Coaching and development are increasingly among the most valuable contributions a manager can make to their team. In an environment where the lifespan of skills is said to be shrinking and AI is impacting workflows, employees “are in need of support more than ever,” according to Deloitte’s 2025 Global Human Capital Trends.

And yet, confidence in coaching is lagging—only 54% of managers feel equipped to coach for career development, according to performance management platform Betterworks.

This gap is more than a missed opportunity—it’s a retention risk. Betterworks data shows 75% of employees prefer to stay with their employer, but a lack of internal career development—often rooted in poor coaching—undermines that intent.

Many orgs are considering AI-enabled coaching tools, which offer scalable, 24/7 positioning. These have their place, but Dr. Marais Bester, senior consultant at assessment provider SHL, says that managers and HR leaders shouldn’t lose their employee coaching touchpoints: “AI can mirror back what you say … but it can’t yet fully replicate the empathy, nuance and real-world experience that a skilled human coach brings.”

Read more from related SHL research | The future of leadership: Elevating the modern manager

AI coaching plus human wisdom

Bester advocates for a blended model—AI for routine conversations, and human coaches for high-trust, emotionally complex moments. “Good coaches read subtle cues, adapt their approach and draw on their own journeys,” he explains.

With that foundation, he says, AI can democratize access to development, preparing employees for career moves, performance feedback or leadership transitions—especially in early-career and remote contexts.

The quick takeaway for HR leaders is that coaching, delivered through both AI and human touch, is a performance and engagement imperative. The challenge ahead is to deploy these tools with care, says Bester, ensuring privacy and relevance while maintaining investment in skilled human guidance where it matters most.

HR tech in the news

Global freelance marketplace Upwork finds AI use at work boosts productivity 40% but strains wellbeing. The firm released a new study, From Tools to Teammates, the latest in a multi-year series exploring how AI is reshaping productivity, roles and workforce dynamics.

Johannes Sundlo, a 2025 Top 100 HR Tech Influencer, has launched ProRio AI to offer AI ethics and change management services. Sundlo guides leadership and teams to implement AI in ways that protect culture, wellbeing and skills.

Go1, a learning content aggregator, added HR Executive Strategy Summit speaker Jenny Dearborn to its board. Her data-driven learning expertise signals deeper investment in strategic L&D and workforce development.

HR tech provider BambooHR announced the launch of its global Employer of Record solution powered by Remote. The offering is designed to help HR teams hire internationally without compliance risks or setting up costly local entities.

Employee experience platforms LumApps and Beekeeper announced a merger to build a $1.1 billion AI-powered employee hub, serving more than 7 million users. HR leaders gain one platform for desk and frontline workers, built to scale to 100 million users.

Vantage Circle, an engagement SaaS platform, announced its integration with Switchfly to offer experiential travel rewards. This partnership expands Vantage Circle into travel and lifestyle rewards, adding experiences to its redemption ecosystem.

RouteMyPlan announced its logistics app for mobile teams, which offers scheduling, real-time tracking and geo-fencing. HR pros in field-based industries can improve punctuality and accountability with automated check-ins.

Context, a start-up backed by Lux Capital and Qualcomm, unveils an AI-native office suite to eliminate repetitive tasks. Built with generative agents, it transforms productivity tools for strategic and creative workforce output.

Global HR and payroll platform Deel has released more than 500 AI-driven updates to its onboarding, payroll and HRIS functionality. The refresh enhances self-service and predictive insights, streamlining global workforce management.

German HR tech firm aconso announced the launch of aconso Insights analytics dashboard for HR teams. The tool helps track KPIs like time-to-hire and proves initiative impact as pressure mounts for quantifiable results.

DailyPay has integrated its on-demand pay product with Würk’s HR platform. The partnership brings financial wellness tools to regulated industries, with zero employer cost or operational disruption.

Earned wage access provider Rain launched embedded pay integration in Workday. Employees access pay instantly through existing workflows, boosting financial wellness while maintaining enterprise-grade security.

A new partnership streamlines freelancer hiring by uniting Papaya Global‘s compliance and payments infrastructure with Worksome’s interface for contractors and hiring managers—eliminating friction and simplifying the process end-to-end.

Thumpr.xyz freelancer marketplace has launched a crypto-friendly platform built on blockchain. Useful for hiring in underserved regions, the system allows direct crypto payments and broad access to global gig talent.

D2L’s new survey of U.S. workers finds strong interest in AI skill-building, but a clear need for more structured support and flexible learning options. The report, Upskill with Purpose, highlights the growing demand for development as tech reshapes workplace roles.

A new survey from Adobe Acrobat reveals candidate turn-offs: missing pay ranges, trendy buzzwords and an obligation to re-enter one’s resume. The report suggests that HR leaders must rethink job listing language and UX to attract and retain top talent.

iCIMS has released its 2025 summer update, introducing new AI-driven features to enhance talent search, content creation and localization. Built on customer feedback, the release focuses on flexible recruiting and a commitment to responsible AI.

More from HR Executive

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