McKinsey’s HR Monitor 2025 provides a comprehensive benchmark of workforce and HR trends across Europe and the U.S., revealing widening gaps between business needs, employee expectations, and HR capabilities. Based on input from nearly 2,000 companies and 4,000 employees, the report identifies five key imperatives: make workforce planning strategic and skills-based, overhaul talent acquisition to address low hiring success, integrate employee development into cohesive learning and succession strategies, enhance employee experience to reduce quiet quitting, and modernize HR operations with gen AI and shared-services models. Despite progress, only a fraction of HR teams effectively use AI or long-term planning. The report concludes that closing these gaps is vital for HR to evolve from a support function into a true strategic partner driving organizational performance.

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