Key HR Skills and Competencies Every HR Professional Needs

Written by Salary.com Staff
February 14, 2025
Some HR skills and competencies that HR professionals need to develop include critical thinking, data analytics & people analytics, and change management.

A skilled HR professional plays a critical role in an organization's success, shaping workplace culture, employee engagement, and workforce planning. If you are pursuing an HR career or seeking to advance with additional training—it is essential to develop key HR skills and competencies.

Research shows that 92% of HR executives believe people managers are "critical" to organizational success. Also, companies with strong talent strategies experience 3.5 times the revenue growth of those without.

This article examines essential hr skills and competencies examples that drive organizational success and answers common questions to help HR professionals improve their impact and career growth.

What are HR skills?

HR skills refer to a diverse range of abilities important for effectively managing an organization's workforce and HR processes. Unlike competencies, HR skills focus on practical tasks like communication, problem-solving, adaptability, and essential soft skills.

As HR continues to evolve, skill gaps are becoming a growing concern. Reports show that many HR professionals struggle with people analytics, data analysis, and HR technology adoption. These gaps make it harder to leverage modern HR tools effectively.

To close these gaps and improve HR capabilities, organizations are encouraged to invest in upskilling and reskilling their HR personnel. Salary.com's Skills and Competency Library helps companies identify the skills HR employees need to effectively perform their job responsibilities.

Examples of HR skills to consider in 2025

As HR evolves in 2025, professionals should develop key skills to stay fully competitive, such as:

Agile and adaptive

The ability to quickly adapt to changes is important. A 2024 article stresses the need for organizations to promote agility, encourage innovation, and eliminate obstacles to change.

Communication and interpersonal skills

Effective communication remains a cornerstone of HR. Reports suggest that mastering clear and concise writing, critical listening, and conflict management is essential for HR professionals.

Critical thinking and problem solving

A report identified critical thinking and problem-solving as top skills employers believe will grow in prominence and become in-demand skills across industries.

Emotional intelligence

The ability to understand and manage emotions is also critical. Reports note that emotional intelligence improves interpersonal relationships and promotes career advancement.

Lifelong learning

Ongoing skill development is necessary for HR practitioners. An HR expert suggests that investing in upskilling and reskilling programs is key to staying competitive in the evolving job market.

What are HR competencies?

HR competencies are the essential skills, knowledge, and behaviors that enable human resources professionals to effectively fulfill their roles and contribute to organizational success.

Unlike HR skills, which are specific and teachable abilities, HR competencies focus on how effectively and appropriately those skills are utilized.

For example, an HR professional with data analysis skills uses that ability to analyze turnover, identify trends, and create HR strategies to improve retention. The competency is in applying the skill to make informed decisions that drive business success.

Skills Library allows organizations to identify and cultivate essential HR competencies and skills for professionals in the field. It helps them assess and improve their skills to make better decisions and support success.

HR competencies list for 2025

Here is a list of HR competencies that HR professionals need to develop, following the evolving demands of the workplace in 2025:

Data analytics & people analytics

The integration of data analytics into HR practices is important for informed decision-making. A 2025 report indicates that employers anticipate significant skill disruptions by 2030, with 44% of workers' skills expected to be affected. To address this, 70% of company leaders recognize the need to bridge the skills gap through data-driven strategies.

Digital HR and technology proficiency

AI and automation are transforming HR by streamlining manual tasks, yet adoption remains low, with only 25% of HR leaders or managers using AI regularly in the workplace. This proves the need to enhance digital skills, especially as 78% see AI and people metrics as key to HR’s future.

Employee experience (EX) design

Designing a positive employee experience is vital for retention and productivity. According to a recent report, employees with positive employee experience are 68% less likely to consider leaving their organization. So, knowing this can help drive employee loyalty and engagement.

Change management and agility

The rapid advancement of technology necessitates effective change management and organizational agility. A 2025 report shows that managing change will be crucial as companies face digital transformations, mergers, and disruptions. An HR team that manages change well will help organizations stay adaptable and resilient during business challenges.

Diversity, equity, & inclusion (DEI) expertise

Promoting a diverse and inclusive workplace is a strategic advantage. A recent insight report points out DEI as a key focus for HR in 2025. HR must go beyond quotas and build an inclusive culture where all employees feel valued. This involves promoting diverse leadership, equal pay, and mentorship for underrepresented groups.

How to improve HR skills and competencies

Improving your human resources skills and competencies is an ongoing process that takes dedication and a desire to learn. Here are the key steps:

  1. Identify your strengths and weaknesses: Evaluate your current HR skills to understand what you do well and where you need improvement. For example, you might excel in talent management but need to improve strategic thinking. This helps you focus on areas that need more attention for effective growth.

  2. Focus on key HR skills and competencies: Prioritize important HR skills and competencies, such as communication, leadership skills, conflict resolution, and talent management, to guide your development and improve your work.

  3. Seek learning opportunities: Continue to expand your knowledge through workshops, online courses, certifications, and mentorships. These resources help you gain new insights and improve your HR practice.

  4. Practice and apply your skills: Improve by practicing your skills in real work situations or through volunteer opportunities. This helps you refine your abilities and gain confidence.

  5. Stay updated with industry trends and best practices: HR is always changing, so stay informed about new laws, trends, and technologies. Keep up by reading industry publications, attending events, or joining HR networks.

If you're planning to include HR skills and competencies for resume, always consider highlighting those that are relevant to the job and demonstrate your ability to achieve key outcomes.

Find the most in-demand skills for HR with Salary.com's comprehensive skills and competency data and AI-powered software.

FAQs

Here are some common questions about human resources skills and competencies:

What is competency vs skill?

Competency is the ability to use skills and knowledge to achieve a result, while a skill is the ability to perform a task. Competencies are broader, including a mix of skills, knowledge, and behaviors.

For example, communication is a skill, while effective communication is a competency that uses that skill along with other knowledge and behaviors to achieve a result.

What skills do you need for HR?

For 2025 and beyond, An HR manager needs skills in communication, critical thinking, problem-solving, emotional intelligence, digital HR, data analytics, adaptability, change management, and continuous learning.

Remember, HR professionals serve as key contributors to the organization's success, supporting its goals and creating a positive work environment.

What is the skills matrix in HR?

In Human Resources, a skills matrix is a visual tool (like a chart) that helps the HR department map employee skills and proficiency. It identifies current skills, highlights gaps, and supports decisions on training, hiring, and resource allocation.

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