If we’ve learned anything in the last decade, it’s that the world can look very different over the course of a year. With technological, generational, and sociopolitical changes upon us, the recruitment landscape of today may be unrecognizable by this time in 2025.
We know you’re already thinking about how AI is changing the game, but there are other shifts that also have the potential to revolutionize the way recruiters source, attract, and retain talent.
While we don’t proclaim to have a crystal ball and nothing is set in stone, here are five predictions for the talent acquisition industry that we think you should keep your eye on.
1. Recruiters will build pipelines of contingent talent
In 2023, there were nearly 64 million freelancers in the U.S., making up 38% of the workforce. Opportunities for freelancers, temporary workers, and other members of the contingent workforce will continue to be plentiful as companies turn to independent contractors to counter labor shortages, staff for short-term needs, and save money. The phenomenon of hiring on-demand talent to reinforce full-time workers even has its own moniker — quiet hiring — referring to a company’s ability to fill important roles without hiring full-time talent.
But with the increase in contingent workers comes new challenges for recruiters. Not only must they keep up with laws that are designed to protect contingent workers’ rights, but they have to grapple with the challenge of sourcing contingent talent in the first place. The incentives that will convince a contract worker to take a position will likely be different from those that would appeal to a full-time worker.
Keeping your contingent workforce happy also means coming up with strategies to create a culture that makes contract workers feel included. Look for ways to keep your contingent workforce engaged, says Megan McCann, CEO of Chicago-based recruitment firm McCann Partners. “For example, set up 30-minute check-ins to see how their work is going and if they have any questions for you during the first 30, 60, 90 days,” she writes. “Build a relationship with your contingent workers and show them that they matter. Whether they work with your team regularly or come on board for a single project, investing in relationships with top talent will make a difference for your team in the long run.”
2. Skills-first hiring strategies will come of age
The appetite for skills-first hiring increased dramatically in 2023 and this year recruiters will learn effective new ways to implement it. Many recruiters agree that it’s an idea whose time has come and many can tick off all of the benefits. But it’s not easy transforming the way you evaluate candidates. For some organizations that have struggled to come up with their own skills-first approach, help may be on the way.
For example, the nonprofit Jobs for the Future recently received a $3.4 million grant from Walmart to come up with skills-first learning and employment models that organizations can use to develop their own effective strategies. Other companies, such as Comcast, are sharing their best practices so others can learn.
From using AI to unearth candidates who have certain skill sets to coming up with novel ways to measure competencies on the spot, recruiters will find their own sweet spots when evaluating candidates not just on their education and pedigree but critically on the real-world experiences that make them the ideal fit for a particular role.
3. DEI programs will change . . . but they’re not going away
In 2024, DEI programs will continue to be a point of focus but they may begin to look different.
In response to the backlash that many perceive against DEI, some companies are doing somewhat of a rebranding of their diversity, equity, and inclusion programs with messaging that emphasizes inclusivity. Case in point: Porter Braswell, founder of 2045 Studio, a networking group for professionals of color, told The New York Times, “I think instead of saying, ‘This is a program for Black employees,’ it would be more like, ‘This is a program to increase the equity of promotion rates across the firm, and everybody is included to apply to be part of this program.’”
While 60% of executives surveyed by employment law firm Littler said backlash against DEI initiatives has increased in recent months — and some companies have notably cut back on their DEI efforts — most respondents said their companies had actually increased their DEI efforts over the past year. For companies that are trying to attract Gen Zers and Millennials, DEI programs will continue to be an effective recruiting tool as these generations are more likely to make sure a company values DEI before accepting a job offer.
4. Salary discussions will take place earlier
The days of waiting until several rounds of interviews have taken place to talk money may be over.
A number of states have enacted pay transparency laws that, among other things, require employers to disclose salary information in job postings. With new state laws going into effect in 2024, more employers will have to grapple with what that means for them.
While such information can obviously be helpful for candidates looking for the most attractive opportunities, it also helps with recruitment. In a study by SHRM Research, 70% of companies that include pay ranges in job listings found that more candidates applied for jobs in their organizations and 66% said their postings attracted a better quality of applicants. Even if you live in a state that doesn’t have transparency laws, there’s good reason to talk money earlier in the recruitment process: More than half of workers say they wouldn’t apply for a job without knowing the salary range.
Using salary negotiation as a recruitment tool is not new, but more candidates will have access to information on pay ranges, so they’ll be better able to gauge their potential value and whether your organization recognizes and appreciates it. Pay transparency means the most successful recruiters will figure out how to let candidates and current employees know how pay decisions are made and refine their strategies for introducing salary discussions earlier in the recruitment process.
Candidates will also be holding recruiters accountable. Michelle M. Cook, field marketing manager for Checkers & Rally’s Drive-In Restaurants, has this message to recruiters: “If you’re adding a salary range because your state now requires it or you see more and more that candidates and external parties are saying it should be common practice with businesses . . . do not put a range of $75K-$125K and then when you talk to a candidate tell them, ‘Oh, that’s just on the post, we only have $80K budgeted for this position without wiggle room.’”
5. Recruiters will become branding experts
“Imagine a world where talent flocks to your door, not just for what you do but for who you are,” writes Andrea Hoffer, founder of Florida-based aHa! Talent Experts. “This is the power of a strong employer brand — a beacon that attracts the brightest, driven by your reputation as an exceptional place to work.”
Generation Z, in particular, values authenticity from the brands they support — and that includes their employers. With so much information available via social media and other channels, it’s easy for job candidates to learn as much as they can about an organization they are considering working for.
That means talent professionals who are trying to recruit Gen Z workers must take employer branding seriously, using social channels and other methods to convey their mission and show top talent why their organizations would be suitable employers. Expect recruiters to spend more time this year coming up with creative ways to highlight company culture and engage potential talent through video, podcasts, and other digital platforms. By offering a virtual peek inside of a company’s culture, recruiters will create their own buzz and ideally build new relationships with tomorrow’s talent.
Final thoughts
When it comes to change, our first instinct is often to resist. With change comes uncertainty, and it requires us to learn and adapt.
But recruiters can prepare for the changes that will come this year by being willing to do things differently. By experimenting with a new strategy — and being willing to fail — recruiters may end 2024 with the realization that the looming change they were dreading paved the way for unexpected success.
