A recently released report from Leapsome, the AI-powered people platform for HR excellence, spotlights the growing pressure on People teams to juggle top-down mandates, widening cultural divides and the rapid rise of AI — all while being tasked with driving productivity and influencing key business decisions.
From economic pressure to political polarization and AI disruption, Leapsome’s 2025 HR Insights Report, “Protecting People-First Strategies,” offers a rare glimpse into how today’s business climate is reshaping the world of work — and what it will take to navigate what comes next.
“HR teams are being pulled in every direction — but they’re not just holding things together, they’re guiding the business forward,” says Luck Dookchitra, VP of People at Leapsome. “They’re using people data to lead high-stakes conversations — and pushing back when leadership forgets what actually drives performance: trust, inclusion, and alignment.”
Do Trust, Inclusion and Alignment Drive Performance?
Dookchitra notes the insights report outlines several clear links between employee experience and business outcomes:
“Seventy-nine percent of People leaders said allowing employees to choose where and how they work is best for productivity. The most effective teams, according to respondents, are built on a culture of trust, clear goals and meaningful development — not just face time or rigid mandates.
“On the flip side, ignoring these ‘soft’ metrics has real costs, relating, Over half of HR leaders report that RTO mandates (often rolled out without alignment or inclusive planning) undermine inclusivity, garner backlash and make recruiting harder. When DEI efforts are rolled back, HR leaders expect increased turnover, lower satisfaction, and reduced team performance. If people don’t feel like they belong or they matter, they disengage — and that’s when performance starts to slip.
“Outside our own research, this is echoed across the industry. A 2017 study published in Harvard Business Review found that employees at high-trust organizations reported 50% higher productivity, 76% more engagement and 40% less burnout compared to those in low-trust environments. And PwC’s 2023 Trust in Business survey reinforced our finding that trust is now a core performance metric — driving innovation, loyalty, and long-term success.”
Leapsome’s 2025 HR Insights Report was developed in partnership with leading research agency Opinium and based on a survey of 1,000 HR decision-makers across the U.S., UK, Germany and the Netherlands. It spotlights several important trends.
Cultural Shifts Are Threatening People-First Human Relations
A staggering 92% of HR leaders report internal resistance when championing people-centric initiatives like DEI, flexibility and well-being. Return-to-office mandates are especially contentious — 56% feel pressured to enforce them, despite 81% considering other working models more effective for collaboration.
“This was one of the most striking findings in our research,” Dookchitra says, reporting that 52% of U.S.-based HR leaders say their teams are experiencing political or cultural divides, and 54% feel pressured to decrease DEI efforts.
“Across regions,” she continues. “HR professionals told us they’re seeing growing polarization and tension. But it’s not just about ideological disagreement — it’s about what happens to performance when trust breaks down. Of those experiencing this divide in the U.S., 83% say it’s making it harder to deliver business impact, and 79% say it’s affecting their ability to build organizational resilience.”
HR Is Under Pressure to Prep the Workforce for AI — Fast
Seventy-three percent of companies are restructuring roles to integrate AI, with 85% of HR leaders involved expecting major changes this year. But People experts are already seeing signs of employee resistance, with 64% reporting AI skills gaps as an urgent problem.
As HR’s Role Expands, So Does Its Power to Drive Change
Nearly two-thirds of HR leaders say they’re accountable for building high-performing teams — the No. 1 priority for CEOs in 2025. With 85% now owning or influencing key business decisions, the role has grown far beyond support. Today, HR is guiding strategy, driving outcomes and being measured by its impact.
Expanding on that third point, Dookchitra shares, “Our data shows that 75% of People leaders are stepping into a more strategic role, actively shaping business strategy rather than simply enforcing policy. In fact, 85% of HR leaders now say they have ownership or influence over key business decisions, and 92% feel ready to drive impact.”
In practical terms, HR leaders are:
- Leveraging people analytics to highlight ROI on flexible work models and well-being programs.
- Presenting data to leadership about the risks of unmet employee needs — such as higher turnover and lower engagement.
- Challenging assumptions that rigid mandates (e.g., strict return-to-office schedules and counting badge swipes) automatically boost performance — and, instead, sharing productivity metrics that point to more flexible paths forward.
- Designing intentional in-person moments. HR leaders are reframing the workplace conversation — not as a mandate, but as an opportunity to build connection. They’re helping teams understand why being in-person matters for culture and collaboration, and ensuring that on-sites and office days are purposeful, not performative.
“From my own experience, these conversations are happening more frequently and with more weight,” Dookchitra says, noting they also offer businesses and leaders an opportunity to differentiate their employer value proposition and give employees clarity about their benefits, expectations, and work culture.
“The future of HR isn’t just about automation or efficiency,” adds Dookchitra. “It’s about using people insights to shape how business gets done — and leading with the confidence that comes from data, not just instinct.”
