transforming Working Environments: Challenges & Opportunities and will cover topics like CSR and sustainable development, coaching and mentoring, and DEIB.

Visit the conference page for more info and to register.

Employee Engagement Summit 2025 | May 22

Employee Engagement Summit 2025 Logo

Format: In person

Location: Evolution London, Battersea Park, Chelsea Bridge, London, U.K.

Cost: Single tickets are free, premium tickets are £145 (plus VAT)

Why attend? This HR conference hosts a variety of presentations, roundtable sessions, and case studies. It promises to equip attendees with practical tips and strategies to implement at their organization and build a people-centric culture where people thrive. 

Visit the conference page for more info and to register.


June 

HR Vision Amsterdam | June 4-5

HR Vision Logo

Format: In person

Location: Postillion Amsterdam, Amsterdam, Netherlands

Cost: €1,699 (early bird tickets) and €2,499 (regular tickets).

Why attend? Focused on practical tips for curating an effective and collaborative workplace, this top European HR conference brings together leaders who discuss HR insights that help motivate your approach to talent management. You’ll also be spoilt for choice with over 50 sessions within three conference streams to pick from.

For conference details and registration, go here.

CIPD Festival of Work | June 11-12

Festival of Work Logo

Format: In person

Location: ExCeL, London

Cost: Register your interest to get updates on ticket prices.

Why attend: Hearing from industry thought leaders, attendees will learn about the evolution of business and people strategies needed for the future of work.

Visit the conference page for more info and to register.

Diversity, Equity, and Inclusion | DEI Unlocked: Driving Growth, Creativity, and Success | June 12-13

29th Annual DEI Conference promo pic

Format: In person 

Location: New York Marriott at the Brooklyn Bridge, Brooklyn, NY, U.S.

Cost: Sign up for updates on ticket pricing.

Why attend? This conference will bring together over 200 top-level practitioners with a shared goal of harnessing DEI’s full potential to create truly inclusive and equitable workplaces. The agenda will focus on the practical ideas and processes behind the desired results, from data-driven solutions to the best methods for obtaining stakeholder buy-in.

Visit the conference page for more info and to register.

SHRM Annual Conference and Expo | June 29-July 2

SHRM25 Promo Pic

Format: In-person and virtual options

Location: San Diego Convention Center, San Diego, CA, U.S.

Cost: From $2,095 for a virtual pass to $2,995 for an in-person pass.

Why attend? This event is the largest gathering of HR professionals in the world, with around 25,000 attendees. SHRM offers four days of interactive sessions, panels, seminars, and networking opportunities. A wide range of topics fits any HR professional’s wish list and enables you to develop the HR skills you need to grow your career.

Visit the conference page for more info and to register.

July

SIOPSA 2025 Annual Conference | July 21-25

SIOPSA Logo

Format: Virtual (July 21-23) and in-person (July 24-25)

Location: South Africa (venue TBA)

Cost: TBA

Why attend? The Society for Industrial & Organisational Psychology South Africa (SIOPSA) will hold next year’s annual conference with the theme Future Proofing The World of Work for The Greater Good. It promises to capture how the fundamentals of where, how, and why we work are being redefined, and you’ll have the chance to collaborate with psychologists, psychometrists, academics, HR practitioners, and business leaders.

Visit the conference page for more info and to register.

August

AHRI National Convention & Exhibition 2025 | August 19-21

AHRI Logo

Format: In-person

Location: Sydney, Australia

Cost: TBA

Why attend? The AHRI (Australian HR Institute) National Convention & Exhibition is the top annual event for Australia’s HR professionals. It brings together HR practitioners, business leaders, and industry experts to discuss and explore the latest trends, challenges, and advancements in HR. Next year’s theme will be Ignite: Fuelling Human Potential; you can subscribe to get updates on this and other AHRI events.

Visit the conference page for more info and to register.

HR Florida Conference & Expo 2025| August 24-27

HR Florida Expo 2025 Logo

Format: In-person and virtual options

Location: Gaylord Palms Resort & Convention Center, Kissimmee, FL, U.S.

Cost: Tickets start from $1,149.

Why attend? The HR Florida State Council, a state affiliate of SHRM, will present its 47th annual conference under the theme The Power of The Ripple Effect. One of the largest HR conferences in the southeastern U.S., it’s attracted over 1,500 HR professionals and vendors from all over the world. You can network with industry peers and even have the opportunity to earn maximum credits for both the HRCI and SHRM Competencies Certifications.

Visit the conference page for more info and to register.

September

Talent Management Reloaded Europe | September 14-16

Talent Management Reloaded logo

Format: In-person and virtual options

Location: Hotel Palace, Berlin, Germany

Cost: Ranging from €895 (digital event pass) to €3,249 (all-inclusive event pass).

Why attend? This HR conference offers a variety of interactive sessions and practical workshops that will give attendees the know-how to excel in talent management and help transform their organizations.

Visit the conference page for more info and to register.

HR Tech Las Vegas | September 16-18

HR Tech 2025 Logo

Format: In-person and virtual options

Location: Mandalay Bay Convention Center, Las Vegas, NV, U.S.

Cost: Sign up to be notified when registration opens to learn more about ticket prices.

Why attend? For over 25 years, HR Tech has offered quality education and the chance to grow your network by connecting with thousands of like-minded peers and industry experts. Topics at next year’s event include creating a culture of transparency for HR, financial wellness, and building international teams without friction.

Visit the conference page for more info and to register.

October

Gartner HR Symposium/Xpo | October 7-9

Gartner HR Symposium Logo

Format: In person 

Location: ExCeL, London, UK

Cost: €3,275 (early bird price), €4,250 (standard price), and €2,950 (public sector price). All ticket prices are subject to VAT.

Why attend? This HR conference is an excellent event for CHROs and HR leadership teams. With great success in the last years breaking through and helping foster innovation, Gartner aims to help CHROs learn new ways to shape their role and the HR function. Next year’s event will also cover topics like the future of work and HR technology.

Visit the conference page for more info and to register.

UNLEASH World 2025 | October 21-22

UNLEASH World logo

Format: In person

Location: Paris Convention Centre, Paris, France

Cost: Register your interest to receive updates on ticket prices.

Why attend? UNLEASH World is one of the world’s most influential HR conferences. It focuses on how the latest HR technology can revolutionize the world of work and features interactivity, connection, discovery, and entertainment. Additionally, the exhibition is now offering HR, recruitment, and learning professionals the opportunity to attend as exhibition visitors—free of charge.

Visit the conference page for more info and to register.

November

HR Week: New Horizons| November 17-21

Format: Virtual

Location: Online

Cost: TBC

Why attend? The biggest virtual HR conference is being held for the 7th time in a row, and the focus in 2025 is New Horizons. The entire HR ecosystem has been going through an intense transformation, and everyone is excited to learn: what comes next? Join HR Week to hear from experts all around the world and find out!

Get the latest info on the conference page.

HR Vision London | November 18-19

HR Vision Logo

Format: In person

Location: Courthouse Hotel Shoreditch, London, U.K.

Cost: Ranges from £1,499 (early bird tickets) to £2,499 (regular tickets).

Why attend? This conference features two days of thought-provoking discussions on the future of work, including the latest trends in HR, talent management, and leadership. You’ll also learn how HR analytics and HR tech are revolutionizing people management practices and even gain exclusive access to a year-round network of HR professionals to connect with.

Visit the conference page for more info and to register.

December

Employee Well-Being | December 4-5

Format: In person

Location: New York Marriott at the Brooklyn Bridge, Brooklyn, NY, U.S.

Cost: TBA

Why attend? At this conference, you can examine the complex causes for the decline in workforce well-being, as well as emotional, physical, and financial solutions that will lead to a happier, more productive workforce. Through keynotes, panels, interactive exercises, networking, and case studies, you’ll learn to make smarter and better investments in well-being strategies, practices, and programs.

Visit the conference page for more info and to register.


Over to you

HR conferences, whether virtual or in-person, are an excellent way to learn about best practices in your area of HR, explore how HR can make a tangible business impact, and connect with other HR professionals to share your experiences and develop new ideas.

Enjoy the HR conferences of 2025!

The post 39 Top HR Conferences To Attend in 2025 appeared first on AIHR.

]]>
Cheryl Marie Tay
ESG Strategy: What HR Leaders Need to Know in 2025 https://www.aihr.com/blog/esg-strategy/ Wed, 04 Dec 2024 09:13:13 +0000 https://www.aihr.com/?p=250824 An ESG strategy is a critical tool for driving sustainability and building trust with stakeholders like investors and employees. Consider this: 86% of employees in organizations with strong ESG commitments say they feel proud to be part of their organization, and companies with strong ESG practices experience improved financial performance. Beyond boosting morale, ESG strategies…

The post ESG Strategy: What HR Leaders Need to Know in 2025 appeared first on AIHR.

]]>
An ESG strategy is a critical tool for driving sustainability and building trust with stakeholders like investors and employees. Consider this: 86% of employees in organizations with strong ESG commitments say they feel proud to be part of their organization, and companies with strong ESG practices experience improved financial performance.

Beyond boosting morale, ESG strategies help businesses tackle pressing global challenges while creating lasting value for employees, investors, and customers alike. From actionable policies to employee-driven initiatives, organizations are turning sustainability goals into tangible outcomes. HR plays a key role in this effort by embedding ESG values into recruitment, training, and workplace culture.

Let’s explore how HR can contribute to a well-crafted ESG strategy that drives meaningful change.

Contents
What is an ESG strategy?
Importance and benefits of an ESG strategy for HR
ESG strategy framework: Key components
Challenges in developing an ESG strategy
How to develop an ESG strategy
ESG strategy examples


What is an ESG strategy?

An ESG strategy is a framework that helps organizations tackle their environmental impact, build strong relationships with stakeholders, and establish solid governance practices. It focuses on three key pillars: Environmental, Social, and Governance. With global challenges like climate change, social inequality, and tightening regulations, ESG strategies have moved from being a “nice-to-have” to a necessity.

ESG is becoming integral to corporate strategy, shaping how companies operate, innovate, and compete. Beyond environmental concerns like carbon footprint reduction, organizations are addressing social metrics, such as diversity, equity, and inclusion, and governance factors like transparent decision-making and ethical leadership. HR is instrumental in managing these matters.

Companies that prioritize ESG are thriving. For example, organizations with strong ESG practices have seen their brand value grow by 175% over 12 years, compared to just 70% for those with a lower impact.

Importance and benefits of an ESG strategy for HR

It’s clear that ESG is more than just a trend; it’s a game-changer for attracting investors, customers, and employees. For HR leaders, it’s a chance to shape workplace culture, align talent strategies with sustainability goals, and co-create an ESG strategy that drives engagement and long-term success across the organization.

Enhanced brand and corporate reputation

A strong ESG strategy gives HR the tools to create a workplace culture that resonates with employees, shareholders, and customers, building trust and credibility along the way.

When a company is seen as responsible and ethical, its reputation naturally gets a boost. Organizations with a solid ESG focus often enjoy greater brand loyalty and stakeholder trust, making them stand out to people who care about corporate responsibility.

Competitive advantage in talent attraction and retention

ESG initiatives position companies as socially responsible employers—a huge draw for today’s workforce. Many employees, especially younger generations, are actively looking for workplaces that share their values. In fact, 41% of employees say they’re more likely to stay with companies that offer ESG-focused benefits.

Regulatory compliance and risk management

HR is key in ensuring the company meets labor standards, diversity benchmarks, and ethical guidelines. Compliance strengthens the organization’s standing with regulators and boosts its reputation. A proactive approach can help navigate complex legal requirements while promoting employee wellbeing, equity, and inclusion.

Employee engagement and satisfaction

When employees see their organization actively contributing to environmental, social, and governance goals, they feel more connected to the company and their role within it.

75% of HR leaders believe that ESG initiatives increase employee engagement. This creates a positive cycle—engaged employees are more motivated and productive, driving better outcomes for the organization while the company’s commitment to meaningful goals continues to inspire its workforce.

Financial and operational benefits through sustainable practices

Sustainability isn’t only good for the planet—it’s also good for the bottom line. HR can champion practices like remote work, waste reduction, and other eco-friendly initiatives that save money while meeting employee expectations for greener workplaces. These efforts align with financial goals and showcase the organization’s commitment to corporate social responsibility.

Building a resilient and inclusive workforce

Embedding ESG principles into HR practices advances diversity, equity, and inclusion, creating a workforce that reflects societal values. Diverse teams bring varied perspectives, making organizations more resilient, adaptable, innovative, and prepared to tackle complex challenges. By tracking key metrics like gender pay equity, leadership diversity, and employee satisfaction, organizations can measure progress and maintain accountability.

ESG strategy framework: Key components

Building a strong ESG strategy requires a clear framework to guide the organization’s efforts. By focusing on the essential components below, companies can create a roadmap that aligns sustainability goals with business priorities.

1. Materiality assessment

A materiality assessment is a strategic process for pinpointing and prioritizing ESG issues that matter most to your business and stakeholders. It ensures that your organization’s ESG efforts focus on areas where they can have the greatest impact. Engaging with stakeholders during this process is key—it helps understand their concerns and expectations, leading to a more targeted and effective strategy.

Key stakeholders to involve include:

  • Investors: Focused on financial performance and long-term sustainability.
  • Employees: Interested in workplace values, DEI efforts, and sustainability initiatives.
  • Customers: Looking for ethical and eco-friendly products or services.
  • Suppliers and partners: Concerned about responsible sourcing and collaborative practices.
  • Regulators and policymakers: Enforcing compliance with laws and sustainability standards.
  • Local communities: Impacted by the company’s operations and environmental footprint.

2. Transparent and structured reporting

Using recognized reporting standards boosts the credibility and consistency of ESG disclosures. Frameworks like the Global Reporting Initiative (GRI) Standards, the Task Force on Climate-Related Financial Disclosures (TCFD), and the Corporate Sustainability Reporting Directive (CSRD) offer clear guidelines for reporting. Following these standards makes it easier to communicate your ESG performance effectively to stakeholders.

3. Suitable board structure and oversight

Setting up a governance structure with clear ESG oversight is essential. This includes defining roles and responsibilities at both the board and executive levels to ensure accountability. Whether it’s through a dedicated ESG committee or by adding ESG responsibilities to existing teams, having clear oversight makes it easier to integrate ESG considerations into corporate strategies.

4. Accountability mechanisms

Accountability mechanisms ensure transparency and drive progress in ESG initiatives. Regular sustainability reports, third-party audits, and clear key performance indicators (KPIs) are must-haves. These measures help stakeholders understand how well the organization is performing and show a commitment to continuous improvement.

5. Risk management

Incorporating ESG considerations into your risk management framework is critical for spotting and mitigating potential risks. These can range from environmental risks, like climate impacts, to social risks, such as labor practices, and governance risks, like compliance issues. Proactively managing these risks helps protect your reputation and maintain financial stability.

6. Stakeholder engagement

Engaging with stakeholders—including employees, customers, investors, and communities—is vital for understanding their perspectives on ESG issues. Regular communication and collaboration not only improve decision-making but also strengthen relationships, making your ESG strategy more effective.

7. Continuous improvement and adaptation

A strong ESG strategy isn’t static; it evolves with changing circumstances. Setting up processes for regular monitoring, evaluation, and adjustment keeps your strategy relevant and ensures it continues to address emerging challenges and opportunities effectively.

Empower your HR team to drive ESG strategies forward

ESG is becoming an increasingly important part of the HR agenda, requiring teams to play a central role in advancing sustainability, diversity, and governance initiatives.

HR teams need the skills to address these priorities but also to align business operations with stakeholder expectations.

AIHR’s team plans help your team members develop a deeper understanding of the business that, in turn, enables them to navigate complex ESG challenges and deliver meaningful, measurable business outcomes.

Challenges in developing an ESG strategy

Aligning ESG and HR strategies

Balancing long-term sustainability goals with immediate operational needs can be challenging. For example, shifting to more sustainable practices may require cultural transformation, reskilling employees, and cross-functional collaboration.

HR leaders need to embed ESG principles into talent management, employee engagement, and diversity initiatives, ensuring these align with overarching business and sustainability goals​.

Data and metrics management

Collecting accurate and reliable ESG data is a significant challenge, as many organizations lack standardized systems for tracking and reporting.

Determining the right metrics to measure progress—such as carbon emissions, diversity ratios, or employee wellbeing—is complex and often varies by industry.

Companies also face difficulties integrating ESG data into existing systems, which may lead to fragmented reporting​.

Developing an ESG roadmap

Crafting a clear and actionable ESG roadmap requires strong leadership and commitment from the board. Organizations often struggle to outline specific short-term and long-term goals, assign responsibilities, and allocate resources effectively. Without a well-defined plan, progress can be slow and inconsistent, impacting the credibility of the ESG strategy​.

Ethical policies and social impact

Balancing business objectives with ethical practices presents an ongoing challenge. For example, maintaining fair labor practices and inclusivity while meeting cost pressures requires careful policy design and oversight.

Organizations must navigate potential conflicts between profit motives and social responsibilities, particularly in global supply chains where labor laws and standards vary.

Stakeholder engagement and supply chain transparency

Actively involving stakeholders such as employees, customers, investors, and communities is essential for trust, but managing their diverse expectations is not easy.

Supply chain transparency, especially in industries with complex or global operations, can be difficult to achieve. Verifying ethical practices, environmental impact, and compliance throughout the supply chain requires significant effort and coordination.

Regulatory and industry-specific challenges

Evolving regulations across jurisdictions can make compliance challenging, especially for multinational organizations.

Industry-specific concerns, such as climate risks in manufacturing or human rights in retail supply chains, add layers of complexity to the ESG strategy.

Limited resources and expertise

Many organizations, especially small and medium enterprises (SMEs), lack the financial and human resources to implement and sustain comprehensive ESG initiatives.

Expertise in ESG frameworks, such as GRI or TCFD, is often limited, making it harder to align strategy with global standards.


How to develop an ESG strategy

Creating an effective ESG strategy isn’t a one-size-fits-all approach—it requires addressing your organization’s unique challenges when implementing ESG initiatives. Whether you’re building a strategy from the ground up or enhancing an existing framework, focusing on your organization’s specific needs and priorities will ensure the approach is both impactful and practical.

Here’s a guide to developing an ESG strategy tailored to your organization’s goals and challenges.

1. Conduct a materiality assessment and establish baseline metrics

Begin by identifying the ESG issues most relevant to the organization and its stakeholders. This includes evaluating current practices, identifying gaps, and benchmarking against industry standards.

HR’s role:

  • Conduct internal assessments to understand the organizational culture, practices, and employee perceptions related to ESG
  • Use employee feedback surveys to identify gaps in areas like DEIB, wellbeing, and labor practices
  • Gather baseline data on workforce metrics such as gender diversity, turnover rates, and training participation.

2. Set clear goals and develop policies

Establish specific, measurable ESG objectives, such as reducing carbon emissions by 10%, achieving gender pay equity within three years, or setting leadership diversity goals. Draft policies to support these goals.

HR’s role:

  • Lead the development of social and governance-related policies, such as DEIB initiatives, ethical employment practices, and employee wellbeing programs
  • Set diversity targets for leadership roles and implement policies to address pay equity.

3. Select and align with ESG reporting standards and frameworks

Choose appropriate reporting frameworks like the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), or the United Nations Global Compact (UNGC). These provide guidance for structuring and disclosing ESG activities.

HR’s role:

  • Align workforce metrics, such as diversity, engagement, and turnover rates, with ESG reporting standards
  • Collaborate with sustainability and legal teams to ensure compliance with reporting guidelines.

4. Educate your employees and leaders

Engage employees and leadership by educating them on the organization’s ESG commitments and their role in achieving them.

HR’s role:

  • Organize training sessions on sustainable practices, ethical governance, and workplace inclusivity
  • Develop engagement programs like volunteer days, sustainability challenges, and awareness campaigns
  • Create a culture of accountability and purpose by encouraging employees to take ownership of ESG goals.

5. Build an ESG roadmap with leadership input

Develop a detailed roadmap outlining short- and long-term ESG goals, assigning responsibilities, and setting timelines.

HR’s role:

  • Involve employees and leaders in the planning process through workshops and feedback sessions
  • Ensure the roadmap incorporates workforce-related goals like wellbeing initiatives and leadership development for ESG skills.

6. Conduct third-party assessments

Engage third-party evaluators to verify ESG data and enhance the credibility of reports. Independent assessments can validate the organization’s performance in areas like labor standards and sustainability.

HR’s role:

  • Coordinate with third-party assessors to evaluate the company’s social and governance efforts
  • Prepare data on workforce metrics, employee satisfaction, and labor compliance for external review.

7. Monitor progress and adapt

Regularly track progress toward ESG goals, assess challenges, and adapt strategies as necessary. Use performance metrics and feedback loops for continuous improvement.

HR’s role:

  • Monitor metrics like employee engagement, diversity progress, and retention rates to measure the impact of ESG initiatives
  • Provide regular updates to leadership on workforce-related ESG outcomes and identify areas for improvement.

Tips for success

  • Promote leadership buy-in: HR leaders can advocate for ESG as a strategic priority and ensure executive alignment.
  • Leverage technology: Use HR software to track metrics like diversity, training participation, and carbon footprint reductions from remote work.
  • Promote cross-functional collaboration: Partner with sustainability, operations, and compliance teams to align ESG efforts.

ESG strategy examples

Example 1: Ricoh

At the electronics company Ricoh, sustainability is embedded in HR’s responsibilities, led by a dual-role director overseeing both HR and corporate responsibility. The company’s approach focuses on embedding ESG principles into workplace practices, leadership programs, and operational policies.

  • Flexible and agile work: Ricoh implemented agile working practices to reduce legacy property reliance, resulting in a 24% reduction in business travel and significant carbon footprint reductions.
  • Fleet carbon policies: Limits on vehicle emissions for company cars and employee car allowances were introduced, with excess emissions contributing to sustainable infrastructure projects like electric vehicle charging points.
  • Leadership and volunteering: All leadership programs require mandatory participation in community investment activities, and they also include policies promoting volunteering and reducing office waste.

Example 2: Siemens

Siemens has introduced a number of initiatives to address key ESG priorities, demonstrating the company’s commitment to driving long-term positive change. 

  • DEGREE framework: Siemens’ sustainability strategy focuses on decarbonization, ethics, governance, resource efficiency, equity, and employability.
  • Community engagement: Education initiatives include partnerships with organizations like Green Power to teach sustainability-focused engineering and curriculum collaborations with Pearson.
  • Sustainable skills pipeline: Siemens integrates ESG into recruitment and leadership development, aligning leaders with sustainability goals. Employees are given two paid volunteering days per year to enhance community impact​.

Example 3: Unilever

Unilever’s Sustainable Living Plan emphasized employee wellbeing and environmental stewardship.

  • Employee wellbeing: The Lamplighter program, which focused on improving nutrition, fitness, and mental resilience, reached 91,000 employees in 70 countries.
  • Fair pay: 100% of the company’s direct employees were paid at or above a living wage by the end of 2020.
  • Environmental targets: Unilever set out to halve office energy consumption and ensure 90% of office waste was reused or recycled by 2015, with zero waste going to landfills by 2017. They achieved both goals within the established time frame.

To sum up

HR is at the heart of making ESG happen. From driving diversity programs and creating sustainable workplace practices to ensuring compliance with regulations, HR brings ESG to life in tangible ways. Whether it’s conducting surveys to identify gaps, developing policies, or training employees on sustainability, HR is instrumental in embedding ESG into the company culture. The payoff? A resilient, forward-thinking organization that’s not just prepared for the future but is actively shaping it.

The post ESG Strategy: What HR Leaders Need to Know in 2025 appeared first on AIHR.

]]>
Monika Nemcova
HR Budget: All You Need To Know [2025 Edition] https://www.aihr.com/blog/hr-budget/ Fri, 29 Nov 2024 07:41:45 +0000 https://www.aihr.com/?p=91993 Planning and preparing an HR budget to account for the entire organization’s hiring, compensation, benefits, training, and more is no small task. Yet, it’s critical if you want to manage your resources and build an excellent workforce effectively. No matter how small an organization is, changes in the job economy, rising supply costs, and unforeseen…

The post HR Budget: All You Need To Know [2025 Edition] appeared first on AIHR.

]]>
Planning and preparing an HR budget to account for the entire organization’s hiring, compensation, benefits, training, and more is no small task. Yet, it’s critical if you want to manage your resources and build an excellent workforce effectively. No matter how small an organization is, changes in the job economy, rising supply costs, and unforeseen challenges can all significantly affect the amount an HR department has to spend, and a considered HR budget can mean the difference between a business sinking or swimming like an Olympian.

In this article, we’ll explore what an HR budget is, why it’s so important, how to plan and prepare one, and some real-life examples.

Contents
What is an HR budget?
HR budget items
Why do you need to plan your HR budget?
HR budget planning process
How to optimize your HR budget: 6 tips
HR budget management best practices
HR budget examples
HR budget template
FAQ


What is an HR budget?

An HR budget is a financial plan that details the expenses associated with employing, managing, and developing the organization’s workforce for a specific period, typically a fiscal year. It must be carefully planned out, communicated to, and approved by the leadership team.

The HR budget takes a close look at the expenses of previous years, the current year’s costs, and future plans to estimate the following years’ costs. For example, perhaps you’re expanding and opening a new office in a new location, which will mean a significant investment in recruitment and hiring. Or maybe you’re rolling out a new software across the business, which will require more spend on training. However, an increase in operating expenses – which many companies have experienced at some point – will often result in the HR budget being cut.

Organizations typically follow three main types of HR budgets. The type you choose will depend on several factors, including available funds, projected expenses, profits, and the size of the business.

  • Incremental budgeting: Instead of creating a brand new plan or completely changing your previous one, this method focuses on making small adjustments to the previous year’s HR budget based on any anticipated changes or objectives.
  • Zero-based budgeting: In this approach, a brand new plan is created based on the upcoming year, and each expense must be justified. Although this method is more time-consuming, it can help you better allocate resources and identify any inefficiencies. 
  • Flexible budgeting: A flexible HR budget is one that can be adjusted throughout the year. This is appropriate for newer businesses and SMEs that are most vulnerable to changes in the market, as well as seasonal businesses that have variable costs that greatly differ from one quarter to the next.

HR budget items

There are many areas that the Human Resources function encompasses, so how can you be sure to include everything in an HR budget? Even a small business can underestimate the costs of recruitment, hiring, training, and other measures to build a thriving workforce, while external sources can wreak havoc overnight (case in point, the 2020 global pandemic). With shifting priorities, all organizations need to reevaluate their HR budgeting strategy to ensure effective HR management throughout the year. 

Having a clear overview of your HR budget items can assist with planning a reasonable budget for the coming year. Here are the main components of a typical HR budget. 

Talent acquisition & recruitment

For most organizations, recruitment is a high priority. Planning for new hires requires having an HR budget that can support everything from job advertising to onboarding. With competition for top talent on the rise, it’s essential to allocate a sizable portion of your budget here. You should budget for:

  • Advertising open positions
  • Interviewing and screening candidates
  • Conducting background checks
  • Onboarding new hires
  • Agency fees
  • Employee relocation or remote office setup costs
  • Recruitment marketing tools (e.g., TalentLyft, SmartDreamers, Manatal, Yello).

Learning and development

Set up a reasonable amount for learning and development efforts, which offer a positive return on investment. Consider:

  • Workshops, seminars, and networking events
  • Ongoing education classes and online tutorials
  • Employee certification programs
  • Food, travel, and accommodation expenses
  • Implementing learning systems
  • E-learning vendors.

HR upskilling

HR has to address not only employee skills gaps but also their own. If you want your HR team to have a real impact on the organization, you need to ensure that all members of your department have the future-proof HR competenciesbusiness acumen, digital agility, people advocacy, data literacy, and execution excellence – that will help your business succeed. That’s why you need to include HR upskilling opportunities in your budget planning.

  • A team or enterprise license for HR e-learning courses
  • HR certifications
  • Personal training budgets for HR employees
  • Workshops
  • College courses.

Compensation and benefits

Comparing last year’s hires and the cost of employee compensation and benefits, increase your HR budget by around 3-5% to ensure you have enough for the following year. Take into account:

Diversity, Equity, Inclusion and Belonging

Leading organizations increasingly recognize the value of Diversity, Equity, Inclusion, and Belonging (DEIB) initiatives. Consider allocating a portion of your Human Resources budget to support DEIB education and cultural development efforts, as these can contribute to a more inclusive and engaged workplace.

Employee relations and talent management

Compensation and benefits are just the beginning of rewarding employees, and your employees need to feel appreciated. When planning your HR budget, consider other ways to boost incentives and recognition for your best workers.

  • Engaging employees
  • Creating a positive work environment
  • Team building and coaching
  • Accurate placement of candidates 
  • Management relationship building
  • Labor relations.

Employee safety and wellbeing

All employers are legally responsible for providing a secure and safety-focused workplace. As part of your HR budget preparation, audit the policies and systems in place to determine the costs associated with improvements.

  • Physical safety compliance
  • Mental wellbeing
  • Employee health 
  • Workplace security.

HR technology

With new software and technology being created every day, it may be an excellent opportunity to let go of your outdated HR systems and invest in some new ones that reduce manual, repetitive tasks and create more efficient ways of working. 

  • HR Information System (HRIS): E.g., BambooHR, Workday, Bright HR, Rippling.
  • Applicant Tracking System (ATS): E.g., Greenhouse, Pinpoint, Spark Hire, Lever.
  • Learning Management System (LMS): E.g., TalentLMS, AbsorbLMS, Docebo, 360Learning.
  • Payroll and benefits systems: E.g., Paycom, Pave, PayScale.
  • Remote working tools: E.g., Slack, Asana, Google Drive, Zoom.

Administration of HR

Create space in your HR budget to cover the general costs of running an HR department. Whether it’s for a department in a small business, a big team at a large company, or managing a large team of recruiters and HR specialists, every employee must feel supported.

  • Unplanned administrative needs
  • HR communications
  • General HR administration.

Why do you need to plan your HR budget?

Planning your HR budget is just as important as doing it for any other area of operations. In fact, it’s at the heart of why your organization thrives. Here are some of the main benefits of having a clear annual HR budget plan:

  • Manage the cost of human capital: A well-planned HR budget will help you avoid over- and under-spending and allow you to reallocate resources when faced with unexpected changes. 
  • Ensure HR operational efficiency: A clear overview that shows where you can spend money – and how much – enables you to operate effectively and efficiently.
  • Understand your recruitment needs: A solid HR budget will offer insight into your staffing needs and prevent you from hiring too many people and being left short-staffed.
  • Attract top talent: Allocating sufficient resources to the right recruitment marketing channels and your hiring process helps you to attract better and more qualified candidates to your organization.
  • Reduce turnover: A well-crafted HR budget will help you support and develop your employees, which helps you reduce turnover and boost your employer brand and company culture
  • Receive the resources you need: HR budget planning helps you clarify the resources you need, which enables you to ask (and receive) these so that you can accomplish your goals. 
  • Achieve organizational success: Through HR efficiency, organizations can get the best out of their staff, be productive, and reach their goals. This also prepares you for regulatory changes that impact various areas of HR. 
  • Gain a seat at the decision-making table: Presenting a well-developed budget plan can elevate HR’s value to the organization and help you be recognized as a business partner.

HR budget planning process

Here are some simple steps to follow to prepare, plan, and implement an effective HR budget in your organization. 

1. Define your business goals

All HR planning must align with the organization’s wider goals to ensure that HR activities contribute to its overall success. First, determine the business’s main priorities, then move into lesser critical areas. Setting OKRs—objectives and key results—can help clarify these goals and track progress effectively. This approach ensures that HR initiatives are strategically focused and impactful.

For example, if your company plans to move to a hybrid or completely remote way of working over the next year, your HR budget should allocate resources for remote working tools and technology, training managers on how to manage remote employees effectively, home office setup costs, co-working spaces, a monthly or annual team or company bonding day, etc.

Create and manage an HR budget with confidence

Skills like financial planning and resource allocation are essential for any effective HR professional. These competencies allow you to create budgets that align with business goals and demonstrate the financial impact of HR initiatives.

AIHR’s self-paced HR Generalist Certificate Program equips you with the critical skills to not only manage HR budgets efficiently but also contribute to your organization’s overall success.

2. Review past budgets

Review past HR budgets, spending, and performance so that you can see where the majority of your resources went and if this was an effective investment. Were there any areas where you overspent or underspent? Learn from what didn’t go as planned and make adjustments for the coming year.

3. Analyze and forecast your workforce needs

Plan ahead for your anticipated recruitment needs by determining your headcounts for each department as compared to turnover rates and project performance. For example, if the business plans to expand and open a new office in a new location, it’s likely you’ll need to spend more on hiring more people to help with that expansion. But there’s more than just hiring to consider. Allow for costs for training, compensation, benefits, and rewards too. 

A training needs analysis can show you the training that each department requires so that you can build this into your HR budget. Meanwhile, a strong rewards and recognition plan can help to motivate and engage your employees and reduce turnover.

Even if you’re clear on your goals as an organization, it’s important to examine what your competitors are doing and keep an eye on emerging industry trends. Does your HR budget align with the current industry standards? Are you offering competitive compensation and benefits packages? Are your turnover rates below or above average? 

Considering these factors will help you create a competitive HR budget, which is essential if you want to attract and retain high performers. 

5. Prepare your HR budget based on data

Analyze past HR performance data so that you can make evidence-based decisions and avoid guesswork. Your analysis should include expenses, staffing, employee performance, and compensation. This data allows you to identify key areas for improvement and allocate resources so that they have the greatest positive impact on the organization as a whole.

To support this process, consolidate all performance data—both financial (e.g., payroll, recruitment costs) and non-financial (e.g., turnover rates, training progress)—into a single overview. This unified source of information enables you to create realistic budgets and determine which areas have flexibility for adjustments.

6. Plan for the best and worst-case scenarios

The 2020 pandemic taught all companies the importance of being prepared for unexpected challenges and being agile enough to pivot as needed. So make sure you have a plan to see you through no matter what the job market throws your way. 

For example, your annual employee turnover may be 5% on average now, but what if it suddenly increases to 15%? In this case, you may need to increase recruitment spending to replace more people than expected.

7. Consider investments as business builders

Are you planning to launch a new HR tool or a new employee referral program? With technology evolving every day, now could be a good time to upgrade your HR systems and/or implement new technology. This is an investment in your HR department’s success. Just be sure to account for that in your budget, including what kind of ROI you expect.

8. Have realistic expectations

Your HR department budget should be a realistic view of what the coming year will bring. Don’t overspend, but also don’t shortchange any critical areas. Prepare your budget in a clear report, using realistic numbers so that it is more likely to be accepted.

9. Involve key stakeholders & get it approved

Involve key stakeholders – department leads and executives –  in planning your HR budget. A variety of perspectives and insights helps to create a wider picture of what the organization needs most from HR. Plus, making these decisions together can help you gain valuable support for your HR budget and help you get it approved. 

10. Monitor and track expenses

Once your HR budget is approved, the final step is to monitor and track your spending so you can see if you’re on track or need to take any action. Review your HR budget frequently and make adjustments based on any recent changes in the market or the organization’s goals.

How to optimize your HR budget: 6 tips

Here are some steps to help you optimize your HR budget and cost management so that you get the most value from your investment. 

  • Identify high-cost areas: Once you know the areas that require the most spending, you can identify opportunities where you can be more efficient. For example, if your analysis shows that recruitment costs are unusually high, you might want to review which job boards bring few qualified candidates and cut those.
  • Review benefits packages annually: Take a look at the benefits you offer employees and see if they’re valued and being utilized and whether you can swap out some of your benefits for better alternatives. Remember that employees will value different things based on their current values and circumstances. 
  • Partner with cost-efficient vendors: With new businesses starting every day, you’ll want to regularly do a sweep of the competition to see if there’s a better health insurance provider, background check service, or training provider you can use.
  • Streamline your HR technology stack: Are you using all of the features and functions of the premium technology and software plans you’re on, or can you downgrade? Are there tools that have overlapping features, and there’s one you can do without? Take stock of your current HR tech stack and see if you can be more efficient and make your tools work hard for you.
  • Use contingent workforce strategically: Are you asking your pool of freelancers and independent contractors and consultants to perform tasks that your employees can take on? Make sure you’re making the most of the unique skill sets these workers have and use their services strategically. 
  • Conduct regular budget reviews: Keep checking in with your HR budget to see where you land – if you’re overspending, underspending, or on track – and where you can be more savvy with your investments. 

Using an HR budget template helps you plan and track your budget.

A preview of HR budget template in Excel.

HR budget management best practices

Here are some best practices to keep in mind for managing an HR budget. 

  • Follow an HR strategy: An HR strategy is a plan that aligns workforce investments with the needs of the business so that all HR activities support the broader business goals. If you don’t have one, you can create one in-house or enlist a consultancy to help you.
  • Create a culture of financial awareness in HR teams: Train all HR professionals in your team to always be mindful of budgets and put their business cap on when planning and executing on HR initiatives.
  • Train HR staff on budgeting tracking: Ensure HR professionals know how to create and monitor budgets using Excel or a specialized software.
  • Document the budget rationale for future reference: Create a working document that can easily be accessed by relevant stakeholders. This helps you keep track of how specific budget allocations were determined.

HR budget examples

Real-life HR budget example

Springfield, Oregon: FY 2021

In 2020, the city of Springfield, OR proposed their 2021 HR budget with an increase of 6.5%. The HR’s general fund budget remained relatively flat despite an increase in medical benefit utilization, internal facility charges, administrative contract cost increases for the onsite wellness, and major rate increases to property and liability insurances.

The most significant changes to the HR budget included an increase in self-funded medical claims (net paid claims were up by 4.6%, comparing 2019 vs. 2018), increases in property and liability insurance, and workers’ compensation.

Some of the main initiatives for 2021 included conducting a compensation market study for general service positions, redesigning job descriptions, implementing a new vendor for background checks, implementing a Risk Management Information System (RMIS), and completing a Probable Maximum Loss (PML) study.

Illustrative HR budget example

Here’s what an HR budget broken down per budget item could look like:

Category
Budget (in USD)
Percentage of Total Budget

Personnel costs

1,150,000

74.58%

Salaries & wages

900,000

Benefits

250,000

Recruitment & onboarding

145,000

9.4%

Job advertising

15,000

Agencies

45,000

Background checks

15,000

New hire training and orientation

70,000

Employee training & development

85,000

5.51%

Online training programs

50,000

Learning Management System

20,000

Industry seminars

10,000

Food & travel expenses

5,000

Compliance & legal expenses

72,000

4.67%

Compliance audits

12,000

Workplace health & safety costs

10,000

Legal counsel fees

50,000

Employee engagement

35,000

2.27%

Wellness programs

20,000

Recognition & rewards program

15,000

HR technology

55,000

3.57%

HR software subscriptions

40,000

Maintenance & upgrades

15,000

TOTAL BUDGET
1,542,000
100%

A final word

Accurately planning your HR budget requires a thorough understanding of all the costs and a variety of real-time data. Dedicate sufficient time to your HR budget planning to ensure your budget items align with the goals of the business and use your resources effectively. Follow the simple steps and best practices outlined above to prepare and plan a solid HR budgeting strategy that supports your entire organization.

FAQ

What is in an HR budget?

An HR budget is a plan that includes your projected human capital costs for the whole business for a specific period, typically a year.

How do you allocate HR budget?

To allocate an HR budget, take a look at your expenses from the previous year, where you currently stand, and what your plans for the upcoming year are. It’s also important to understand the wider goals of the business so you can allocate resources that align with and support these objectives. 

What are the HR costs?

Your HR costs will typically include recruitment and talent acquisition, compensation and benefits, learning and development programs, diversity equity and inclusion, talent management, employee safety and wellbeing, HR technology, and general admin costs.

What is the average HR budget per employee?

The average HR budget per employee varies between industries. However, according to Gartner, most HR functions spend between $1,350 and $3,800 per employee.

The post HR Budget: All You Need To Know [2025 Edition] appeared first on AIHR.

]]>
Paula Garcia