If you’re in HR or recruitment, we don’t need to tell you twice about how rapidly the industry can change. You’ve already changed the way you work. From the office, remote, and hybrid work to the rise of AI and automation technologies, there’s no shortage of disruptions and opportunities.
To help you keep up with the pace of change, we asked dozens of HR and recruitment leaders what they expect from 2025, and how they’re preparing for even more changes in their industry. Here’s what they identified as the top six HR trends for 2025.
1. Companies will lean heavily into skills-based hiring
In 2025, the shift towards skills-based hiring will accelerate as companies grapple with widening skills gaps and an evolving job market.
A staggering 81% of employers surveyed in a recent TestGorilla report adopted skills-based hiring practices in 2024, with 94% agreeing that this approach is more predictive of on-the-job success than traditional resume-based methods. This growing trend highlights the increasing inadequacy of degrees and credentials in assessing candidates for increasingly specialized roles.
“In 2025, we’re seeing a growing skills gap as organizations struggle to keep up with rapidly evolving technologies,” says Dominic Monn, Founder and CEO of MentorCruise.
“Employers will focus less on diplomas and more on training people who are eager to roll up their sleeves and learn on the job. It’ll be less about what’s on your degree. The focus will be on how fast you can adapt to where we’re going.”
Fields such as AI and cybersecurity exemplify this shift, with "new-collar jobs" prioritizing adaptability and practical skills over formal education.
This shift isn't exclusive to tech. Healthcare faces a similar challenge, as Sean Smith, CEO and former Head of HR at Alpas Wellness, explains:
“With plenty of skill shortages in the market, the competition for talent is high. That means providing more than bespoke salaries; we have to be the kind of place where people know they are appreciated, supported, and connected with an equal opportunity for career growth.”
To stay competitive, HR leaders must embrace skills-based hiring by redefining job descriptions to focus on capabilities, investing in reskilling programs, and leveraging assessments to evaluate candidate potential. This approach not only broadens the talent pool but also builds a workforce equipped for the demands of a dynamic economy.
Wondering how to adopt skills-based hiring at your organization? Read our guide.
2. They’ll also prioritize upskilling and internal mobility
Upskilling and internal mobility are also poised to become major focuses in 2025 as companies prepare to navigate rapid changes in workforce demands.
Employers are increasingly recognizing that nearly half (44%) of workers' skills will be disrupted within the next five years, with 60% of employees requiring training before 2027, according to the World Economic Forum. To meet this challenge, organizations are turning to tools like online learning resources (47%), certifications (37%), and peer-to-peer learning (31%) to empower employees to adapt to shifting demands.
“In 2025, I see a substantial change toward prioritizing skills-based recruiting and internal mobility,” says Silvia Angeloro, Executive Coach and Editor-in-Chief at Resume Mentor.
“The employment market is becoming more dynamic, with occupations shifting quicker than traditional education or certificates can keep up. Talented individuals often go unnoticed because their resumes don’t align with customary standards. We are focusing on identifying transferable talents and developing role-agnostic development opportunities within the organization to adapt.”
This strategy not only supports retention but also ensures teams are equipped to handle future challenges.
Leadership development is another critical component.
“We are taking a multi-pronged approach to combating these trends,” adds Sean Smith.
“Leadership training for managers is key, giving them the tools to support their teams. Retaining talent in a high-pressure industry such as healthcare requires strong leadership.”
To prepare for this shift, HR leaders should invest in professional development plans, lean on purpose-built technology for skills assessments, and create clear pathways for internal mobility. By fostering a culture of growth, companies can retain top talent, boost engagement, and future-proof their workforce.
Learn about the ins-and-outs of internal mobility to help you get the most out of your existing employees and support their future growth.
3. AI-driven recruitment and workforce management will continue to grow
The adoption of AI in recruitment and workforce management is set to expand significantly in 2025 and beyond.
The market for AI-driven recruitment tools is projected to reach $890.51 million by 2028, growing at a compound annual growth rate of 6.5%, according to research from Facts & Factors. Candidate matching remains a leading use case, with 42% of North American recruiters using AI to improve job recommendations on career sites, while diversity, equity, and inclusion initiatives are also gaining traction, cited by a third of respondents in a Statista survey.
“Next year, AI is going to take over a lot of the heavy lifting—think smarter candidate sourcing, better matching, and automated scheduling,” says Ritchie Tendencia, Founder and CEO of CSV Now.
“Companies like ours will double down on diversity and inclusion with tech to help remove bias. We’re leaning into smarter tech—AI-driven tools for sourcing and assessment, better CRM systems to nurture talent pipelines, and even compliance automation to handle new regulations.”
AI is also transforming internal processes. Sean Smith highlights its impact on efficiency below:
“Replacing manual workloads such as payroll and benefits with automation allows you to spend time on employee engagement initiatives or wellness programs. AI-driven recruitment platforms help us get to the best candidates faster and reduce unconscious bias in our hiring process.”
To stay competitive, HR leaders should prioritize implementing AI solutions for predictive analytics, diversity initiatives, and process automation. These tools not only improve recruitment outcomes but also free up teams to focus on strategic priorities, such as engagement and retention. By embracing AI, organizations can remain agile and prepared for an increasingly dynamic labor market.
4. Diversity, equity, and inclusion will become more data-driven
Diversity, equity, and inclusion (DEI) efforts are evolving into more measurable and actionable initiatives driven by data. This trend will continue through 2025 and beyond.
While many organizations have made progress with well-meaning DEI initiatives, the lack of measurable outcomes has often hindered long-term impact. This is changing, with companies adopting tools to track hiring, promotion, and workplace culture accountability in increasingly precise ways.
“Organizations will adopt tools and practices for tracking hiring, promotion, and workplace culture accountability,” explains Sean Smith.
“Some of these tools include using anonymized hiring platforms to mitigate unconscious bias and follow up on DEI pipelining per department. This allows us to ensure that we do not just promise inclusivity, but also actively deliver for employees as well as patients.”
A data-driven approach to DEI means organizations can identify disparities, benchmark progress, and tailor interventions. However, leaders often resist collecting data due to fears of uncovering challenges, according to a SHRM report on DEI.
As researchers Laura Morgan Roberts and Melissa Thomas-Hunt note:
“You can’t address what you don’t identify as a challenge or issue, and robust data on diversity, inclusion, and equity help to illuminate pressing problems in talent management and social impact.”
To make progress, organizations should focus on collecting disaggregated data—breaking it down by race, gender, and other identities to identify patterns. Qualitative insights, such as employee focus groups, are also critical for understanding lived experiences. By pairing data collection with transparency and a commitment to action, organizations can create a more inclusive workplace that fosters sustainable growth and equity.
5. Personalized employee engagement strategies will shape retention efforts
Employee engagement has long been a cornerstone of workforce management, but 2025 will see companies doubling down on personalized strategies to boost retention.
This comes in response to persistently low global engagement rates, with only 23% of employees worldwide and 33% in the U.S. categorized as engaged, according to Gallup.
Personalized engagement strategies are becoming non-negotiable as organizations realize that a one-size-fits-all approach no longer works in a dynamic, diverse workforce.
Sean Smith underscores the importance of tailored employee engagement strategies:
“We’re making sure that our wellness programs cover more than just your typical benefits, adding mental health and development resources as well as flexible scheduling. Such measures give employees the confidence that they are not alone, which serves to retain and attract talent much better.”
Data-driven tools play a significant role in enabling these personalized approaches. “We are also using employee engagement platforms, which enable real-time feedback and analytics on satisfaction in the workplace,” explains Smith, “When we have this awareness, it assists us in being proactive about issues and creating a better environment.”
Gallup’s research shows that engaged employees contribute to 23% higher profitability and 18% increased productivity, making it a top business priority across virtually every sector.
To achieve these results, HR leaders should focus on creating individualized development plans, leveraging analytics to address engagement gaps, and fostering a culture of trust through regular feedback. By prioritizing these efforts, companies can reduce burnout, improve retention, and cultivate a motivated workforce that drives business success.
Wondering how to gather feedback from your employees? We've compiled a best practices guide for employee surveys, along with 20 sample questions that you can ask.
6. Economic pressures will drive agile hiring and the use of gig workers
Economic challenges and evolving workforce expectations are prompting organizations to embrace agility in hiring and lean heavily on gig workers.
By 2027, freelancers are projected to comprise 50.9% of the U.S. workforce, or 86.5 million people, according to Statista. This rise reflects a broader trend: companies are adopting flexible, cost-effective strategies to address skills shortages and adapt to fluctuating market demands.
“2025 is shaping up to be all about agility and tech integration in hiring,” explains Ritchie Tendencia, Founder and CEO of CSV Now.
“We’re moving beyond traditional resumes and focusing more on actual skills—certifications, portfolios, and what candidates can bring to the table right now. Fractional roles and the gig economy mean we have to onboard and offboard talent quickly without missing a beat.”
Agile hiring is not just about cost efficiency. It’s a strategic response to labor shortages in specialized fields such as AI, cybersecurity, and sustainability.
Companies are also adapting to the demand for purpose-driven work and flexibility, particularly from Gen Z employees. Sean Smith adds:
“Labor laws around AI, pay transparency, and remote work compliance are evolving fast, so there’s always something to tweak internally. Data-driven insights and agile hiring processes will help us make smarter hiring decisions and avoid bad matches.”
Research supports this growing reliance on gig workers. A Park University report highlights that gig platforms provide access to specialized skills on demand, fostering innovation and helping businesses remain competitive.
As economic uncertainty persists, HR leaders should adopt flexible hiring strategies, integrate gig platforms, and invest in compliance measures to navigate the complexities of a rapidly changing workforce landscape.
It’s time to future-proof your hiring
In order to withstand unforeseen future challenges, and be competitive in today’s (and tomorrow’s )candidate-driven landscape, focusing on future-proofing strategies is more important now than ever.
“This is a call to action for recruitment teams across the globe: with the growing complexity of hiring people, talent acquisition is top of mind at all levels of the organization. Use that momentum to future-proof your strategy and lead by example.” — Karim Gharsallah Head of Talent Benelux @ Remeha
Future-proofing needs to be done from the top-down of your hiring and HR strategies. From your HR tech stack to the way you build your employer brand. We encourage all HR and recruitment leaders to explore the trends highlighted in this article—and others you’ve noticed that we didn’t cover—and actively brainstorm with your team how to address these trends in 2025 and beyond.
