Most human resources executives in the U.S. believe they can handle workplace disruptions from new federal policies, even as more than one-third expect negative impacts on their workforce, according to a new survey.
The Conference Board found that 73% of HR leaders are confident in their ability to navigate current political and regulatory changes, despite 35% expecting Washington’s policies to hurt their organizations.
“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,” said Robin Erickson, head of human capital research at The Conference Board.
Companies increase layoffs amid uncertainty
The study shows companies are taking defensive measures, with 41% of organizations conducting layoffs in the past six months, up from 30% in 2024. This increase comes as organizations prepare for potential economic headwinds, even among companies that expect positive impacts from new federal policies.
Only 5% of HR leaders expect the current administration’s policies to help their workforce, while 29% anticipate no impact and 31% remain uncertain about the effects.
Hybrid work becomes standard practice
Hybrid work arrangements have become the primary model at 57% of organizations, up from 40% in 2024. Meanwhile, fully on-site work dropped to 32% from 44%, and fully remote work fell to 12% from 16%.
More companies are requiring workers to follow specific workplace policies, with 56% now having mandated arrangements – the highest level in three years. Organizations without mandated policies dropped from 12% two years ago to just 5% in 2025.
Workplace mandates create retention challenges
The push for office requirements comes with costs. Among HR leaders with mandated on-site work policies, 44% report struggles to keep workers, compared to 34% of those without such requirements.
Hiring difficulties grow for office workers
Finding qualified professional and office workers has become significantly harder, with 62% of HR leaders reporting difficulties, up from 47% in 2024. The challenge of finding qualified industrial and manual service workers remained steady at 64%.
While retaining professional and office workers has gotten easier, keeping industrial and manual service workers has become more difficult. The gap between these two groups is now the largest in five years of surveys, with 56% struggling to retain industrial workers compared to 32% for office workers.
Employee satisfaction remains high despite leadership concerns
Workers report generally positive workplace experiences, with 63% showing high engagement, 53% planning to stay with their employers, and 51% feeling a sense of belonging.
However, leaders and employees see workplace well-being differently. While 48% of workers report high well-being, only 23% of HR leaders believe their employees experience high well-being – a 25-point 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,” said Diana Scott, human capital center leader at The Conference Board.
The survey included 170 U.S. human resource executives and 530 U.S. workers, conducted from March 7 through April 7.
