Talent Acquisition Realities 2025
Strategy and Priorities
A snapshot of the first infographic: This year, quality of hire remains the top priority for talent teams, but external hiring now rises to second place, with candidate experience falling to third. Internal mobility continues its fall from sixth in 2024 to seventh but the most dramatic slump is DEI, fifth most important to number 11 on the list.
Budgets and Tech Investment Trends
A higher proportion of respondents expects to see their talent acquisition budget fall this year (46%, up from 39% in 2024), and the pressure to show value now affects 77% of TA leaders. The effectiveness of social networks could be waning – Just 33% use them for candidate attraction, vs 61% last year.
The Shifting TA Solutions Landscape
A snapshot of the third infographic: Is talent tech (slowly) turning a corner? 42% of TA leaders now think their TA platforms are fit for the modern workforce – a rise of 12% year on year. Tech buyers take note – recruiters that use a best-of-breed TA platform are six times more likely to report the same, compared with those using the recruitment module from their HCM platform.
Delivering the Modern Hiring Experience
CRM tools and internal marketplaces are the focus for TA technology demand in 2025 as recruiting teams’ desire for better engagement remains as strong as ever. Timelier communication with candidates is also a top priority for improving the candidate experience in 2025.
AI and Talent Acquisition
A snapshot of the fifth infographic: AI’s potential impact is accelerating – 90% (vs 83% last year) see at least some future impact in their work. Today only one in four TA professionals thinks the potential of AI in recruiting is overhyped. However – less than one in four has actively implemented AI as part of their hiring experience.
Talent acquisition remains an area at the forefront of HR technology. And while only 4% of respondents this year cite a decrease in team headcount because of AI, this rises to 25% predicting a reduction in the coming year. TA teams are savvy to the downsides as well as the advantages of the most important technological development in recruitment in a generation. Nevertheless, there is plenty of work still to be done to leverage AI and improve the candidate experience. Through this research, the 9-Grid™ for Talent Acquisition and the Market Assessment papers from Phase One of our Strategic AI Programme, Fosway Group will continue to lead the way in showing the lived reality of the entire TA tech landscape.
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