Global organizational consulting firm Korn Ferry (NYSE: KFY) today released its 11th Annual Talent Acquisition Trends Report, revealing the key global trends expected to shape workforce dynamics in the year ahead.
The Korn Ferry report is based on a survey of more than 400 talent professionals worldwide.
“By 2025, organizations will face the challenge of balancing competing factions: technology and human connection, efficiency and personalization, flexibility and structure,” said Jeanne MacDonald, managing director, recruitment process outsourcing, Korn Ferry. “Leaders who can combine data-driven insights with personalized strategies will position themselves not only to attract and retain top talent, but also to achieve lasting business impact by mitigating risk through intentional actions.”
Key trends identified in the report include:
- The growing pains of AI – Reality comes into play. Sentiments are evolving around the ROI of AI. More than two-thirds (67%) of talent professionals believe AI will play a major role in talent management strategies in 2025, but concerns about technology being superior to the human touch persist. Talent leaders are particularly concerned about the unintended consequences and inaccuracies of automation, with 40% expressing caution that AI is compromising the human aspect of recruiting, and 25% worrying about risk of algorithmic bias. These results demonstrate the continued, albeit cautious, role of AI in personalizing the talent acquisition process.
- Beyond the office – Hybrid 360. While some business leaders are forcing employees back into the office full-time, 76% of respondents still say their company has adopted hybrid work structures. So it’s no surprise that, 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 retention factor and is expected to play a critical role in 2025, particularly as organizations juggle business needs with employee preferences for autonomy and work-life balance and private life.
- Precise focus on critical skills. Executives want to hire for skills, but many don’t know where to start, survey results show. As a result, the transition to skills-based recruiting remains elusive, as companies strive to redefine roles and retrain recruiters. For example, although one in four (39%) talent leaders recognize the value of skills-based recruiting, only one in six (17%) say they plan to move to a skills-based recruiting model in 2025.
- EVP is finally a VIP. While 45% of talent professionals say culture and employer value proposition (EVP) are essential to recruiting, they also recognize that companies must deliver on this promise. “Say what you mean, mean what you say” sets cultural expectations for employees heading into the new year, the study suggests. Even companies good at self-promotion often fail to maintain their culture, which can lead to high turnover.
Meanwhile, to understand employee perspectives, as part of its Global Workforce Survey, Korn Ferry collected insights from 10,000 employees from companies around the world. A key retention issue emerged:
- The wake-up call for learning and development. 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 them opportunities for development and advancement, even if they didn’t like their job. However, only a third (30%) of companies currently offer career paths conducive to growth and advancement, according to the Talent Acquisition Trends Report, focused on talent leaders. This is “retention through training” to prevent employees from leaving due to a lack of learning and development to advance their careers.
