HR consulting professionals know better than most that recruiting can be one slippery beast—and the best HR pros understand that staying ahead of key recruiting trends can help tame the beast.
It probably doesn’t sound too fun for the average business owner, and that’s why we do what we do to help our clients with strategic recruiting. (We actually think it’s kinda fun...or at least we try to make it so. :)
When it comes to recruiting trends, what can HR professionals and business leaders expect in 2025?
Read on to learn more, and don’t hesitate to contact our HR consultants to get started!
Overview: Standout Issues for HR and Business Leaders
First, the labor force is expected to shrink over the next ten years or so, creating a tight labor market. Skills shortages in certain sectors will continue to be a key concern as will general demographic shifts.
The upcoming retirement boom is a key concern, with some 30 million Americans expected to turn 65 in the next five years.
When it comes to recruiting trends in 2025, HR consultants and business leaders will also want to consider:
Continued demands for flexible work arrangements such as hybrid workplaces
More personalized employee experiences
A stronger focus on DEI
Higher levels of burnout and employee transition
A focus on skills-based hiring, as well as learning and development
Offering more resources related to employee wellbeing
Strengthened employer branding around recruiting and hiring
Economic uncertainty
Political polarization in the workplace
Policies around deregulation
The role of HR leaders is stronger than ever here, as they will be the main link between accessing talent, helping business leaders prioritize recruiting and hiring actions, and essentially bringing together the “people” side of business with the overarching organizational strategy.
A focus on passive recruitment—that is, when recruiters reach out to candidates who aren’t actively searching for jobs—will be a key strategy here, and it will require the legwork of HR consultants.
A Bigger Focus on Skills-Based Hiring
One thing that we’ve been noticing a lot of, and a recruiting trend we expect to continue, is skills-based hiring.
What is meant by skills-based hiring?
You want to hone in on the critical skills that are essential for your business operations to survive and thrive as we move into the future. Then, evaluate candidates based on highly-specific skillsets over experience or education.
According to a survey by McKinsey Global, nine out of ten leaders say that they are facing skills gaps. This is particularly the case with tech-based skills, but not exclusively. From the same survey, some key areas facing the most skills gaps are data analytics and IT/web management, as well as executive management and HR/talent management, to name a few.
The need for skills-based talent is important for leaders on two levels: first, the importance of skills-based recruiting; and second, the importance of providing upskilling opportunities in the workplace.
When it comes to recruiting trends, we recommend that employers look at individual skills gaps and be realistic around this. You may be able to find solutions with internal training and education alongside changing your recruiting strategy.
When skills gaps are acknowledged and addressed correctly this not only leads to more fulfilled employees, but can be part of company branding as a “destination employer.” (More on that below.)
Using Artificial Intelligence to Improve Efficiency
Are the robots coming for us yet? Let’s not go there… ;)
And it’s worth noting that this will be a big year for generative AI in particular. (Generative AI is the type that can essentially “think for itself.”)
We do know that we’re using AI to help us improve efficiency with everything from recruiting to onboarding.
In an HR context, we’re looking at the impact of AI in all kinds of aspects, including payroll, compliance, and recruiting.
The technology is here, and useful for automation.
Streamline hiring processes (eg: screening resumes to shortlist)
Using HR data for predictive analytics - (eg: forecast hiring budgets to plan recruiting)
Improve candidate experience -(eg: ensure timely post-interview follow-ups)
And while we’re all about using tools to make things more efficient, it’s still super important to keep the “human” in Human Resources!
Offering Flexible Arrangements & Workspaces Where Possible
Since the pandemic, many workplaces have retained a hybrid model and some have been re-implementing back-to-office policies. And there are plenty of companies that employ teams which work entirely remotely. It’s also worth noting that people are more geographically dispersed than ever, so an option to work remotely (at least part of the time) can be useful.
Offering innovative hybrid or alternative work models which offer flexibility (where feasible) can keep you ahead of the competition when it comes to talent acquisition and retention.
Our HR consultants are here to navigate around these challenges and stay on top of recruiting trends to attract top talent and help your business thrive.
Nailing Fair Pay and Wage Issues
Fair pay and wage issues remain top priority coming into 2025.
Companies attracting top talent generally pay above market, because the best employees know their value and hold to it.
This might seem straightforward, but pay equity and transparency can be a challenging factor, especially for smaller organizations. It’s important for employers to stay on top of ever-changing overtime rules as well.
Businesses that pay close attention to pay gaps and wage issues, and remain clear and transparent, will more easily foster a sense of trust with employees. Therefore, leaders should be completely clear on pay data.
Our team of friendly and professional HR consultants can help to make sure that organizations stay compliant and transparent on these issues.
Becoming a “Destination Employer”
In the past, we've focused a lot on creating an exceptional company culture to win over the best talent. Now it’s time to think in terms of becoming a “destination employer” to both reduce employee turnover and keep your best talent.
Being a destination employer means that you offer enough to get people to stick around as a destination rather than just a one-stop shop to earn a few paycheques and get out. (Basically: Do you want your workplace to feel more like a cheap roadside motel or a luxury vacation?!)
In a tight labor market, being a destination employer is key to standing out. Employees are more likely to stay in places which offer not only competitive wages, but clear and transparent policies, as well as other benefits related to physical wellness, work-life balance, financial planning, and even mental health.
Here are a few examples:
Work-life balance (eg: PTO, childcare)
Employee wellbeing (eg: counselling, gym memberships)
Onsite training and upskilling
Career mobility and development
Education benefits
Clear policies around pay equity and transparency
DEI
Let Our HR Consultants Help You Build a Solid Talent Strategy
“If you’re going to grow, you’re going to need to win people away from other employers. You need a talent strategy.” - Travis Dommert, SVP Talent @ OneDigital
Small businesses should hire and fully train talent now to prepare for 2025 growth, and HR consultants are especially helpful in these uncertain times.
Engaging your talent pool in operations—that is, ensuring that they feel engaged in the company as a whole and empowered about their purpose—is essential.
It’s also worth noting that transparency, trust, and benefits beyond just competitive wages can help your company stand out as a destination employer.
Get our HR consultants to help you develop a talent recruiting strategy that can help you weather the uncertainty.
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References
Two-Thirds of Peak Baby Boomers are Not Financially Prepared for Retirement. April 18, 2024. PR Newswire.
As Massive Labor Shortage Looms, Lightcast's New "Demographic Drought" Report Can Help Companies Weather the Storm. Sept 17, 2024. PR Newswire.
How Companies are Reskilling to Address Talent Gaps. 2020. McKinsey & Company.
Stanchak, J. The Impact of AI on Talent Acquisition and Recruitment. SHRM.
*The information and materials on this website are provided for general information purposes only and are not intended to be legal advice. We attempt to provide quality information, the law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature and may not apply to a specific factual or legal circumstance. Nothing on this website is intended to substitute for the advice of an attorney; therefore, if you require legal advice, please consult with a competent attorney licensed to practice in your jurisdiction.
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