7 critical talent acquisition and recruitment trends in 2025

1. Artificial intelligence

One of the fastest-growing areas in talent acquisition software is AI. Examples of AI recruiting tools include smart talent platforms, job-posting platforms and recruitment chatbots.

Unlike robotic process automation (RPA), which performs manual, repetitive tasks, AI can learn and make decisions to carry out activities such as reviewing resumes for specific skills. When combined with RPA, AI can help recruiters review job boards and read and process documents. ChatGPT's humanlike communication abilities help recruitment chatbots engage more naturally with candidates and improve their accuracy.

The natural language processing in ChatGPT has enabled HR software vendors to add other capabilities to their recruiting software, such as the ability to compose job postings and interview questions. Machine learning helps make the software more effective by learning from users' activity.

2. Employer branding

Employer branding emerged as a prominent recruitment trend in recent years and continues to serve as a key differentiator for companies.

Many job seekers are looking for employers who align with their personal values and offer a fulfilling work experience, remote work options or career development opportunities. In addition, online employer review platforms make it easier for candidates to learn about a company's culture and working conditions.

A strong employer brand can affect a company's ability to attract top talent, reduce turnover and improve employee engagement. Companies continue to invest in their employer brand through strategies such as employee testimonials and a strong social media presence.

3. Employee well-being

Employee well-being continues to be a central focus for recruitment as HR leaders recognize the vital role it plays in attracting and retaining top talent.

In today's tight labor market, candidates are not only looking for competitive salaries and benefits but also for prioritization of employee physical and mental health. Many companies have responded by adopting a holistic approach to employee well-being and focusing on factors such as work-life balance, mental health support, physical wellness programs, and a supportive, inclusive work culture.

4. Candidate experience

The pandemic led to a focus on employee experience, accelerating the need for employee listening programs and an emphasis on employee well-being, and the trend has continued. Now, the need for companies to provide a good experience increasingly extends to candidates.

Job seekers want to feel treated well by recruiters and by technology. Candidates want career sites that are easy to use and let them quickly set up a profile, search for jobs and apply. Many companies have upgraded their career sites to enable a fast and easy application experience and solicited feedback from candidates.

The candidate experience continues after a job seeker completes the application. Candidate communication, such as scheduling interviews and following up, is another important aspect that recruiters must focus on. Recruitment software can help personalize the hiring process and gather analytics to guide organizations on improving their candidate experience.

5. Analytics

HR departments continue to adopt analytics, and it remains a major trend that will affect how organizations define their talent acquisition strategies and recruit talent. Applying analytics to talent acquisition processes can help identify areas for improvement, improve decision-making and reduce talent acquisition costs. Predictive analytics can help recruiters forecast future trends.

Analytics can provide recruiters with metrics such as the following:

• Source of hire.
• Time to fill.
• Time to hire.
• Age of job, or how long a job was open.
• Offer acceptance rate.
• Cost per hire.
• Vacancy cost, or the cost to the organization while a position remains vacant.
• Diversity, equity and inclusion metrics, such as applicant pool diversity.

6. Remote work

The evolution of remote work, which took a major leap forward during the COVID-19 work-from-home mandates, has fundamentally transformed the recruitment landscape. Remote work has shifted from being a perk or an industry-specific way of working to a mainstream employment model. It has opened up new opportunities for job seekers and employers and increased the percentage of candidates seeking positions that offer remote or hybrid work arrangements.

A rise in return-to-work mandates has put a damper on the availability of remote work. But organizations that have kept their remote work arrangements are continuing to implement strategies to ensure that remote team members feel connected and supported.

7. Skills and competencies

Assessing skills and competencies and using them to source, screen and match candidates to open vacancies is increasingly popular because of AI's fast-advancing capabilities.

Although HR has analyzed skills and competencies as part of talent management for quite some time, particularly when identifying successors for key positions, organizations have not always effectively used skills and competencies for talent acquisition. Recruiters should consider soft skills, such as time management and critical thinking, as well as hard skills.

HR software vendors are increasingly including employee attributes, such as interpersonal skills, aspirations and motivations, in their systems across a variety of processes.

Editor's note: TechTarget editors updated this article in late 2024 to reflect current trends and to improve the reader experience.

Luke Marson is a principal architect and part of the management team of a global SAP SuccessFactors consulting partner, where he focuses on SuccessFactors Employee Central, extensibility and integration technologies.