As organizations prepare for 2025, a recent study from Korn Ferry reveals that talent acquisition professionals are grappling with a rapidly evolving landscape shaped by AI and skills-based hiring. I did. This report identifies five key trends that highlight the need for purposeful action amid analysis paralysis and highlights the importance of adapting to new hiring paradigms. Let’s take a closer look!
October 28, 2024 – As organizations navigate the post-AI boom and transition to skills-based hiring, many are experiencing analysis paralysis, but now is the time to act with purpose. Korn Ferry recently surveyed more than 400 talent acquisition professionals to uncover five key hiring trends that will shape 2025, including the importance of skills and the evolution of employee value propositions. We have consulted with the above experts.
Trend 1: AI’s growing pains and reality.
AI has solid potential, but it’s not the one-stop shop many expected, Korn Ferry’s report says. “With the right tools and expertise, AI can significantly improve productivity and increase hiring power,” the company said. “However, today’s technology cannot address the needs of advanced talent acquisition strategies, such as identifying talent shortages or interpreting nonverbal cues.”
Despite these challenges, 67% of Korn Ferry survey respondents believe increased use of AI will be the top talent acquisition trend in 2025. At the same time, companies that thought AI would revolutionize talent acquisition are now concerned about its inaccuracies.
In fact, Korn Ferry found that 40% of talent acquisition specialists it surveyed were concerned that too much AI in recruiting would make the process impersonal and cause them to miss out on top candidates. It was revealed that Another quarter is concerned about algorithmic bias, or biased training data leading to unfair outcomes.
“If mismanaged, AI can undermine the hiring process, but when used strategically and appropriately, AI can add real value to the experience for candidates, recruiters, and recruiters.” says the Korn Ferry report. “In 2025, more employers will use AI not only to automate recruitment but also to improve candidate processes.”
Trend 2: Sharp focus on critical skills.
Companies are prioritizing roles that increase their impact. The Korn Ferry report found that while skills-based hiring was a top trend in 2024, many companies were not ready or able to fully transition to that approach. To test the waters, they plan to prioritize skilled talent for roles critical to the business. Almost 24% of the company’s survey respondents cited finding the right skills as their top two challenges in 2025. Many are also unsure of how to define critical skills. This is often the first step in moving away from traditional recruitment methods.
“In most cases, the skills that matter are those that help businesses transform, innovate, and grow,” the Korn Ferry report states. “You can’t operate in a bubble, so companies need a full range of skills to perform and be successful. When hiring for skills, focus first on the roles that will drive the biggest business transformations. , then identify what skills are needed for those positions.”
Trend 3: Learning and development wake-up call.
Leadership and development is no longer about checking boxes. Recruiters say it’s important for retention. For too long, learning and development have been treated like check-box items. But in 2025, finding and retaining the best talent will need to be a core element of your talent strategy.
Related: The role of values-based hiring in talent acquisition and retention
According to Korn Ferry’s latest workforce study, 67 percent of employees would stay with a company if they were offered promotions and upskilling opportunities, even if they hated their job. Conversely, lack of career growth is the second-biggest reason people leave their jobs. Thirty-two percent of Korn Ferry survey respondents plan to focus on upskilling to address skills gaps, and 30 percent are committed to career paths geared toward long-term growth.
“However, traditional learning and development benefits such as standardized training, in-person workshops, and online courses are no longer sufficient,” the company said. “In 2025, employers will need to invest in innovative techniques such as virtual reality, gamification, and microlearning to develop employees for evolving roles and needs.”
Trend 4: EVP is finally VIP.
According to a Korn Ferry report, a strong and consistent EVP is the key to a great talent experience. “In the past, companies could attract top talent with attractive employee value propositions (EVPs) that promised a lot, but often fell short of expectations once hired.Today , candidates are wise to this game,” the study states. “Word of mouth, social media, online reviews, and news coverage are exposing companies that don’t deliver on their promises, and candidates are wary of EVPs who are all talk and no action.”
And because top talent has the luxury of being picky, they research companies and ask more questions during the hiring process. That’s why 45 percent of HR professionals we surveyed said integrating cultural values is key to attracting talent in 2025.
Urgent action required to attract talent in a rapidly changing world
In today’s fast-paced business environment, the urgency to attract talent has never been greater, warns Raffaele Giacoveri of Hitech Partners. He emphasizes that traditional hiring processes are becoming obsolete, as delays in budget cycles can significantly impede a company’s ability to meet operational goals and drive revenue growth. Mr. Jacobelli joins Hunt Scanlon Media to discuss how organizations need to 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 negatively impact retention. Korn Ferry’s ongoing analysis of talent management investments has found that companies that publicly promote their culture but don’t live it out with their employees have higher turnover rates. “In 2025, the unique human experience will stand out in an era of automation and standardization,” the search company said.
Trend 5: Beyond the Office: Hybrid 360.
It’s no longer just about where employees work. “While there is no one-size-fits-all approach to talent acquisition, providing all-round flexibility will be key in 2025,” the Korn Ferry report states. “We call this trend Hybrid 360, and it is perhaps one of the most important for talent acquisition strategies. Hybrid 360 is about inclusivity and flexibility, allowing people to choose the Companies that cling to traditional ways of working are likely to struggle to attract and retain talent. The higher the value, the more likely you are to build an engaged, engaged, and loyal workforce.”
Remote work is now the norm for most office workers, with 76% of Korn Ferry survey respondents saying their employers are going hybrid. But it’s not just about where people work. Flexible schedules and personalized employee benefits are also important. Thirty-four percent of the company’s survey respondents believe the latter will be a key trend in 2025. In fact, Korn Ferry’s latest employee survey shows that flexibility is a top priority and a big reason people stay at work. — or walk away if it’s not enough. “At the end of the day, hybrid is not a passing trend, but the new normal for inclusive employment,” the Korn Ferry report states.
“2025 will require a balance between technology and human connection, efficiency and personalization, and flexibility and structure,” says Korn Ferry. “Leaders who can blend data-driven insights with personalized strategies are in a position to not only attract and retain top talent, but also achieve sustainable business impact by mitigating risk with intentional action. .”
Related: Use AI to accelerate talent acquisition
Contributed by Editor-in-Chief Scott A. Scanlon and Executive Editor Dale M. Zupsansky – Hunt Scanlon Media
