2025 HR Talent Trends and Strategies
March 6, 2025 – As organizations adapt to a shifting workforce landscape, HR leaders are prioritizing six key areas in 2025. Workforce planning is critical, yet few companies take a long-term approach, despite challenges like automation and leadership retirements. Change management is another pressing issue, with HR playing a vital role in reducing employee fatigue and preparing managers for transitions. Addressing these challenges strategically will help organizations stay competitive and resilient.
Technology and workplace expectations are also reshaping HR strategies. While AI streamlines recruitment, candidates still value human interaction. Companies are shifting toward skills-based hiring, prioritizing qualities like resilience over formal degrees. A strong employee value proposition ( remains essential, and the hybrid work model continues to dominate, with employees resisting full-time office mandates. As HR evolves, its role in driving agility and employee-focused strategies will be key to long-term success.
Bill Benson with NPAworldwide member firm WilliamCharles Search Group, recently discussed six HR talent trends to watch in 2025.
1. Workforce Planning and Organization Development.
“Aligning human resources and talent strategies with both short- and long-term business goals has become increasingly critical due to significant shifts in the labor and professional talent markets,” Mr. Bensen said. Despite this urgency, a recent Gartner survey reveals that only about 15 percent of companies engage in strategic workforce planning. Why is this a pressing need? Mr. Bensen explained to consider the following examples:
Automation in Manufacturing: As manufacturing shifts towards greater automation, the current workforce may struggle to adapt, leading to higher turnover rates. To address this, companies must redefine hiring criteria, implement reskilling programs, and establish new hiring projections to meet the demands of an automated environment.
Located in Grand Rapids, MI, WilliamCharles is an executive search and professional recruiting firm specialized in finding managerial and executive talent in finance, HR, operations, sales/marketing as well as president/CEO roles. They have a concentration of clients in Michigan but they also work across the U.S. Functional specialties include executive management, operations, finance, sales/marketing and supply chain. We work extensively with family owned business as well as PE owned companies. Mr. Bensen is a past chairman of the NPAworldwide board of directors.
Leadership and Workforce Retirements: Organizations are facing a surge in retirements, particularly in leadership roles. For instance, some companies anticipate that nearly 50 percent of their leaders will retire in the coming years. Similarly, hospitals are experiencing record levels of nurse retirements. While managing these short-term challenges can be overwhelming, it is equally essential to step back and develop a long-term strategy to ensure sustained success.
2. Change Management.
“Both employees and leaders are navigating an era of rapid transformations, driven by HR talent trends, workplace shifts, advancing technology, leadership transitions, and evolving competitive landscapes,” Mr. Bensen said. These dynamics have led to widespread change fatigue, with 73 percent of HR leaders citing it in a recent Gartner survey. Additionally, 74 percent of managers acknowledge they are not adequately prepared to guide their teams through these transitions.
Related: Hiring Confidence Slows as Employers Steer Economic Headwinds
“This highlights the essential role of HR in supporting change management,” said Mr. Bensen. “By addressing HR talent trends, fostering readiness, providing targeted resources, and equipping leaders to handle change, HR can alleviate fatigue, strengthen leadership capabilities, and ensure smoother organizational transitions.”4.
3. HR Technology.
Understanding how to use AI is evolving. Everyone agrees AI can be effective in saving time, streamlining processes, and enhancing productivity, according to Mr. Bensen. “Those who have been using AI in the talent acquisition process are finding it less effective,” he said. “People don’t like to be cat fished by a bot pretending to be a human. Unsurprisingly, candidates will equate their experience as a candidate to the experience they will get as an employee. Candidates strongly prefer a human screening the candidate pool rather than having their fate determined by a keyword search. The human touch remains important.”
4. Candidate Experience and Employee Value Proposition.
Executive search consultants continue to say that talent remains a top priority for organizational leadership. “Creating a compelling employee value proposition (EVP) that aligns the organization’s culture, compensation, and benefits with the evolving needs and expectations of employees is essential for attracting and retaining top talent,” Mr. Bensen said. “The hiring process is often a candidate’s first impression of your organization, making it critical to deliver a seamless and engaging experience that reflects your commitment to employee success.”
Executive Search in 2024: Challenges, Trends, and Hopes for a Hiring Resurgence in 2025
For many search firms in almost all industry segments, 2024 has been a tough year. There are many reasons for the recent downturn, and some firms have experienced a dip in revenues for even longer, according to Tim Tolan, founder, chairman, and managing partner of The Tolan Group. “Lots of changes are on the horizon for 2025 on the hiring front, and search firms are waiting with bated breath while hiring decisions are on hold, and draft fee agreements are (still) sitting in DocuSign waiting to be signed,” he said. “Decisions are dragging, as are active search engagements, as hiring managers and leaders struggle to make hiring decisions in the environment, we are all trying to navigate.”
In the Hunt Scanlon 2024 Executive Recruiting State of the Industry Report, the numbers reflected a double-digit downturn in demand for executive recruiting, with the private equity sector being the most affected. “We’ve seen and experienced that firsthand, but we feel positive changes are on the horizon,” Mr. Tolan said.
While recent HR talent trends show less job-hopping and a more balanced power dynamic between managers and employees, this should not be seen as an opportunity to revert to outdated practices. Instead, it’s a chance to reinforce a forward-thinking approach that values and supports your workforce, optimizing long-term organizational value.
5. Innovate Hiring Requirements.
Larger companies are discussing a shift to “key skill hiring” rather than the traditional requirements that included a degree. If you are investing long-term in an employee, it is best to hire someone based on their innate or fixed qualities. Skills and understanding of an industry can often be learned, but more innate capabilities including someone’s drive to succeed, resilience, EQ, and willingness to go the extra mile, are not likely to change. In a talent-short market… prioritizing the list of desired qualities is key.
6. Workplace – Hybrid is Here to Stay.
Return to on-site work is trending in some industry sectors. Where will this likely end up? While some companies will successfully impose an RTW strategy, it won’t likely be the norm. An Upwork survey suggests that by the end of 2025, about 36.2 million Americans will work remotely, about an 87% increase compared to pre-pandemic levels. A Gallup study revealed that six in 10 remote-capable employees would actively seek a hybrid arrangement, with only 10% preferring full-time office work. Some professionals have remained at work due to the requirements of the role, but those working remotely will keep looking for a role with some remote work if they are called back to the office full time.
The overall theme this year revolves around HR helping organizations adapt to change, aligning closely with emerging HR talent trends. These initiatives demand a strategic approach rather than a traditional, compliance-driven one. Elevating the HR function should remain a top priority, especially if your department is not yet forward-looking.
NPAworldwide is a global recruitment network facilitating placements between its member firms. The recruitment network has more than 550 member offices across six continents. Its headquarters is in Grand Rapids, MI.
Related: Predicting Talent Acquisition Trends for 2025
Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media
