Performance Management Emerges as Top HR Priority for 2025, Outpacing Leadership Development and Employee Experience

The latest research study from Accurate and HR.com's Research Institute, Workplace Insights: Elevating Employee Experience and Future-Proofing Performance, identifies performance management as the top HR priority for 2025, with 40% of organizations selecting it as their main focus. This shift represents a significant change from previous years when employee experience and retention dominated HR strategies. Leadership development follows at 28%, while employee experience ranks third at 25% among organizational priorities.

Organizations with stronger performance management processes are experiencing substantial business benefits, being five times more likely to report above-average financial performance in the last year and twice as likely to say overall employee performance is above average. These findings highlight the direct correlation between effective performance management systems and organizational success in today's rapidly evolving workforce landscape.

Despite the increased focus on leadership development, significant challenges remain in this area. Only 26% of HR professionals believe their employees feel well-led, and just 26% say leadership prioritizes employee engagement. Communication emerges as a critical issue, with only 15% of organizations achieving high levels of employee communication sophistication and merely 35% effectively training managers in communication skills.

Employee experience continues to present challenges for organizations, with only 36% of HR professionals rating their organizations highly in this area. As retention pressures persist throughout 2025, companies that prioritize employee well-being and engagement will be better positioned to retain top talent and boost overall productivity. The research indicates that while performance management has taken precedence, the interconnected nature of these HR functions means organizations must address all three areas comprehensively.

Debbie McGrath, Chief Instigator and CEO of HR.com, emphasized that companies have significantly transformed the global workforce in recent years, rethinking how and where people work. The research report available at Workplace Insights: Elevating Employee Experience and Future-Proofing Performance offers detailed analysis of emerging trends and adaptive best practices that can help organizations navigate uncertainty, drive innovation, develop top talent, and build resilient work environments prepared for future challenges.