Whiplash From Washington Isn't Rattling America's HR Leaders: 73% Are Confident They Can Navigate the Tumult

NEW YORK, May 27, 2025 /PRNewswire/ -- Tariff turmoil. Immigration challenges. Thousands of government layoffs. Many of the White House's actions have spurred a new round of volatility at corporate America's workplaces.

Thirty-five percent of the nation's HR leaders expect the policies coming out of Washington to negatively impact their workforce, according to a survey from The Conference Board. Despite the concerns, the new poll found that 73% are confident in their ability to lead through the seismic shifts in today's political, social, and regulatory landscapes.

"After navigating the pandemic and other recent economic and social shocks, HR chiefs believe that both they and their organizations have developed the adaptability to weather immense uncertainty. While the new policy agenda may exacerbate labor and skills shortages, business leaders can create contingency plans for potential workforce disruptions," said Robin Erickson, PhD, Head of Human Capital Research, The Conference Board.

The study also found that HR leaders may be proactively managing costs in anticipation of greater economic headwinds: 41% implemented layoffs in the past six months, up from 30% in 2024.

Surveys of 170 US human resource executives and 530 US workers were conducted from March 7 through April 7. It is the seventh report in the Reimagined Workplace series. Insights from this year's edition include:

Only 5% of HR leaders expect the Administration's policies to have a positive impact on their workforce.

• 35% expect a negative impact; 29% anticipate no impact; and 31% are uncertain.

Following several years of societal shocks, most HR leaders believe they can navigate the current volatility.  

• 73% are confident (55%) or very confident (18%) in their ability to manage change.
• Only 3% are not at all confident.

Layoffs and other cost-cutting measures gain steam amid heightened economic uncertainty. 

• The share of companies conducting layoffs in the prior six months went from 30% in 2024 to 41% in 2025.
• Organizations that expect a positive business impact from the new US administration's policies still implemented cost-saving measures.

Don't believe the headlines: Hybrid work has become the norm.

• Hybrid is the primary workplace arrangement at 57% of organizations, up from 40% in 2024.
• Fully on-site work (32%) and fully remote work (12%) both decreased year-over-year (from 44% and 16% in 2024, respectively).
• Mandated policies are at the highest level in the last three years at 56% (note that mandated policies often still allow hybrid and do not necessarily denote a full-time return to office).
• Organizations without a mandated policy declined from 12% two years ago to only 5% in 2025.

Whether it's hybrid or fully on-site, ANY type of mandate drives workers away. 

• 44% of HR leaders with mandated on-site work policies say they struggle to retain workers, compared to only 34% of HR leaders without such a mandate.  

HR leaders report a significant uptick in difficulty finding qualified professional and office workers.

• 62% report difficulty finding qualified professional and office workers, up from 47% in 2024.
• Difficulty finding qualified industry and manual service workers is steady year-over-year, at 64%.

The challenge of retaining professional and office workers is easing, while difficulty keeping industry and manual services workers is rising.

• 32% of HC leaders report difficulty retaining professional and office workers.
• That's compared to 56% for industry and manual service workers—the largest gap in the last five years of this annual survey.

Despite the current volatility, workers are generally positive about their employee experience.

• Surveyed workers report high engagement (63%), intent to stay (53%), and sense of belonging (51%).

Leader perceptions of employee experience do not align with workers' reported experiences.

• While workers generally report feeling positive about their employee experience, leader perceptions of the employee experience are not as positive.
• The largest gap was well-being, with 48% of workers reporting high well-being compared to 23% of HR leaders who believed their employees were experiencing high well-being (a 25% gap).

"The gap between leaders and employees in their perceptions of well-being is troubling, pointing to a significant disconnect in how well-being is understood, observed, or supported. Having a more accurate, nuanced understanding of the worker experience grounded in regular and candid worker feedback can help ensure that efforts to improve workplace culture and performance are both relevant and effective," said Diana Scott, Human Capital Center Leader, The Conference Board.

About The Conference Board
The Conference Board is the member-driven think tank that delivers Trusted Insights for What's Ahead™. Founded in 1916, we are a non-partisan, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.ConferenceBoard.org

SOURCE The Conference Board