CHRO Survey: Cultures strengthen as flexible work models evolve

After three years of volatility and staff reductions that took a toll on employee morale, CHROs entered 2025 in a brighter mood. Responding to our fourth annual survey, they spoke of a gradual return to the office and strengthening corporate cultures. Their answers represent a global view, as 39% of respondents were from the United States, and the rest spread across Europe, Asia, the Middle East, and Latin America.

To be sure, optimism may be short-lived. The survey was fielded in March, before the U.S. imposed steep tariffs, injecting a new dose of unpredictability into the global economy. Still, the survey captures the mindset of CHROs in the first quarter of the year.

Here’s a closer look at what was top of mind for CHROs. 

Perhaps the clearest sign of improvement for HR leaders at high-growth tech companies relates to culture: 44% of CHROs described their culture as “thriving” — the highest rating we’ve seen in three years. In 2024, only 22% said their cultures were thriving; the year before, just 30%.

What’s behind this upswing? Our survey indicates a shift toward stability. The portion of companies reporting layoffs in the last 12 months dropped to 39%, a steep decline from 59% the year before. The pain from layoffs, however, was not evenly distributed. The highest percentage of companies reporting layoffs was in the U.S. (46%) while the lowest was in Asia and the Middle East (25%).

“It’s encouraging to see so many CHROs describe their cultures as thriving — double the number from last year,” says Michelle Aylott, CHRO of SoftBank Investment Advisers. “That kind of shift doesn’t happen by accident. It shows what’s possible when organizations create the space for people to do their best work and feel part of something meaningful.”

In a sign that companies are prioritizing strategic, selective growth over broad expansion as they navigate the uncertainty of 2025, the pace of hiring is also slowing, though it remains robust. Last year, 89% of CHROs told us they were hiring, either for select roles or across the organization broadly. This year, that figure fell to 77%. 

“Strong CHROs will make sure that their company is opportunistic, bringing in people who not only connect with their culture but have the right skills,” says Erica Keswin, author of three influential books on people leadership, including The Retention Revolution. “Even in times of unprecedented change, we’ve got to think long-term.”

Aylott stresses balance: “CHROs are navigating a dynamic environment. The challenge is balancing in real time: knowing when to hire, when to pause, and how to respond to shifting market signals without overcorrecting. When we do experience periods of stability, it’s a chance to work on workforce design — how we build our teams for the future.”

Another long-term goal for CHROs is diversity. Despite political headwinds, companies are largely forging ahead with DEI efforts, although they may call it something else. Only 14% of companies said they are rethinking their DEI efforts, while 21% said they are strengthening them, and 65% said they are staying the course. Because, as Keswin says, “When we think about attracting and retaining talent, especially early career talent, which is Gen Z, DEI is important to them.”

Ravin Jesuthasan, a bestselling author on the future of work who teaches the topic at Caltech and the University of Chicago adds, “When you’re in uncertain times like we’re in now, there is such a premium on diversity, because it’s what drives that innovation. It’s at a much higher premium now than perhaps when times are stable and predictable.”

After a five-year embrace of flexible work policies that became a necessity because of the COVID-19 pandemic, companies appear eager to bring workers into the office with more frequency. This year, 47% of CHROs told us their organizations either increased the number of required in-office days or shifted to a fully in-person modality.

Many leaders believe that in-person work can be crucial for early-stage teams. Ideas flow faster, feedback can be instant, and culture is reinforced through daily interactions. Leaders recognize these benefits. The share of companies working entirely in-person nearly tripled from last year (6%) to this year (18%). Meanwhile, hybrid setups declined to 71% from 81% the previous year.

Management experts advise that bringing people back to the office cannot be simply a matter of changing the rules. It has to be intentional. “When people commute in only to sit on Zoom calls all day, they feel frustrated and resentful,” Keswin says. “But when companies make the in-person experience meaningful, it can boost morale, connection, and productivity.”

The return-to-office debate is, then, more than a policy shift. It is a test of trust, culture, and leadership, moderated by the power dynamic between employers and employees. Today, the shift seems to be accepted by a majority of employees: Just 15% of CHROs said their change in policy toward more in-office work resulted in strong pushback from employees, and 18% said it resulted in higher attrition rates. Meanwhile, 59% said their policy shifts were greeted with mild pushback, and 26% said they were widely accepted. 

Work modalities continue to vary significantly by geography: the U.S. has the highest rate of fully remote companies (27%), Asia and the Middle East have the highest rate of fully in-office companies (58%), whereas Europe and Latin America have the highest rates of hybrid companies, 94% and 80% respectively. 

Even as return-to-office policies take hold, CHROs understand that the competitive advantage remains finding talent, growing it, and doing what they need to do to keep it. 

“I think we’re going to see this plurality of means for work,” Jesuthasan says. “The companies that win are going to be the ones who can secure their supply of talent and not be dogmatic about 100% in the office, or 100% not. The challenge is to strike the balance between making it attractive for people and ensuring a workforce that’s both productive and innovative.”

Explore the full survey results, segmented by region, sector, and stage, on Sōzō Pulse.