Global organizational consulting firm Korn Ferry (NYSE: KFY) today released its 11th Annual Talent Acquisition Trends Report, revealing the top global trends expected to shape workforce dynamics in the year ahead.
The Korn Ferry report draws on a survey of more than 400 talent professionals worldwide.
“As we look to 2025, organizations are challenged with striking a balance between competing factions: technology and human connection, efficiency and personalization, flexibility and structure,” said Jeanne MacDonald, Chief Executive Officer, Recruitment Process Outsourcing, Korn Ferry. “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.”
The key trends identified in the report include:
AI’s Growing Pains – Reality Kicks In. Sentiments are shifting around AI’s ROI. More than two thirds (67%) of talent professionals feel AI will have a major role in talent strategies in 2025, yet concerns about technology overtaking the human touch linger. Notably, talent leaders are concerned about the unintended consequences and inaccuracies of automation, with 40% expressing caution about AI compromising the human side of recruitment, and 25% worrying about the risk of algorithmic bias. These findings signal AI’s continued, albeit cautious, role in personalizing the talent acquisition process.
Beyond the Office – Hybrid 360. As some business leaders mandate employees to come back to the office full time, 76% of respondents still report that their companies have adopted hybrid work structures. No surprise then, as the report suggests, 64% of talent leaders say one of the biggest challenges facing the new world of work is finding candidates willing to work in the office. Flexibility is now a key driver of retention and is expected to play a critical role in 2025, particularly as organizations juggle business needs and employees’ preferences for autonomy and work-life balance.
Razor-Sharp Focus on Critical Skills. Leaders want to hire for skills, but many don’t know where to start, the survey results show. As a result, the shift to skills-based hiring remains elusive, as companies scramble to redefine job roles and reskill recruiters. For example, although one in four talent leaders (39%) recognize the value of skills-based hiring, only one in six (17%) say they plan to switch to a skills-based hiring model in 2025.
EVP is Finally a VIP. While 45% of talent professionals say culture and employer value proposition (EVP) are crucial in recruitment, they also recognize that companies need to deliver on that promise. “Say what you mean, mean what you say” defines the culture expectation for employees as a new year approaches, the research suggests. Even companies great at self-promotion often fail to maintain their culture, which can lead to high turnover.
Concurrently, to ascertain the employee perspective, as part of its Global Workforce Survey, Korn Ferry gleaned insights from 10,000 employees at companies worldwide. A key retention issue surfaced:
Learning and Development’s Wake-Up Call. People want to join companies that invest in their future. More than two thirds (67%) of employees said they would stay with a company if it offered upskilling and advancement opportunities – even if they didn’t like their job. However, only one-third (30%) of companies are currently delivering career paths for growth and advancement, according to the Talent Acquisition Trends Report, which focused on talent leaders. It’s a case for “retaining by training” to keep employees from leaving due to of a lack learning and development to advance their careers.
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