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The State of Talent and Culture in 2025

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The State of Talent and Culture in 2025

A recent webinar hosted by Dion Leadership brought together HR leaders from diverse industries to discuss the current state of talent and culture and what to expect in 2025. The panel included Anika Parker, director of human resources for a retail grocery chain; Brion Lieberman, chief HR officer for an integrated healthcare system; and Danean Whipkey, vice president of HR for a global manufacturing organization. The discussion began with the sharing of a Gartner “HR Trends and Priorities” report and followed with discussions about the challenges and opportunities these organizations face in a rapidly changing work environment.

Key Trends Shaping Talent and Culture

The Gartner study’s top five HR trends can be summarized as follows:

  • Leadership and Management Development: A significant majority of CEOs (79%) are focused on growth and transformation, but 75% of HR executives feel managers are overwhelmed, and 70% believe they lack the necessary skills, especially at the mid-level. Additionally, 76% of HR professionals believe their learning and development programs are not working as they should.
  • Organizational Culture: While many organizations have a defined culture, it’s not being effectively cascaded through the management ranks. Organizations that successfully embed their culture see a 35% increase in performance, a 63% increase in engagement, and a 25% increase in retention.
  • Strategic Workforce Planning: Most organizations are focused on head-count planning rather than strategic planning that looks two or more years out. Only 15% of organizations are considering their future capabilities.
  • Change Management: Managers are not equipped to lead change and are experiencing change fatigue themselves, leading to 44% of turnover or intent to leave.
  • HR Technology: Many technology solutions are not meeting business needs, yielding to marginal improvements in efficiency rather than transformation. Of those surveyed, 55% say that current technology solutions do not solve for current or future business needs.

These trends are occurring within a shifting labor market that is experiencing fewer open jobs, putting pressure on organizations to retain talent, and managers are increasingly reporting burnout. Moreover, there are shifting employee expectations of work, including the desire for more meaningful work, and the challenges posed by hybrid work environments. The increasing role of AI in the workplace is also an important consideration for culture and management.

Panelist Perspectives and Focus Areas

The panelists, representing different industries, shared their unique perspectives and challenges.

Danean Whipkey (DexKo Global): DexKo has grown dramatically through acquisitions, and while it has successfully integrated systems and processes, the company is now prioritizing cultural integration across its 120 locations. Leadership development is key to ensure that leaders are driving performance and culture throughout the organization. DexKo has many great programs in place but wants to connect them more holistically and bring the company together. After a recent employee engagement survey revealed a decline in overall engagement, DexKo is focusing on analyzing the data to understand the drivers and implement targeted solutions, noting that some locations are thriving while others struggle. The company is using a “soil” rather than “flower” approach to solving problems by looking at the root causes, including leadership and systems, rather than focusing exclusively on employees.

Brion Lieberman (Geisinger Health): Geisinger Health is undergoing a significant transition after being acquired by Kaiser Permanente. The organization is focused on navigating the emotional impact of this change and ensuring that employees understand the new vision. While healthcare employees are generally purpose-driven, the organization is ensuring they have a clear vision, goals, and autonomy to do their work. In addition, the organization is working to make faster decisions and communicate more effectively. The organization is focused on strategic workforce planning to address shortages, particularly in nursing and physician roles, and it is implementing a new learning management system to offer more diverse employee development opportunities and using employee feedback to refine its strategic vision. The organization has invested in a Chief Wellbeing Officer to support employee wellbeing and reduce burnout.

Anika Parker (Zallie Family Markets): Zallie Family Markets is in a growth mode and is focused on ensuring it has the necessary talent to support that growth. The company is looking at both internal and external talent pools to ensure a pipeline for skilled positions, such as butchers and bakers. It is also working to empower its department managers, who are critical to their business. Parker described a program called “Lead Well” that provides leadership skills and development to department managers, supervisors, and other leaders. The organization is using a low-cost, employee-driven program called “High Five” to encourage employees to recognize each other’s efforts and reinforce their values.

Succession Planning and Employee Development

The panel also addressed succession planning and employee development. DexKo has a structured process called “P3,” in which the company plans for its people like it does for its budget. DexKo also gathers information through performance check-ins about employees’ career interests and goals. Geisinger uses a more formal process to identify succession candidates for senior level roles and is focused on developing those individuals through coaching. It also uses a tool called a “stay interview” to better understand why employees stay with the organization. This was met with great interest from the other panelists and the participants as an important tool to retain talent.

Key Takeaways

The webinar highlighted several critical themes for organizations in 2025:

  • Leadership development is crucial, particularly at the mid-management level.
  • Culture must be actively cultivated and embedded by managers throughout the organization.
  • Strategic workforce planning is essential to prepare for future talent needs.
  • Organizations must be aware of the real impact that change fatigue and burnout are having and provide support for employees.
  • Employee engagement and communication are vital for creating a positive and productive work environment and combat a downward trend in engagement.

The webinar shed light on the critical challenges and opportunities shaping today’s workplace, reinforcing that HR leaders have a unique and powerful role in driving meaningful business impact. By investing in leadership development, fostering a strong culture initiatives, and embracing strategic planning, organizations can not only navigate change but thrive in it. As we look ahead to 2025 and beyond, the organizations that prioritize these areas will be the ones that stay ahead—creating workplaces where both people and performance flourish.

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Steve Dion-Steve Dion-Founder and CEO-Dion Leadership-23.png

Steve Dion

Founder & CEO

Steve has dedicated his career to understanding and improving organizational cultures through the creation and deployment of innovative assessment, leadership, and team development programs. He is a regular contributor to CEOWORLD magazine, Chief Executive, TrainingIndustry.com, ATD’s Talent Development Leader Blog, and HRCI’s HR Leads Business Blog. Steve and Dion Leadership were recently featured on the Public Television segment ViewPoint with Dennis Quaid.

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