Korn Ferry’s latest report highlights the key trends set to influence workforce dynamics in 2025.
- AI’s growing role in recruitment is matched by concerns over its limitations.
- Hybrid working remains a dominant model despite a push for full office return.
- There is a call for a shift towards skills-based hiring, with obstacles to overcome.
- Employee value propositions are critical as firms struggle with retention challenges.
As we look to 2025, businesses are poised to navigate through a landscape dominated by evolving trends as noted in Korn Ferry’s recent report. Increasingly, organisations face the challenge of finding a balance between technology and personal connection, efficiency and customisation, as well as flexibility and a structured work environment. The report, which surveyed over 400 talent professionals globally, emphasised the necessity for leaders to blend data-driven insights with personalised strategies to remain competitive in hiring top talent and achieving sustainable success.
A significant focus is placed on the dual-sided impact of artificial intelligence within talent acquisition strategies. While 67% of talent professionals expect AI to be pivotal by 2025, there remains palpable concern about maintaining the human element in recruitment. Specifically, 40% are wary of AI replacing personal engagement during the hiring process, while 25% express unease regarding algorithmic bias. These reservations highlight the need for cautious integration of AI to enhance but not overshadow human interaction.
Hybrid work environments continue to prevail despite a notable mandate from some business leaders urging a return to full-time office presence. According to the report, 76% of companies have adopted hybrid models. With 64% of talent leaders identifying resistance to office work as a primary challenge, the demand for flexibility is apparent. Organisations must reconcile business imperatives with employee preferences for autonomy and a balanced work-life setup to retain talent.
The necessity for skills-based hiring is acknowledged but execution remains less developed. While 39% understand its importance, a mere 17% are planning to implement such a hiring model by 2025. This discrepancy stems from the complexities tied to redefining roles and equipping recruiters with new skills. This ongoing transformation calls for prompt action to align workforce capabilities with organisational goals.
Employer value propositions (EVP) are more crucial than ever, as highlighted by 45% of talent professionals. Despite recognising the importance of delivering on cultural promises, companies often fall short, impacting employee retention. The disparity between stated cultural values and actual experience leads to high turnover, urging companies to ensure consistency in their EVP messaging and practices. To better understand the workforce, Korn Ferry’s survey involving 10,000 employees globally identified career development as a vital area. A striking 67% of employees indicated they would remain with companies offering upskilling opportunities, yet only 30% of firms currently provide clear growth pathways. This gap suggests a strategic focus on learning and development is essential for reducing attrition.
In conclusion, organisations must strategically align with these emerging trends to effectively address workforce challenges by 2025.
