HR and Talent Acquisition professionals are at the forefront of navigating a dynamic and evolving workplace. In recent months, the transition from “The Great Resignation” to “The Big Stay” has reflected employees’ growing preference for stability over exploration, subtly shifting the power dynamics back to employers. Amid this backdrop, tensions around flexibility, pay, and transparency rumble on, demanding adaptive strategies from HR and TA leaders.
Juggling these complexities with tight budgets and expanded role expectations is no mean feat, but alongside these challenges come opportunities.
Here is our outline of the major themes for HR and TA in 2025:
Employer branding and EVP remain vital tools to engage, attract and retain talent. With 62% of candidates only applying for roles that meet their EVP criteria, a well-defined and communicated EVP can significantly impact talent attraction and retention, and effectively communicating that EVP requires investment in a compelling Employer Brand.
The digital transformation enacted through the implementation of HR software provides leaders with robust analytics throughout the talent lifecycle. The challenge now lies in effectively analysing this data to draw insights that can inform key decisions. However, many leaders are missing an opportunity by relying on outdated competitive data. Layering the contextual real-time data gained through Talent Intelligence is the key to unlocking a true understanding of the talent market, ensuring competitive offers and enabling the organisation to secure the best talent.
Investing in employee wellbeing has a multitude of benefits for employers, from reducing absence to improving productivity and engagement. Beyond wellness programs, a holistic approach that accounts for physical and emotional well-being is vital. Inclusion efforts, with support for minority groups and neurodiverse employees, must take centre stage.
With 70% of leaders identifying skills gaps as a barrier to success, the growth of skills-based hiring methods accelerated throughout 2024. This approach prioritises evidenced skills over institutions and degree-level qualifications, and in doing so, opens up diverse talent pools and helps reduce bias in the hiring process.
In 2025, this skills-first approach used in hiring is starting to be implemented within organisations. Leaders who have embraced Skills-Based Hiring are now turning to the internal talent market, mapping employee skills to identify gaps, optimising the use of internal talent and designing programmes to build skills within the business.
AI and automation have the potential to transform HR functions, from reducing bias in recruitment to implementing automated workflows. However, success hinges on aligning tech adoption with a human-centric strategy that uses technology to enhance efficiency whilst retaining meaningful interactions that strengthen relationships.
Whilst the push and pull on a full-time Return To Office continues, the requirement for effective people managers is constant. Equipping managers with tools and strategies for collaboration and engagement (whether in person or remote) is paramount, as is improving direct communication and supporting people managers to have tough conversations that enable effective working.
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© Talent Insight Group 2025
