HR Strategy Brief — January 2025

Featured Trend: AI Adoption in Small Businesses

1. Big Trend of the Month: AI Adoption in Small Businesses

Small businesses are accelerating their use of AI—not to replace employees, but to offload repetitive tasks, improve decision-making, and reduce HR workload. The biggest areas of adoption include:

• Resume screening & hiring automation

• Employee onboarding workflows

• HR documentation and policy generation

• Analytics for turnover, absenteeism, and engagement

• Chatbots for employee questions (benefits, PTO, onboarding)

Why This Matters:
AI is becoming a competitive advantage, not a luxury. SMBs who use AI strategically can reduce administrative HR time by 30–60% and reinvest that time into people strategy, culture, and employee experience.

2. Compliance Corner (Quick Hits)

• AI & Data Privacy: Several states are introducing laws requiring transparency when AI is used in hiring.

• Benefits Reporting Changes: IRS clarifications impacting small employers with HRA/ICHRA plans.
  
  

3. Leadership Insight of the Month

Leaders who embrace AI early will spend less time managing tasks and more time leading people.

The shift is not from work to technology, but from administration to strategy.

4. Talent & Culture Watchlist

• Employees expect faster communication and self-service options.

• Hybrid work pressures continue; burnout risk increases when teams lack clarity.

• Candidates judge companies on how modern and efficient their processes feel.
  
  

5. Action Steps for Business Owners This Month

✔ Audit your HR workload — Identify tasks that take >20 hours/month and explore AI tools that can support them.
✔ Update your hiring policy — Add language on the ethical use of AI tools for screening.
✔ Train leaders — Teach managers how to use AI prompts for coaching, performance feedback, and documentation.
✔ Add one employee self-service capability — PTO tracking, onboarding checklists, or automated reminders.
✔ Start small — Choose one workflow to automate in Q1 (interview scheduling, onboarding documents, etc.)