Overcoming HR Challenges Today and Tomorrow

What AI policies should HR leaders implement to protect their organization?

It’s imperative to implement an AI policy across your organization, says Kari Neuman, Global HR/AI Evangelist and Advisor.

“You know for sure that your employees are going to use ChatGPT probably every day, regardless of whether or not you have a policy. So, your best bet as a starting point is to put a policy in place saying, look, we know that you’re using AI. Of course you are. We want you to be using AI, but we want you to be using it responsibly.” 

Kari explained that HR leaders must balance the benefits of AI with the responsibility to protect their organization’s security and privacy. Implementing clear policies and processes ensures that AI is both leveraged effectively and managed responsibly. 

Here are key steps HR can take:

1.  Establish a Clear AI Usage Policy

Begin with a straightforward AI policy that outlines acceptable use. This should include: 

• Prohibiting the input of confidential company information or personally identifiable information (PII) into AI tools. 
• Setting guidelines for how employees can utilize AI in daily tasks. 
• Educating staff on data privacy concerns associated with AI platforms. 

2. Partner with IT, Legal, and Finance Teams

Collaboration is key to implementing secure AI solutions. Work with internal stakeholders to:

• Evaluate enterprise agreements with AI providers, such as OpenAI or Google, for secure usage. 
• Define protocols for evaluating and approving AI tools before they are adopted organization-wide. 
• Ensure compliance with data protection laws and corporate security standards. 

3.  Start with HR Processes

HR can lead the charge by first piloting AI responsibly within its own workflows. Automate repetitive tasks like scheduling or data analysis to gain a practical understanding of AI’s capabilities. These insights will enable HR to mentor other departments in responsible adoption.

4. Prioritize AI Training and Governance

Offer training that covers both the advantages and risks of AI. Equip employees with the knowledge to use it ethically and securely. Establish an oversight committee to regularly review AI usage, address potential risks, and update the organization’s approach as AI evolves.

Compliance Considerations

The compliance landscape is evolving at breakneck speed, making it tough for HR teams to stay ahead. With a steady stream of new and revised regulations at both local and national levels, compliance isn’t a one-and-done task—it’s a continuous commitment.

So, how can HR lead the charge and turn compliance into a strategic advantage this year?

On-site ICE visits: What does a compliant and effective plan look like?

Developing a compliant and effective plan for handling on-site visits by Immigration and Customs Enforcement (ICE) is a crucial task for HR teams in 2025. Proactive preparation will help your organization to respond efficiently while maintaining compliance with regulations. 

Here’s how to create an effective strategy:

• Designate a point of contact: Assign a knowledgeable team member as the primary liaison with ICE agents. This person should be well-versed in company policies and documentation procedures.
• Maintain accurate records: Regularly review and update employee I-9 forms. Conduct periodic self-audits to address discrepancies before an official visit. You want to stay on top of all relevant records.
• Secure restricted areas: Identify areas of the workplace that are off-limits and ensure these boundaries are clearly communicated and enforced.
• Communicate with employees: Educate staff on their rights and responsibilities during an ICE visit. Clear, transparent communication encourages a sense of preparedness and reduces employee uncertainty.
• Preserve video footage: If your facility uses surveillance systems, download and save footage of any ICE visit. This practice ensures accurate records for future reference, as most security systems overwrite recordings on a regular loop.

A clear plan not only demonstrates compliance but also helps mitigate disruptions for employees. Regular updates and practice drills strengthen your team’s readiness for a professional response to any situation.

What are practical ways to address HR priorities on a limited budget?

Career coach Lori Kleiman recommends performing a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to assess HR needs through both business and HR lenses. This structured approach helps identify where organizational risks and opportunities align with HR responsibilities:

• Strengths and Opportunities: Focus on scalable programs that add measurable value, such as shared cost benefits with vendors or digital learning platforms.
• Weaknesses and  Threats: Direct attention to compliance risks or gaps in mandatory training to prevent costly penalties or disruptions. To address HR needs on a budget, consider implementing resource-saving alternatives. 

Employee Experience and DEIA

DEIA (Diversity, Equity, Inclusion, and Accessibility) programs are under increasing political, legal, and financial pressure. Add the growing complexity of hybrid and remote work, and HR leaders face a real risk of losing the cohesion and inclusivity that make great cultures thrive.

How can HR re-humanize work and lead strategic change?

The panelists agreed that right now, HR has an opportunity to shift from defense to leadership by advocating for the resources and recognition it deserves. 

“We need to be advocates,” said HR consultant Jeff Harry. “We are the worst advocates of asking for the resources that we need.”

Jeff explained that many HR professionals manage multiple roles, yet they often hesitate to ask for adequate funding or support. To drive change, HR must confidently advocate for increased budgets and resources, positioning itself as essential to the success of the entire organization.

Focusing on employee well-being is equally critical. Providing staff with adequate time off, support, and opportunities to work within their “zones of genius” can boost productivity and morale.

HR teams should also ensure leadership aligns with your stated organizational values and hold leadership accountable to create a culture of genuine care. By championing action over rhetoric, HR can reclaim its role as a vital driver of workplace transformation.

How can HR build a unified culture in a company with distributed teams?

Creating a unified culture for distributed teams while respecting local differences requires intentional strategies that build connections and understanding. 

Dee Kendrix, CEO and Chief Strategist at DC Global Group, says it comes down to three key elements: clarity, alignment, and connection. 

“When those are present, culture becomes less about proximity and more about shared intention,” Dee said. 

Building on those elements takes conscious effort but carries meaningful results. 

1. Start by providing opportunities for meaningful, non-work-related interactions. Leverage an employee communication hub to provide additional options for connection. Regular check-ins, whether weekly or monthly, allow employees to share perspectives and build rapport beyond job tasks. 
2. Invest in crucial elements like effective communication, emotional intelligence, and conflict resolution. These skills bridge gaps across locations by enhancing empathy and mutual respect. Training programs focused on these human-centric skills can drive greater clarity and alignment within teams, even across varied geographic areas.
3. Adapt organizational values and initiatives to honor local customs and needs. Inclusive strategies ensure every team feels understood and integrated, forging a culture that celebrates diversity while promo ting unity. 

How can organizations advance DEIA initiatives without violating federal regulations?  

An important starting point for DEIA (diversity, equity, inclusion, and accessibility) initiatives in 2025 is consultation with an employment lawyer, says Dee Kendrix. She emphasized that these are necessary and important conversations.  

“Most people are stuck and don’t know what to do because they can’t understand all of the information flying at them,” she said. “Start the conversation by giving clear facts, having that conversation and not treating it as a landmine, but treating it as a present opportunity to have more understanding, more alignment, and more connection.”

Dee says that organizations can advance meaningful DEIA initiatives while remaining compliant with federal regulations by focusing on intentional, foundational work. At the same time, clear and effective communication of achievements helps build trust with both internal and external stakeholders.

Focus on the Core of DEIA Work

Dee explained that DEIA begins with ensuring dignity, access, and opportunity for all employees. Instead of being solely metric-driven, successful initiatives focus on the following:

• Creating equity in daily experiences: Establish pathways for all employees to thrive by understanding and addressing barriers to their success.
• Addressing biases proactively: Ensure leaders and teams are equipped to recognize and mitigate biases, especially when they create trends of exclusion.
• Employee-centered programs: Build initiatives informed by employees’ voices and real experiences to make sure DEIA strategies align with the real needs of the people they aim to support.

Returning to the basics of inclusivity ensures programs remain impactful and resonant, rather than performative or overly tied to numerical outcomes.

Ensure Compliance with Title VII Protections

Evolving public narratives around DEIA can create uncertainty but fundamental legal protections remain intact:

• Leverage legal guidance: Consult employment lawyers to ensure policies align with Title VII of the Civil Rights Act and prioritize compliance in strategy design.
• Clarity through conversations: Educate internal teams on legal protections and address uncertainties with transparent, well-informed discussions.
• Move beyond metrics: Center initiatives around outcomes that create inclusion and equity, rather than adhering solely to quantified targets.

Internal and External Storytelling

Sharing progress effectively builds connection and secures buy-in:

• Internal engagement: Conduct honest conversations about DEIA impact through leadership updates, town halls, or employee feedback channels. Show employees how initiatives support their opportunities to thrive.
• External communication: Highlight outcomes, not just outputs. Use corporate responsibility reports or public statements to share narratives grounded in real employee stories to reinforce the human element of DEIA work.

Manager Development

Manager and leadership development remains a top priority for HR — and for good reason. Skilled managers are the engine of organizational growth, change, and retention, playing a critical role in developing talent and keeping high performers engaged.

Our panel unpacked some of the most common challenges HR teams face when it comes to developing and supporting managers.

Middle managers are often stuck between pressure from above and burnout from below. How can HR help them?

Many middle managers face unique challenges in balancing executive expectations and their teams' daily realities. HR can play a critical role in empowering these managers by addressing their workload, building essential skills, and fostering effective leadership.  

Here are actionable strategies HR professionals can implement:

Reducing Busywork and Reclaiming Time

• Leverage AI effectively: Delegate repetitive tasks and streamline reporting by implementing AI solutions. This frees managers to focus on meaningful work that uses their expertise and skills.
• Eliminate unnecessary tasks: Audit workloads to identify and stop redundant processes, allowing managers to prioritize high-impact responsibilities.

Enhancing Leadership Through Development

• Zone of genius: This is the space where an employee becomes so immersed in their work that they don’t notice the passing of time. Help managers identify tasks they excel at and enjoy. Encouraging them to operate within their strengths boosts engagement and productivity.
• Provide comprehensive training: Equip managers with the skills needed to lead effectively through training in communication, conflict resolution, and team management.

 Rethink Managerial Roles and Structures

• Reassess fit-for-managerial roles: Not everyone is cut out to be a manager. Evaluate whether current managers genuinely want and are suited for leadership responsibilities. Transition those better aligned as individual contributors into other impactful roles.
• Diversify leadership backgrounds: Hire managers from non-traditional fields, like educators or project managers, who bring unique people-focused expertise to leadership roles.

 Offer Structural and Strategic Support

• Innovative benefits: Consider initiatives like four-day workweeks, expanded family leave, or on-site childcare to ease the pressures and support work-life balance for stressed-out middle managers.
• Advocate humane practices: Partner with senior leadership to challenge systems or practices that conflict with the organization’s values, ensuring more thoughtful, people-centered decision-making.

When HR needs to have a tough conversation with managers, how can they create real, authentic communication?  

HR leaders play a pivotal role in fostering genuine and effective communication between managers and their teams. Tackling difficult conversations requires equipping managers with self-awareness, tailored support, and shared organizational language. 

Here’s how HR can help:

1. Equip Managers with Self-Awareness

Empowering managers begins with helping them understand their natural management styles, motivations, and areas for improvement. Use tools like personality assessments or structured feedback sessions to promote self-awareness. A manager who understands their strengths and challenges can approach conversations with greater confidence and adaptability.

“Understanding that everyone brings unique motivations, fears, hopes, and goals to their role as managers is crucial,” said Erich Kurschat, owner of leadership consulting firm Harmony Insights.. “By fostering self-awareness, managers can better identify their own needs before engaging with their teams. This foundation not only strengthens relationships but also equips them to handle difficult conversations confidently and recognize their natural communication style.”

Not all managers have identical needs. Instead of applying blanket solutions, talk to each manager to uncover their specific challenges and preferences. Offering tailored training or one-on-one coaching creates an environment where managers feel valued and supported in their unique journeys.

2. Foster a Shared Organizational Language

Creating a cohesive communication framework helps managers and teams address complex topics with clarity. Analogies, shared tools, or concepts like “poking holes in the boat” provide managers with accessible ways to frame discussions, resolve conflicts, and align team goals. This shared language fosters openness and collaboration.

3. Encourage Dialogue and Empowerment

Authentic conversation stems from a foundation of trust and mutual respect. HR can facilitate this by encouraging managers to view their team members as unique individuals with distinct aspirations. Strengthening their ability to adapt communication styles based on individual needs ensures tougher discussions are handled with empathy and precision.

HR Priorities and Growth

HR priorities are shifting, and so are expectations for the function’s impact and influence.  

From redefining its role as a strategic partner to navigating career growth in a rapidly evolving landscape, here’s what our experts had to say about how HR professionals can lead with vision and agility.

How can HR shift perceptions of being a “Compliance Enforcer” or “Policy Police” to being a trusted, policy resource? 

To shift the perception of HR from compliance enforcer to a trusted resource, HR teams must focus on relationship building and strategic alignment. 

This transformation begins with a deep understanding of the organization, including its key financial metrics, operational challenges, and drivers of success.

Another key strategy is creating a culture of transparency and empathy. Building this trust requires clear communication and genuine engagement with employees and leadership alike. Creating cross-departmental groups, such as problem-solving teams to address engagement survey results, encourages collaborative decision-making and confirms HR’s commitment to organizational success.

Finally, reframing language matters. HR should emphasize its role as a core business component, not just a supportive function. By championing people-centric initiatives, HR can reinforce its position as an essential, positive force within the company.

Erich Kurschat says that shift starts with the definition of HR. “It’s so common to hear that HR should be supporting the business or know the business — instead of HR is the business.”

Is My HR Career On the Right Track? What Does a “Typical” Career Look Like in 2025?

When it comes to HR career growth, there is no one-size-fits-all path. Progression looks different for everyone based on personal goals, interests, and external commitments.

Here’s how to evaluate your career progress and identify opportunities for growth.

Define Your Own Career Goals

Start by asking yourself what you genuinely want from your HR career. Not everyone aspires to climb the corporate ladder. Some HR pros thrive as specialists in areas like talent acquisition or benefits, while others may aim to become HR business partners or directors. It’s important to acknowledge that career success isn’t always tied to promotions but can also mean becoming highly skilled in your niche.

Explore Diverse HR Roles

HR offers a broad spectrum of career paths, from generalist roles that provide exposure to various HR functions, to specialized tracks like compensation and benefits or compliance. 

Early in your career, aim to gain experience across different areas to discover what excites and engages you most. Certification in HR-specific credentials, such as SHRM or HRCI certifications, can also demonstrate your commitment to the profession and build credibility.

Consider a Cyclical Growth Pace

While career advancement varies by individual, a good benchmark is to seek new challenges roughly every two to three years. These challenges could include taking on new responsibilities in your current role, moving to a new role within your organization, or transitioning to a new company. Growth doesn’t always mean a title change; it often revolves around expanding your skill set and assuming greater responsibility.

Certifications and Education as Catalysts

Certifications such as SHRM-CP or PHR can validate your HR expertise and set you apart in competitive job markets. Additionally, advanced degrees or training programs may help you deepen your knowledge and take on strategic HR roles.

Your HR career progression should align with your personal and professional aspirations rather than conforming to a standard path. Reflect on your goals, leverage resources like certifications, and seek continuous learning opportunities to create a fulfilling and dynamic HR career trajectory.

How Paylocity Helps with Today’s HR Challenges

As the webinar conversation confirmed, the top issues in HR management today can often feel overwhelming but can be addressed with innovative, streamlined tools and a forward-thinking approach. 

By integrating advanced features like AI and prioritizing features that streamline operations, Paylocity simplifies complex processes such as compliance, employee engagement, and workforce management. Its suite of solutions enhances DEIA initiatives, improves communication, and fosters stronger connections across teams.

Paylocity also supports seamless integration with business-critical systems like payroll and ERP platforms, ensuring efficiency across every facet of HR management. With a focus on automation and data-driven insights, Paylocity helps HR teams make informed decisions, saving time and resources while driving strategic outcomes. 

From managing recruitment to nurturing employee growth, Paylocity enables organizations to build resilient, future-ready workplaces with ease and confidence.

Request a demo today!