HR Best Practices for 2025: Boost Engagement & Productivity

Life as an HR leader moves fast. When you’re juggling everything from employee issues to strategic planning, staying up-to-date on the latest HR trends can feel like an impossible task. 

But don’t worry—whether you’re focused on boosting workforce wellbeing or harnessing the power of new tech, these expert insights will keep you ahead of the curve and ready to thrive in 2024.

Talent Acquisition and Onboarding Best Practices

Talent acquisition and onboarding are top of mind for every HR leader right now. Nearly half of HR professionals named talent acquisition as their biggest challenge in 2024, according to BambooHR’s State of HR Report 2024. So how do you tackle these issues head-on? Start with these four best practices:

Selective Hiring

Gone are the days when hiring was like throwing spaghetti at the wall and seeing what sticks. In 2025 and beyond, it’s all about precision and targeting. To attract the cream of the crop:

• Craft job descriptions that are clearer than a superhero’s conscience
• Leverage social media like it’s your personal talent matchmaking service
• Use employee referrals — after all, birds of a feather flock together

Remember, hiring the right person takes time and practice, but it’s worth it to avoid getting stuck with the wrong fit.

Streamlined Onboarding

Your onboarding process should be smoother than a freshly waxed bowling lane. In 2025, it’s all about creating an experience that’s more engaging than a Netflix series finale. Perfecting this process is really important, as new hires who go through a standard onboarding process are 50% more productive than those who don’t, according to an SHRM survey. Best practices include:

• Digital onboarding portals that are super user-friendly
• Personalized welcome packages that make new hires feel special and welcome
• Buddy systems that pair newbies with seasoned pros, like a workplace version of Big Brother/Sister programs

Data-Driven Recruitment

Flying blind in recruitment is like trying to find Waldo without your glasses. HR analytics is your new best friend, providing insights that will help you revamp your HR processes. Leverage data to:

• Predict candidate success with more accuracy than a weather app (which, let’s face it, isn’t that hard).
• Track metrics like time-to-hire, cost-per-hire, and quality-of-hire for each recruitment channel to identify the most effective sources.
• Use applicant tracking systems to analyze which stages of the recruitment process have the highest drop-off rates and work on improving those areas.

Inclusive Hiring Practices

Creating a diverse and inclusive workforce starts with your hiring practices. Companies with more women and ethnic diversity representation are almost 40% more likely to outperform their peers, according to a 2023 report from McKinsey. By implementing strategies to reduce bias and attract a wide range of candidates, you can build a more diverse and innovative team. 

• Train hiring managers on unconscious bias and provide them with a checklist to use during interviews for fair evaluations.
• Review and rewrite job descriptions to remove gendered language and unnecessary qualifications that might deter diverse candidates.
• Set diversity hiring goals for each department and track progress regularly, adjusting strategies as needed.

Employee Engagement and Retention Best Practices

Maintaining high levels of employee engagement and retention is extremely important for organizational success. It’s one of the biggest tasks for HR leaders, as almost two-thirds of the workforce is disengaged at work, according to a 2022 Gallup survey. 

But fear not, since you’re about to pick up best practices for boosting engagement and retention!

Fostering a Positive Work Culture

A strong workplace culture can predict higher work engagement and lower levels of stress and depression, according to a study from the International Journal of Environmental Research and Public Health. To create an environment where employees feel valued and motivated, try:

• Organizing regular team-building activities that align with company values
• Establishing open communication channels, such as town hall meetings or anonymous feedback systems
• Implementing recognition programs that celebrate both big wins and everyday efforts

Performance Management and Recognition

Gone are the days when performance reviews were a big source of anxiety and stress for anyone involved. Modern performance management is continuous and incremental, making it easy for employees to track their progress and adjust on the go. Some of the best practices include:

• Develop a template for weekly or bi-weekly one-on-one meetings between managers and employees, focusing on progress, challenges, and goals.
• Implement a 360 reviews that allows employees to give and receive feedback from peers, subordinates, and supervisors annually.

Employee Development and Growth Opportunities

In 2025, if you’re not growing, then that means you’re wilting like lettuce left out of the fridge. In fact, about nine out of 10 employees consider professional development to be important to them, according to a BetterBuys survey of 2,000 workers. Continuous learning should be ingrained in your company culture to support employees’ professional development. Here’s how:

• Set up a learning management system with curated courses for different roles and career paths within the organization.
• Establish a mentorship program, matching junior employees with senior staff based on career goals and skills.
• Allocate a specific budget for each employee’s professional development, allowing them to choose relevant conferences, workshops, or courses.

Flexible Work Arrangements

The 9-to-5 grind is becoming as obsolete as a flip phone. Flexibility is more in demand in 2025 than ever, as over 90% of workers say they benefit from flexible work arrangements, according to a Deloitte survey. Address the growing demand for flexible work arrangements by:

• Developing clear guidelines for remote work, including expectations for communication, availability, and productivity measures
• Creating a flexible hours policy that defines core working hours and allows employees to flex their start and end times around these hours
• Implementing a time-tracking system for projects rather than hours worked, focusing on outcomes rather than time spent at a desk

Compensation and Benefits Best Practices

As an HR professional, you already know that compensation and benefits are like the foundation of a house — get it wrong, and everything else will be as shaky as a Jenga tower. As revealed in Wellhub’s Return on Wellbeing 2024 report, 88% of HR leaders report their wellbeing program is ‘extremely’ or ‘very’ important to employee satisfaction. Let’s take a look at the best practices for compensation and benefits:

Fair and Competitive Compensation

Your compensation package should make any potential hire’s eyes pop. This year, it’s all about offering salaries that make your employees excited to go to work every morning. Best practices include:

• Regular market research to confirm that your salaries are still competitive
• Pay equity audits to make your compensation as fair as possible
• Clear compensation structures that are transparent enough for everyone to understand

Comprehensive Benefits

In 2025, benefits should be more comprehensive than a dictionary. After all: 88% of employees value their wellbeing at work just as much as their salary, as revealed to Wellhub's State of Work-Life Wellness 2025. The goal of employee benefits is always to craft a package thats supports every employee's wellbeing, no matter their wellness priorities. You can do that by:

• Offer a cafeteria-style benefits plan where employees can choose from a range of options to suit their individual needs.
• Implement a wellness program that includes both physical and mental wellbeing components, like gym membership subsidies and access to counseling services.
• Provide financial wellness resources, such as workshops on retirement planning, debt management, and investing.

Performance-Based Incentives 

Aligning rewards with performance is a given going forward. The aim is to motivate employees more effectively than a double shot of espresso on a Monday morning. Try some of the following strategies:

• Implementing clear bonus structures tied to individual and company performance
• Offering non-monetary rewards like time off or professional development opportunities
• Developing long-term incentive plans for employees

Pay Transparency 

Pay transparency deserves a spot in your organization moving forward. Employees want to know what everyone else is doing to confirm that they’re keeping up with their peers. Here are some ideas you can leverage at your oranization:

• Publishing salary ranges for all positions on the company intranet
• Clearly communicating the factors that influence pay decisions
• Training managers to have open conversations about compensation with their team members

Employee Wellbeing Best Practices

In 2025, employee wellbeing is more than just a buzzword — it’s a critical part of attracting and retaining top talent. Implementing cohesive wellbeing programs can boost employee satisfaction, productivity, and retention, considering that 83% of employees would consider leaving a company that does not focus on employee wellbeing. 

Here’s how you can deliver wellness that wows:

Holistic Wellness Programs

Encourage healthy lifestyles through interdisciplinary wellness initiatives. These programs can address various aspects of employee health, from physical fitness to financial wellness: 

• Implement a company-wide fitness challenge where employees track their steps and compete in teams.
• Offer nutrition workshops led by registered dietitians to promote healthy eating habits.
• Provide subscriptions to wellness apps like MyFitnessPal or AppleFitness+ for personalized health tracking.

Mental Wellbeing Support

Prioritize mental wellbeing by offering resources and support. Strategies are primed to have an impact  in 2025 are:

• Implementing a policy allowing employees to take mental wellbeing days seperate from using sick leave.
• Providing access to online meditation platforms like Headspace as part of your benefits package.
• Conducting regular stress management workshops to equip employees with coping strategies.

Flexible Work Arrangements

Embrace flexible work options to promote work-life wellness. Flexible work options can significantly improve employee satisfaction and retention:

• Develop a hybrid work policy allowing employees to split time between office and remote work.
• Implement a core hours system where employees choose start and end times around required hours.
• Offer compressed workweek options, such as four 10-hour days instead of five 8-hour days.

Diversity, Equity, and Inclusion (DEI) Best Practices 

Creating an inclusive workplace can help you foster innovation, attract diverse talent, and build a positive company culture. Let’s explore a few strategies that can help you promote DEI as an HR leader:

Creating a Culture of Inclusion

You can foster a diverse and inclusive workforce through targeted strategies. An inclusive culture can lead to higher employment satisfaction and better business outcomes. Here are some ideas:

• Establish employee resource groups (ERGs) for underrepresented communities within your organization.
• Implement a reverse mentoring program where junior employees from diverse backgrounds mentor senior leaders.
• Conduct regular inclusion surveys to gauge employee sentiment and identify areas for improvement.

Unconscious Bias Training

Address unconscious biases through regular training sessions. Some best practices are:

• Conduct interactive workshops using real-world scenarios.
• Use virtual reality simulations to create immersive learning experiences.
• Implement a “bias interruption” program where trained employees can call out biased behavior.

DEI Initiatives and Programs

Implement effective DEI initiatives to drive change. Try some of the following programs:

• Launch a diverse hiring initiative with specific targets for underrepresented groups.
• Create a sponsorship program pairing high-potential diverse employees with senior leaders for career advancement.
• Implement a supplier diversity program to support businesses owned by minorities.

Measuring DEI Progress

Tracking and measuring DEI programs allows you to take accountability and drive meaningful change. Here’s how you can do it:

• Develop a DEI scorecard that tracks key metrics like diversity in hiring and promotion rates for underrepresented groups.
• Conduct regular pay equity audits to identify and address any disparities across demographic groups.
• Implement quarterly DEI pulse surveys to gather feedback.

HR Technology Best Practices

Taking advantage of technology in HR is non-negotiable these days. Stay up to date with HR tech trends by implementing the following strategies:

Leveraging HR Technology

Streamline processes and improve efficiency with HR tools. Here’s how:

• Implement an applicant tracking system (ATS) to manage your recruitment process more effectively.
• Use a learning management system (LMS) to centralize and track employee training and development.
• Adopt a human resource information system (HRIS) to manage employee data and automate HR processes.

HR Analytics and Data-Driven Decision Making

Use HR data to inform strategic decisions. Data-driven insights can lead to more effective HR strategies and better business outcomes. Try some of these strategies:

• Create dashboards visualizing HR metrics like turnover rates, time-to-hire, and employee engagement scores.
• Conduct predictive analytics to forecast future talent needs based on historical data and business projections.
• Use sentiment analysis tools to gauge employee satisfaction from surveys and internal communications.

AI and Automation in HR

Explore artificial intelligence (AI) and automation to transform HR practices. AI can handle routine tasks, while HR professionals focus on strategic work. Some of the top AI strategies for HR include:

• Use chatbots to handle common employee questions.
• Implement AI-powered resume screening to quickly identify top talent.
• Use AI-driven performance management tools for more objective and frequent employee evaluations.
• Launching AI upskill programs for your workforce to spread AI acceleration throughout yoru company.

Employee Self-Service Portals

Providing employees with self-service access to HR information and tools can improve efficiency and overall satisfaction. Try following these tips:

• Develop a user-friendly portal where employees can update their personal information, access pay stubs, and manage their benefits choices.
• Implement a digital time-off request system within the portal, allowing employees to easily submit and track their time-off requests.

Supercharge Your HR Strategy With Wellbeing

Tackling challenges like talent acquisition, engagement, and retention takes more than just the right practices. It requires a strategy that truly supports your team. And that’s where a wellbeing program comes in.

When employees feel valued and supported, they’re more engaged, more productive, and more likely to stick around. In fact, 83% of employees are more likely to stay at companies that prioritize their wellbeing! A holistic program doesn’t just boost morale — it drives real business results by reducing absenteeism and improving overall performance.

Ready to transform your HR strategy and see these benefits firsthand? Speak with a Wellhub Wellbeing Specialist today to build a healthier, more engaged workforce!

You May Also Like:

• Building the 5 Pillars of a Strong Organizational Culture
• 11 HR Best Practices You Should Know
• Offboarding Best Practices

References:

• BambooHR State of HR Report 2024. BambooHR (2024). https://www.bamboohr.com/resources/assets/ebooks/bamboohr-state-of-hr-2024.pdf 
• Diversity matters even more: The case for holistic impact | McKinsey. McKinsey & Company. (2023, December 5). https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-matters-even-more-the-case-for-holistic-impact 
• Fisher, Jen. Workplace Flexibility Survey. Deloitte United States (n.d.). https://www2.deloitte.com/us/en/pages/about-deloitte/articles/workplace-flexibility-survey.html 
• Kosinski, Matthew. Onboarding: The Key to Elevating Your Company Culture. SHRM (2023, May 30). https://www.shrm.org/executive-network/insights/onboarding-key-to-elevating-company-culture 
• Marenus, M. W., Marzec, M., & Chen, W. Association of Workplace Culture of Health and Employee Emotional Wellbeing. International Journal of Environmental Research and Public Health, 19 (19), 12318 (2022). https://doi.org/10.3390/ijerph191912318 
• Return on Wellbeing Study 2024. Wellhub (2024). https://wellhub.com/en-us/resources/research/return-on-wellbeing-2024/ 
• State of the Global Workplace. Gallup (2024). https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx 
• The Impact of Professional Development: Exclusive Research. Better Buys (n.d.). https://www.betterbuys.com/lms/professional-development-impact/