The McKinsey HR Report Everyone’s Talking About

What HR Needs to Know from McKinsey’s Latest Global Report

McKinsey & Company’s new HR Monitor 2025 offers a sharp, sobering look at the state of Human Resources today and where it’s heading.

Based on responses from more than 1,000 HR professionals across 25 industries and 11 countries, the report confirms what many HR leaders already feel: the role is expanding, the expectations are high, and the resources often don’t match the demand.

Key findings include:

• Only 37% of HR leaders believe their function is effective, down from 47% in 2021

• Just one in four HR teams feel equipped to support large-scale transformation

• 63% of executives say they don’t fully understand the value HR brings to their organization

The report also highlights what separates high-performing HR functions from the rest. The strongest teams are:

• Clearly aligned with business strategy

• Using data and analytics effectively

• Investing in internal HR capability development

• Planning for the future instead of reacting to the present

If you work in Human Resources, this report is worth your time. Not just for benchmarking, but to help you reflect on what needs to shift. Are you building the kind of HR function your organization will need next, or just doing your best to stay afloat?

Download the full McKinsey & Company HR Monitor 2025 report

If your organization is facing similar challenges and ready to shift from reactive to strategic HR, our team at Peoplebiz is here to help.