Key Takeaways:
- Increased AI usage in talent acquisition is the top trend, but concerns remain over impersonal processes and algorithmic bias.
- Skills-based hiring is a growing focus, but current adoption is low and finding the right skills is a major challenge.
- Fostering employee growth, upholding cultural values, and providing workplace flexibility will be critical for attracting and retaining talent in 2025.
From increasing reliance on AI to the shift toward skills-based hiring, talent acquisition is rapidly changing, leaving industry leaders to decide which trends are worth chasing to keep up with competitors.
To help identify key business drivers heading into a new year, Korn Ferry asked over 400 talent professionals around the world to share their insights for its latest Talent Acquisition Trends report. And increased AI usage came out on top — 67% named this the top talent trend of 2025.
However, AI is proving that it’s not quite the game changer companies hoped for, and taking the human out of hiring carries concerns. Four in 10 respondents are worried that AI makes the recruitment process impersonal, and 25% fear that algorithmic bias leads to unfair hiring decisions.
Going forward, AI use is shifting toward creating a better candidate experience rather than merely automating hiring tasks.
Other top talent trends identified in the report include:
- Skills-based hiring struggles: While 39% of respondents believe skills-based hiring is a key trend for next year, current adoption of this approach is low (20%). Almost a quarter (24%) of talent professionals said finding the right skills is one of the biggest barriers to success in 2025.
- Promoting career growth: Nearly a third (32%) of respondents plan to address skills gaps by upskilling current employees, and 30% want to foster long-term growth by developing career paths. When it comes to finding early career talent, talent professionals plan to offer internships and apprenticeships (61%) and entry-level training programs (32%).
- Follow through on EVP promises: Among surveyed HR professionals, 45% said a critical component of attracting talent in 2025 is integrating cultural values into employee value propositions (EVPs). However, Korn Ferry’s research cautions that failure to put that culture into practice results in higher turnover rates.
- Flexibility becomes essential: As employees increasingly value work-life balance, allowing room for flexibility in where and how they work will continue to be a key factor in attracting and retaining talent. The majority of surveyed companies (76%) have adopted hybrid work, and nearly half (48%) expect managing expectations for work-life balance to be a significant challenge for hiring early career talent.
As we close out another year, talent professionals are recognizing the need for a more balanced approach to AI adoption that values human interaction. Prioritizing employee development, work-life balance, and cultural fit will also help attract and retain top talent in a competitive market.
