As we near the halfway point of 2025 (gasp!), senior leaders and decision-makers are facing a rapidly evolving landscape of talent and human resources challenges. At True North Executive Coaching & Leadership, we’re closely monitoring these emerging issues to help leaders navigate the complexities of a dynamic workforce. Here are our top HR and talent issues expected to shape the year ahead:
1. Talent Scarcity & Skills Gaps
Despite economic fluctuations, the demand for specialised skills in AI, data analytics, and digital transformation will outpace supply. Organisations will struggle to find talent with both technical expertise and leadership capabilities, creating a renewed focus on up-skilling and strategic talent acquisition.
2. Hybrid Work OptimiSation
The ongoing challenge is not just maintaining hybrid work models but optimising them. Leaders will need to address productivity, collaboration, and maintaining a cohesive culture across distributed teams while ensuring fairness and equity.
3. Employee Experience & Well-being
Burnout and mental health will remain significant concerns in 2026. Leaders will be expected to implement more comprehensive well-being strategies (with less resource to do so), moving beyond basic wellness programs to systemic changes in workload management, flexibility, and psychological safety.
4. AI Integration & Workforce Transformation
With AI continuing to disrupt industries, the focus will be on workforce re-skilling and ethical AI practices. Leaders must balance automation with human-centric work design and manage fears of job displacement, emphasising transparency and support.
5. Generational Leadership Challenges
As Gen Z moves into leadership roles, there will be a noticeable shift in work expectations, including greater emphasis on transparency, purpose-driven work, and continuous feedback. Bridging generational divides will become a critical leadership skill and issue that some need to conquer.
6. Compliance & Ethical Leadership
With evolving data privacy laws and AI governance, senior leaders must remain vigilant about regulatory compliance and ethical decision-making, particularly in workforce surveillance and people management.
7. Purpose-Driven Leadership & ESG
Stakeholders are increasingly prioritising environmental, social, and governance (ESG) factors. Albeit, this might be a thing of the past given current geo political divides. Leaders will continue to evaluate the way to integrate these principles into talent strategies, focusing on sustainable, equitable, and socially responsible business practices.
8. Talent Retention & Succession Planning
Retention will become more complex as employees seek career progression, diverse learning opportunities, and values alignment. Succession planning will need to be proactive, with a focus on cultivating an abundant leadership pipelines and retaining top talent.
9. Future-Proofing Leadership
Developing and nurturing leaders who can navigate uncertainty, foster innovation, and lead through crises will be a strategic imperative in 2026. Leadership development programs will need to emphasise agility, resilience, and inclusive leadership practices.
