Based on a survey of talent leaders, a new report from BuiltIn examines key trends in talent acquisition as organizations look to recruit and retain employees in 2025. The findings indicate a cautiously optimistic forecast for hiring, particularly within the tech sector, driven by emerging technologies like AI. Challenges remain, especially in finding specialized tech talent, but companies are increasingly focusing on multi-channel recruitment strategies and investing in employer branding to attract and keep the best people. These strategies aim to engage candidates throughout their job search and reinforce employee retention.
The report identifies five key talent trends for 2025:
1. Priorities Shift as Hiring Recovers:
- Optimistic Forecast: Despite economic uncertainty, the overall forecast for hiring in 2025 is “cautiously optimistic.”
- Increased Hiring: 49.4% of respondents predict an increase in hiring in 2025 compared to 2024, while 33.9% expect hiring needs to remain the same.
- Tech Industry as a Driver: The tech industry, specifically the “Magnificent Seven” tech companies, drove significant growth in 2024, and this is expected to continue in 2025, fueled by emerging technologies like AI, Machine Learning, and Natural Language Processing.
- Emerging Priorities: Top recruitment priorities for 2025 include:
- U.S.-Based Hiring (45%)
- Hiring Tech Talent (37.4%)
- Employee Retention (36.6%)
- AI Technology Integration (33.9%)
- Shift to Specialized Roles: Companies are seeking fewer generalists and aggressively pursuing “high-skilled, specialized engineers in AI, cloud infrastructure, and cybersecurity.”
- Importance of Retention: Employee retention is a crucial priority due to the significant cost of voluntary turnover, estimated at “$1 Trillion annually” for U.S. companies.
2. Economic Uncertainty Requires a Balanced Approach to Global Hiring:
- International Hiring Strategy: The majority of North American respondents (60%) plan to hire outside of the U.S. in 2025.
- Lack of Dedicated International Budget: However, 64% of respondents do not have an expanded or dedicated budget for international hiring.
- Projected International Growth: The Built In team predicts faster tech job growth in India, Europe, and Latin America, particularly in AI, fintech, and cloud-based roles.
- Similar Global Challenges: Challenges in international hiring mirror domestic challenges, including “Resources and Budget Constraints, Building a Strong Employer Brand, and Skills Shortages.” This necessitates reliance on existing technology and employer brand investments.
3. Finding High-Quality Tech Hires Remains Challenging:
- Consistent Difficulty: Hiring qualified tech talent is a persistent challenge for HR and recruitment professionals.
- Top Challenges: The most significant challenges in tech recruitment include:
- Competing on total rewards (45.6%)
- Finding candidates with the specific skills (44%)
- Competing on flexible work types (36.5%)
- Building a tech-forward employer brand (29.3%)
- Budget limitations (29.3%)
- Impact of Return to Work: The rise in companies requiring a return to the office (with remote roles decreasing significantly from 33% to 18%) makes competing on flexible work types more challenging.
- Emerging Tech Roles: Nearly half (47%) of respondents anticipate that emerging tech roles (like AI, Machine Learning, and Natural Language Processing) will constitute at least 25% of their planned hires in 2025.
- Specific Skill Demands: Demand will increase for specialized engineers in areas such as “Cloud & AI infrastructure engineers, Cybersecurity experts and Embedded software & hardware engineers.”
- Business Risk: Delays and challenges in recruitment and hiring are considered business risks that can negatively impact company goals.
4. Acquiring Top Talent Demands Multi-Channel Investment:
- Multi-Channel Activation: Talent leaders are utilizing multiple recruitment channels.
- Most Effective Channel: Referrals are ranked as the “most effective channel for hiring qualified candidates” (48.4%).
- Less Effective Channels: Social media recruiting and Events are considered the least effective.
- Importance of Diverse Channels: The close rankings of other channels like third-party job platforms, employer branding, recruiting agencies, tech-specific platforms, and outbound sourcing reflect the need to reach candidates across various platforms.
- Candidate Behavior: Candidates are researching jobs like consumers shop for brands, prioritizing referrals and company career sites.
- Candidate Journey: A multi-channel approach is essential to support the evolving candidate journey, which involves stages of awareness, interest, evaluation, and commitment.
5. Investments in Employer Brand Are on the Rise to Support Recruitment and Retention:
- Increasing Importance: Employer branding is becoming increasingly critical in finding and retaining top talent as candidates evaluate opportunities differently.
- Growing Investment: “51% of respondents starting or actively expanding their investment in Employer Brand programs in 2025, and 38.9% maintaining their 2024 investment levels.”
- Employer Branding and Retention: Employer branding is a key strategy for managing employee retention.
- Top Employer Branding Priorities: The top priorities for employer branding are:
- Driving retention with employer branding
- Measuring the ROI of our employer brand
- Building an employer brand that appeals to tech candidates
- Investing in employer branding partnerships
- Enhancing authentic employee storytelling and engagement
Conclusion:
The report concludes that the tech industry is poised for continued stability and growth in 2025, driven by emerging technologies like AI. Talent recruitment is evolving to incorporate marketing and branding strategies. Organizations are using diverse tools to address hiring challenges. “Employer brand is key to this success,” and building a strong tech-forward reputation is crucial for navigating the future talent landscape.
Recommendations for Building an Employer Branding Strategy:
The report provides practical recommendations for developing an effective employer branding strategy:
- Develop a compelling Employee Value Proposition (EVP).
- Focus on employee retention alongside branding.
- Explore various promotion channels (owned, paid, and earned media).
- Create a content calendar for consistent messaging.
- Be prepared to adjust the strategy based on performance and opportunities.
Tips to Attract Top AI Talent:
Specific recommendations are given for attracting AI talent:
- Foster a culture of autonomy and experimentation.
- Engage with the AI community through conferences, hackathons, and online groups.
- Build a strong emerging tech brand through compelling content and tech-focused communities.