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Not so long ago, HR leaders were at the center of major business shifts. They drove policies around remote work, mental health and DEI.
Now, they’re often left out of the room entirely.
According to Aptitude Research’s newest report, Global Trends in HR Technology & HR Transformation, just one in three HR leaders are active participants in transformation conversations today. Worse, 64% of companies don’t even know what role HR will play in the future.
It’s not all bad news, though. The report highlights some critical trends shaping the industry, from AI-driven tools to shifting investment priorities. As Madeline Laurano, founder and chief analyst of Aptitude Research, writes, “HR transformation is no longer a choice but a necessity for organizations seeking to thrive in a rapidly changing business landscape.”
So, how can work leaders meet this moment? By reclaiming their influence across the organization — and that starts with understanding where things are headed. Below are four HR trends Aptitude Research flagged.
1. HR’s Expanding Role: People Management and Digital Innovation
When I was in college in the early 2000s, our business school didn’t have any classes on HR technologies. Today, that would be considered a major oversight.
HR now oversees a complex system where people, technology, AI and data intersect, shaping workforce strategy and business outcomes.
“Modern HR leaders are tasked with overseeing both human capital and the digital tools that empower and optimize that capital," writes Laurano.
The problem is that many aren’t given the authority to do so. HR is often forced to be reactive rather than proactive, sidelined in key transformation efforts.
To reestablish itself as a key player, HR must take ownership of its expanding role. And according to Laurano, that is “not by chasing trends but by embracing what truly drives transformation and balancing innovation with foundational elements of HR tech."
Partnering with IT and finance should be standard practice, ensuring HR has a say in the technology roadmap rather than simply adapting to decisions made elsewhere. Companies that embrace this shift will stay competitive. Those that don’t? They’ll fall behind.
2. The HR Tech Shakeup: What’s Driving Investments (and Frustrations)
In spite of work leaders struggling to be heard in the transformation conversation, HR tech investment is still going strong. The report shows that 95% of companies are either maintaining or increasing their HR technology budgets. But where that money is going is changing.
What’s In:
- AI-powered platforms that improve efficiency and decision-making (unsurprisingly, 69% of companies are increasing investment in AI).
- Integrated solutions over best-of-breed tools (43% of companies have moved to integrated systems, up 15% from last year).
- Strategic vendor partnerships, with 52% of companies prioritizing services over just product features.
What’s Out:
- Disparate, disconnected systems that create data silos. Integration is still a nightmare for many HR teams.
- DEI as an afterthought. It was a top priority in 2020; only 30% of companies now rank it high for 2025.
- One-size-fits-all tech. Companies want solutions that actually align with their business, not just flashy AI features.
“Companies must invest in solutions with a mindset around integration, change management and maximizing ROI,” the report states. However, the ROI question remains a challenge.
3. The ROI Dilemma: Why HR Needs to Prove Tech Investments' Worth
In an era of technology consolidation, HR tech investments are under scrutiny. The Aptitude Research study found that 72% of companies that have cut back on spending did so because they couldn’t measure ROI.
For HR, it’s about credibility and innovation more than finances. "Without ROI data, HR technology decisions often focus solely on price, limiting innovation," the report states. If you can’t prove impact, you won’t get the budget, technology or influence you want.
To fix this, HR must stop relying on vanity metrics that offer little real insight into what’s working. The focus should shift to tangible outcomes that the business understands, such as reducing turnover, speeding up hiring and improving productivity.
Technology purchases should be backed by clear business cases, demonstrating how they contribute to company-wide goals. Vendors also have a role to play, providing better analytics and reporting tools to help HR measure success effectively.
As Laurano writes, "Ultimately, HR’s ability to align technology investments with strategic goals will determine its impact on business outcomes."
4. HR as a Change Agent: Leading (Instead of Reacting to) Transformation
You and I both know it: Transformation is happening whether HR is involved or not. According to the report, 88% of companies say they are going through some type of major change; yet, just 32% of HR leaders are actively leading transformation efforts.
The results haven’t been even. The organizations thriving in this shift have one thing in common: HR is involved at critical junctures in the work.
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To drive transformation, HR has to do more than provide support from the sidelines. For example, talent intelligence, used by 76% of companies for hiring, can also drive workforce planning and internal mobility. "Talent intelligence is emerging as a cornerstone of transformation, providing HR teams with the insights they need to make smarter decisions," the report stated.
AI can improve HR processes but only if used to augment, not replace, human decision-making, research shows. Businesses shifting to skills-based hiring must build clear strategies, rather than leaving skills initiatives disconnected from overall business objectives.
Another Year to Step Up
“HR transformation is no longer a choice but a necessity for organizations seeking to thrive in a rapidly changing business landscape," writes Laurano.
HR must take ownership of its evolving role and demand their rightful place in the initiatives that are shaping organizations. HR leaders can’t afford to be reactive. They need to lead transformation efforts rather than just supporting them from the sidelines. Companies that get this right will win in the next era of work. The rest? They’ll keep wondering why they are struggling to gain traction with the workforce.
Read more about what's in store for HR technology in 2025:
- What 2025 Has in Store for People Analytics — People analytics is a powerful space that can transform organizations. But knowing how to use it remains key to success.
- 2025 Predictions for AI in Work Tech — HR leaders need to understand how AI can unlock new possibilities. Here we explore some of the most promising applications.
- HR Priorities and Technologies Have Shifted, For Better and For Worse — The workplace has changed drastically in the past three years, and HR is struggling to keep up. A look back to better see the future.
