Predicting Talent Acquisition Trends for 2025

October 28, 2024 – As organizations navigate the post-AI boom and the shift to skills-based hiring, many are experiencing analysis paralysis, but now is the time to act with purpose. Korn Ferry recently surveyed over 400 talent acquisition professionals and consulted with more than 40 of its experts to uncover five key hiring trends shaping 2025, including the critical importance of skills and the evolution of employee value propositions.

Trend 1: AI’s Growing Pains, Reality Kicks In.

AI has solid potential, but it’s not the one-stop shop many expected, the Korn Ferry report said. “With the right tools and expertise, AI can supercharge productivity and elevate recruitment,” the firm says. “But today’s tech can’t handle high-level talent acquisition strategy needs, such as identifying talent gaps or interpreting non-verbal cues.”

Despite these challenges, 67 percent of Korn Ferry’s survey respondents see increased AI usage as a top talent acquisition trend for 2025. At the same time, companies that thought AI would be a game changer for talent acquisition are now concerned about its inaccuracies.

Indeed, Korn Ferry found that 40 percent of the talent acquisition specialists the firm surveyed worry that too much AI in recruitment could make the process impersonal, causing them to miss out on top candidates. Another quarter are concerned about algorithmic bias—where biased training data leads to unfair outcomes.

“If mismanaged, AI can undermine the hiring process, but when used strategically and appropriately, it can add real value to the experience—for candidates, recruiters, and hiring managers,” the Korn Ferry report said. “In 2025, more employers will use AI to improve the candidate journey—not just to automate hiring.”

Trend 2: Razor-Sharp Focus on Critical Skills.

Companies are prioritizing roles that drive impact. While skills-based hiring was a top trend in 2024, many companies weren’t quite ready or able to fully switch to that approach, according to the Korn Ferry report. To test the waters, they plan to prioritize skilled talent for the roles critical to their business. Nearly 24 percent of the firm’s survey respondents identify finding the right skills as a top two challenge for 2025. And many are unsure of how to define critical skills, which is often the first step in the shift away from traditional hiring methods.

“In most cases, critical skills are the ones that help a business transform, innovate, or grow,” the Korn Ferry report said. “They can’t operate in a bubble, so companies need a full range of skills to perform and succeed. When hiring for skills, start by focusing on roles that will drive the greatest business transformation, and then identify which skills are needed for these positions.”

Trend 3: Learning and Development’s Wake Up Call.

Leadership and development is no longer a box to tick— recruiters say it’s crucial for retention. For too long, learning and development has been treated like a checkbox item. But in 2025, to find and keep the best talent, it needs to be a core element of your talent strategy.

Related: The Role of Values-Based Hiring in Talent Attraction and Retention

Korn Ferry’s latest Workforce Survey found that 67 percent of employees would stick with a company if offered opportunities for advancement and upskilling—even if they hated their job. Conversely, a lack of career growth is the second biggest reason people leave. Some companies are catching on—32 percent of Korn Ferry survey respondents plan to focus on upskilling to address skills gaps, and 30 percent are working on career paths for long-term growth.

“But traditional learning and development  benefits like standardized training, in-person workshops, and online courses are no longer enough,” the firm said. “In 2025, employers need to invest in innovative methods, such as virtual reality, gamification, and microlearning, to develop employees for evolving roles and needs.”

Trend 4: EVP Is Finally a VIP.

A strong, consistent EVP is key to a great talent experience, according to the Korn Ferry report. “Once upon a time, companies could attract top talent with an enticing employee value proposition (EVP) that promised a lot but often fell short after hiring. Today, candidates are wise to this game,” the study said. “Word of mouth, social media, online reviews, and news reports have exposed companies that fail to deliver on their promises, making potential candidates wary of all-talk, no-action EVPs.”

And top talent can afford to be picky, so they’re researching companies and asking more questions during the hiring process. That’s why 45 percent of HR professionals we surveyed said that integrating cultural values is key to talent attraction in 2025.

Urgent Action Needed to Attract Talent in a Rapidly Changing World

In today’s fast-paced business landscape, the urgency to attract talent has never been greater, warns Raffaele Jacovelli of HighTech Partners. He emphasizes that traditional hiring processes are becoming obsolete, as delayed budget cycles can significantly hinder a company’s ability to meet operational goals and drive revenue growth. Mr. Jacovelli joins Hunt Scanlon Media to discuss how organizations must adopt a more dynamic approach to talent acquisition.

A strong culture attracts talent, but if it’s not part of the employee experience, it can hurt retention. Korn Ferry’s ongoing analysis of talent management investments found companies that publicly tout their culture but don’t put it into practice with employees see higher turnover rates. “In 2025, unique human experiences will stand out in an era of automation and standardization,” the search firm said.

Trend 5: Beyond the Office: Hybrid 360.

It’s no longer just about where your people work. “There’s no one-size-fits-all approach to talent acquisition, but in 2025, offering full-circle flexibility is key,” the Korn Ferry report said. “We’re calling this trend Hybrid 360, and it’s arguably one of the most important to your talent acquisition strategy. Hybrid 360 is all about inclusion and flexibility—letting people work in ways that suit them best and unleash their full potential. Companies that cling to traditional ways of working will likely struggle to attract and retain people. The more flexibility an organization offers, the better its chances of building an engaged, motivated, and loyal workforce.”

Remote work is now a staple for most office workers, with 76 percent of the Korn Ferry survey respondents saying their employers have gone hybrid. But it’s not just about where people work; it’s also about flexible schedules and personalized employee benefits—34 percent of the firm’s survey respondents see the latter as a key trend for 2025. In fact, Korn Ferry’s latest Workforce survey shows that flexibility is a top priority, and a big reason people stick around—or leave if they don’t have enough of it. “After all, hybrid isn’t a passing trend—it’s the new standard for inclusive hiring,” the Korn Ferry report said.

“In 2025, a balance must be struck—between technology and human connection, efficiency and personalization, flexibility and structure,” Korn Ferry says. “Leaders who can blend data-driven insights with personalized strategies will position themselves to not only attract and retain top talent, but also achieve lasting business impact by mitigating risk with intentional action.”

Related: Use AI to Elevate Talent Acquisition

Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor  – Hunt Scanlon Media