Employee Talent Wars: Staying Ahead of the Curve

As we transition into 2025 and gear up for new recruiting and hiring efforts, it’s the perfect time to reflect on key insights from last year. We have highlighted statistics from the Society for Human Resources Management (SHRM) report: Talent Trends Report for 2024, revealing that employers faced recruiting and retention challenges last year. We are also giving you a sneak peek for expected trends to watch out for in 2025 to stay ahead of the curve!

2024 Recruiting Challenges

SHRM reported that in 2024, over 3 in 4 organizations had difficulty recruiting for full-time regular positions while nearly half had difficulties also retaining full-time regular employees.

The top 3 reasons these organizations gave for their challenges in recruiting were:

• a low number of applicants (60%)
• competition from other employers (55%),
• an increase in candidate “ghosting” (46%)

1 in 4 organizations reported that full-time regular positions they hired for in the last 12 months required new skills. The top two reasons driving these new skill requirements are organizational growth (55%) and changing technology (51%).

Large organizations were more likely to report difficulties recruiting for full time positions than small businesses (2-99 employees).

2024 Most Effective Recruiting Strategies

Within SHRM’s findings, a top ten list of most and least utilized recruitment strategies was included. The findings highlight the 4 strategies that were the most effective for organizations which included:

1. Improving compensation
2. Offering more flexible work arrangements
3. Providing monetary incentives to candidates
4. Training existing employees to take on hard-to-fill positions

2024 Retention Challenges

Almost half, 49% of organizations, reported having challenges retaining employees in 2024 as well. Top reasons provided include:

1. Salaries are not competitive for the market
2. Personal reasons
3. Poor people managers/leaders
4. Limited advancement opportunities
5. Inability to offer flexible work arrangements, such as remote work

Now that we’ve reviewed some highlights of 2024, let’s take a peek at what trends are expected for 2025.

2025 Recruiting and Hiring Trends

• Skills-based Hiring and Upskilling: A focus on skills-based hiring as well as upskilling current employees will continue in 2025. Data from a recent McKinsey Global Institute survey suggests this shift is more than a temporary trend in hiring—it’s an economic necessity, with 87% of companies facing skill gaps now or expecting them within five years. At the same time, businesses will need to take a comprehensive approach to keeping talented staff members motivated, engaged, and aligned to reduce turnover.
• AI Powered Recruiting: Recruitment is evolving fast, and AI is at the heart of this transformation. According to a report by Recruiterflow, a third of hiring leaders have embraced AI in recruitment, and integrating AI into their systems. Organizations have reported using AI in the following ways for recruiting: to generate job descriptions, screen applicants, customize target job postings to specific groups, as well as communicate via chatbots with applicants during the hiring process.
• Learning and Development: Korn Ferry’s latest Workforce Survey found that 67% of employees would stick with a company if offered upskilling and advancement opportunities—even if they hated their job. In efforts to provide ongoing learning for employees and address skills gaps, some companies are implementing apprenticeships, entry level training programs, reverse mentorships and even partnerships with high schools in early career development programs.
• Employee Advocacy: Content shared by employees on social media gets 8 times more engagement than content shared through a brand’s official channels, according to Entrepreneur. It’s also 25 times more likely to be re-shared. In 2025, job seekers won’t just look at your job openings, they’ll look at your reputation as well.  And what are job seekers looking for most? Trust in a company, opportunities for growth and a workplace that values them.

The recruiting and hiring landscape in 2025 will be shaped by a blend of technological advancements, shifting workforce priorities, and a growing emphasis on skills and employee engagement. Organizations that adapt to these trends by leveraging AI-powered tools, focusing on skills-based hiring, and fostering a culture of learning and development will be better positioned to attract and retain top talent.

CEA offers many relevant trainings to assist in upskilling your teams in the top critical essential skills needed in today’s workforce.

Call us today at 800.399.5331 to see how we can support you in making sure your employees feel they are part of a great company and a healthy work culture.