Amid ongoing political, social and regulatory shifts at the national level, most HR leaders said they believe they can lead through the uncertainty, according to a May 27 report from The Conference Board.
Although 35% of HR leaders said they expect new federal policies to negatively affect their workforce, 73% said they feel confident about their ability to manage the volatility. Only 3% said they weren’t confident at all.
“After navigating the pandemic and other recent economic and social shocks, HR chiefs believe that both they and their organizations have developed the adaptability to weather immense uncertainty,” said Robin Erickson, head of human capital research at The Conference Board. “While the new policy agenda may exacerbate labor and skills shortages, business leaders can create contingency plans for potential workforce disruptions.”
In surveys of 170 U.S. HR executives and 530 U.S. workers, layoffs and cost-cutting measures appear to be gaining steam amid the growing economic uncertainty, respondents said. Forty-one percent conducted layoffs in the previous six months, and even organizations that expect positive business impacts from new federal policies have implemented cost-saving measures.
More HR leaders say they are struggling with talent shortages, too. More than 60% reported difficulty with finding qualified professional and office workers, up from 47% in 2024. They also reported continued difficulty with finding qualified industry and manual service workers, remaining steady at 64%.
Despite the current volatility, workers seem to be generally positive about their employee experience, including high engagement (63%), intent to stay (53%) and a sense of belonging (51%).
Even so, only 23% of HR leaders believe their employees are experiencing high well-being, which indicates a significant disconnect related to the worker experience and feedback, the report found.
Looking ahead, 9 in 10 companies lack “future-ready” talent strategies, particularly related to artificial intelligence capabilities, according to a report from The Adecco Group. Companies need to implement structured plans to support workers, build skills and lead through AI-related disruption, the firm said.
One aspect could include a review of remote, hybrid and flexible work strategies. Fewer companies are incorporating remote or hybrid arrangements into their talent acquisition strategies, according to HR Dive’s annual Identity of HR survey. However, flexibility about when and where employees work could appeal to talent, experts told HR Dive.
Employee burnout, in particular, has reached the highest rate in nearly a decade and remains higher than Q4 2019, or before the COVID-19 pandemic began, according to Glassdoor data. On average, employee mentions of burnout on the site were connected with 26% lower ratings for employers.
