The recruitment landscape continues to evolve, presenting both challenges and opportunities for businesses and candidates. In 2025, the focus should stay on making strategic hires, enhancing efficiency, and managing the complexities of a shifting labor market.
By staying on top of emerging trends and adapting strategies, organizations can position themselves for success in this dynamic environment. Here, Rachel Liem-Smith, Assistant Vice-President for CWB’s Talent Acquisition team, part of an award-winning HR department and corporate culture, lays out the key trends shaping recruitment in 2025, as well as their potential impact on the way businesses attract and retain top talent.
Navigating tight budgets, new technology and a shifting market
Recruiters will need to navigate slower hiring cycles, tighter budgets, and ongoing technological transformation in 2025. Success will require strategies that deliver measurable value while adapting to shifts in labour market dynamics, macroeconomic trends, and new government policies. The economic slowdown is projected to continue well into 2025, which means organizations will want to maximize efficiencies with technology and ensure that those joining their teams are the best fit.
Effective assessment and interviewing methods will help leaders find top talent that is going to deliver strategic priorities, but to attract and retain the best candidates, employers must simplify application processes, reduce interview rounds, and ensure timely communication to attract and retain top talent.
Recruitment teams will need to prepare to justify budgetary decisions with data-driven insights while maintaining a strong candidate experience.
Key actions for your business:
- Focus on embedding efficiency into recruitment strategies.
- Stay updated on labour market trends to make informed decisions.
- Be prepared to defend budgetary decisions with data-driven insights.
- Use technology to manage complexity, and don’t sacrifice a human touch.
Talent availability and retention
Talent acquisition strategies will continue to shift toward skills-based hiring. Emphasizing potential over traditional credentials and placing greater value on those who have travelled diverse, non-linear career paths, this approach allows organizations to better address gaps created by retiring baby boomers and when employers are faced with drawing upon a limited talent pool. People who bring transferable skills will be particularly valuable as industries evolve and automation takes a larger role.
Retention will remain a top priority for employers as well. Understanding employee needs and offering recognition— whether through financial rewards or authentic acknowledgments—can make a significant difference in a team member’s long-term loyalty.
Recognition is personal. Not all employees value the same type of recognition. Getting to know how each of your team members want to receive recognition is a critical part of leadership that will help retain your top talent.
Succession planning will also be critical to show employees and candidates that the organization is committed to their growth and development.
Letting your employees know that you see them growing and developing with the organization fosters trust and loyalty. This conversation can arise in regular performance discussions as well as through intentional investments in continued learning, like courses, certifications and more.
Key actions for your business:
- Emphasize skills-based hiring to attract and retain diverse talent.
- Recognize and reward employees in meaningful ways to boost retention.
- Plan for leadership transitions with robust succession strategies.
- Address resistance to hiring newcomers by demonstrating the long-term value of investing in fresh talent.
The evolving employer value proposition
Today’s candidates demand transparency, comprehensive compensation, and flexibility from potential employers. Organizations that clearly communicate their value proposition, including pay transparency, career progression opportunities, and a commitment to employee well-being and better work-life balance will stand out.
Candidates’ expectations of compensation are evolving. While base salary remains important, total compensation—including benefits such as health care, retirement plans, bonuses, and flexible work options—is now a critical factor in decision-making.
For the Gen Z workforce, a supportive environment filled with training and development opportunities, as well as meaningful challenges are key. Gen Z’s approach to work is shifting norms, with less emphasis on “paying dues” and more focus on achieving work-life harmony. Employers must be clear about career paths to attract this important growing demographic.
Key actions for your business:
- Enhance transparency in job postings to attract the right talent.
- Design total compensation packages that go beyond base salary.
- Adapt work environments to prioritize flexibility and well-being.
- Communicate growth opportunities clearly to appeal to Gen Z candidates.
- Use intake meetings with hiring managers to ensure clarity on role expectations and career paths.
Shifting candidate behavior
While economic uncertainty and a complex geopolitical landscape shape how candidates approach career changes, one age-old factor continues to keep employees looking for new opportunity: compensation. A recent survey featured by the Financial Post shows that stagnant pay is motivating nearly 75% of Canadian professionals to explore new opportunities. This may be a difficult fact for businesses to accept as they seek to maintain or even reduce costs in 2025.
Solutions to this challenge include examining the diverse perspectives and needs within your company and using these features to your advantage. In multigenerational teams especially, organizations can leverage diversity in their workplace by creating collaborative environments that people enjoy and tell their networks about. When speaking to candidates, focus on the overall attractiveness of an employment opportunity that might include hybrid work options and career advancement opportunities and competitive pay.
Providing a complete picture of the career opportunity, setting aside stereotypes and finding value in the unique strengths of your people can help build a culture that boasts greater creativity, innovation and resilience – one that will have jobseekers taking notice.
Addressing skill gaps—particularly in soft skills for younger candidates—will also be essential. Organizations should look to incorporate psychometric assessments, structured interviews, and in-person interactions into their hiring processes. Look at powerful tools like PlumFlourish for help. It enables candidates to create a free profile that outlines their distinctive skills and behaviours, making it easy for hiring leaders to review and determine fit for role. Tools like this support candidates with resources that help them grow, learn and create career pathways.
Key actions for your business:
- Streamline application processes and avoid excessive interview rounds.
- Foster collaboration across generations to maximize workplace diversity.
- Invest in upskilling initiatives to prepare employees for evolving roles.
- Use assessment tools to identify and develop soft skills in candidates.
The role of AI in recruitment
Artificial intelligence will continue to transform recruitment by streamlining repetitive tasks and enabling faster decision-making. However, its integration must be thoughtful, ensuring that candidate experiences remain personal and free from unintended biases.
When you allow AI to review resumes, applications, and other candidate information, you remove human judgement from part of the decision-making process to move candidates forward or not. This can be a time-saver but ensure your AI tools continue to follow your best practices, like examining the relevant and necessary qualifications required for the role.
AI can be effective when used to complement human judgment. By automating routine tasks, recruiters can put greater focus on strategic decisions while ensuring fairness and transparency. Organizations must approach AI with responsibility, aligning its use with their values and long-term goals.
For example, creating a longlist from an initial applicant pool is a job done well by AI, as long as the correct inputs are managed by a person. It can simplify time-consuming tasks like scheduling interviews too.
However, the initial conversations, interviews, and offer conversations are always managed best by humans.
Key actions for your business:
- Use AI to complement human decision-making, not replace it.
- Continuously evaluate AI tools to mitigate biases.
- Prepare for automation’s long-term impact by fostering adaptability.
- Ensure AI integration enhances, rather than detracts from, candidate experience.
Considerations for leaders
Leadership visibility continues to be critical in attracting and retaining top talent. By actively engaging on digital platforms, leaders can showcase their organization’s culture, values, and commitment to growth opportunities. Authentic communication—both during the hiring process and throughout employment—will build trust and reinforce the organization’s employer brand.
But don’t oversell the employee experience. Highlight the positive and what you truly enjoy about the company on sites like Glassdoor, LinkedIn and Indeed, and you’ll be more likely to reach candidates with a realistic picture of what they can anticipate as an employee.
Beyond social media, leaders should engage directly with employees to understand their needs, demonstrate support and reinforce commitments to their success. Highlighting growth opportunities and championing well-being will ensure employees feel valued and invested in their roles.
Key actions for your business:
- Promote your organization’s culture and values through social media and external channels where candidates naturally are.
- Communicate honestly and transparently with candidates and employees.
- Build trust by highlighting opportunities for career growth.
- Demonstrate leadership’s active role in supporting employee well-being and development.
Final thoughts
The recruitment trends for 2025 emphasize adaptability, efficiency, as well as employee well-being and development. By embracing complexity, staying informed, and aligning strategies with evolving candidate expectations, organizations can overcome challenges and build resilient, forward-thinking teams. A thoughtful approach to 2025 can be a year of strategic hiring success and long-term growth.