- 7 in 10 HR leaders report that their role is becoming increasingly challenging due to rising stress, shrinking budgets, and tech overload
- Over 6 in 10 managers are experiencing feelings of overwhelm due to increased workload, more direct reports, and the pressure to maintain team success during times of uncertainty
- Almost two-thirds of employees cite a lack of regular recognition and constructive feedback from their managers
“The future of work is as much about people as it is about technology”
As businesses strive to do more with fewer resources, the report highlights the need for organizations to adapt their people strategies and invest smartly in tech, productivity, and people. “True leadership is about driving business success and genuinely partnering with employees,” says Jenny Podewils, Co-CEO and Co-Founder of Leapsome. ”Our research reveals what it takes to excel in both areas, fostering trust and building a more resilient, effective workforce.”
Key findings
1. Economic pressures push HR to rethink strategies
- 85% of HR leaders feel pressured to reduce budgets, with 58% already struggling to get budgets signed off in the past year.
- 69% of HR leaders say the current business climate poses significant challenges, with many struggling to prove ROI on people initiatives.
- Nearly half have faced budget cuts, and over a third had to contend with hiring freezes or layoffs, making it crucial for HR teams to do more with fewer resources.
2. Leaner tech stacks take center stage as a cost-cutting solution
- Simplifying technology solutions is a top priority, with 85% of HR leaders under pressure to consolidate tech stacks to cut expenses and enhance efficiency.
- 78% of HR leaders agree that having a unified source of people data is crucial, not least because 62% find it challenging to gather accurate insights to support business decisions.
- Faced with these challenges, companies are turning to all-in-one platforms that streamline operations, improve data accuracy, and reduce costs.
3. AI can give organizations an edge — but employee adoption lags
- While over 80% of HR leaders and managers use AI for everyday work, only 42% of employees do the same.
- Nearly half of individual contributors express discomfort with AI, citing concerns about job security.
- With AI noticeably increasing efficiency for 83% of users, organizations should focus on highlighting this positive impact and providing clear roadmaps for how AI might impact individual roles.
4. Managers need more support than ever to drive results
- 71% of managers report increased workloads, with 55% experiencing negative impacts on their mental health.
- With 61% of managers overseeing more direct reports than last year due to layoffs and restructuring, burnout and stress are escalating.
- On top of that, there is a disconnect in feedback: While 71% of managers believe they provide regular constructive feedback, only 37% of direct reports agree.
Recommended Actions.
- Encourage employees to embrace AI: Educate employees on how AI can help them be more efficient in their roles rather than replace them, offering training to develop key skills for the future.
- Empower managers with better tools: Equip managers with the systems they need to tailor upskilling programs, career frameworks, and meeting agendas to meet their team’s specific needs, supporting both productivity and well-being.
- Close the feedback gap: Provide managers with training and tools to deliver more consistent and actionable feedback, fostering greater alignment and development in their teams.
- Invest in all-in-one tech solutions: Consolidate tools into an integrated platform to streamline operations, reduce data silos, and enable more strategic decision-making.
“The future of work is as much about people as it is about technology,” Podewils adds. “Our report highlights the need for a balanced approach, combining the right tools with empathetic leadership to ensure the well-being and success of employees across all levels.”
