The State of HR and Leadership Development

How is your HR team doing? Are they feeling overwhelmed, discouraged, and burned out, or are they keeping their sense of purpose and direction? Having a strong HR team, which includes someone trained in organizational psychology, is vital for reaching strategic goals. Therefore, it's wise to regularly assess and understand the team's morale.

In late 2025, HRCI conducted its largest-ever survey, in which 4,583 respondents worldwide answered questions about the state of the HR profession. They found that HR remains strong and resilient despite dealing with uncertain economic conditions, changing policy climates, career-altering technological advancements, and continual pressure to deliver value.

Highlights from the HRCI Survey

Passion for HR

HR professionals are passionate about what they do. A large majority (76%) enjoy working in HR—30% “immensely.” This enthusiasm is crucial for fostering a positive workplace culture.

Confidence in Departments

HR professionals are confident in their departments. A majority (71%) say their department is prepared to handle its workload. This confidence is generally true across different areas of HR, with the notable exception of implementing technology.

Hope for the Future

HR professionals are hopeful about their field. Almost two-thirds (64%) say they are “extremely” or “very” hopeful about the future of HR. Additionally, 72% are likely to recommend it to others as a career path. This optimism is consistent across career levels, meaning that even those who have been in the field for many years still see HR as fulfilling.

Increasing Workloads

Workloads are increasing. At all levels, HR professionals report that their workloads are growing. HR plays an increasing role in organizational strategy, yet only 43% think of their department as strategic.

The Impact of AI on HR

• 82% have not seen jobs lost to AI.

• 77% do not expect jobs lost to AI in the next year.

• 71% are not at all concerned about AI replacing their job.

• 29% believe AI can increase their productivity and efficiency.

  
  

Lifelong Learning in HR

• 95% of HR professionals participated in professional development last year.

• 71% of HR managers consider professional development important or critical.

• 65% of HR managers budgeted money per employee for development.

• Average professional development expenditure: $1,526.

- 38% is self-funded.

- 62% is company funded.

Challenges with Leadership

Despite overall optimism, the data shows an undercurrent of discontent with corporate leadership. Nearly half (47%) say company leadership is “moderately effective” or worse—possibly reflecting how HR professionals feel their work is valued by corporate chiefs. More than a third (35%) say HR is “valued only a little,” “not too valued,” or “not valued at all.” This indicates a need to reimagine how we train leaders to lead. A developmental approach promises to provide the best results.

The Future of HR

The HRCI survey paints an encouraging picture of the HR profession in 2026: resilient, passionate, and forward-looking amid evolving challenges. While workloads are intensifying and strategic recognition remains a growth area, HR professionals' confidence in their capabilities, optimism about AI's role in boosting efficiency, and unwavering commitment to lifelong learning underscore the field's vitality.

Transforming Potential into Growth

Viewing this through a developmental lens, organizations can foster HR's evolution by prioritizing regular morale assessments and integrating organizational psychology expertise. This approach can transform potential burnout into opportunities for growth and empowerment. Such investments not only enhance individual and team development but also drive broader organizational resilience, innovation, and strategic alignment for sustained success.

In conclusion, the HR landscape is evolving. By focusing on leadership development and understanding the challenges faced by HR teams, we can create a more supportive and effective environment. This will help unlock their full potential and thrive in today's dynamic world.

For more insights on leadership development, explore Rawe Leadership Solutions.