Talent Acquisition is at another critical turning point. The post-COVID-19 hiring boom and subsequent candidate market is now well behind us. And, with slower hiring and a cooling economy, streamlining has become more important than ever. At the same time, TA leaders face unique challenges, from skyrocketing application volumes to the rapid evolution of AI. This means that success in 2025 will demand innovative approaches and strategic focus.

Here are the key areas where top TA leaders are streamlining and optimizing to drive innovation and deliver value in the year ahead.

These were first outlined at our live virtual event, Preparing for 2025: Top Strategies for Talent Acquisition Leaders.

1) Finding the Right Talent Amid the Application Avalanche

74% of TA teams report a surge in application volumes, driven by market conditions and the growing use of AI tools that make it easier for candidates to submit multiple applications at once. Compounding the challenge, 80% of TA teams have detected AI-generated content in candidate materials, making it even harder to evaluate and differentiate top talent.

Here, I explain how GenAI has made recruiting decisions harder and why the broader focus is shifting away from quickly filling roles to finding the “right talent,” i.e., talent that aligns with long-term strategic goals.

To manage the influx of applications, TA leaders are adopting a wide variety of strategies, from shortening job ad durations and consolidating postings to adding contingent or full-time staff.

2) Preparing for the Skills of the Future

A staggering 87% of companies recognize they have a skills gap now or expect one soon. Along with the need to find the “right talent,” this has given rise to the increased importance of skills-based hiring amongst Heads of TA. In 2025, the focus will shift to the most critical future skills: a blend of foundational soft skills—including problem-solving, critical thinking, adaptability, and resilience—and technical skills like data analytics and interpretation. Notably, 41% of TA leaders view recruiting AI and machine learning talent as essential to their 2025 goals.

3) Leveraging Generative AI in TA

TA leaders are increasingly prioritizing the integration of GenAI into their workflows, with 61% considering it at least moderately important. Usage rates are already high, with 82% of teams using AI tools for recruiting-related tasks. However, most TA leaders still feel they’re not fully prepared to effectively integrate AI.

This is largely due to roadblocks that are still being worked out, e.g., ensuring legal compliance, addressing ethical considerations and bias, and integration issues with HR systems. These roadblocks are not insurmountable, though, and in our latest whitepaper, GenAI and the Future of Talent Acquisition, we outline five predictions for how GenAI will reshape TA and drive the next wave of innovation.

4) Optimizing the TA Tech Stack

TA leaders are seeking to drive efficiency and streamline operations by reevaluating their tech stacks for 2025. They’re identifying where to drop, consolidate, or adopt new tools to drive down costs— and this is one of few areas they’re prepared to increase spending in 2025 to achieve their goals.

A few changes in store for 2025 include:

• Replacing current Applicant Tracking Systems (ATS)
• Introducing interview scheduling software
• Adding a supplementary vendor to HR Management Systems (HRMS)

5) Improving Internal Mobility

With hiring slowing and retention flagging, internal mobility has been top of mind for Talent Acquisition teams for a while, but few companies have perfected their approach. In 2025, key strategic goals for internal mobility will include retaining talent, improving internal talent visibility, and creating transparent career paths. However, several challenges remain to be addressed, including:

• Difficulty in matching skills to roles
• Limited visibility of internal opportunities
• Manager resistance
• Lack of standardized internal recruiting processes

 

Internal mobility will likely remain a key priority for a while as it offers a strategic solution to bridge skill gaps, especially when building talent internally proves more cost-effective than hiring externally.

6) Upskilling Recruiters for Tomorrow’s Challenges

Upskilling recruiters remains a top priority in 2025, especially as companies aim to build agility and target the right talent. Next year, 4 out of 5 TA leaders plan to increase focus on recruiter upskilling. The top 3 focus areas are

1. Consulting and advisory skills
2. Strategic use of data
3. DEI best practices

 

7) Adapting DEI Strategies to a Changing Climate

42% of TA leaders feel that public sentiment toward Diversity, Equity, and Inclusion (DEI) became more negative in 2024. While DEI remains a top-three priority for TA leaders, the number of those ranking it as a top priority dropped from 48% in 2023 to 26% for 2025. Internal support for DEI has stayed steady at around half of companies, but a key focus for 2025 will be continuing to meet DEI goals, especially within a new political climate that is likely to present a continued push to curtail DEI.

Looking to the Future

Optimizing across these critical areas isn’t just about staying competitive—it’s about future-proofing your Talent Acquisition strategy in a rapidly evolving landscape. By focusing on efficiency, leveraging the right tools, and aligning priorities with the shifting demands of the market, TA leaders will be better equipped to attract, engage, and retain the right talent needed for the future of work.