As business landscapes go, 2024 was a year marked by uncertainty and volatility. Geopolitical tensions, coupled with the ever-evolving regulatory environment added complexity. Inflation and fluctuating interest rates with potential recessions looming in the background also had a huge impact on CHROs and talent acquisition leaders. Many were stuck in a cycle of endless “what-ifs?” The generative AI boom continued and although it was welcomed by many, it wasn’t (and still isn’t) without its challenges. The what ifs of 2024 are slowly but surely giving way to a little more certainty. Instead of playing the waiting game, CHROs and talent leaders need to shift hats from tactical to strategic so they can better set their organizations up for long-term success.
So, what does 2025 have in store? In no particular order, the key trends shaping workforces include:
The number of organizations with skills-based hiring programs has increased steadily over the past few years, reaching 81% in 2024, up from 74% in 2023 and 56% in 2022, research from TestGorilla found. Having hosted several webinars about skills-based hiring ourselves this year with hundreds of talent leaders from across the world, we’ve seen a shift in those who have or are planning to, widen the remit from skills-based hiring to taking a skills-first organizational approach. This is a natural next step. Skills-based hiring success really does require an organization-wide approach as it’s about much more than hiring – it’s about fully utilizing the talent you already have internally too. And talent leaders and HR teams can’t do that if they don’t know the true extent of the skillsets their workforce possesses. Learning and development teams also play a huge role. They need to understand the skillsets of workforces in their entirety, not just new hires, so they can create effective training and upskilling programs.
If you haven't started your skills-based journey yet, don’t worry, but don’t delay! Start by identifying the skills your organization needs and how they interplay both in the short and long term. Cataloging skills gaps and the skills you’ll need in the future is key. Skills-based hiring dominated 2024 and this will continue in 2025 – just with a much wider focus.
Access Wilson’s skills map workbook to get started.
Talent intelligence has shifted from a nice-to-have to a business imperative. It’s not hard to see why. By analyzing internal and external data sources, talent leaders can gain valuable insights for hiring, strategic workforce planning, skills gap analysis, internal mobility, talent retention and much more. In 2024, 84% of CHROs said talent intelligence was a top priority, while 72% of companies said they planned to increase their investment in talent intelligence, according to Aptitude Research. Now, we don’t know if 72% did in fact spend more as the 2024 survey results aren’t out yet, but it’s clear that talent intelligence was high on the to-do list this year and we expect the upward momentum will continue as we head into 2025. Why? In short, talent intelligence provides a competitive advantage. Having access to real-time labor market data, for example, gives organizations a litmus test of how confident the business community is. And with critical skills shortages only worsening, understanding how much talent is out there, where it’s located and what the average compensation looks like, can really help when it comes to landing talent with niche skillsets before competitors. Before signing with a new provider, be sure to ask how the platform will help you achieve your hiring (and business goals). Ask for case studies to see how other organizations have benefited. And loop your IT and HR team from the very start to discuss integration with other platforms, resources required for implementation and so on.
AI this, AI that - it was like a broken record on repeat in 2024. We know you’re probably fed up with hearing about AI but it’s here to stay and will continue to revolutionize workplaces across the world. Talent acquisition leaders have long been under pressure to drive operational efficiencies, especially over the past 18 months or so, and AI has certainly helped. Agentic AI, with some high-level instruction, can complete tasks autonomously and will completely transform multiple elements of the talent acquisition process. The use of agentic AI will soar in 2025, and not just within talent acquisition functions either. You only have to look at the demand for AI skills. In the US in November, the average number of job postings requiring AI skills stood at 6,144. This is a significant increase from the 12-month average of 5,289 job postings. Demand for AI skills has also increased in the UK, while the number of enterprise software applications including agentic AI is predicted to rise to around 33% in 2028, up from less than 1% in 2024, research from Gartner revealed. That’s a huge leap. It won’t be without its challenges though. Our advice is to approach agentic AI like a tortoise rather than a hare. Take your time finding platforms that not only deliver what’s promised but also comply with regulations and are ethically sound. Clear accountability in how you’re using these systems is much needed. Remember though; the human element of talent acquisition is irreplaceable (and always will be).
Traditional business cycles aren’t what they used to be. They tend to be shorter and way more unpredictable. As a result, contingent workers, whether that be contractors, temporary employees, or freelancers, have become integral to workforce success. We’ve seen a rise in the number of organizations expanding their contingent workforces and believe this will continue throughout 2025.
In fact, global contingent workforce participation is expected to rise by around 25% in 2025, while in the US, it’s expected to increase by 14%, research from Eightfold revealed. Some of the uncertainty from 2024 has started to lift (a little). Organizations that were holding off from moving forward with new projects, expansions, product launches and so on, will likely move forward in the new year. If you’re planning to grow your contingent workforce, make sure you cater to this segment of workers in your employment brand and recruitment marketing efforts. Non-permanent talent has the same values and desires as their permanent counterparts, but organizations often overlook this. Learning and development programs, for example, must cater to non-traditional workers as well. This will benefit your organization by providing access to even more skills and help you build longer-lasting relationships with your contingent workers, which in such a skills-scarce world, is critical.
A sustainable approach to contingent labor.
As business confidence grows, an authentic employee experience will be key for those organizations looking to attract and retain top talent. To say the last couple of years have been tough for businesses is an understatement. Talent teams have certainly borne the brunt of the belt-tightening that most companies have undertaken. Almost every single talent leader I’ve spoken to over the past year or so has said they’ve been expected to do a lot more with less. Updating EVP (employee value proposition) and employment brand likely fell down the list of priorities for those not hiring to usual levels. But as we prepare for a year with less uncertainty (hopefully!), it’s vital that your EVP aligns with your employee experience. Otherwise, you might be able to get candidates through the door, but they won’t stick around for very long. Collaboration among HR, talent management and learning and development teams will be essential. This is particularly significant for Gen Z and millennial employees - 74% said they’d consider quitting their jobs if there’s no support for skills-building or career mobility options, research from Workplace Intelligence revealed.
There’s been countless headlines about companies ordering their workforce back into the office lately and although this will continue in the new year, we expect it to level out. Despite the RTO (return-to-office) headlines, our data actually shows the percentage of remote job postings in the US increased to 3.7% in November, up from 3.3% in October, which equates to around 218,225 job opportunities. The percentage of hybrid job postings remained consistent at 1.7% so about 104,163 positions. It’s a similar story in the UK. There was a slight increase in the percentage of remote job postings in November rising to 4%, up from 3.8% in October, equivalent to around 26,000 jobs. In terms of hybrid job postings, there was a small decrease to 2.8%, down from 2.9%, which means there were approximately 18,200 hybrid jobs available in the UK in November.
Organizations that implement inflexible RTO policies will struggle to attract talent and risk losing top talent to competitors offering more flexible arrangements. Instead, employers should focus on building a culture of accountability and trust, measuring success through outcomes rather than physical presence. This approach allows organizations to keep their competitive edge in talent acquisition (and retention) while fostering an environment that promotes innovation and productivity. 83% of employees across the world prefer a hybrid work model, according to research from Accenture, so if your organization has a hybrid working program, be sure to promote this via your recruitment marketing activity. It could be the differentiator your organization needs to stand out among those seeking new roles in the new year.
Workforce sustainability has steadily been gaining traction, and we expect it to become a top priority for many businesses in 2025 and beyond given that we now live in a world characterized by VUCA (volatility, uncertainty, complexity and ambiguity). I know what you’re thinking, the world of talent acquisition already has far too many acronyms (I agree, it does), but this one is important! In this era of VUCA, a sustainable workforce ensures resilience and adaptability, which are critical for long-term organizational success. Many organizations have focused on sustainability in terms of environmental impact and use of resources, the sustainability of the workforce, aka the human resource, is often overlooked. At its core, workforce sustainability is about building systems that support the continuous development of essential skills for the future while fostering an environment that attracts top talent and keeps employees engaged. Achieving workforce sustainability isn’t easy but is worth the effort. Talent teams need to work in partnership with the wider business, especially those in learning & development and HR, to prioritize career development opportunities, and mobility (people shouldn’t need to leave an organization if they want a new job!). Without robust continuous development programs, organizations risk falling behind and will also suffer from low productivity. Skills gaps are one of the top causes of lost productivity, costing a median-sized S&P 500 company an estimated $480 million (£378 million) every year, research from McKinsey revealed.
Over the next year, there’s going to continue to be a lot of change in talent acquisition, but with change comes opportunity. And those bold enough to embrace change and take a fresh approach to talent will reap the rewards.