After last year’s boom in artificial intelligence (AI) and the shift toward skills-based hiring, many global enterprises found themselves caught in a cycle of constant planning, understandably cautious of making the wrong move. However, if analysis paralysis is holding you back, it’s time to prioritise progress over perfection and take purposeful action, according to the latest research from Korn Ferry, a global organisational consulting firm.
Korn Ferry’s 11th Annual Talent Acquisition Trends Report highlights the key business drivers shaping talent acquisition in 2025. From AI’s return on investment to adaptations for hybrid work, the increasing demand for specialised skills, and the critical connection between retention and training, this report reveals the top trends set to transform the workforce landscape in the upcoming year.
AI’s Growing Pains: Reality Sets In
AI’s role in talent acquisition is evolving, but it’s not the ultimate solution many had hoped for. While 67% of talent professionals expect AI to play a significant role in 2025 talent strategies, skepticism persists. 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% anxious about algorithmic bias leading to unfair hiring decisions. These insights underscore AI’s promise, but also its limitations—it can boost productivity and streamline processes, yet it falls short on complex tasks like identifying nuanced talent gaps or interpreting non-verbal cues. As companies recognize these limitations, they’re shifting focus: in 2025, AI will be less about automation and more about enhancing the candidate experience, supporting recruiters and hiring managers in a way that balances efficiency with personalisation.
Beyond the Office: Embracing Hybrid 360 for 2025
As some business leaders push for a full-time return to the office, 76% of companies continue to embrace hybrid work structures. The new “Hybrid 360” trend reflects a comprehensive shift toward flexibility, catering not only to where people work but also how they work. According to the report, 64% of talent leaders cite a challenge in finding candidates willing to work on-site, highlighting flexibility as a critical factor in retention. By 2025, offering personalized schedules and employee benefits will be essential, with 34% of respondents identifying flexible perks as a key driver for retaining talent. Companies that rigidly cling to traditional office mandates may struggle to attract and engage top talent, while those adopting Hybrid 360 will foster a more motivated, loyal workforce. Hybrid work is not a passing trend; it’s the new norm for inclusive and dynamic hiring.
Razor-Sharp Focus on Critical Skills: The Path to Skills-Based Hiring in 2025
While skills-based hiring was a leading trend in 2024, many organisations are still struggling to fully transition to this approach. The survey reveals that although one in four talent leaders (39%) acknowledge the importance of hiring based on skills, only one in six (17%) plan to implement a skills-based model in 2025. The challenge? Leaders often don’t know where to start. As a result, companies are prioritising hiring skilled talent specifically for roles that drive the most impact. Nearly 24% of talent professionals say identifying the right skills will be one of their top challenges in 2025, highlighting the need to redefine job roles and reskill recruiters. Critical skills—those that fuel transformation, innovation, and growth—can’t exist in isolation; businesses need a comprehensive skills ecosystem to thrive. To embrace skills-based hiring, companies must focus first on the roles essential to business transformation and determine which skills are needed to fulfill them.
EVP Becomes a VIP: No Room for Empty Promises in 2025
Gone are the days when an impressive EVP alone could attract top talent; today’s candidates are savvy and demand authenticity. Social media, online reviews, and word-of-mouth have made it easier for candidates to spot companies that fail to uphold their culture, and top talent is quick to move on from companies that don’t live up to their promises.
As 2025 approaches, 45% of talent professionals agree that culture and employer value proposition (EVP) will be critical in recruitment. They also recognise 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. In a world where automation is on the rise, a unique and genuine employee experience will be a company’s best differentiator.
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: Retain by Training
In 2025, Learning and Development (L&D) is no longer just a box to tick—it’s essential for retaining top talent. People want to join companies that invest in their future. The report reveals that 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 making a compelling case for “retaining by training.” The new reality? Standard L&D offerings like generic training sessions and online courses are no longer enough. To meet evolving needs, companies must embrace innovative approaches such as virtual reality (VR), gamification, and microlearning. By investing in forward-thinking L&D initiatives, employers can bridge skills gaps and ensure long-term retention, transforming L&D into a strategic cornerstone for talent development.
“As we look to 2025, organisations are challenged with striking a balance between competing factions: technology and human connection, efficiency and personalisation, flexibility and structure,” said Jeanne MacDonald, Chief Executive Officer, Recruitment Process Outsourcing, Korn Ferry. “Leaders who can blend data-driven insights with personalised 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 Korn Ferry report draws on a survey of more than 400 talent professionals at all levels, from entry-level to CEO, across North America, Latin America, EMEA and APAC, representing 13 industries. In addition, the survey includes insights from more than 40 of the firm’s consultants.
