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. 

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: 

• Interviewing
• People’s first day at work and job orientation
• Other onboarding activities
• Performance reviews
• Training and development 
• Team events
• Company restructurings 
• Exit interviews
• Etc.

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.

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: 

• Skills training (upskilling and reskilling) 
• Career pathing
• Management and leadership development and;
• Supporting where needed in goal setting for individual roles through KPIs.

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

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

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.

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.

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.

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.

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.

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.

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

4. Time series analysis: This method examines past trends and historical data, such as headcount trends, to predict future needs.
5. Regression analysis: This method examines how certain factors—such as financial performance, growth, market demand, and staffing—may impact workforce needs.
6. 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:

7. Integrating expert judgment with statistical analysis
8. Blending AI forecasting with human oversight
9. Using scenario planning alongside machine learning tools.

Effective forecasting relies heavily on good data insight into current and past workforce fluctuations, clarity about the business’s strategic goals and objectives, and monitoring labor market trends that will influence your planning.

Dr Dieter Veldsman, Chief Scientist (HR & OD), AIHR

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.

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.

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. 

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.

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.

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.

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.

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.

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.

Having a defined HR technology strategy, architecture, and roadmap is crucial for long-term success. Falling into the trap of never maturing our technology stack leads to a lot of unused functionality, low adoption, and a lack of ROI. Having a solid strategy and roadmap is the first step in ensuring you can maximize the potential of HR technology.

Dr Dieter Veldsman, Chief Scientist (HR and OD), AIHR

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.

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

January

From Day One: Benefits & Total Rewards | January 22

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

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

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

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

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

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

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

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

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

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

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

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

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.

April

2025 HR Virginia Annual Conference | April 13-16

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

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

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

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

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

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

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

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

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

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.

22nd EAWOP Congress| May 21-24

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

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

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

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

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

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

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

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

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

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

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

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

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

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 38 Top HR Conferences To Attend in 2025 appeared first on AIHR.

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.

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.

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.

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.

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.

5. Build an ESG roadmap with leadership input

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

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.

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.

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.

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 competencies – business 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:

• Employee salaries 
• Health insurance
• Life insurance
• Retirement plans
• Paid time off
• Overtime pay
• Bonuses
• Other perks.

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.

• Increasing diversity of hiring
• Implementing inclusive hiring practices
• DEI training and culture building
• Leadership DEI programs.

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.

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.

4. Consider market trends and benchmarks

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.

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:

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

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

Blending different types of employment can help plug this gap by tapping into broader talent pools while also reducing costs, boosting agility, and nurturing future talent. This article looks at 21 different types of employment and how they can benefit your organization.

Contents
What are the 21 types of employment?
How to select the right employment type

What are the 21 types of employment?

Here are 21 employee classifications you can explore:

1. Apprenticeship

An apprenticeship is a structured training program that offers hands-on experience and technical skills under guidance from experienced professionals. Examples include an electrician’s apprentice who learns wiring techniques from a licensed electrician or a carpenter’s apprentice who learns woodworking or construction skills.

Key features

• Employment period: Typically between one and six years.
• Working hours: Often 35 to 40 hours weekly, which may include both on-the-job training and classroom-based instruction.
• Salary format: Hourly; apprentices may start at a lower wage, which can increase as they progress and demonstrate improved skills.
• Benefits: Apprentices may receive some full-time employee benefits—such as health insurance and paid time off (PTO)—especially in unionized industries.
• Taxes and deductions: Standard taxes and deductions (federal, state, and local) and Social Security and Medicare contributions may apply. Employers must also provide a year-end W-2 form.
• When to offer it: When your company requires highly skilled workers in specialized trades, you want to build a robust talent pipeline or prioritize long-term workforce development and retention.

2. At-will agreement

This employment type is the most common in the U.S., with 49 out of 50 states permitting it. It allows either the employer or employee to terminate the employment relationship at any time, for any reason, with or without notice. However, employers cannot fire workers for any unlawful reason.

Key features

• Employment period: Indefinite until terminated by either party.
• Working hours: Typically full-time but can vary by role and company policies.
• Salary format: Usually fixed or hourly, but can also include bonuses, commissions, or other forms of compensation.
• Benefits: Benefits vary based on company policies. Common benefits include health insurance, retirement plans, PTO, and sick leave.
• Taxes and deductions: Employers must provide a W-2 form at the end of every year. Standard taxes and deductions, Social Security and Medicare contributions, and employer-provided year-end W-2 form.
• When to offer it: When you want to maintain flexibility for both the company and employees. However, make sure you communicate clearly with employees and treat them fairly to prevent potential legal issues. You can also distribute clear employee handbooks to avoid any confusion.

3. Casual employment

This flexible work arrangement hires workers on an ‘as needed’ basis and offers no guarantee of regular work hours. An example would be a barista hired for occasional weekend shifts or a delivery driver called in to work during peak hours.

Key features

• Employment period: Short-term, often based on specific projects, seasonal needs, or peak periods.
• Working hours: Varies depending on each employer’s needs.
• Salary format: Usually hourly, but sometimes a capped flat fee for specific tasks or time-based projects.
• Benefits: Limited benefits that usually include compensation insurance. Some employers may offer additional benefits, such as health insurance or retirement plans.
• Taxes and deductions: Standard taxes and deductions, mandatory withholding of Social Security and Medicare taxes from pay, and employer-provided year-end W-2 form.
• When to offer it: If your company has fluctuating workloads or seasonal needs or has to reduce fixed labor costs.

4. Commission-based employment

This arrangement bases a worker’s compensation primarily on the sales or revenue they generate. For instance, a real estate agent would earn a percentage of each home sale, or a salesperson would receive a commission for each product sold.

Key features

• Employment period: Indefinite until terminated by either party.
• Working hours: Vary by role and company policies.
• Salary format: Either a fixed percentage of sales, a flat fee per sale, or a combination of both. Some employers may also offer a base salary in addition to commissions.
• Benefits: Common benefits include health insurance, retirement plans, and PTO.
• Taxes and deductions: Standard taxes and deductions, Social Security and Medicare contributions, and employer-provided year-end W-2 form.
• When to offer it: For sales roles and incentivizing high performance that impacts the company’s bottom line. Attractive, uncapped sales commissions can also attract and retain top talent in competitive markets.

5. Consulting

A consultant is a self-employed professional who provides expert advice or services to clients on a per-project basis. Examples include an external management consultant who advises companies on improving efficiency or a cybersecurity consultant who helps organizations protect their digital assets.

Key features

• Employment period: Varies according to each project or engagement.
• Working hours: Flexible, as consultants typically set their own hours.
• Salary format: Usually a flat project fee or hourly rate.
• Benefits: Self-determined.
• Taxes and deductions: Self-employment taxes and estimated taxes paid throughout the year. Clients must also provide a year-end 1099-MISC form.
• When to offer it: Whenever your company needs specialized expertise without having to incur long-term employment costs.

6. Independent contractor

An independent contractor is a self-employed individual who provides services to clients on a contract basis. They usually usually engage in structured, longer-term contracts with clients. Some examples are a freelance writer working on a client campaign for a marketing agency, or a web developer updating a company’s website or interface.

Key features

• Employment period: Varies based on each contract.
• Working hours: Flexible, as independent contractors often set their own schedules. However, contractors working closely with full-time employees may need to maintain regular office hours.
• Salary format: Usually a flat project fee or hourly rate.
• Benefits: Self-determined.
• Taxes and deductions: Self-employment taxes and estimated taxes paid throughout the year. Clients must also provide a year-end 1099-MISC form.
• When to offer it: If your company has short-term, specialized projects that don’t require full-time commitment. This employment type allows businesses to adapt quickly to changing demands while maintaining a lean workforce.

Regardless of employment type, it’s still important to think about these employees’ experience within the organization. Often, organizations neglect non-permanent employees, leading them to have very poor experiences. These employees tend to move around frequently and share their experiences, which can be either helpful or detrimental to your employer brand.

Dr. Marna van der Merwe, Subject Matter Expert, AIHR

7. Fixed term contract

A fixed-term contract involves a predetermined start and end date. For example, a researcher employed for a specific research project may sign a one-year contract with a university or company.

Key features

• Employment period: Anywhere from a few months to several years.
• Working hours: Typically 40 hours a week, though this may vary according to project requirements.
• Salary format: Fixed or hourly (the latter is more common for short-term contracts).
• Benefits: Some employers offer full benefits packages, and others offer limited to no benefits.
• Taxes and deductions: Fixed-term employees are subject to the same taxes and deductions as permanent/full-time employees.
• When to offer it: If your company prioritizes workforce flexibility, managing project-based needs, and assessing potential hires. It also allows you to align staffing with business objectives, reduce long-term commitment risks, and identify talent for future permanent positions.

8. Freelancing

Freelancers, such as graphic designers or videographers, are self-employed individuals who work independently and provide services typically on a short-term, per-project basis.

Key features

• Employment period: Determined by the specific project or contract. 
• Working hours: Freelancers have flexibility in setting their own work hours.
• Salary format: A flat fee, hourly rate, or commission, depending on contract terms. However, some freelancers may be hired on a retainer basis.
• Benefits: Self-determined. 
• Taxes and deductions: Self-employment taxes and estimated taxes paid throughout the year. Clients must also provide a year-end 1099-MISC form.
• When to offer it: When your company has short-term projects that require specialized skills it doesn’t need on a regular basis.

HR tip

If your company is seeking skilled freelancers, the gig economy could provide the talent it needs. Platforms like Fiverr and Behance offer access to a global pool of peer-reviewed talent. This approach can be cost-effective and efficient, especially for short-term projects or specialized skills.

9. Full-time employment

Full-time employees usually work exclusively for one company. Some employers even specifically forbid freelancing or part-time work for other clients or companies in their employment contracts.

Key features

• Employment period: Full-time employment is typically indefinite, with no predetermined end date.
• Working hours: The specific hours may vary depending on the role and industry, but full-time employees are usually expected to work a consistent schedule.
• Salary format: Full-time employees are typically paid a fixed salary or hourly wage.
• Benefits: Full-time employees often receive a comprehensive compensation package, including health insurance, retirement plans, paid time off, and other perks.
• Taxes and deductions: Standard taxes and deductions, Social Security and Medicare contributions, and employer-provided year-end W-2 form.
• When to offer it: Full-time employment suits core roles requiring a consistent and long-term commitment.

10. Internship (paid and unpaid)

An internship is a temporary position that allows younger individuals to gain practical experience and learn new skills. For instance, a college student may be an unpaid intern at a marketing firm to gain experience, or a recent graduate may take on a paid internship at a law firm.

Key features

• Employment period: Specific duration, such as a semester or a summer.
• Working hours: Internship hours can vary but often involve a part-time or full-time commitment.
• Salary format: Fixed or hourly, or a stipend to cover basic costs such as transportation for paid internships.
• Benefits: Companies are not legally required to provide interns benefits, though some may offer them.
• Taxes and deductions: Under certain conditions in the U.S., paid interns at for-profit entities are considered W-2 employees covered by the Fair Labor Standards Act (FLSA), so they’re entitled to minimum wage and overtime pay.
• When to offer it: When your company wants to attract and develop young talent, cultivate a pipeline of high-potential individuals aligned with its values, and enhance employer branding.

11. Leased employment

Leased employment involves companies contracting with third-party staffing agencies to hire workers. The agency acts as the employer of record, handling payroll, benefits, and HR functions. Examples include nursing staff temporarily assigned to a hospital or teachers leased to a school district for a specific period.

Another version of this is offshoring or insourcing. For example, a U.S. company could have a call center in India. This employment type allows certain roles or activities to be outsourced as a whole (e.g., a group of leased employees).

Key features

• Employment period: Varies based on the employer’s needs and worker’s skills and availability.
• Working hours: Usually full-time hours, but schedules can be flexible and adjusted to meet project or company requirements.
• Salary format: Typically hourly, though some may receive a fixed salary. Agencies set their own pay rates.
• Benefits: The staffing agency may offer benefits such as health insurance, retirement plans, and PTO.
• Taxes and deductions: Standard taxes and deductions and agency-provided year-end W-2 form.
• When to offer it: When your company must quickly fill temporary positions, scale its workforce up or down, access specialized skills without committing to a full-time hire, or outsource certain functions (such as IT or HR).

12. On-call employment

On-call employees are called in to work as needed, often on short notice. Examples include emergency room doctors available to work as needed or plumbers on call to respond to emergency service requests.

Key features

• Employment period: Ongoing, though continuous work is not guaranteed.
• Working hours: Vary depending on employer needs and employee availability.
• Salary format: Usually hourly. Occasionally, they may receive a monthly retainer.
• Benefits: Limited (usually health insurance), though it also depends on the number of hours worked.
• Taxes and deductions: Standard taxes and deductions and employer-provided year-end W-2 form.
• When to offer it: If your company has unpredictable workloads (e.g., event companies, healthcare facilities, and essential services) or is facing unexpected absences or peak demand periods.

13. Part-time employment

While part-time employment usually involves a fixed schedule like full-time work does, it involves fewer hours or days. For instance, a part-time barista may work 20 hours per week at a coffee shop, or a retail associate may work only on weekends.

Key features

• Employment period: Either ongoing or temporary.
• Working hours: Typically 20 to 30 hours per week.
• Salary format: Usually hourly.
• Benefits: Limited (usually health insurance), though it also depends on the number of hours worked and company policies.
• Taxes and deductions: Standard taxes and deductions and employer-provided year-end W-2 form.
• When to offer it: If your company must cover specific shifts or has fluctuating workloads. This helps manage labor costs and improve productivity by optimizing staffing levels during peak periods. 

14. Probationary employment

Probationary employment is a trial period at the beginning of a new job. It allows employers to assess a new hire’s skills, performance, and cultural fit. For example, a company may evaluate a new hire for three months before deciding whether or not to offer them a permanent contract.

Key features

• Employment period: Typically 30 to 90 days, but can be longer or shorter depending on the position and company policy.
• Working hours: Probationary employees usually work the same hours they would in a permanent role.
• Salary format: Same salary as permanent employees in the same position.
• Benefits: Limited benefits depending on company policy and probation length.
• Taxes and deductions: Standard taxes and deductions and employer-provided year-end W-2 form.
• When to offer it: When your company wants to improve its hiring outcomes by allowing HR to assess new hires’ suitability, identify potential training needs, and reduce the risk of low-quality hires. 

15. Seasonal employment

Seasonal employment involves hiring workers for a specific period (usually a particular season or time of year) to meet increased demand for products or services. For example, additional tourism roles are needed during peak travel seasons, and more agri-industry workers during harvest seasons.

Key features

• Employment period: Varies based on industry and specific job roles. 
• Working hours: Can range from part-time to full-time, often with fluctuating schedules to accommodate peak demand periods.
• Salary format: Typically hourly, with potential for overtime pay. However, seasonal workers may also be paid according to a piece rate based on the number of units harvested or created.  
• Benefits: Limited benefits, as seasonal employees are often considered temporary workers. 
• Taxes and deductions: Standard taxes and deductions and employer-provided year-end W-2 form.
• When to offer it: If your company has cyclical demand, such as retail during holidays, tourism during peak seasons, and agriculture during harvest. It allows companies to optimize labor costs by scaling their workforce up or down to meet changing customer needs and maintain operational efficiency.

16. Self-employment

Self-employment encompasses anyone who earns income without a traditional employer-employee relationship. This broad category includes business owners, freelancers, and independent contractors we mentioned above.

Accountants, writers, graphic designers, private tutors, and photographers are some common examples of individuals who are often self-employed.

Key features

• Employment period: Indefinite.
• Working hours: Flexible, determined by the individual’s business and monetary needs, as well as work ethic.
• Salary format: Derived from revenue generated minus expenses.
• Benefits: Self-determined.
• Taxes and deductions: Self-employment taxes (including Social Security and Medicare) and quarterly taxes.
• When to offer it: Some employees resign to start their own businesses, then contract their services to their former employers. If your company is on good terms with former employees who are now self-employed and would like them to take on assignments on an ad-hoc or retainer basis, you can consider this employment type.

17. Temporary employment

Temporary employment involves hiring workers for a specific period, usually to fill in for absent employees, complete short-term projects, or meet temporary workload increases. For example, a company may hire an office employee or a factory worker on a temporary basis to cover for an employee recovering from a prolonged illness.

Key features

• Employment period: Ranges from a few days to several months.
• Working hours: Can range from part-time to full-time, depending on the assignment.
• Salary format: Typically hourly, with potential for overtime pay.
• Benefits: Limited benefits, as temporary employees are often considered short-term workers. Some employers may offer minimal benefits, like health insurance or retirement plan contributions.
• Taxes and deductions: Standard taxes and deductions and employer-provided year-end W-2 form.
• When to offer it: When your business has short-term staffing needs, such as covering maternity leave, sick leave, or seasonal peaks. Temporary employment can provide flexibility and help HR manage labor resources and costs.

18. Temp-to-perm employment

Temp-to-perm employment involves initially hiring workers temporarily, with the potential to transition them to permanent positions based on business needs and their performance.

Key features

• Employment period: Begins as a temporary position, with the potential to become permanent.
• Working hours: Can range from part-time to full-time.
• Salary format: Typically hourly, with potential for overtime pay during the temporary phase. Once converted to a permanent position, the employee may transition to a salaried or hourly rate.
• Benefits: Usually limited during the temporary phase. Once converted to permanent positions, employees should be eligible for full-time benefits.
• Taxes and deductions: Standard taxes and deductions and employer-provided year-end W-2 form.
• When to offer it: When your business needs long-term staffing but wants to assess candidates’ performance and culture fit before making a permanent hiring decision. This employment type can help provide a pipeline of pre-screened candidates for future opportunities.

As employment becomes more fluid and less reliant on boundaries, it’s also useful to consider non-permanent employees in talent pools. If proactively identified and managed, this is often an overlooked source of skills available to the organization.

Dr Marna van der Merwe, Subject Matter Expert, AIHR

19. Tenured employment

A form of employment—typically in academia—where individuals such as university professors have job security as they’re employed indefinitely.

Key features

• Employment period: Generally long-term, often lasting until retirement.
• Working hours: Tenured faculty members typically have a set number of teaching hours per week, along with additional responsibilities such as research, advising students, and serving on committees.
• Salary format: Fixed annual salary, which may include additional compensation for research, publications, and administrative duties.
• Benefits: Comprehensive benefits package, including health insurance, retirement plans, and PTO.
• Taxes and deductions: Standard taxes and deductions, Social Security and Medicare contributions, and employer-provided year-end W-2 form.
• When to offer it: Tenured positions are typically offered to faculty members who have demonstrated excellence in teaching, research, and service and who are considered essential to their institution’s long-term goals.

20. Traineeship

A structured training program designed to equip individuals with specific skills and knowledge required for a particular job or industry. For example, a finance graduate may join a structured training program for asset management at a bank.

Key features

• Employment period: A few weeks to several months.
• Working hours: 40 hours a week, though this may vary based on the program and employer.
• Salary format: A stipend or low salary.
• Benefits: Limited (usually health insurance).
• Taxes and deductions: Standard taxes and deductions apply, but these can vary based on the specific terms of the traineeship and the individual’s tax status.
• When to offer it: When your company wants to develop a skilled workforce, especially if it’s in industries with high turnover or specialized skill requirements.

21. Volunteering

Volunteers work without receiving monetary compensation, typically at a non-profit organization.

Key features

• Employment period: Can range from a few hours to several years.
• Working hours: Usually flexible, determined by organizational needs and the volunteer’s availability.
• Salary format: Volunteers do not receive a salary or wages.
• Benefits: While volunteers don’t receive monetary compensation, they may receive benefits like training, experience, and networking opportunities.
• Taxes and deductions: None, as volunteers do unpaid work.
• When to offer it: If you work at a non-profit or a company with a non-profit arm and want to build community relationships.

HR tip

Whether intentional or accidental, misclassifying workers can lead to significant legal and financial penalties for U.S. businesses. These penalties include fines, back wages, tax arrears, and more. While the law is clear on these regulations, myths persist. If you’re unclear about how to classify your workforce correctly, click here to get up to speed.

How to select the right employment type

To choose the best employment types to meet your company’s needs while optimizing costs and remaining compliant with labor laws, consider the following factors:

• Legal compliance: Misclassifying employees can lead to costly legal consequences for your organization. You must understand the distinctions between different employment types to classify your company’s workforce correctly.
• Cost management: You must carefully weigh the costs of different employment types. For instance, full-time roles carry significant fixed costs, while part-time hires offer flexibility. Calculate these costs against the return on investment to optimize your workforce strategy.
• Flexibility vs loyalty: Full-time employees offer greater stability and loyalty but may limit flexibility. On the flip side, temporary employees and contractors provide you with flexibility but may lack the same level of commitment.
• Tax implications: The tax implications of different employment types can vary significantly. Understanding them is essential for accurate tax reporting and regulatory compliance.
• Strategic workforce planning: Consider your long-term workforce needs and how different employment types can contribute to developing your talent pipeline, increasing your hiring success, and serving your company’s overall business strategy.

To sum up

Some workplaces thrive on a mix of employment types, each vitally important in meeting organizational needs. By understanding the different options available, you can create flexible teams, manage costs effectively, and ensure compliance with labor laws.

Choosing the right mix of employees allows businesses to adapt quickly, fill skills gaps, and plan for the future. Whether hiring freelancers for short-term projects or building long-term teams with apprenticeships, the goal is to balance flexibility with fairness while keeping your company competitive and efficient.

The post 21 Types of Employment: Your Hire-To-Retire Guide appeared first on AIHR.

The COVID-19 pandemic highlighted the importance of companies providing remote workforces with easy, timely access to relevant job- and organization-related information. This remains important post-pandemic and requires a solid organizational knowledge management system. In fact, 92.2% of business owners believe such a system influences employee learning and organizational growth, while 66.2% say it helps facilitate teamwork.

This article will explain the various types of organizational knowledge and provides a step-by-step guide to managing this within the business.

Contents
What is organizational knowledge?
What is organizational knowledge management?
Why organizational knowledge management is important
7 types of organizational knowledge
9-step guide for HR on managing organizational knowledge
2 organizational knowledge management examples

What is organizational knowledge?

Organizational knowledge consists of the collective skills, data, intellectual property (IP), and overall experiences an organization has. It can include product and customer knowledge, IP and confidential information, employee handbooks, and standard operating procedure (SOP) manuals, among others.

Organizational knowledge can drive business success and enable efficient operations. Additionally, it can facilitate faster responses to market changes and foster a culture of continuous learning. 

Here are four key elements of organizational knowledge:

1. Skills: The specific employee competencies employees that contribute to their job performance. They include both technical and ‘soft’ skills, such as communication and teamwork.
2. Experiences: The practical, job-specific knowledge employees gain through their day-to-day work, which helps drive decision-making and process improvements. This knowledge often leads to insights that formal training typically doesn’t provide.
3. Data: The quantitative and qualitative information organizations collect and analyze to help make informed, data-driven business decisions.
4. Intellectual property: Patents, trademarks, copyrights, and confidential and proprietary processes that give organizations a competitive edge. IP management is crucial for maintaining market position and regulatory compliance.

What is organizational knowledge management?

Organizational knowledge management is the formal process of identifying, documenting, retaining, and applying knowledge to ensure business continuity and improve organizational performance. 

It usually entails the following:

• Highlighting knowledge: Identifying areas where relevant and valuable knowledge exists, whether among individuals, teams, or processes.
• Capturing knowledge: Documenting relevant, accurate knowledge to make it available to others.
• Storage and organization: Using accessible systems, such as databases or cloud platforms, to make information accessible, easy to retrieve, and secure.
• Applying knowledge: Transforming data and information into actionable insights that are easily accessible and understandable to users.

Why organizational knowledge management is important

Properly developed organizational knowledge management can benefit a company’s processes, products, services, and overall operation. It also allows employees to quickly and easily access best practices, company policies, and other key information that impacts their work. 

Other benefits of effective organizational knowledge management include:

• Greater competitive advantage: Knowledge management helps drive innovation, enhance customer value, and enable responses to market changes. 
• Maximized knowledge retention: Regularly documenting and updating knowledge facilitates business continuity by preventing critical knowledge loss in the event of employee turnover. 
• Improved decision-making: Maintaining relevant and accessible knowledge enhances the employees’ decision-making capabilities, leading to positive business outcomes. It also minimizes the risk of duplicate work and unnecessary time spent searching for information.
• Enhanced collaboration and innovation: Knowledge sharing helps create a culture of ongoing learning, development, and improvement. It enhances employees’ skills and knowledge and boosts organizational growth.
• Increased customer satisfaction: Documenting important customer processes and interactions helps companies better manage customer needs and expectations, ultimately leading to increased customer satisfaction and loyalty. 
• Employee productivity: Easy access to knowledge aids productivity and efficiency, as it minimizes any unnecessary time and effort spent searching for information. This also prevents employee frustration, increasing job satisfaction.

Organizational knowledge is part of the fiber of any organization. It often sets organizations apart, as it is impossible to replicate and imitate. So, this asset should be managed and protected with as much rigor as other organizational assets.

Dr Marna van der Merwe, Subject Matter Expert, AIHR

7 types of organizational knowledgeত

Here are the seven main types of organizational knowledge:

1. Tacit knowledge: Undocumented knowledge consisting of employees’ skills, abilities, ideas, and experiences. Employees can be unaware of the extent of their tacit knowledge and its potential value to others.  
2. Implicit knowledge: This type of knowledge is commonly understood and applied but not formally expressed, such as best practices or unspoken norms.
3. Explicit knowledge: Easily articulated, documented, and shared knowledge, such as manuals, procedures, databases, and reports.
4. Declarative knowledge: Factual knowledge about different subjects, including theories and concepts.
5. Procedural knowledge: Knowledge related to processes and how to perform specific, step-by-step tasks.
6. Individual knowledge: Knowledge individual employees possess, which they gain through personal experiences and the application of their skills.
7. Collective knowledge: Knowledge that emerges from group interactions, collaboration, and shared experiences within and among teams.

HR tip

Facilitate cross-training initiatives: Promote and facilitate cross-training to help employees share their expertise and develop a deeper understanding of different organizational functions. This can include team-building exercises, focus groups, or knowledge-mapping meetings.

9-step guide for HR on managing organizational knowledge

Before diving into organizational knowledge management, there are two aspects to consider.

First, according to AIHR Subject Matter Expert Dr Marna van der Merwe, knowledge management should form part of the offboarding process. A practical tool, like a knowledge transfer document, can ensure appropriate knowledge transfer at this stage.

Secondly, If the organization is knowledge-based or has additional complexities (e.g., multiple geographies or a highly dispersed workforce), AI can be useful in facilitating knowledge sharing and management.

Here is a detailed guide and actionable steps you can take to implement and manage an effective organizational knowledge management process for your company: 

Step 1: Determine the scope and extent of your company’s existing knowledge

Pinpoint the most valuable and relevant knowledge for organizational success and determine where it resides—whether among individuals or teams, in systems, or a combination of these. A skills matrix or knowledge audit can help you map out where knowledge is stored and allow you to identify knowledge gaps.

You can also use knowledge mapping to visually organize knowledge points (such as in a flowchart) and make them accessible to employees, as well as a skills matrix to map out individual employee expertise.

Engaging employees in this process is critical for relevant knowledge collection, can help foster a knowledge-sharing culture, and can deter information silos. Be sure also to include employees who are experts in their field to allow their knowledge to help their co-workers build their competencies. 

→ Try this: You can initiate and facilitate this process by conducting meetings with employees and gathering job knowledge-related information. You can then follow up on other areas where you’ve identified knowledge.  

Step 2: Collect and document important knowledge types and aspects

Once you’ve identified and mapped out existing knowledge, document it accurately in an understandable, accessible format. For example, if documenting an HR policy, ensure that it answers any questions employees may ask and host it on a platform that all employees can access whenever they need to refer to the policy.

Another component of a company’s knowledge is unstructured knowledge, which includes HR memos, emails, employee surveys, and even job postings on social media. Agree on the best method to organize and store the information, then continue to manage these.

→ Try this: HR can support this by developing templates or guidelines for documenting and organizing knowledge. This ensures consistency and completeness in the information being captured.

Step 3: Store knowledge securely but allow authorized parties easy access

Organizational knowledge management requires storage solutions that are both secure and easily accessible to authorized parties. This could involve the use of knowledge bases, cloud storage, or knowledge management platforms.

The key to striking a balance between security and accessibility is to use an organized system that categorizes knowledge intuitively and easily for authorized users. 

→ Try this: Assist management in choosing the best platform, train employees on how to use it, and communicate the importance of treating all stored information as confidential.

Step 4: Establish platforms for knowledge sharing 

One key benefit of knowledge sharing is gaining insight from others’ experiences. Establish platforms for knowledge sharing, such as internal forums, technology-enabled platforms, cross-departmental project work, focus groups, and other collaborative tools.

→ Try this: Lead initiatives to promote collaboration and even develop incentives—monetary and non-monetary—for employees who contribute to knowledge sharing. 

Step 5: Use knowledge to inform decision-making and guide problem-solving

Integrate knowledge into decision-making processes across the organization. One effective way to do this is to tap into data analytics tools or knowledge repositories whenever your company needs to make an important, informed decision.

→ Try this: Encourage data-driven decision-making by providing training to both leadership and employees on how to maximize knowledge application in their daily work. 

Step 6: Keep knowledge as current as possible

Set up a process to evaluate the knowledge stored. Removing outdated information can also help you address the challenge of ‘information overload’, ensuring your workforce is not inundated with useless information.

→ Try this: Develop a schedule for periodic reviews of knowledge resources to ensure the content is current. You can also train employees on how to weed out unnecessary information and retain important details, especially when the company’s knowledge content undergoes substantive changes. 

Step 7: Assess the quality, relevance, and impact of knowledge

Regularly assess the quality and relevance of your organization’s stored knowledge and its impact on individual, team, and business performance. Relevant knowledge could help leadership make better business decisions, but irrelevant knowledge clutters the system and makes it more difficult to find the important content.

→ Try this: Conduct surveys, user feedback sessions, and focus groups to gather insights on how different individuals and teams are using the company’s knowledge and what they think of it. You can then decide whether you should suggest or implement any changes.

Step 8: Secure and protect proprietary knowledge

In collaboration with your IT department, implement cybersecurity measures to safeguard sensitive information so that employees have access on a ‘need to know’ basis.

Some companies may even choose to have a separate department or a single source of knowledge software that focuses on overall data governance and related protocols. 

→ Try this: To maintain information and data security, develop company policies and standards regarding confidentiality and data protection. Clearly communicate these standards and expectations across the organization and emphasize the importance of adhering to them.

Step 9: Promote a knowledge-centric culture throughout the workplace

Promote open communication across the entire workforce and recognize and reward knowledge sharing across the organization. This will help develop a sense of trust among employees, management, and leadership,

→ Try this: Lead the charge by creating various initiatives to highlight the importance of knowledge sharing and management. You can also provide training and facilitate knowledge-sharing exercises.

2 organizational knowledge management examples

1. IBM’s Knowledge Orchestrator

Knowledge Orchestrator was developed by IBM Chief Innovation Officer Dr Errol Brandt as a passion project after the death of a key company colleague. The unfortunate loss of a colleague also meant that critical tacit knowledge the person held was lost.

Brandt developed an enterprise knowledge management platform powered by AI that can turn raw, unstructured data into structured natural language. This platform has helped IBM to build the company’s enterprise knowledge base and contains more than 2,000 articles for employees to read.

2. Microsoft’s Viva Topics

Microsoft’s Viva Topics is a knowledge management solution that uses artificial intelligence to organize content and expertise across an organization. It automatically identifies topics within company data and creates topic pages that compile related documents, conversations, and experts.

The system helps employees to access relevant information directly within the tools they use daily, such as Microsoft Teams and SharePoint. This is also particularly helpful for new employees who need to learn a lot of information quickly.

To sum up

Regardless of industry or company size, a strong organizational knowledge management process is a key foundation of a healthy, competitive business and must be a high priority. Companies that don’t develop, maintain, or update their knowledge management risk decreased business continuity, customer satisfaction, profits, employee morale, and productivity. 

Management must lead by example and encourage information sharing and retention, with HR taking a proactive role in the process. You can either help your company develop a new organizational knowledge management process or review its existing system regularly and update it as needed. This will help create a strong, strategic framework for organizational knowledge management, ultimately contributing to long-term business success.

The post Organizational Knowledge Management: 9 Steps To Implement an Effective System appeared first on AIHR.

Ensuring HR compliance is crucial to keep your business legitimate and your employees safe. In this article, we explore everything you need to know about navigating HR compliance.

Contents
What is HR compliance?
HR compliance issues examples
Why is HR compliance important?
How do you ensure HR compliance?
– How to conduct an HR compliance audit
– HR compliance best practices
HR compliance metrics
FAQ

What is HR compliance?

HR compliance has two key aspects. First, it involves creating and maintaining policies, processes, and procedures to keep the work environment and employment practices aligned with the most recent applicable laws and regulations. Second, HR compliance refers to the practice of HR teams actively ensuring that the organization and its people follow its policies, processes, and procedures and, stepping in to enforce them when needed.

The goal of HR compliance is also twofold: to minimize regulatory and legal risks while creating a just and equitable work environment. Non-compliance can lead to fines, penalties, or even lawsuits, harming your organization. HR needs to prioritize HR compliance to protect their organization.

There are various types of compliance in HR, including:

• Statutory compliance: Statutory compliance in HR is about implementing and adhering to government legislation around employment and the workplace. For example, your company is legally required to follow laws concerning minimum wage, working age requirements, and anti-discrimination. 
• Regulatory compliance: Regulatory compliance occasionally overlaps with statutory compliance, but the distinction lies in the fact that your organization must follow the rules of a specific regulatory body. Generally, these regulatory agencies fall into one of three categories:
  • Independent regulatory commissions such as the Federal Trade Commission (FTC)
  • Executive agencies like the United States Environmental Protection Agency (EPA)
  • Government corporations like the Centers for Disease Control and Prevention (CDC).   
• Contractual compliance: This refers to compliance with regulations and terms your company is bound by. Examples are contracts between your company and partner organizations or with your employees. 
• Union law compliance: Some organizations may deal with union workers, such as the American Federation of Teachers (AFT), the second-largest teachers labor union in the U.S. In this case, your organization needs to be aware of and adhere to the rules set by these unions. 

While the primary responsibility for HR compliance lies with the HR department, it should be a collective effort and a shared responsibility within the organization.

HR compliance issues examples

It is imperative for every organization, large or small, to follow labor laws and various regulations. Otherwise, as mentioned earlier, the company risks legal issues, fines, and bad publicity.

In this section, we examine several HR compliance challenges organizations may face.

Wage and hour laws

The United States has several laws that protect employees’ rights regarding wages and hours worked. These laws are on the federal, state, and local levels. They also set requirements for how many hours someone can work per day, overtime, and weekend pay.

For example, the U.S. federal minimum wage is $7.25 per hour, but the minimum wage for the state of Oregon is $14.70 per hour. At the same time, the District of Columbia has the country’s highest minimum wage of $17.50 per hour. Especially if your business operates across multiple cities and states or you have remote workers, you must understand and comply with these laws.

Example of non-compliance: A company in Oregon pays its employees the federal minimum wage of $7.25 per hour instead of the state minimum wage of $14.70 per hour. This discrepancy means the company isn’t meeting state requirements and risks penalties for underpayment.

The Family and Medical Leave Act (FMLA)

Put simply, the FMLA gives your employees the right to take unpaid leave for specific family or medical situations. Examples are the birth of a child, caring for a parent, child, or spouse with a severe health condition, or when the employee is sick and can no longer work. This rule applies to all employers with over 50 employees, covering 56% of U.S. employees.

Example of non-compliance: An organization with 75 employees denies an eligible employee unpaid leave to care for a seriously ill parent, claiming that the employee’s absence would disrupt workflow. This refusal violates FMLA requirements, as the law mandates providing such leave in qualifying situations.

Workplace safety

Workplace safety is considered regulatory compliance under the Occupational Safety and Health Administration (OSHA) agency. Depending on what your organization does and in what sector, you’ll have different industry standards to follow.

For example, construction workers are constantly exposed to dangerous environments where they can be hit by heavy construction equipment, unguarded machinery, or exposed to silica dust and asbestos. In contrast, healthcare workers have a completely different set of hazards, such as exposure to viruses and bacteria, possible chemical and drug poisoning, radioactive material, and X-ray dangers.

You can browse the North American Industry Classification System (NAICS) to learn more about your company’s specific workplace safety requirements.

Example of non-compliance: A construction company fails to provide hard hats, protective goggles, or respiratory masks to workers operating in areas with heavy machinery and airborne silica dust. This lack of protective equipment violates OSHA standards for construction, exposing employees to potential injury and health risks.

Union laws

As mentioned earlier, businesses must be aware of union laws when working with union members. An example of a strong union is The Association of Flight Attendants – CWA (AFA-CWA). 

The organization helps its members obtain “fair compensation, job security, seniority protections, and improved quality of life through organizing, bargaining, and political action while serving as the leading voice for a safe, healthy and secure aircraft cabin for passengers and crew alike.”

Airline companies must adhere to the union’s rules regarding working hours, pay, and safety, among other things.

Example of non-compliance: An airline company assigns extra shifts to flight attendants without consulting the union or compensating according to the union-negotiated pay rates. This bypasses the union’s established guidelines for working hours and overtime pay, violating both union agreements and labor laws.

Immigration laws

Both businesses and higher education institutions must adhere to immigration regulations when hiring an employee or accepting a student from abroad. 

The Immigration and Nationality Act (INA) covers U.S. immigration policy and allows the country to provide a certain number of permanent visas per year in various visa categories.

The Department of Homeland Security (DHS) is the primary organization responsible for enforcing the United States’ immigration laws, but many other agencies support it.

Example of non-compliance: A tech company hires an employee from abroad without verifying their work authorization through Form I-9, as required by the Immigration and Nationality Act (INA). By failing to confirm legal work status, the company is in breach of federal immigration regulations and risks penalties, including fines or legal action from DHS.

Form I-9

All employers in the US are required by federal law to verify the identity and employment eligibility of every employee they hire to work in the U.S. The process is managed by the U.S. Citizenship and Immigration Services (USCIS) and requires both employers and employees to fill in Form I-9.

Example of non-compliance: A restaurant hires several new employees but fails to complete Form I-9 within the first three days of their employment. By neglecting this verification process, the restaurant is not meeting federal requirements, risking penalties and possible audits from USCIS for failing to verify the employees’ work eligibility.

Anti-discrimination laws

Organizations also need to take into account anti-discrimination laws, such as:

• The Americans with Disabilities Act (ADA) 
• The Age Discrimination in Employment Act (ADEA), and;
• Title VII of the Civil Rights Act protects employees and job applicants from discrimination based on race, religion, color, sex, and national origin. 

Under the ADA, for example, employers must provide ‘reasonable accommodation’ to employees with disabilities so that they can benefit from the same employment opportunities as their non-disabled peers. There are three main categories of reasonable accommodation, including:

• Adjustments to the job application process
• Adjustments to the work environment or to the way the job is being done 
• Adjustments to allow a disabled employee to enjoy equal employee benefits.

Example of non-compliance: A retail company refuses to adjust its work schedule for an employee with a mobility disability, despite the employee’s request for a flexible start time to accommodate transportation challenges. This failure to provide a reasonable accommodation under the ADA not only violates anti-discrimination laws but also puts the company at risk of legal action for not supporting equal employment access for disabled employees.

Pay transparency laws

Pay transparency has been a hot topic for a couple of years and has grown increasingly important for organizations worldwide. In the U.S., there is no federal pay transparency law (yet), but pay transparency laws have become more common in a certain number of states.  

Depending on the state they are in, employers need to comply with local legislation and, for instance: 

• Publish salary ranges in job adverts 
• Communicate salary ranges to employees at their request
• Disclose salary ranges to candidates at a particular moment during the hiring process.

Example of non-compliance: A tech company in Colorado posts job openings without including salary ranges, despite Colorado’s law requiring employers to disclose pay ranges in job ads. By omitting this information, the company is non-compliant with state regulations, risking penalties and potentially losing the trust of applicants who value transparency in compensation.

Employee classification

To function in the current talent market, many companies opened their roles to various workers, such as remote or hybrid employees, part-time staff, and independent contractors. Your company needs to understand which employees are eligible for which benefits and what their wages should be based on hours worked and location to stay compliant with employee classification rules.

You must check which state and local employment laws apply if you employ people across multiple locations.

Example of non-compliance: A marketing agency hires a graphic designer as an independent contractor but requires them to work fixed hours in the office and assigns them tasks under close supervision, similar to full-time employees. By treating the contractor like an employee without officially reclassifying them, the agency risks fines and penalties for misclassification, as this setup may legally qualify the worker as an employee entitled to benefits and protections.

Data security

This type of compliance refers to how companies and government agencies keep data protected, confidential, and safe from security breaches. Generally, this relates to consumer data, but it also includes employee data and financial records.

One example is The California Consumer Privacy Act (CCPA), which specifically applies to companies with a gross annual revenue of $25 million or higher. Under this law, Californian residents have the legal right to know which data a company has saved about them and what information was shared with third parties.

Example of non-compliance: An HR department at a large company stores employee personal information, including Social Security numbers and home addresses, on an unsecured server without encryption. When a breach occurs, employees’ sensitive data is exposed. This failure to protect employee information violates data security standards, putting the company at risk for fines and damaging employee trust.

Why is HR compliance important?

There are various reasons why HR compliance is essential, including: 

• Avoiding fines and legal issues: Organizations can be subject to an external audit at any given moment. Such a compliance audit aims to assess how well the company adheres to different applicable laws and regulations. The more compliant the organization is, the less legal trouble it will have and the more money it will save.
• Promoting fairness and equality: HR compliance helps ensure that all employees are treated fairly and consistently under the law. This fosters trust and boosts morale within the workplace. By staying compliant with anti-discrimination, wage, and pay transparency laws, you create a level playing field that protects employees from biases and unfair treatment. 
• Maintaining company reputation: Cases of non-compliance regularly pop up in the media. Think of the misclassification of employees or the lack of workplace safety. These things can damage your reputation as an employer, a company, and a brand and hurt your hiring and retention efforts.  

How do you ensure HR compliance?

There are two key ingredients to help organizations ensure HR compliance: knowing how to conduct an HR compliance audit – and regularly conducting one – and following HR compliance best practices. Let’s unpack these procedures.

How to conduct an HR compliance audit

An HR compliance audit is a structured way to review and verify that your organization’s HR practices meet legal standards. Conducting an audit helps to identify potential risks, close any compliance gaps, and strengthen overall HR operations. Here’s a step-by-step guide to carrying out a thorough HR compliance audit:

• Determine the scope of the audit: Start by identifying which areas of HR compliance you need to audit. This could include wage and hour laws, employee classification, workplace safety, benefits, or equal employment practices. Depending on your organization’s size, industry, and data from employee surveys, some areas may be more critical than others. 
• Identify relevant compliance obligations: Be aware of all the federal, state, and local laws that apply to your business. For example, if you are a small retail company with fifteen employees, you qualify as a low-hazard industry business according to OSHA regulations. This means that you don’t need to submit a full annual injury and illness report but only need to report specific incidents. 
• Evaluate current HR policies and processes: Assess existing policies to determine whether or not they are in line with your organization’s latest compliance obligations. This involves reviewing leave policies, overtime rules, payroll processes, workplace safety standards, and pay transparency laws, to name a few areas. 
• Document compliance issues: Create a report outlining any compliance gaps or issues identified during the audit. Include details about areas that need improvement, policy changes that may be required, and any risks of non-compliance. 
• Develop an action plan: Based on the findings, create a detailed action plan to address any compliance gaps. Assign responsibilities for each task and set due dates for making necessary corrections. This may include updating policies, conducting additional training, or implementing new systems. 
• Follow up and monitor: Once changes have been made, HR practices should be regularly monitored to ensure ongoing compliance. Schedule regular audits, either annually or biannually, to prevent new issues from arising.

HR compliance best practices

Building a compliant workplace is about integrating the laws and regulations into everyday practices. Adopting HR compliance best practices can help protect your organization from legal risks and create a fair and transparent work environment. Here are some key strategies to keep your organization on track with HR compliance:

1. Be consistent in policy application

Once you put your HR policies in place, make sure they are applied consistently. This is especially important for disciplinary actions, FMLA access, or investigating workplace issues.

You can achieve consistency by outlining process steps in writing, keeping proper documentation, and educating managers on how these processes work.

2. Make HR compliance a shared responsibility

As mentioned earlier, HR compliance should not just be the responsibility of the HR department. Instead, it should be a collective effort with all stakeholders playing their part to create and maintain a compliant workplace. This means:

• Leadership actively endorses and role models the company’s compliance standards. 
• HR bears the primary responsibility for the company’s compliance. They ensure the organization’s policies, procedures, and processes are up to date and applied and communicate about them.
• Managers are the bridge between theory and practice as they are involved in the company’s day-to-day activities. Managers are often also the first ones to address immediate compliance concerns.
• Employees play a key role in helping the organization become – and stay – compliant. They will identify potential security hazards, discriminatory behavior, or a lack of transparency in the company’s pay policies before anyone else. As such, employees are your biggest ally in realizing HR compliance.

We’ll discuss more on how to practically involve all stakeholders below.

3. Stay up-to-date with legal changes 

Keep up-to-date with changes in local laws and regulations that apply to your company and new rules and regulations that come into effect. Modifications often happen at the start of the year or mid-year, at the beginning of July.

Subscribing to relevant newsletters, such as the HR Dive’s Compliance newsletter, and following the HR section of Corporate Compliance Insights are excellent places to start and stay well-informed.

4. Use HR technology

First, check if your HR technology is compliant. Does it securely store sensitive employee information, from personal data to payroll details? This includes encryption, secure access controls, and regular data audits to protect against breaches.

Many HR tools today have integrated compliance modules to make it easier to ensure compliance. Examples of such platforms include BerniePortal Compliance and Namely.

5. Develop an HR compliance checklist 

Using an HR compliance checklist helps ensure you don’t forget anything and complete the necessary actions promptly. You can create multiple checklists for various HR processes and different geographical locations.

The specific items and format of an HR compliance checklist will vary from one organization to another, but the following are common checklist categories:

• Recruitment, interviewing, and hiring 
• Onboarding procedures and company policies 
• Employee classification 
• Compensation and benefits 
• Safety and worker’s compensation 
• DEIB
• Data privacy and information security 
• Termination and separation 
• Unions and collective bargaining agreements 

6. Train managers on compliance 

Training the organization’s managers is an important step towards a shared responsibility for HR compliance. As mentioned, managers play a critical role in ensuring HR compliance, especially regarding performance reviews, employee disputes, and disciplinary actions.

Provide them with regular training on anti-discrimination laws, anti-harassment policies, and diversity practices, as well as updates on changes in laws and regulations to help mitigate risks.

7. Conduct HR compliance training for employees 

If you want your employees to become your closest allies in achieving HR compliance, the first step is to provide them with relevant training. 

Educate employees on key compliance issues, such as workplace safety, harassment, discrimination, and wage laws. Offering regular training on compliance topics, especially for new hires and new managers, helps maintain an informed workforce.

Here are a couple of tips to make HR compliance training engaging and effective:

• Use real-world scenarios: Instead of focusing solely on rules and regulations, present real-world scenarios that employees could encounter on the job. Discuss how they would handle situations involving workplace safety, harassment, or wage disputes. This makes the training feel relevant and applicable.
• Include interactive elements: Include quizzes, polls, or interactive case studies to break up information and keep employees engaged. For example, you could start with a quick quiz to test common misconceptions or use polls to see how employees would respond in certain situations.
• Choose the right training format: Micro-learning modules with videos (think 5-10 minutes each) keep the content digestible and can be taken over time, helping employees retain information better. Role-playing exercises allow employees to practice responses in a safe setting and build confidence in handling similar situations.
• Make It relevant to their roles: Tailor parts of the training to specific roles or departments. For instance, managers might need more in-depth training on discrimination laws and wage policies, while front-line employees could focus more on workplace safety and harassment policies.
• Use humor where appropriate: Incorporate a bit of humor to lighten the mood—just be mindful of the subject matter and keep it professional. A few lighthearted examples or anecdotes can make compliance feel less intimidating.

8. Create an HR compliance calendar 

Just like a checklist, an HR compliance calendar helps ensure you don’t forget any important dates and are proactively completing the necessary tasks and actions.

Take the I-9 form we mentioned earlier, for example. As an employer, you must complete and sign a particular section of the form within three business days of the employee’s first day of work for pay. Failure to do so in time may result in significant fines. Marking the I-9 form deadline in your HR compliance calendar (ideally linked to a hiring or onboarding checklist) helps avoid this.

HR compliance metrics

To track your compliance efforts and identify potential areas for improvement, you may want to choose a number of HR compliance metrics to follow, such as:

• Employee classification accuracy: This metric measures the percentage of employees who are correctly classified as exempt, nonexempt, or independent contractors. Incorrect classifications can lead to legal issues and fines. 
• Time to resolve compliance issues: This metric tracks how long it takes to identify and resolve compliance-related issues, such as wage disputes, harassment claims, or policy violations. A shorter resolution time indicates better compliance management. 
• Training completion rates: This metric monitors the percentage of employees who have completed mandatory compliance training, such as anti-discrimination, harassment prevention, or workplace safety. Higher completion rates suggest a more informed and compliant workforce. 
• Policy violation incidents: This metric tracks the number of reported incidents where company policies related to compliance (e.g., FMLA, anti-discrimination, OSHA) were violated. It helps identify areas where further training or policy reinforcement is needed.

Over to you

HR compliance is not just an administrative matter. It is a collective effort between leadership, HR, managers, and employees to create a workplace that is transparent, fair, and safe for everyone.

FAQ

The post HR Compliance: A Practical Guide for 2025 appeared first on AIHR.

An HR benchmark survey of over 2,000 small businesses showed that the fastest-growing companies were 20% more likely to embrace HR best practices.

What do HR best practices entail, and why are they so important? In this article, we’ll go over the 10 best practices for HR that are crucial to effective Human Resource management and offer tips for implementing them.

Contents
What are HR best practices?
The impact of HR best practices
10 HR best practices to implement
A reality check on Human Resource Management best practices
How to implement HR best practices: 9 tips
FAQ

What are HR best practices?

HR best practices are an overarching set of Human Resource Management (HRM) processes and actions that work universally to add value and support an organization’s success. HR leaders choose to follow and customize best practices in designing people strategies to get optimum results.

HRM has two schools of thought on how to manage people: best fit and best practices.

• The best-fit philosophy states that to add value, HR policies should align with the unique business strategy. This means that HR should focus on the organization’s and its employees’ specific needs. In this view, HR isn’t “one size fits all.” It’s flexible, adjusting strategies to support the organization’s mission and vision.
• The best practice viewpoint argues that there is a set of universal HR processes that lead to superior business performance. According to its proponents, certain bundles of HR activities support companies in reaching a competitive advantage regardless of the organizational setting or industry (Redman & Wilkinson, 2009).

With these kinds of discussions, the truth often lies somewhere in the middle. This means that the HR strategy and subsequent HR activities should be aligned with the organization’s strategy for optimum efficiency (a.k.a. strive for best fit). This alignment has also been referred to as Strategic Human Resource Management. At the same time, there are best practices that have been shown to lead to superior performance for the organization. If HR executes these practices correctly, it’s able to add substantial value to the business and foster goal achievement.

These best practices should be at the heart of every organization’s HR strategy and HR strategic plan and be applied to different HR functions, such as performance management, learning and development, and employee relations.

The impact of HR best practices

Implementing HR best practices means setting up a framework that becomes a stable foundation for building a stronger organization. 

By following established best practices, HR can make beneficial impacts in the following ways:

• Driving overall business performance: Effective HR practices that align employees’ goals with the company’s objectives show employees how their contributions matter. This encourages better performance across teams for improved business outcomes.
• Reducing operational costs: HR best practices focus on improving employee productivity, efficiency, and retention. This minimizes recruitment, training, and turnover costs to boost the bottom line.
• Building a sustainable competitive advantage: Steadfast people practices that attract and retain top talent give companies a consistent edge over competitors who neglect these areas and often face higher turnover, lower morale, and productivity issues.
• Improving adaptability to market changes: A dynamic, well-managed workforce can quickly pivot and effectively respond to industry shifts and other external pressures. This ensures the business’s ability to remain resilient and relevant in changing environments.
• Supporting scalability: Strong HR practices create a secure base that supports continuity during organizational expansion and workforce challenges. Businesses can adapt, grow, and scale efficiently without being affected by issues such as talent gaps.

10 HR best practices to implement

HR professionals need a working knowledge of HR best practices before they can make them come to fruition.

In his two books, Competitive Advantage through People (1994) and The Human Equation: Building Profits by Putting People First (1998), Jeffrey Pfeffer, a business theorist and management author, proposes a set of best practices that can increase a company’s profit. When these HR principles are combined (or bundled), their impact is even more profound. These HR best practices are:

1. Providing security to employees
2. Selective hiring: Hiring the right people
3. Self-managed and effective teams
4. Fair and performance-based compensation
5. Training in relevant skills
6. Creating a flat and egalitarian organization
7. Easy access to information

We also suggest another three best practices to add to the list, which are:

8. Transparency
9. Employee engagement
10. Performance management

Let’s explore these practices one by one.

1. Providing security to employees

Life is unpredictable, and people want their work to be a stable factor. When employees feel secure in their jobs, they’re more likely to commit to the organization and contribute their best efforts over the long term. This stability creates a foundation for loyalty and motivation, reducing the likelihood of turnover and the costly, time-consuming process of replacing and training new hires.

From the employee perspective, the ability to provide for themselves and their families is, in essence, why people come to work. Hence, the concept of job security underpins global HRM practices. According to a survey of 1,100 U.K. professionals, job security is among the top 3 most important factors when considering a new job. There is both a formal contract (labor for money) and an informal contract (you put in some extra effort, we take good care of you) between the employee and the employer.

When employment security is threatened, such as during restructuring or a layoff, tension and fear ripple through the organization, which, in turn, impacts organizational performance. An AuthorityHacker study of full-time U.S. workers revealed that if they lost their jobs, 42% did not have enough money saved up to support them until they found new employment.

Organizations that prioritize job security not only foster a more engaged, loyal workforce but also protect their investment in people. By minimizing turnover, they reduce the costs associated with recruiting, onboarding, and training, creating both a financial and cultural benefit that keeps them competitive in the long run.

2. Selective hiring: Hiring the right people

Selective hiring enables an organization to bring in employees who are fit for the job and can bring the most worth to the business. Research shows that productivity for high performers is 200-300% more than average performers. Hiring the right people is, therefore, a key to building a competitive advantage and an indispensable HR best practice.

In today’s digital world, many different recruitment tools are available to aid in making the right selection. More and more companies diligently keep track of their recruitment metrics to see how well they are doing in this regard.

Commonly used selection instruments are structured and unstructured interviews, general mental ability tests, personality assessments, work tests, peer interviews, and reference checks. These pre-employment assessments are used to uncover three key candidate characteristics:

1. Ability: Is the person able to do the job? Does the person have the right technical and soft skills? Is the person savvy enough to do the job well?
2. Trainability: Can we train this person to improve their skills? Does the person have the aptitude to learn and keep developing?
3. Commitment: Will the person commit to their work and the organization? Will we be able to retain this person once they’re up to speed and fully productive?

Bank holding company Capital One conducts case interviews in its hiring process. These assess communication, problem-solving, and quantitative analytic skills within real business problem scenarios that candidates would encounter in the position they’re interviewing for.

Building a structured and fair selection process must also be prioritized to exemplify legal requirements, internal diversity goals, and that a more diverse workforce better reflects society. This can be very beneficial for understanding wider consumer behavior and the needs of different customers.

3. Self-managed and effective teams

High-performance, self-managed teams are vital to organizational success. Self-managed teams operate with a high degree of autonomy, where members take ownership of their roles and collectively make decisions to achieve shared goals. Diverse ideas flow and are then processed and combined to create innovative concepts. Research shows that the best teams are cognitively diverse and psychologically safe. This means that team members can generate differing ideas while feeling comfortable bringing up and discussing them.

Creating and nurturing such teams is one of HR’s core responsibilities. HR can use tools like Belbin’s Team Role Inventory, GRPI, the Hackman model, and other team effectiveness models to form well-balanced teams. Effective HRM also includes directly supporting teamwork. This can be done in several ways, including methods such as measuring team performance, rewarding team excellence, and advising management on techniques and tools to facilitate teamwork. 

For instance, building materials consulting company Principia has a fully remote and geographically dispersed staff. Leaders wanted to align employees and enhance teamwork so they could work together better. They arranged an emotional intelligence training session that focused on self-awareness and developing the team’s relationships. Brooke Cowell, VP of Marketing at Principia, said afterward, “I think we’ve learned to be more emotionally aware of others and give individuals the opportunity to express their opinions and listen. We’re more aware of our interactions with each other, and I think that’s also helped with our connections.”

Lastly, HR plays a role in encouraging collaboration across teams and departments within the organization. Tools like Organizational Network Analysis can help identify collaboration opportunities, ensuring that teams, both self-managed and otherwise, work effectively within the larger organizational structure. Other tools for facilitating teamwork include communication software, feedback tools, project management tools, and other task and goal-setting software. These can facilitate communication and help teams be more efficient.

4. Fair and performance-based compensation

Compensation is a key element for successful talent management. To hire and retain the right people, you’ll need to offer reasonable compensation and benefits.

A robust compensation package takes the form of financial (base) pay and employee benefits. You must follow market trends across your field, as well as adjacent fields since many of the best employees can come from other career areas. Then, you will be able to understand the average rate of pay and where your company ranks in the compensation offer.

Beyond just base pay, linking compensation to performance and contributions motivates employees to excel and feel a personal stake in the company’s success. For instance, you can consider implementing performance-related rewards like profit sharing, shared ownership, or stock options. These are great ways to create employee commitment to the company’s long-term vision and retain high-potential employees. 

One practical tool to assess your workers’ performance and potential is the 9 box grid, where every employee is placed within a 3×3 matrix based on two dimensions: performance and potential. The grid segments employees into nine categories, ranging from high performance and high potential (often seen as future leaders) to lower performance and potential (who may need additional support or development). As an organization, you want to retain your “Exceptional Talent specifically”. They are people with unique skills (i.e., hard to replace) who are very valuable to the business. Offering competitive compensation is a must in this case.

Amazon demonstrates the importance of the compensation best practice with its annual wage and benefits review to stay competitive. In September 2024, Amazon announced a significant increase in pay and benefits for hourly front-line fulfillment and transportation employees to show its appreciation for their hard work and contribution to the company’s accomplishments.

5. Training in relevant skills

After recruiting the best people, you need to ensure that they remain frontrunners in the field. This has become even more relevant today as the rate at which technology is developing is growing exponentially. How do we create an organization in which the rate of learning matches the pace of change? Learning & development has become a way to stay innovative, grow faster, and sustain a competitive advantage.

Employers increasingly invest in skills-specific forms of training. Corporate eLearning growth has been exponential and will continue at the rate of 15.52% annually by 2033. Thanks to the internet, everyone is connected and can learn anything, anytime, anywhere. In addition to formal learning, on-the-job learning also plays an important role, with an increased focus on feedback, coaching, and peer learning.

Learning is also becoming increasingly important for the latest generations, such as Millennials and Gen Z. According to Gallup, younger employees rate learning and career growth as much more important compared to older generations. These generations of workers are actively looking for development opportunities and see these as a way to grow in their profession. What’s more, not offering employee development is related to higher levels of employee turnover. 

6. Creating a flat and egalitarian organization

This best practice in HR principles is rooted in the egalitarian practices of Japanese management. Although we just saw that some employees are more critical than others for the organization’s success, this shouldn’t be communicated in such a way. Every employee is a valuable member of the organization and should be treated as such.

In Japanese organizations, this is expressed with common canteens, company uniforms, and similar sickness and holiday entitlement. Such an egalitarian culture shows that everyone deserves equal respect and could help in promoting the sharing of ideas.

7. Easy access to information

Information accessibility focuses on ensuring that employees know where to find the knowledge or data they need and who within the organization can provide expertise or answers. This is often a logistical challenge, especially in larger organizations, where information is frequently siloed. Employees need quick access to knowledge that helps them do their jobs effectively without spending extra time searching or guessing who to approach.

The benefits of making information accessible are twofold. First, it fosters a culture where employees feel supported and trusted with knowledge relevant to their roles. Second, it enables employees to contribute more meaningfully and share ideas because they’re informed and up-to-date.

HR can help by organizing resources like internal newsletters, knowledge databases, and directories that clarify who holds specific knowledge or expertise. Tailored communication channels for diverse employee groups, such as women, non-native language-speaking employees, and LGBTQ+ individuals, can also help ensure that information is accessible and inclusive.

Check out our Learning Bite to learn more about the 7 HR best practices!

8. Transparency

Transparency goes a step beyond information accessibility by focusing on what information is shared and the openness of communication, particularly regarding key business decisions, challenges, and changes. Transparency requires that leaders not only make information available but also proactively communicate it to everyone in a straightforward, honest manner.

In practice, transparency means leaders openly discuss both successes and failures, and they involve employees in understanding the company’s direction and rationale behind decisions. Even adverse circumstances and unpopular decisions are tolerated better by employees when they understand the reasons and learn about them upfront and directly from leaders rather than through the rumor mill.

Employees are less likely to feel blindsided by changes or challenges if they are informed early, which builds trust and loyalty over time. Transparency can also include sharing metrics like pay scales, performance measures, or market insights that help employees feel more connected to the company’s overall journey.

HR should advocate for transparency by opening and maintaining communication channels and distributing vital information regularly. Other transparency builders include published pay scales and performance metrics, forewarnings of market conditions and potential risks, financial results announcements, and employee feedback mechanisms.

Asana, a work management platform, makes its board meeting minutes available to employees so they have firsthand knowledge and context of where the organization is headed.

9. Employee engagement

Employee engagement has been an HR catchphrase for many years. Unfortunately, ongoing efforts to enhance employee engagement haven’t produced the desired outcomes. Gallup research shows that 62% of workers worldwide are not engaged and estimates that it costs the global GDP 8.9 trillion U.S. dollars.

HR professionals must dig deeper into what energizes employee engagement at their organizations. Known drivers of employee engagement are:

• Meaningful work
• Growth and development
• Recognition and appreciation
• Autonomy and empowerment
• Effective communication
• Wellbeing and work-life balance
• Trust in leadership.

While it makes sense that these concepts can create a stronger connection between employees and their jobs, they may not all carry the same weight at each company. HR teams must gather data and be in touch with employee sentiments to understand the unique ways these play out and what achieving them looks like at their organizations. Only then will engagement initiatives make a positive impact. 

10. Performance management

Performance management is the process of managers directing and optimizing employee performance through communication and feedback. The result is growth for the employee and reinforcement of organizational goals.

The four stages of performance management are:

1. Planning: Establishing performance expectations and goals and defining how success is measured.
2. Monitoring: Tracking how employee performance is aligning with goals and providing appropriate feedback.
3. Developing and reviewing: Analyzing performance data to find ways to remedy underperformance or encourage strong performance. 
4. Rating and rewards: Rating employee performance as the basis for rewards or consequences.

Incorporating performance management into day-to-day activities keeps it relevant. Banking and financial services company HSBC uses an HR app that allows managers and employees to share two-way performance feedback. They can also capture achievements in real-time and access performance and development plans and online learning.  

Not all employees will learn new skills and grow professionally on their own accord. Without an established performance management system, employees are left to do their jobs without guidance. This can lead to frustration, burnout, and disengagement on their part, resulting in lackluster growth for the organization.

A reality check on Human Resource Management best practices

It turns out that some of these HR best practices contradict each other or don’t play out as ideally in the real world. Take employment security. While this practice sounds great in theory, in reality, many companies rely more on flexible contractors who don’t have the same job security as traditional employees. According to Marchington and Grugulis (2000), “the reality is that employment security is only offered when and for as long as it is convenient to the employer.”

Training is another example. A lot of organizations invest heavily in training, but just offering it doesn’t necessarily improve competitive advantage. Often, training focuses on skills that don’t align with employees’ actual work and organizational objectives or is offered simply because there’s extra budget. What matters is whether the training helps achieve the company’s strategic goals. The Kirkpatrick-Philips model can help measure if training truly impacts performance and provides a return on investment (ROI).

Lastly, selective hiring aims to build a competitive edge by consistently hiring top performers. The reality, though, is that hiring “perfect” candidates every time is almost impossible. Instead, hiring candidates who are consistently better than your competition can make a meaningful impact over time.

How to implement HR best practices: 9 tips

As every HR professional knows, much takes place behind the scenes of everything HR presents to employees. Here are some tips to help you execute and make the most of HR best practices at your organization:

1. Secure a sufficient budget: Many HR best practices require a significant investment in additional resources. Evaluate what these might be and ensure that the funds and means are approved for the necessary technology, training, and employee programs to support the practices. For example, you can use a prioritization matrix template to make decisions about where you need the resources most.
2. Get leadership buy-in: Leadership involvement lends credibility and helps secure success for any HR initiative. When leaders model transparency and prioritize employee wellbeing, it sets a tone of acceptance and encourages wider adoption throughout the organization.
3. Upskill HR professionals: It takes a knowledgeable HR staff to govern best practices. Provide regular training opportunities on topics such as employee engagement, performance management, and communication. Additionally, recommend the latest trends, tools, and techniques that can equip HR teams to lead these initiatives effectively.
4. Use data-driven decision-making: Relying on data leads to decisions based on facts instead of assumptions or instinct. Track progress on key metrics like turnover, engagement, and performance. This data will reveal which areas need attention and provide insight into how to refine and optimize HR strategies.
5. Leverage technology: Technology allows HR to automate and streamline tasks and processes, as well as collect data throughout the employee life cycle. Human resource information systems (HRIS) simplify the administrative end of certain best practices, such as tracking performance, training, and recruitment data. HR apps and software programs also make information more readily accessible to employees.
6. Foster continuous feedback loops: Open workplace communication won’t happen without an intentional approach. Create a variety of channels for ongoing discourse between employees and management. These should involve both formal (i.e., surveys, town halls, scheduled meetings, and regular one-on-ones) and informal (i.e., spontaneous check-ins and casual conversations occurring through work-related interactions) methods.
7. Standardize processes: Systematic HR processes with clear guidelines are easier for employees to follow while also reducing errors and ensuring consistency. With fairness and equal treatment of all employees being such an essential element of HR practices, standardization is a must. Uniformity in hiring, compensation, and performance management procedures builds trust between employees and HR/management.
8. Monitor and adapt policies: With continual external and internal changes affecting every organization, HR procedures and policies can become outdated. It’s important to periodically review them for relevance to the current circumstances and new regulations. Then you can update them to respond more appropriately to both business goals and employee needs.
9. Understand the collective effect of HR best practices: When best practices are combined, we call them “bundles.” For example, guaranteeing employment security is more of a benefit when you have high-performing employees that you really want to keep. This means that the employment security best practice, combined with selective hiring, leads to more value than the individual practices.
10. The same goes for selective hiring, relevant training, and fair compensation. You want to choose employees with growth potential, invest in them with learning and development, and reward them appropriately when they show superior performance.
11. By leveraging these bundles, effective HRM can add tremendous value to the business and help the organization succeed in reaching its goals.

A final word

Organizations that adopt these 10 best practices institute the groundwork for effective Human Resource Management that empowers employees and the organization to thrive.

However, while HR best practices may be universal, there is no one-size-fits-all approach to them. Each HR department must associate these practices with their company’s operations and goals. For instance, selective hiring must be based on profiles of the employee characteristics that fit the organization’s needs and training must be tailored to which capabilities are required to carry out the organizational goals.

Once these best practices are linked to what the organization is striving for, you can create an HR function that adds considerable value in reinforcing success.

FAQ

The post 10 HR Best Practices For Business Success in 2025 appeared first on AIHR.