HR leaders are making strategic workforce shifts
HR leaders prioritize investing in people development to navigate business transformations in a high-cost, high-change environment.
In an era marked by significant change, leadership has become increasingly important and complex.
Employers are encountering cost pressures and workforce challenges stemming from various factors, such as the rise of AI, generational shifts, talent availability, economic uncertainty, and record-low employee engagement.
As these challenges continue, employers are reevaluating how they invest in their people. Instead of relying on short-term tactical solutions, many are taking more deliberate steps to enhance adaptability, strengthen leadership pipelines, and support workforce sustainability.
According to Lockton’s 2025 Workforce Priorities Survey, 42% of HR leaders identified leadership development and coaching as a top priority, indicating a growing focus on effective leadership to navigate ongoing changes and prepare organizations for uncertainty. The survey also highlighted the importance of interpersonal leadership development, specifically in terms of inspiring others, building effective teams, and motivating employees.
TOP PRIORITIES BY % OF RESPONDENTS
Leadership development and coaching
Culture, engagement, and employee experience
Investment in employee skills, learning, and development
Performance management
Compensation strategy
Source: 2025 Lockton Workforce Priorities Survey
Investment in employee skills, learning, and development has grown significantly, from 10% in 2023 to 31% in 2025.
RISING WORKFORCE PRIORITIES
Source: 2025 Lockton Workforce Priorities Survey
With increasing cost pressures, there is a greater emphasis on skills development to enhance employee performance, reduce attrition, and improve overall organizational effectiveness. This shift underlines the significance of targeted training and upskilling initiatives that provide cost-effective solutions for companies aiming to optimize their resources and employee talent.
In Lockton’s 2023 HR Trends Report — A Spotlight on Competitive Time Off Practices, only 12% of the 42% of employers who revised their time off programs cited financial savings as a reason for the change, while 70% cited recruitment and retention.
Forward-thinking leadership is more important than ever
Leadership development initiatives help address cost pressures within organizations by improving retention, increasing employee productivity, and reducing turnover costs. By investing in leadership development, companies can create a more engaged and productive workforce, ultimately resulting in lower operational costs and higher profits.
HR leaders’ increased focus and investment in this area highlights the broader reality that current challenges are ongoing and addressing them effectively requires a focus on long-term sustainability. By aligning priorities around areas that enhance internal capacity and investing in employee development, HR can better position their organizations over time.
RESOURCE ALLOCATION: INCREASING INVESTMENT IN DEVELOPMENT AREAS
Skills development, training, and learning
Leadership development/coaching
Source: 2025 Lockton Workforce Priorities Survey
