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HR Burnout and Tech Gaps: An Internal Talent Emergency

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HR Burnout and Tech Gaps: An Internal Talent Emergency

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Across industries, HR leaders are confronting a growing crisis within their own ranks. While the headlines focus on skills shortages and workforce transformation, many HR functions are quietly running on fumes. The 2024–2025 HRO Today Annual CHRO Survey found that 41% of senior HR leaders are “extremely” or “very” concerned about fatigue and burnout across their teams, this level of strain has outpaced other operational priorities. In EMEA, that number climbs to 52%, underscoring a global pressure point that cannot be ignored (HRO Today).

The Hidden Cost of Leading Everyone Else’s Transformation

HR’s expanded remit over the past five years, spanning workforce planning, AI integration, change management, and mental health, has created a workload surge that few departments were resourced to handle. According to PeopleSpheres, 91% of HR leaders report their roles have significantly transformed in that time, increasing complexity and eroding work-life balance (PeopleSpheres).

This pressure is compounded by the very issues HR is tasked with solving:

  • Workforce stress and disengagement: 74% of employees report negative mental health at work (Monster), which cascades back to HR as a constant firefight.
  • Manager capability gaps: Over half of leaders cite concerns about manager effectiveness, with many lacking formal training (Leapsome).
  • Tech transitions without guardrails: 35% of CHROs are “extremely” or “very” concerned about implementing HR technology, with EMEA leaders reporting even greater frustration (HRO Today).

When Technology Is Supposed to Help—But Doesn’t

The promise of HR technology is clear: streamline processes, improve analytics, and create better employee experiences. The reality is less straightforward. Usability issues, poor integration with legacy systems, and lack of user training can turn new platforms into stress multipliers rather than stress relievers.

While 65% of HR functions now use AI, up 25 percentage points from last year, most of that adoption remains concentrated in talent acquisition, leaving untapped potential in areas like workforce analytics and employee self-service (McKinsey). Without clear change management strategies, these initiatives risk alienating the very teams they’re meant to support.

Skills Gaps Inside the Function

HR is not just managing organizational skills shortages; it is experiencing its own. Only 41% of CHROs rate their training and development capabilities as strong. Yet internal training is cited as the most important lever for closing skills gaps, chosen twice as often as external hiring (HRO Today). This disconnect leaves HR teams underprepared for the advanced analytics, AI governance, and change management demands of the modern workplace.

Why This Is an Executive Problem—Not Just an HR Problem

Burnout in HR is not a personnel issue; it’s a business risk. Fatigued HR teams are more likely to delay strategic initiatives, make reactive hiring decisions, and miss opportunities to proactively close workforce gaps. In an environment where 59% of leaders are already “extremely” or “very” concerned about the availability of skilled workers, any internal breakdown in talent stewardship has a direct line to operational performance.

Moving from Awareness to Action

Addressing HR burnout and tech frustration requires coordinated leadership from HR, IT, and operations:

  • Audit HR workloads to identify low-value tasks that can be automated or redistributed.
  • Pair tech rollouts with robust change management, ensuring usability and adoption are tracked as rigorously as cost savings.
  • Invest in HR’s own skills development, focusing on analytics literacy, AI fluency, and cross-functional leadership.
  • Protect mental health as a strategic asset, embedding it into leadership KPIs and budget priorities. Mental health must be policy not a perk.

The Strategic Imperative for 2025 and Beyond

The organizations that will lead in the next decade understand that the health of the HR function is a direct predictor of overall business resilience. In an era where digital transformation, geopolitical uncertainty, and workforce expectations are converging at unprecedented speed, HR is the operational and cultural engine that keeps talent aligned with strategy. Allowing that engine to overheat risks not only slowing down transformation but also undermining the organization’s ability to compete.

For executive HR, IT, and operations leaders, the path forward demands an intentional shift: prioritizing HR well-being, aligning technology investments with human adoption, and building internal capability at the same pace as external workforce transformation. This isn’t just an HR agenda—it’s an enterprise survival strategy.

Hudson RPO partners with organizations worldwide to strengthen HR capability, close internal skills gaps, and streamline talent operations, so leaders can focus on growth and innovation. Learn more about our approach to building resilient, future-ready HR functions at hudsonrpo.com.

Hudson RPO

Content Team

The Hudson RPO Content Team is made up of experts within the Talent Acquisition industry across the Americas, EMEA and APAC regions. They provide educational and critical business insights in the form of research reports, articles, news, videos, podcasts, and more. The team ensures high-quality content that helps all readers make talent decisions with confidence.

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Hudson RPO Announces Strategic Integration of CMRG to Expand Employer Branding and Talent Engagement Capabilities

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Old Greenwich, CT – August 1, 2025 — Hudson Global, Inc. (the “Company” or “Hudson RPO”) (Nasdaq: HSON), a leading global total talent solutions company, announced today the strategic integration of McKinsey CMO Group (“CMRG”), a boutique firm specializing in recruitment marketing, brand strategy, and talent engagement.

The addition of CMRG’s expertise will enable Hudson RPO to further support clients in building stronger employer brands, elevating candidate experiences, and attracting top-tier talent in today’s competitive hiring environment. Together, Hudson RPO and CMRG will offer a more holistic suite of services, blending best-in-class recruitment operations with cutting-edge employer branding and engagement strategies.

As part of the integration, Crystal McKinsey, Founder & CEO of CMRG, will join Hudson RPO as the Global Head of Marketing. In this role, she will lead the Company’s global marketing efforts and enhance Hudson RPO’s capabilities in talent attraction, employer branding, and candidate engagement.

Jake Zabkowicz, Global CEO of Hudson RPO, noted, “CMRG’s integration into our business represents a pivotal step in our growth strategy and brings new depth to our capabilities in employer branding, marketing strategy, and talent acquisition solutions. By integrating CMRG’s innovative approach and deep industry knowledge, we are delivering comprehensive, end-to-end talent solutions and enhancing our ability to help clients not just fill roles, but also become employers of choice. CMRG’s dynamic team and proven expertise in creating compelling brand narratives combined with Hudson RPO’s global reach and operational excellence, create a powerful platform that complements our mission to help organizations attract, engage, and retain top talent in competitive markets.”

Jeff Eberwein, Chief Executive Officer of Hudson Global, noted, “CMRG adds critical marketing capabilities to Hudson RPO’s growing suite of talent solutions, and the CMRG team will be integrated into Hudson RPO in a very cost-efficient manner. This move underscores our focus on delivering scalable, strategic talent solutions that drive long-term value for our shareholders.”

About Hudson RPO

Hudson RPO is a leading global provider of flexible and scalable total talent solutions.  At Hudson RPO, people, process, and technology come together to ignite transformative change at mid-market and enterprise-level organizations worldwide. Taking a consultative and collaborative approach, we partner with talent acquisition, HR, and procurement leaders around the globe to build diverse, high-impact teams and drive business success. Learn more at hudsonrpo.com.

About Hudson Global, Inc.

Hudson Global, Inc. (Nasdaq: HSON) owns and manages Hudson RPO, a leading global total talent solutions provider.

For more information, please visit us at hudsonrpo.com or contact us at [email protected].

Investor Relations:

The Equity Group
Lena Cati
212 836-9611
[email protected]

Hudson RPO Enters the Japanese Market, the Second Largest Market in the APAC, via the Acquisition of ACG Japan

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Tampa, Fla., July 24, 2025 — Hudson RPO, a global leader in recruitment process outsourcing and talent solutions, announced today the acquisition of Alpha Consulting Group K.K. (“ACG”), a Japan based provider of recruitment services to a variety of companies, ranging from small and medium-sized businesses to blue-chip and multinational organizations mainly in the IT, Technology, Consulting, Pharmaceutical and Life Science sectors.

The acquisition of ACG marks Hudson RPO’s entrance in the large Japanese recruiting market, the second largest market in the APAC region, and home to many multinational companies.  Hudson RPO’s entrance in Japan allows the Company to provide the localized support many of its existing multinational clients are looking for in their recruiting needs for this unique market.

Hudson RPO has already a strong presence in Australia, China, India, and Singapore, and it has been named No. 1 overall RPO provider in APAC, according to HRO Today magazine’s Baker’s Dozen list of top enterprise providers, for two years in a row.

Jake Zabkowicz, Global CEO of Hudson RPO noted, “We are excited to bring ACG into the Hudson RPO organization.  ACG brings valuable local expertise, and the team’s drive and passion for servicing clients aligns very closely with the Hudson RPO values.  With the ACG acquisition, we will now have a well-established team, entity structure, and the expertise needed to take advantage of new opportunities in the second largest market in the APAC region.  We are already in discussions with many current clients now looking to expand in the region.”

Kunal Punjabi, Founder & CEO of ACG, “Becoming part of the Hudson RPO team is going to allow us to fulfill our mission of becoming a leading talent solution provider within both the Japan and the broader APAC markets.  Since I founded ACG in 2022, our team has been driven by the goal of providing best-in-class talent solutions services to our clients in Japan, and now as part of the Hudson RPO family we have the ability to offer our expertise and serve clients in the greater APAC market.  I am excited ACG is now part of a global company with a leading position in APAC.” 

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Dan Davenport
[email protected]
732.895.3192

About Hudson RPO

Hudson RPO is a leading global provider of flexible and scalable total talent solutions.  At Hudson RPO, people, process, and technology come together to ignite transformative change at mid-market and enterprise-level organizations worldwide. Taking a consultative and collaborative approach, we partner with talent acquisition, HR, and procurement leaders around the globe to build diverse, high-impact teams and drive business success. Learn more at hudsonrpo.com.

Hudson RPO Acquires Alpha Consulting Group (ACG) Japan

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Acquisition Marks Entrance into Japan, Enhancing Hudson RPO’s Already Strong Leadership Position in the APAC Region

OLD GREENWICH, Conn., July 23, 2025 (GLOBE NEWSWIRE) — Hudson Global, Inc. (the “Company” or “Hudson RPO”) (Nasdaq: HSON), a leading global total talent solutions company, announced today the acquisition of Alpha Consulting Group (“ACG”), a Japan-based (Tokyo) provider of recruitment services to a variety of companies, ranging from small- and medium-sized businesses to blue-chip and multinational organizations primarily in the IT Services, Technology, and Business Services sectors. Entrance into the Japanese market represents a localization strategy for Hudson RPO in the 2nd largest market within APAC and the 3rd largest market globally.

Jake Zabkowicz, Global CEO of Hudson RPO, noted, “Today’s announcement fits well with our three-pronged strategy of growing our business organically and through accretive bolt-on acquisitions via the expansion of: a) our client base, b) our geographic footprint, and c) our capabilities and cross selling of services across regions and clients. At the same time, it gives Hudson RPO immediate access to ACG’s impressive list of current clients in Japan. We welcome ACG’s employees and clients into our team and company and look forward to collaborating with them on many solutions for new and existing clients of both our companies.”

Jeff Eberwein, Chief Executive Officer of Hudson Global, noted, “The acquisition of ACG provides Hudson RPO the capability to provide local and on-site support within the large Japanese recruiting market, a home of many multinational companies, and represents an important milestone for Hudson RPO because we are now able to support our existing clients’ needs in Japan. With an already strong presence in the APAC region, our entrance into Japan fills the last remaining geographic area required to make Hudson RPO a truly global service provider to our clients.”

About Hudson RPO

Hudson RPO is a leading global provider of flexible and scalable total talent solutions. At Hudson RPO, people, process, and technology come together to ignite transformative change at mid-market and enterprise-level organizations worldwide. Taking a consultative and collaborative approach, we partner with talent acquisition, HR, and procurement leaders around the globe to build diverse, high-impact teams and drive business success.  Learn more at hudsonrpo.com.

Upskilling in Crisis: Why Most Efforts Fail and How to Build a Business-Aligned Skills Roadmap

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Upskilling in Crisis: Why Most Efforts Fail and How to Build a Business-Aligned Skills Roadmap

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In boardrooms across North America and EMEA, CEOs and CHROs are wrestling with an uncomfortable truth: the very capabilities needed to drive future growth—technical acumen, adaptive leadership, and data-driven decision-making—are in critically short supply. Despite broad agreement that closing these skills gaps is a top business priority, most corporate upskilling efforts continue to fall painfully short.

The latest HRO Today Annual Top Concerns of CHROs report, sponsored by Hudson RPO, underscores just how severe this problem has become. In boardrooms across North America and EMEA, CEOs and CHROs are confronting a critical challenge: 44% of workers’ skills will be disrupted by 2027, yet only 7% of organizations have made significant progress on strategic upskilling programs that blend soft, technical, and digital skills. This skills gap is not just an HR headache—it’s a significant business risk.

Key Failure Drivers

  • Overreliance on outdated internal training
    While 55% of CHROs say internal training is their primary tool for closing skills gaps, most lack robust, modern learning ecosystems to deliver on this promise. Only 41% rate their L&D capabilities as strong and just 5% say they’re “very strong” HRO Today Annual Top Concerns of CHROs. Both regions admit their L&D capabilities are largely mediocre and these poor ratings highlight a major performance gap.
  • HR teams under strain
    Making matters worse, HR teams themselves are facing acute strain with 38% of North American and 52% of EMEA HR functions reporting burnout, jeopardizing their ability to support upskilling effectively. When the very teams tasked with driving upskilling are exhausted, meaningful progress stalls.
  • Misalignment with business strategy & budgets
    Securing investment is tough. This misalignment shows up in funding: 25% of North America and 55% of EMEA HR leaders say obtaining budget for HR technology (including learning systems) as a major hurdle for HR tech and learning is a top concern. That’s a red flag when 44% of core employee skills are already at risk (Hudson RPO). Too often, upskilling remains siloed within HR, disconnected from core business objectives. The HRO Today data shows only 41% rate their training capability as strong—yet the most common approach to close skills gaps is still internal training.

    Meanwhile, the World Economic Forum warns that 44% of workers’ core skills will be disrupted within five years, but only half of employees currently have adequate access to training. If upskilling isn’t explicitly tied to the capabilities your organization needs to compete with, such as faster product development cycles, superior customer experiences, or new market entry, it will never receive the investment or executive sponsorship it requires.

  • Leadership Blind Spots and Operational Headwinds
    No learning initiative can succeed without effective leadership. Yet over 52% of global HR leaders say they remain concerned about leader and manager effectiveness, with concerns notably higher in EMEA (59%) than North America (48%) (HRO Today). This matters immensely. During economic uncertainty, whether from inflation, geopolitical tensions, or looming recessions, managers need to lead teams through change with confidence.

    Unfortunately, many aren’t prepared. In the UK, a staggering 82% of managers are “accidental managers,” promoted without formal training, resulting in inefficiencies and often toxic cultures and in the US fewer than 41% of managerial jobs ask for management skills as a requirement. Without leadership that champions upskilling and models continuous learning, most initiatives will remain at the surface level. Without equipping leaders to champion upskilling and continuous learning, most initiatives struggle to gain traction.

  • Technology outpacing people transformation
    AI’s rapid rise has only sharpened the divide. HR’s use of AI surged from 40% to 65% in one year, yet only 41% of North American and 53% of EMEA leaders feel prepared to lead in this AI-driven future (Hudson RPO). Nearly 45% of HR leaders globally now say AI will be the biggest disruptor to HR in the next two to three years, yet most organizations lack complementary strategies to prepare employees for these shifts (Gartner).

This technology-first transformation without a people-first roadmap is widening critical gaps in readiness. 

Why Leadership Readiness is Your Linchpin

In Hudson’s blog The AI Effect: Is Your Leadership Ready for What’s Next?, we emphasize that nearly 45% of senior HR leaders see AI as the biggest disruptor to HR in the next 2–3 years, yet readiness remains low at only 41% in North America, 53% in EMEA (Hudson RPO). That means even as organizations aggressively adopt AI, many leaders aren’t equipped to guide their teams through this transition.

What High-Performers Do Differently

At Hudson RPO we take a different approach to treat upskilling as a strategic asset linked to business outcomes:

  1. Align skills development with strategic goals
    Determine which skills matter most for growth, innovation, or market expansion and build training around those priorities.
  2. Invest in modern, adaptive learning ecosystems
    Use microlearning, peer learning, and AI-powered personalization to boost relevance and engagement.
  3. Retaining employees who have been upskilled, knowing that clear pathways for development drive engagement and reduce turnover (HRO Today).
  4. Equip managers as learning champions
    Tie leadership effectiveness to their ability to develop talent and support team members.
  5. Secure executive sponsorship and protected budgets
    Treat upskilling as a business investment, not discretionary HR expenditure.
  6. Measure impact using business KPIs
    Connect learning outcomes to time-to-market improvements, innovation velocity, retention rates, and customer satisfaction.

Interestingly, North American firms rank retention first, while in EMEA, the priority is enabling employees to learn future-critical skills, highlighting regional differences but a shared strategic urgency.

The Hudson RPO Perspective: Build a Business-Aligned Skills Roadmap

At Hudson RPO, we see the same pattern across clients worldwide: organizations that successfully close skills gaps don’t treat upskilling as an HR project. They make it a board-level business strategy tied directly to revenue, market differentiation, and customer impact.

If your upskilling initiatives aren’t tied to clear business objectives, they’re not preparing your workforce for disruption—they’re creating a liability. By integrating strategic workforce insights, like those powering Hudson’s TalentIQ platform, leadership development, and RPO services, you can turn upskilling into a powerful competitive advantage.

Now is the time to build a business-aligned skills roadmap that protects your bottom line and ensures your workforce is ready to lead, adapt, and outperform in the markets ahead.

Hudson RPO offers support in designing and implementing data-driven, business-aligned skills roadmaps. Whether accelerating AI literacy among your leadership or rolling out scalable micro-learning for frontline employees, we can help you upskill your existing workforce that’s ready for tomorrow.

Hudson RPO

Content Team

The Hudson RPO Content Team is made up of experts within the Talent Acquisition industry across the Americas, EMEA and APAC regions. They provide educational and critical business insights in the form of research reports, articles, news, videos, podcasts, and more. The team ensures high-quality content that helps all readers make talent decisions with confidence.

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Retention Under Pressure: Keeping Talent in a Shifting Market

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Retention Under Pressure: Keeping Talent in a Shifting Market

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In today’s market, retention isn’t just a lingering concern — it’s a strategic imperative. Even as hiring cools in many sectors, 54% of CHROs still rank retention among their top concerns, up three points from 2023, according to the 2024-2025 HRO Today Annual North America and EMEA CHRO Survey, sponsored by Hudson RPO. For CEOs and CHROs, the stakes are clear: losing top talent can undercut long-term growth, innovation, and competitiveness. 

Why Retention Remains a Top Concern

While global unemployment remains low by historical standards, economic uncertainty and market volatility are reshaping how employees view their options. In many industries, tight job markets actually reduce turnover risk, with employees reluctant to make moves. However, that’s no cause for complacency. A sudden rebound in hiring, or emerging competitors with compelling offers, can quickly change the dynamic. A fragile sense of security can quickly reverse, leaving organizations vulnerable when economic conditions shift. 

The cost of turnover remains steep: from productivity disruptions to recruiting and onboarding expenses often total 50–200% of an employee’s annual salary. Poor retention strategies can undermine an employer brand and force companies to chase replacements instead of building long-term capability. Retention also impacts other boardroom priorities: 

  • Workforce planning and skills gaps: With 55% of CHROs citing internal training as their main strategy to close skills gaps, retaining employees long enough to benefit from these investments is non-negotiable. Yet only 41% believe their training capabilities are strong (HRO Today CHRO Survey). 
  • Leadership pipeline risks: Just 43% of senior leaders in North America (and 53% in EMEA) feel prepared to lead in tomorrow’s workplace, exposing organizations to deeper risks if attrition accelerates. 

Gen Z and Millennials: Retention Hinges on Purpose, Flexibility, & Growth

Younger workers continue to reshape retention dynamics. Gen Z and Millennials want more than pay — they seek meaningful work, flexibility, and development opportunities. According to the survey, retention strategies that fail to address these expectations risk falling flat. Hudson RPO emphasizes this point in their blog Beyond the office walls: the power of flexible work models. These generations expect more and offer more we companies deliver new work models, and better upskilling. This echoes broader global studies showing that employees who see opportunities for professional growth are far more likely to stay. 

Another important way to reach these generations for career pathing is through internal upskilling and reskilling programs. These programs don’t just close critical gaps — they build loyalty. In one manufacturing study, targeted upskilling drove significant gains in job satisfaction and opened new career paths, underscoring the retention power of investment in employee development. 

How Forward-Looking Companies Are Responding

Faced with economic uncertainty and shifting workforce values, forward-thinking organizations are addressing pressures: 

  • Doubling down on internal training: 59% of North American CHROs see internal training as critical, well above their EMEA peers at 41%. Done right, these programs close skills gaps and strengthen retention by signaling a commitment to employee growth (HRO Today). 
  • Building culture through leadership: Hudson RPO’s leadership development resources stress that strong managers are pivotal in retaining talent, fostering trust, and ensuring daily engagement. leadership drives day-to-day engagement; many firms are investing heavily in manager coaching to strengthen culture and trust — key drivers of loyalty. 
  • Prioritizing employee wellbeing: With 45% of CHROs citing mental health and stress reduction as major concerns, organizations are embedding wellness into their retention strategies, knowing that burnout directly drives attrition. 

The Bottom Line: Retention Is a Leadership Strategy

In this uncertain market, holding onto your best people isn’t just HR’s problem — it’s a boardroom agenda item. Retention strategies that truly integrate career development, leadership, wellbeing, and culture are proving most resilient. Even amid a slower hiring market, the risks tied to attrition haven’t disappeared — they’ve simply evolved. Holding onto talent now demands a sharper focus on aligning development, culture, and purpose with employee expectations. 

As Hudson RPO puts it, “retention today is about meeting employees where they are, understanding what motivates them, and proactively building pathways for growth and purpose.” 

For CEOs and CHROs, the question isn’t if retention deserves attention, but whether current strategies are truly built to withstand economic shifts and rising workforce demands. As the data makes clear, there’s little room for standing still. 

Explore more insights from the latest HRO Today Annual CHRO Survey, sponsored by Hudson RPO, here.

Or contact us to discuss how we can help you strengthen your talent strategy in this market.

Hudson RPO

Content Team

The Hudson RPO Content Team is made up of experts within the Talent Acquisition industry across the Americas, EMEA and APAC regions. They provide educational and critical business insights in the form of research reports, articles, news, videos, podcasts, and more. The team ensures high-quality content that helps all readers make talent decisions with confidence.

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