Most Important HR Models to Know in 2025

The field of Human Resources is constantly evolving. As the nature of the work and the workforce change, so do the policies. Staying updated about these changes is necessary for an HR professional.

Furthermore, there are some HR models that help tackle the key trends like AI and automation. Therefore, in 2025, human resource managers must be aware of these models, understand what they do, and recognise how they can help.

But what are they?
If that’s what you want to know, then consider reading our blog. Here we will walk you through the important HR models you need to know in 2025.

Come on! Let’s have a look.

Top HR Models That Are Changing the HR Outlook in 2025

The HR Value Chains

The HR value chain is a framework that outlines the connection between the overall business and HR strategy. Designed on the concept of Jaap Paauwe and Richard Richardson in 1997, exploring the strategic alignment between HRM and organisational performance. Furthermore, this focuses on HR functions that can create value for the organisation.

There are five key elements of this HR concept that you need to be aware of. They include:

• HR Strategy: Think of it as a high-level plan that helps manage talent in the organisation. Furthermore, it helps outline the overall goals and direction for HR programs.
• HR services: They help in running transactional programs, processes, and systems within the HR department. This primarily includes tasks such as payroll, benefits administration, and HRIS systems.
• HR Resources: It even helps handle infrastructure, staffing, budgets, and technology, which enables HR to operate effectively. Having these resources is essential for delivering effective HR services and strategies.
• HR Management: The talent management practices for recruiting, developing, compensating, and managing people in the company. Furthermore, this covers key programs like hiring, training, and performance reviews.

This model illustrates the relationship between essential outcomes and operations. Furthermore, HR leaders must demonstrate how investing in employees can lead to improved business results by enhancing productivity, profitability, and other key measures. If you would like to learn more about this, consider connecting with our HR Assignment Help services. They will provide deeper insights and can help you prepare a report on these models.

The Harvard Model of HRM

Here comes another crucial HR model that you should be aware of. Developed in 1984 by Michael Beer and his colleagues at Harvard University, this model offers a comprehensive framework for HRM. It mostly links HR policies and practices to organisational performance.

This Harvard Model for HR shows the role of the HR manager in supporting overall business objectives and strategies.

Here are the four components that you need to know about.

Stakeholder Interests

This model recognises that a company has various stakeholders with interests that impact its HR policy choices. The key stakeholders include:

• Shareholders; They are primarily interested in profits, share price, and dividends.
• Managers: Furthermore, they want to boost business growth, productivity, and efficiency.
• Employees: They want fair compensation, job security, and opportunities.
• Unions: These mostly represent employee interests like better pay and perks.

Situational Factors

When it comes to managing HR policies, various external and internal factors must be considered.

Not only do you have to look for the state of the economy, which impacts hiring. However, you also need to consider the supply and demand of talent. It can significantly impact recruiting.

Additionally, there are some employment, safety, and health laws. Even social trends, such as work-life balance, can impact this.

Moreover, as technology becomes a major part of AI, changes in automation and other aspects can impact jobs. Additionally, the job market competition is quite tough.

HRM Policy Choices

When creating HR policies, they must be designed with consideration of various factors. Here are the key deciding factors that you need to know about:

1. Providing the channels for information sharing with employees.
2. Furthermore, having the recruitment sources and selection process.
3. Having employee development programs is the best.
4. Offering pay, benefits, and rewards is also essential.

HR Outcomes

When HR policies are made according to the stakeholder needs and other factors, outcomes are positive. Here is what it includes:

• Employees who feel welcome and are engaged.
• Furthermore, a skilled and capable workforce.
• Efficient HR operations.
• HR strategy that fits with the company’s goals

Thus, this framework ensures HR decisions are considered under the full context. Also, it shows the impact on stakeholders. Moreover, it leads to policies aligned with the external and internal space.

Other HR Models

While the above two are crucial, there are other HR models that you need to be aware of. They include:

• The employee experience model
• The skill-based workforce model
• Moreover, the employee value chain model.

Why These Models Are Vital in 2025?

Here comes the most asked question. Why is understanding these models essential in 2025? Well, because:

• Many models now use practical applications of AI. Thus, this offers personalised experiences, automated processes, and data-driven insights.
• Additionally, models are learning how to manage diverse work models. This includes both hybrid and remote workforces, offering flexibility to the employees.
• Moreover, these models now focus on employee well-being. Additionally, they are being incorporated into the culture and employee experiences. This prevents burnout and improves retention.
• Also, there is a need for continuous learning and development. The reason is that it is a core part of the model. The main reason for this is to build future-ready workforces. Furthermore, they need to make these models ready to adapt to the tech changes as well as skill shortages.
• The best thing is that the models are now being used to foster inclusive workplaces. Their aim is to ensure equitable workplaces. Also, they want to make sure that the employees feel valued. It even brings a sense of belonging.

Wrap Up!

This brings us to the end of the guide! In brief, understanding the HR models of 2025 is crucial. This prepares them for the challenges and future trends. Furthermore, they help in creating a safe space for the employees. By understanding the models, HRs can adapt to changes effectively.