(PR in) HR Pulse | HR News Round-up: May
Photo by Isaac Smith on Unsplash
The bank holidays May has brought, and some glorious weather, it certainly feels like the beginning of the summer season.
This month’s newsletter brings you insights on thought leadership, the workers replaced by AI, and Gallup’s 2025 State of the Workforce Report.
The Power of Thought Leadership: Insights from momentum itsma’s 2025 Report
Thought leadership has become a pivotal element in the B2B landscape, influencing both decision-making processes and fostering trust among senior executives. It’s no longer just a marketing tactic, but a strategic necessity to build brand trust and advocacy.
According to momentum itsma's Value of Thought Leadership 2025 report, 99% of senior executives surveyed thought leadership as critical or important when considering potential advisers - up from 87% in 2023.
We've analysed the report, considered what makes thought leadership work, and what organisations need to do to cut through the noise.
Workers are being Laid Off in Favour of AI, Execs, Media and Public Weigh In
As AI becomes increasingly utilised across organisations, companies including Klarna, UPS, Duolingo, Intuit and Cisco, are replacing workers with AI to cut costs and boost efficiency.
The Verge recently reported on an announcement from Duolingo’s co-founder and CEO, Luis von Ahn, that the company will shift to an “AI-first” strategy, aimed at automating repetitive tasks, reducing contractor’s work and prioritising the use of AI in hiring and performance reviews.
Von Ahn commented on the changes announced, reassuring the company’s care for its employees and that the change “isn’t about replacing employees with AI, but about removing bottlenecks so they can focus on creative work and real problems.” He believes the use of AI will help to create the massive amount of content needed to help the business to scale.
It seems the general public are becoming increasingly frustrated with the use of AI bots and the risk they pose to jobs. Despite the CEO’s assurances for his employees, there has been a major backlash on social media in response to the news, with many saying they’ll no longer use Duolingo.
Indeed, a Forbes’ article describes the move to AI as a new workplace trend that is not employee friendly. The number of businesses using AI to streamline, cut costs and boost productivity is growing, whilst human workers are facing redundancy, raising serious concerns over job security.
Klarna for example, made headlines in 2022 for cutting over 1,000 jobs as part of a strategic shift towards AI, utilising AI-driven chatbots and automated systems to perform tasks once carried out by human agents.
Earlier this year, UPS announced plans to lay-off 20,000 workers. They clarified they’re apparently not using AI to replace staff, but to streamline and enhance efficiencies as a result of automation.
The move to AI comes from economic pressures on large firms to trim costs and prioritise leaner operations in a bid to off-set rising inflation. Many also cite the need to stay abreast of AI developments, certain that it is a critical component of their future. They may also see share prices rise following AI announcements, boosting investor confidence.
Gallup’s 2025 State of the Workforce Report
Gallup has released its 2025 State of the Workforce Report – and according to Unleash there are some key findings HR need to know…
The survey of nearly quarter of a million workers across 160 nations found a drop in employee engagement for the first time in four years, falling from 24% to 21%. Employees, particularly managers, feel disconnected. It highlights that engagement fell for female managers by 7% and managers under 35 by 5%.
The report warned that unless addressed by senior leadership, the global issue will filter through the workforce, noting that manager engagement affects team engagement, ultimately affecting overall productivity.
Employee wellbeing has also dropped, with those perceived as ‘thriving’ dropping a percentage point from 34% the previous year. With factors such as housing costs and inflation to consider, it’s unsurprising that work plays a significant role in how employees evaluate their lives.
Europe has the highest proportion of employees not engaged, at 74%, with a further 15% actively disengaged and 30% intending to leave their current roles. This results in a 12-13% engagement rate, consistent with previous years. Despite the low rankings, Europeans were the least likely to experience anger or daily loneliness.
In contrast, the US and Canada were among the most engaged at 31%, with 52% thriving. However, in North America 50% were suffering from high levels of stress and 50% were actively looking for new roles.
The report states that the global workplace is not heading in the right direction. By addressing the issues highlighted in the report, managers - with solid support from Execs, HR and organisational structure - have an opportunity to improve the workplace and drive a surge in productivity.
Only 44% of managers worldwide have received management training, but those that have received training were twice as likely to be engaged and experienced increased thriving and boosted manager performance.
Whilst unrealistic, a fully engaged workforce could add $9.6 trillion in productivity to the global economy. With this in mind, organisations need to address declining employee engagement and productivity levels, creating an environment where managers and teams thrive.
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