U.S. companies are tapping the brakes on hiring as economic and policy uncertainty lingers. According to a new report from The Conference Board, 1 in 5 Chief Human Resource Officers (CHROs) now expect to reduce hiring in the next six months — nearly double the share from a year ago.
Instead of growing headcount, many HR leaders are shifting focus inward. Half of the CHROs surveyed said they’re investing in change management training for senior leaders, while 43% are supporting similar development for frontline managers, according to PR Newswire.Â
Despite the cooling job market, overall sentiment among CHROs remains stable. The group’s Confidence Index ticked up slightly to 56 in Q2, from 54 in the previous quarter — readings above 50 indicate a generally positive outlook.
Key findings from the Q2 CHRO Confidence Index:
- Hiring: Expectations continue to decline, with only 36% of CHROs planning to increase hiring and 20% planning to cut back — up from 11% a year ago.
- Retention: Nearly one-third of CHROs expect retention to improve in the next six months, while just 16% foresee a decline.
- Engagement: Optimism is rising, with 45% of CHROs predicting higher employee engagement, compared to 42% in Q4 2024.
When it comes to navigating change, confidence is relatively high: 69% of CHROs report feeling confident or very confident in their organization’s ability to manage change. Beyond training, 36% are implementing standardized change management practices, while 14% are bolstering existing teams.
Political dynamics are also influencing sentiment. Half of CHROs now expect current federal policies to negatively impact the workforce — up from 36% in March.
With hiring plans tapering and focus turning to agility and resilience, the report signals a recalibration in how businesses approach talent strategy in a changing environment.
