As technology evolves and workplace expectations change, finding and retaining top talent requires new approaches to talent acquisition. Here’s a look at some of the key trends reshaping recruitment this year and how staffing agencies can respond.
AI’s evolving role
The integration of artificial intelligence in recruitment has reached a critical juncture. While 67% of talent acquisition (TA) professionals expect increased AI usage this year, 40% worry about the technology making recruitment too impersonal.
“AI can supercharge productivity and elevate recruitment,” the report notes, “but today’s tech can’t handle high-level TA strategy needs, such as identifying talent gaps or interpreting non-verbal cues.” This limitation creates an opportunity for staffing agencies to position themselves as essential bridges between technology and human insight.
A growing skills-first approach
Traditional hiring criteria are rapidly evolving. Indeed notes that bachelor’s degree requirements in its job listings have dropped to 17.6% from 20% pre-pandemic, while experience requirements have decreased to 32.6% from 40% over the last two years.
However, only 17% of TA professionals know where to start when it comes to implementing skills-based hiring effectively, with 24% citing finding the right skills as a top challenge for 2025. But nearly a third plan to address skills gaps through upskilling.
Employees also feel it’s important to grow their skills — 44% of workers wouldn’t accept a job without opportunities to future-proof their skills, a 22% increase from previous years. And 41% would quit without learning and development opportunities, up significantly from 29%.
Work-life balance above all
Workplace flexibility has become more important than ever:
- More than three-quarters (76%) of employers have adopted hybrid models.
- Jobs offering flexible working hours have increased to 65% from 57%, while location flexibility has risen to 60% from 51%.
- For the first time in the 22-year history of Randstad’s Workmonitor report, work-life balance (83%) equals job security (83%) and surpasses pay (82%) as the top motivator for talent.
At the same time, the traditional notion of static workforces is evolving. According to 24 Seven Talent Solutions, 76% of companies now use freelancers, contractors, or consultants either frequently (22%) or occasionally (54%). And nearly 60% use a mix of in-house and outside resources. This trend toward more flexible workforce solutions suggests employers are discovering ways to cost-effectively configure their workforce.
Level up services and candidate experience
As emphasis on skills development grows and AI takes root in hiring processes, staffing agencies must develop comprehensive talent solutions that go beyond simply filling open positions, including:
- Creating and implementing skills assessment frameworks that can be used across multiple industries.
- Adopting AI-enhanced recruitment processes that improve efficiency while retaining the importance of personal interaction.
- Offering or partnering to provide learning and development opportunities.
- Providing consulting services around employer value propositions, emphasizing work-life balance.
- Building robust data analytics capabilities, as well as technology consulting capabilities for clients.
In light of changing workplace priorities, recruiters can boost the candidate experience by matching candidates with value-aligned organizations and ensuring access to skill and career development opportunities.
The staffing industry faces a pivotal year in 2025. As Korn Ferry’s report emphasizes, “progress over perfection” should be the guiding principle. Agencies that can help clients navigate labor shortages while adapting to evolving workforce expectations will find substantial opportunities for growth.
Success will require balancing technology adoption with human insight, adapting to changing workforce preferences, and providing strategic value beyond traditional recruitment services. Most importantly, agencies must position themselves as strategic partners in their clients’ talent journey, helping them navigate not just current challenges but preparing them for future workforce needs.
