Talent acquisition (TA) is in an era of rapid change, certainly the fastest that I’ve known within my 25 year career. Today, as businesses navigate the agile, and sometimes fragile, talent landscape, TA leaders are faced with evolving workforce demands, AI-driven technologies and shifting hiring strategies—all new changes that they must adapt to. Recently, I had the privilege of moderating the Emerging Trends in Talent Acquisition for 2025 webinar where industry experts from AMS and The Josh Bersin Company shared key insights on how organizations are tackling these challenges head-on. In this article, I would like to share four major trends defining TA in the coming year, trends that you need to know of to propel your talent strategy forward:
Skills-based hiring is gaining momentum—slowly but surely
As our panelists discussed, skills-based hiring is increasingly becoming a priority. Yet, you might be surprised to learn most companies are still struggling with full implementation, with only 20% of organizations effectively using skills data in hiring, and even fewer—just 9%—establishing internal skills marketplaces to facilitate internal mobility. Our experts highlighted that companies leading the charge in skills-based hiring are moving beyond traditional credentials and instead using AI-driven insights to expand their talent pools. One example to really stand out involved a healthcare organization that successfully sourced candidates from the auto industry. How did they do this? By targeting transferable skills rather than simply focusing on job titles.
AI is reshaping the TA tech stack
Like the world evolving around us, AI is also transforming and reshaping the talent landscape. With AI technology making strides in TA, organizations remain at vastly different stages of adoption. Some of our panelists noted that enterprise companies are already leveraging internal AI-driven tools for job descriptions, candidate screening and interview analysis, while others are still exploring how AI fits in their TA process. The discussion underscored that AI is not replacing recruiters but rather enhancing their capabilities by automating administrative tasks to free up time for strategic work, like forming highly valued people connections. However, a key challenge remains: organizations must learn to seamlessly integrate AI across their TA tech stack to ensure data flows efficiently between tools and platforms.
Companies are taking an all-around approach to talent gaps
You might wonder, how are organizations rethinking the way they fill critical roles with the ongoing talent shortages? Our panelists discussed the “build, buy, borrow” approach—a multi-faceted approach that leading companies are embracing to help organizations maximize internal talent, reduce reliance on external hiring and future-proof their workforce. The conversation highlighted that TA leaders must work more closely with learning and development teams to create effective internal mobility and reskilling programs.
Build – Investing in upskilling and reskilling current employees.
Buy – Recruiting externally where skills are scarce.
Borrow – Leveraging contingent workers, consultants, and gig talent
Upskilling and transforming the TA function for the future
One of the strongest themes from the webinar was the elevation of TA as a critical business function. Our panelists emphasized that modern TA leaders must shift from being reactive recruiters to proactive workforce strategists. But how can this be achieved in an ever-evolving talent ecosystem? Panelists explained, to enhance hiring efficiency and drive long-term organizational advantage, TA teams need to embrace the following skills:
Develop business acumen to align hiring with company goals.
Use data analytics to provide insights on hiring trends and workforce planning.
Adopt a consultative approach to influence broader talent strategies.
As one panelist noted, TA is no longer just about filling positions—it’s about shaping the future of work.
Looking ahead
As AI adoption accelerates, skills-based hiring evolves and workforce strategies become more holistic, I trust 2025 will be a pivotal year for talent acquisition. Insights from our report reveal companies that invest in technology, strategic workforce planning, and TA upskilling will be best positioned to navigate hiring challenges and secure top talent. In an era of rapid change where adopting the right strategic outlook is crucial to understanding emerging trends, are you prepared to propel talent into the future?
Today, as businesses navigate the agile, and sometimes fragile, talent landscape, TA leaders are faced with evolving workforce demands, AI-driven technologies and shifting hiring strategies—all new changes that they must adapt to
Trust, Social Proof, and the Future of Hiring
The way hiring works is changing rapidly. At the heart of this shift? Trust.
In today’s market, trust is no longer just an advantage—it is a necessity. Candidates, like consumers, rely on social proof—the psychological principle that people look to others to validate their decisions. This is why employee referrals, alumni rehires, and internal mobility are becoming the most effective hiring strategies.
The evidence supports this. Referred candidates are not only hired faster—they stay longer as well (LinkedIn Talent Trends). When someone recommends an organisation, new hires already have a level of trust in the culture and expectations.
There is also a growing boomerang effect, where former employees are returning in record numbers. Organisations are recognising that when an individual chooses to come back, it is a strong endorsement of the company’s credibility (Gartner Research). A great workplace is not just one that attracts new talent—it is one that people actively want to return to.
Industry thought leaders, including Josh Bersin, have noted this trend. The most effective hiring teams are no longer solely focused on sourcing external candidates—they are investing in high-trust networks because referrals, alumni hires, and internal mobility lead to stronger hiring outcomes at a lower cost.
What is driving this shift? Two key factors: the power of social proof and a declining trust in traditional hiring methods.
The Social Proof Effect: Why People Trust People More Than Brands
We are living in an age of influence, but not in the way social media suggests. Influence today is not just about follower counts or carefully curated employer branding campaigns—it is about authentic, human credibility.
People trust people, not brands – A referral from a trusted colleague is not just a recommendation; it is proof that an organisation is worth considering.
Referrals reduce uncertainty – Changing jobs is a major decision. When someone you respect endorses an opportunity, it immediately feels more credible.
Boomerang hires strengthen employer reputation – When former employees return, it sends a strong signal: this is an organisation worth working for. Gartner research shows that organisations investing in alumni engagement achieve higher rehire rates and stronger reputations.
AI-generated outreach lacks social proof – Candidates can easily identify when a LinkedIn message has been rinsed and repeated by a bot after receiving the same template 10 times. Without human connection, it feels impersonal and unconvincing.
And this is not just theory—organisations are seeing tangible results.
One global technology company recently overhauled its alumni hiring strategy and experienced a 40% increase in rehires over two years. Why? Because trust was already established. These former employees were not taking a risk—they had direct experience with the culture, leadership, and business operations. That trust led to faster onboarding, higher engagement, and a stronger commitment to success.
This is the power of social proof—it builds trust, accelerates hiring, and improves retention.
Why Offboarding and Redeployment Are Essential to a Strong Talent Ecosystem
However, alumni networks and boomerang hiring only succeed if organisations handle offboarding and redeployment effectively.
Poor offboarding damages brand loyalty – If an employee has a negative departure experience, they are unlikely to refer others or return. Research from Workday shows that organisations with structured, positive offboarding programmes are twice as likely to rehire former employees.
Negative offboarding experiences harm employer brand – A poorly managed exit process often results in negative Glassdoor reviews and reputational damage, which discourages future referrals.
Redeployment prevents unnecessary talent loss – Organisations that actively support employees in transitioning to new internal roles rather than defaulting to redundancies retain institutional knowledge and sustain trust.
Best and Worst Practices in Offboarding
Some organisations treat offboarding as a transaction rather than an opportunity. Impersonal redundancies, delivered through mass emails or pre-recorded video messages, with no transition support or career assistance, leave departing employees feeling undervalued. This approach damages trust, erodes employer reputation, and often leads top talent to join competitors instead of returning later.
In contrast, leading organisations take a long-term view of offboarding. Rather than severing ties completely, they provide structured alumni programmes, networking events, and even career coaching for departing employees, ensuring that relationships remain strong. Organisations that adopt well-managed exit strategies experience higher alumni engagement, stronger employer branding, and an increase in boomerang hires.
Organisations investing in structured offboarding and alumni engagement see up to a 20% increase in rehires (Harvard Business Review).
Redeployment strategies that prioritise internal mobility reduce turnover by 41% and strengthen employee trust (LinkedIn Workplace Learning Report).
The Pitfalls of High-Trust Networks: The Risk of Reinforcing Bias
While referrals and alumni hiring can be highly effective, there is an important risk to address: they can reduce diversity and reinforce bias if not actively managed.
The “Like-Me” Effect – Research shows that employees tend to refer individuals who share similar backgrounds, education, and demographics (Harvard Business Review). If organisations are not intentional, referral programmes can result in homogeneous talent pools.
Alumni Networks Reflect Past Hiring Gaps – If an organisation’s workforce lacked diversity in previous years, its alumni pool will mirror those representation gaps. Over-reliance on alumni hiring can reinforce historical imbalances.
Over-Reliance on Known Talent Can Limit Innovation – While trust is crucial, excessive dependence on referrals and alumni hires can reduce fresh perspectives and new ideas.
AI Bias in Referral Matching – If AI-driven talent recommendations are not designed with diversity safeguards, they can replicate existing hiring patterns rather than broaden talent pools (Gartner).
How to Mitigate These Risks
Forward-thinking organisations are already implementing solutions to ensure high-trust hiring networks remain inclusive and diverse:
Diversifying Referral Incentives – Some organisations now offer increased referral bonuses for underrepresented candidates, ensuring that referrals contribute to a broader talent pool (LinkedIn Hiring Trends).
Expanding Alumni Networks Beyond Full-Time Employees – Progressive organisations include former interns, contractors, and contingent workers in alumni networks, widening the scope of potential rehires.
Balancing Referrals with Inclusive Hiring Strategies – Industry leaders have embedded structured diversity hiring initiatives alongside referral programmes to create more balanced sourcing strategies.
The Bottom Line: The Social Proof Revolution Is Here
Hiring in 2025 will not be about volume-based recruiting or relying solely on AI-generated outreach. The most successful organisations will strike the right balance—using technology to enhance trust-driven hiring, not replace human relationships.
The future belongs to companies that integrate AI intelligently—leveraging automation for efficiency, predictive analytics for smarter decision-making, and digital platforms to scale high-trust networks—while ensuring that human engagement remains at the centre of hiring.
Some organisations are already ahead of the curve. They are moving beyond transactional recruitment models and instead building dynamic, trust-based talent ecosystems where AI supports, rather than substitutes, authentic human connections. These companies are strengthening employee advocacy, deepening alumni engagement, and expanding high-trust hiring channels to secure the best talent.
The real question is: Will your organisation use technology to reinforce trust—or allow automation to dilute it?
In the future of hiring, social proof will be the strongest currency—trust built through referrals, alumni networks, and human connections will outperform cold outreach and AI-driven automation on its own
Introduction: Can Recruitment Save the Planet—Today and Tomorrow?
It’s 2025, and sustainability is no longer an aspirational buzzword—it’s the lens through which organizations future-proof every decision they make. What if your hiring process could secure top talent and fight climate change at the same time? It might sound ambitious, but it’s fast becoming reality. Talent acquisition is emerging as an unlikely yet essential driver of transformation—and the way we recruit today will shape the future we leave behind.
Progress Over Perfection
Achieving carbon-neutral recruitment doesn’t demand perfection; it calls for progress. Every small step—whether it’s transitioning to virtual interviews or measuring travel-related emissions—drives real, tangible impact.
“Sustainability in recruitment isn’t just about minimising harm; it’s about maximising impact for talent and the planet—well into 2030 and beyond.”
Why Sustainability Is the New Must-Have in Talent Acquisition
1. Purpose-Driven Talent Continues to Demand More
The next generation of workers won’t just ask, “What’s the salary?” They’ll ask, “What’s the impact?”
Looking Back & Moving Forward: Even in Deloitte’s Global 2023 Gen Z and Millennial Survey, nearly 40% of respondents reported turning down job offers that ran contrary to their personal values—including environmental concerns.^1 Since then, sustainability pressures have only intensified. By 2025, early indicators suggest that the proportion of sustainability-focused jobseekers could exceed 50%, as climate accountability becomes the norm and global net-zero roadmaps accelerate.
Implications: This expanded focus means organizations can’t rely on outdated corporate social responsibility statements. To attract top-tier candidates in 2025 and beyond, companies need visible climate commitments that align with the next generation’s values.
Meanwhile, Weber Shandwick’s “Employee Activism in the Age of Purpose” report (initially released pre-2025) set the stage for escalating employee demands. Today, those demands are heightened, with activism evolving into structured, internal climate advocacy groups. The message remains clear: sustainability influences every corner of the talent equation—and that influence will only deepen.
“Principles of fairness, inclusion and purpose are inextricably linked to employer attractiveness, and those listed are very well placed to attract talents that are motivated by purposeful and long-term careers.”
Sustainability doesn’t just attract attention—it builds trust. In LinkedIn’s Global Talent Trends from 2022 to 2024, companies with robust ESG profiles saw consistent jumps in applicant engagement.^2 As we move further into 2025, this momentum has shifted from a “nice-to-have” to a critical differentiator.
Avoiding Greenwashing: By 2025, talent pools are more discerning than ever. Greenwashing is swiftly exposed, thanks to real-time social media scrutiny. Meanwhile, IFRS Sustainability Disclosure Standards (IFRS S1 & S2)—released in 2023—continue to shape the transparency expectations placed on businesses.^3 By now, failing to back up your green claims isn’t merely a reputational liability; it risks regulatory penalties and long-term talent drains.
3. Regulations Have Tightened—And Will Keep Evolving
Starting in late 2023, the EU Corporate Sustainability Reporting Directive (CSRD) and UK Streamlined Energy and Carbon Reporting (SECR) requirements expanded the scope of emissions reporting.^4 By 2025, companies are expected not only to measure but also to mitigate emissions across all activities—including recruitment.
Scope 3 Emissions in Focus: During the early phases of these regulations (2023–2024), recruiting teams started quantifying candidate travel and interview-related carbon costs.^5 In 2025, this practice is maturing into standard procedure. As more countries adopt or update similar frameworks, organizations that fail to measure hiring emissions risk falling behind.
What Is Carbon-Neutral Recruitment in 2025?
Carbon-neutral recruitment means actively reducing, measuring, and offsetting emissions throughout the hiring process—under today’s more stringent climate commitments. It’s not limited to merely adopting virtual hiring technology; it’s about reimagining the entire talent acquisition ecosystem:
Virtual Hiring: By 2025, cutting travel emissions through virtual interviews has become an industry norm.
Internal Mobility: Prioritising reskilling and redeployment over external hiring remains one of the most impactful ways to curb recruitment-related emissions.
Transparency: Measuring, sharing, and verifying the carbon impact of hiring decisions is now an expected best practice, in line with the ongoing IFRS/CSRD reporting wave.
Practical Strategies for Sustainable Recruitment
1. Leverage Technology for Green Gains
AI and data-driven platforms are more powerful than ever in 2025:
Smarter AI tools have evolved to optimise screening with minimal computing power—lowering both time and energy consumption.
Carbon tracking dashboards that were novel in 2023 are now standard offerings in many applicant tracking systems (ATS). They monitor emissions from interviews, recruitment events, and candidate travel.
Green data centers have taken center stage, with major cloud providers continually innovating to meet their 2030 net-zero targets. Microsoft and Google, for instance, are on track to power data centers with 100% clean energy in certain regions.^6
Tip (for 2025 and beyond): Ensure you’re transparent about how your tech is powered. Today’s top candidates expect full visibility into environmental impact.
2. Go (Even More) Digital with Recruitment Marketing
Physical materials are nearly a relic:
Brochures are replaced by interactive microsites and QR codes—which have only become more intuitive since 2023.
AR-powered virtual office tours are more immersive, cutting travel needs while showcasing state-of-the-art sustainability features, such as solar-powered buildings or energy-efficient workspaces.
Example: FTSE 100 company, building on early success in 2023, continued to digitize recruitment efforts through 2024–2025. Over this period, internal data suggests they eliminated approximately 12 metric tonnes of CO₂e emissions annually from what was once a high-volume printing and shipping process.^7 Their year-over-year candidate engagement also rose by 15%, a figure that underscores the continuing appeal of eco-friendly innovation.
3. Prioritise Internal Mobility
Reskilling existing employees is more critical than ever in 2025:
Fewer external hires mean smaller carbon footprints from onboarding, relocation, and travel.
Training programmes are increasingly delivered online, further reducing emissions. As skill needs rapidly evolve—especially around AI, data science, and environmental management—internal mobility is a cost-effective, planet-friendly solution.
Reskilling is sustainability in action—reducing waste, creating opportunity, and driving long-term agility well into the late 2020s.
4. Decentralise and Localise Hiring
Remote and hybrid models continue to dominate:
Minimise relocation by focusing on regional talent pools or networks, building on the remote-first momentum from 2020–2024.
Co-working hubs in strategic locations reduce commuting—helping staff work closer to home, while retaining the collaborative benefits of in-person interaction.
In 2025, the benefits of this approach are well-documented: it lowers emissions, diversifies candidate pipelines, and fosters a global talent strategy without the carbon-heavy footprint.
5. Be Transparent—Greenwashing Isn’t an Option
By 2025, green credentials are fact-checked in real time:
Publish ESG reports that highlight recruitment-specific metrics, like interview-related emissions saved through virtual processes.
Some leading-edge companies now use blockchain or similar technologies to certify carbon offsets and verify green claims, building trust among employees, investors, and candidates alike.
The Future of Recruitment: Leading the Charge Beyond 2025
Sustainable recruitment is rapidly outgrowing its “trend” phase. As we look to 2026 and beyond:
Sustainability KPIs are poised to match or exceed traditional metrics like cost-per-hire, time-to-fill, and quality-of-hire.
Carbon-lite AI will continue evolving, with green-coded algorithms and minimal energy usage becoming the norm for HR software.
Decentralised workforces will further slash commuting emissions, driving a new wave of planetary and people-first recruitment.
The future of recruitment isn’t just about who you hire—it’s about how you hire, and why.
The choices made in 2025 won’t just fill roles; they’ll shape the strategic and sustainable trajectory of entire industries. Moving toward a carbon-neutral hiring framework isn’t just about technical fixes; it’s about demonstrating purpose and leadership in a world where climate accountability has become the baseline.
Ready to take the next step? Begin by measuring your recruitment emissions, experimenting with green tech, and being radically transparent. Small, focused steps today will have an outsized impact on your legacy tomorrow.
References
Deloitte (2023). Deloitte Global 2023 Gen Z and Millennial Survey.
The data points from 2022–2024 are included to illustrate ongoing trends and regulatory milestones. Readers are encouraged to review the latest versions of these studies and standards—especially as 2025 unfolds—to stay at the forefront of sustainable recruitment innovations.
With a forward-looking mindset, your recruitment strategy can become a catalyst for both organizational success and planetary well-being.
Sustainability in recruitment isn’t just about minimizing harm; it’s about maximizing impact for both talent and the planet
Without a doubt, one of my favourite milestones during the year is bringing our leadership team together, in one room, for two days of thought-provoking discussions. Thanks to a combination of outstanding speakers and an extremely engaged and collaborative team, earlier this month we had a phenomenal time together.
So, which topics came up again and again and really left me thinking about their impact on the future of TA and what we need to focus on for the rest of this year and beyond?
Skills-based hiring is essential to business success
Skills shortages continue to be a significant challenge for organisations globally and a move to skills-based hiring and innovative approaches are essential to business success. Companies must put emphasis on skills and abilities over qualifications, in turn resulting in more efficient and inclusive hiring.
Bridging the green skills gap, in particular, is of critical importance as 82% of talent leaders feel that hiring talent with green skills is moderately or extremely challenging. We address these issues in detail in our recent whitepaper on tackling the skills crisis for a sustainable future.
Data, data, data
If you’ve read our Talent Climate Series, you’ll know that everything comes back to data. Being able to analyse and interpret data and translating our findings with our clients will allow us to elevate conversations and ensure our solutions are relevant to their specific needs and solving their pain points.
And this goes hand in hand with my next point..
Tech advancements are a key disruptor for how we do things
The buzzword of the moment – AI. It’s no surprise that generative AI is fundamentally revolutionising the talent acquisition world, from improving candidate experience to reducing time to hire.
We must stay ahead of the curve in every aspect of our talent acquisition lifecycle by continuing to implement more efficient and effective AI powered solutions for a competitive edge.
Incorporating a social value strategy is no longer a ‘nice to have’
We were delighted to be joined by our Crown Commercial Services client who brought to life how we’ve stayed ahead of the curve to stand out from our competitors, overcome challenges, and drive outcomes for our clients.
Not only did our client discuss the importance of technology in our framework, but they highlighted the significance of working together to create an impactful social value strategy and how this is essential to attract and hire diverse talent.
Our Diversity & Inclusion Alliance has been instrumental in supporting the social value agenda for our clients as we’ve tapped into the expertise and insights of our hub of DEIB (Diversity, Equity, Inclusion & Belonging) focused partners to inform talent strategies, weave this into company culture, and in turn improve diverse representation across our clients’ workforces.
At the end of the two days, I asked the team to describe the offsite and these critical conversations in one word – inspired, insightful, excited and collaborative are just some of the words that stood out to me. I used the word ‘proud’ after something that our client said during the event really resonated with me: ‘it’s a real honour to be part of the AMS agreement, and that’s down to the people’.
With key market insights underpinning everythingwe do, our ‘One AMS’ mentality and the unrivalled expertise and passion of our people, I truly believe we are unstoppable.
Earlier this year AMS asked talent leaders across the globe their opinions on the ‘green skills’ crisis. Shockingly, 84% of respondents said something needs to be done urgently to address the green skills gap, but only 7% think something will!
I was expecting this headline to be part of the new whitepaper around green skills we have developed on the basis of our outreach and research, but actually seeing it brought to life through real data was certainly a sobering thought.
We also asked our respondents what the barriers are to bridging this gap and what needs to be done, to get to where we need to be. The insights that followed were fascinating and revealed that whilst a lot of work is required, optimism still remains among those tasked with creating the strategies for global talent in their organizations.I would encourage anyone who has an interest in talent strategies to help us achieve our sustainability imperatives to download the whitepaper here.
HR and talent leaders are uniquely positioned to be a powerful force in closing the green skills gap and supporting sustainability efforts and our whitepaper shines a light on some of the areas that could make a real impact.
We conclude our whitepaper with the following recommendations;
Embrace a long term mindset
Champion collaboration
Apply green skills with a fresh lens
Let your green show
Prioritize specialized training and development
‘Green skills’ apply to every industry in the global economy and all organizations will have to adopt a green skills talent strategy at some point in the near future. Those looking to secure a strategic competitive advantage will act now!
If we want to address the green skills gap, we need to understand that all future job roles will require green skills.
Earlier this week, I was delighted to host a number of Human Resources and Talent Acquisition leaders to discuss insights from the latest report in our Talent Climate Series – Talent Acquisition at a Crossroads – alongside Josh Bersin, Global Industry Analyst and CEO of the Josh Bersin Company.
The Talent Climate Report
This report, for anyone who hasn’t yet read it, makes for fascinating and important reading, highlighting that the Talent Acquisition (TA) industry is at a critical pivot point with most TA Leaders not only identifying skills shortages as one of their top issues but also adding that they are under tremendous pressure to improve the efficiency of their recruitment processes. With many leaders feeling that they require more training, while also struggling with a lack of strategic direction and support from other leaders in the business; something has to give.
Talent and skills within an organisation, impacts everyone within that organisation. Regardless of role or level, we all need talent and skills to deliver, innovate, and drive high performance. So, whilst this report focuses on the perspective of TA and HR Leaders, this critical pivot point that the industry finds itself at, is most definitely not exclusive to TA or HR departments.
This, and much more, was discussed in what was a fantastic evening welcoming leaders with a diverse range of perspectives into AMS’s new 60 London Wall Office.
So, what were my key takeaways from the session?
1 | Positioning TA as a Strategic Business Partner
Having worked across various industries and observed talent and skills from a TA and wider business perspective, I wholeheartedly agree that businesses need to place emphasis on effective strategic partnering with their TA Leaders. The reports shows that only a third of TA Leaders surveyed said they were involved in any strategic planning. Even likening themselves to being “an Amazon fulfilment centre for humans”.
If TA do not have a seat at the table, then businesses are missing a critical opportunity to set themselves up for success. However, this works both ways and we cannot always wait quietly for an invitation, instead this is a wake-up call for TA Leaders – do we want to be a fulfilment centre or a strategic partner?
We must be bold, confident in our expertise, and ask the right, often challenging, questions of the business. Tell people what you do and how you can best support the organisation.
2| Culture is Key
On the topic of what makes a high performing company, over and above understanding your company’s financial or operational goals – do you fully understand and feel comfortable articulating the company mission, vision, purpose, and value proposition? A mixture of tangible and intangible things that when lived and breathed across an organisation create a strong culture of engaged, motivated, and passionate people all working towards a common purpose.
If companies don’t get this right then how can they retain talent, and importantly from a TA perspective, how can we understand in those early stages whether someone who wants to work with you will ultimately help to build or lower your talent density?
Interestingly, although unsurprising to me knowing the wealth of talent we have at AMS, one company did an analysis of what makes great performers within their organisation and found that the Recruiter was the common denominator. It is the Recruiter and their human touch of knowing all about the DNA of the company and what makes people successful there that made all the difference.
3| Internal Mobility and People Development
Related to culture and high performance is the subject of Internal Mobility, which was an interesting point of discussion, as when talking about TA it can be easy to focus on bringing new talent into organisations from the external market but it’s critical that we also place importance on strong internal mobility to recognise, develop, and retain the talent businesses already have.
It is shown that organisations with a strong focus on internal mobility, perform better. While it seems like this should be straightforward, in practice, many factors can challenge or hinder effective internal mobility that meets both business needs and the employee’s career aspirations, sense of value, and engagement.
Managers naturally want to keep their talent within their own team, Recruiters have a tendency to want to look externally, and if the cultural storytelling around how to grow and build your career within the organisation isn’t quite right then employees lack clarity and motivation.
We need to boldly make it clear to managers that it is their job to develop people, they aren’t just “looking after” employees for the organisation, they have a responsibility to contribute to the growth of talent and the shared success that will bring. This could include evaluating managers based on whether their team members receive promotions or make successful strategic lateral moves, whether they have development plans in place, and the increased value they provide to the organisation.
It’s all about taking the manager population on a journey, helping them see their own development potential and value, and crucially, help theming feel that they all work in the talent management business, every hire and every individual’s development is and should be strategic.
This is just a snapshot of the many relevant topics we discussed. The conversation concluded with thoughts on the future outlook: all businesses are experiencing change, transformation, or evolution, which naturally impacts hiring. The market remains challenging, and workforces will continue to be more demanding.
However, it was positively acknowledged that Talent Acquisition is one of the most important roles in the business and will become increasingly strategic, if we as a collective focus on what needs to be done to get there.
A huge thank you to Josh and everyone who attended, each bringing their own wealth of knowledge and expertise to our discussions. I can’t wait for the next opportunity to connect and continue these vital conversations.
In the meantime, we’ll be keeping a close eye on these themes and continuously improving our services across AMS to ensure we remain the best strategic partner to our clients.
Last week I had the absolute pleasure of facilitating my first roundtable at this year’s SIA CWS Summit on the topic of ‘Transitioning your MSP’.
With roundtable delegates representing a number of large blue chip organisations, we discussed the most important factors and key considerations in a transition from one Managed Service Provider to another.
It was fascinating to hear the different experiences as some of the delegates shared their own successes and challenges on already having transitioned from one MSP to another, whilst others were about to embark on a selection/procurement process for a new MSP and we heard from others who were just about to commence on this journey.
Some of the key takeaways from the session:
We agreed that the starting point of considering any transition is to ask yourself “what are we trying to achieve” from this change of provider? Is it about innovation, cost savings or even improved technology? Once you are clear on this objective there are a number of other key steps that businesses can be taking to prepare, such as:
Data – ensuring you have up to date and correct data with details such as source mix, worker pay rates, tenure etc. This information will be crucial to a smooth transition to a new provider and overall experience for the hiring manager and contractor whilst ensuring that there is no disruption to the payment or extension cycle.
Agree a date for a data freeze – when does the cut off take place between existing and new provider? This will ensure that there is a clean transfer of data but also support the work in progress, agreeing owners and stages of cut off and transfer.
Technology – whilst there are lots of considerations when it comes to technology, future technology and ownership of the tech etc, some key areas to focus on should include; highlighting any integrations that are currently in place as these will need to be identified for the change of tech. Any impact on wider teams to support the facilitation of the finance or HR process and ensuring that the full tech stack including integrations is taken into consideration.
Change and Comms – it is important to have a strong communication plan that includes identifying all service users who will need to be informed of the changes and progress updates. This should include hiring managers, contractors and suppliers but don’t forget other areas that touch the process including Finance, Tax and HR teams. Overall, a robust comms plan will support the change management programme and experience for all users.
Some further learnings I took from the session, firstly all delegates said their number one priority was business continuity. Having minimal to no disruption to their hiring managers and in turn to any critical projects or programmes is incredibly important, particularly ones heavily supported by contingent workers.
Innovation was another key call out, customers wanted to ensure that innovation was being brought by the new provider, particular when it came to technology which supported the solution, with a real mix of organisations who had procured their own VMS or planned on using the MSP’s technology.
I thoroughly enjoyed chairing this incredibly insightful roundtable and hearing from this diverse group of delegates from all different sectors, calling out the benefits of change and sharing their successes and challenges.
All delegates said their number one priority was business continuity. Having minimal to no disruption to their hiring managers and in turn to any critical projects or programmes is incredibly important, particularly ones heavily supported by contingent workers.
Earlier this month I attended a conference in Houston specifically focused on some of the challenges in the HR function of energy sector companies. It was a great event and what was particularly interesting and encouraging for me was that the audience was a real mix of professionals not only from the fossil-fuel industry (which is of course to be expected in Texas!), but also from the renewable energy industry.
Texas is the leading State in the US for renewable energy production and is continuing to accelerate the transition. Recent data from the Energy Information Administration (EIA)shows that solar generation alone is likely to top coal-fired generation for the first time in 2024. The Energy Reliability Council of Texas (ERCOT) manages the flow of around 90% of electric load in the state, and EIA forecasts indicate that wind and solar generation will top natural gas as the system’s largest generation resource. With the recent announcement on Earth Day relating to the $7 billion of solar funding for residential projects in the US through the Environmental Protection Agency, the pace will only quicken!
So how do these dynamics relate to HR strategies? The conference brought to light many of the challenges ahead.
I was privileged to share the stage with professionals from SLB, Shell and Technip FMC to discuss some of the key topics in Talent Acquisition in a panel format. Here are just some of the points we discussed:
It is clear the energy sector needs to work hard to remain relevant and exciting to younger generations of talent. According to the Universum list of the most attractive employers in America, no energy companies are ranked in the top 100 amongst business students and only 6 are ranked in the top 100 amongst engineering students. A lot of work needs to be done to tell the amazing stories the energy sector has to offer. Targeted and personalised employer branding strategies need to be invested in to help bring to life the massive impact a career in the energy sector can provide.
Flexibility and scalability in what has always been a volatile market is becoming increasingly important for Talent Acquisition operating models in the energy sector. As a result, more and more organisations are moving to Recruitment Process Outsourcing models and this is confirmed by recent US research that indicates the likely compound annual growth rate for the RPO sector in the US is 19.1% through to 2031.
Talent Acquisition technology has been a hot topic for the last decade or so, but with the rapid adoption of AI in HR processes and the increasing legislation associated with this to keep it in check, organisations will have to carefully consider their options and will need support with their technology and process decisions. The explosion of AI in our lives is astonishing (it took Instagram 2.5 years to have 100 million users and Chat GPT just 2 months) and the feeling in the room was that we must embrace the benefits that AI will inevitably bring, but guard against any bias that it might introduce into our processes.
Internal mobility was seen as a crucial enabler of dealing with the skills gaps in the sector, and the panel agreed that it was important to understand the skills in your organisation to determine who has adjacent or transferable skills for new roles. By embracing potential over experience, fostering a culture of mobility, and treating your internal candidates as you would an external candidate you will be able to harness your internal talent much more effectively.
Other topics covered over the 2 days we had together included using veteran programmes to increase belonging and access new talent pools, defining competitive policies to attract the best talent, and how to use wellness and health programs to support your people.
The topic of skilling was prevalent, and it was fascinating to hear how NexTier Oilfield Solutions had used Kahuna to digitize their technical competence assurance program (a great pre-requisite to get your data and skills taxonomy in order before embarking on a skills-based hiring approach) and how Vestas were reducing attrition through effective development programs, particularly in leadership.
The other topic at the front of everyone’s minds in the room was of course DE&I and how we all need to ensure processes remove implicit bias and approaches we take should always be focused on inclusivity.
The key takeaway for me was that the challenges ahead for the energy sector are multiple, but with the right mindset and by adopting the right balance for the energy transition to happen quickly enough, the energy sector is a hugely exciting sector to build a career within.
It is now crucial that we can tell this story to younger generations, whose talent we need to build a prosperous future for all.
As the challenges of recruiting the right talent continue to escalate, it is evident that these hurdles are only going to become more complex. Recently, I had the opportunity to speak with talent leaders in India to understand how they are navigating this increasingly demanding talent landscape.
It is apparent that companies must adapt and innovate to keep pace with the evolving job market. This includes implementing skills-based practices and fostering internal mobility. Additionally, optimising technological infrastructure, considering strategic outsourcing, and empowering recruiters to act as strategic advisors, are some critical steps towards achieving success in this dynamic environment.
Recently, AMS India hosted a conversation with Bill Pelster, Co-founder of The Josh Bersin Company, joined by talent leaders in two locations Bangalore & Mumbai. During our session, Bill and I explored the rapidly evolving talent and technology landscape, with a particular focus on the transformative impact of artificial intelligence (AI).
Navigating the shift
Globally, we are witnessing a persistent labour shortage, signalling a notable transformation in the employer-employee dynamic. An important element that has changed in the talent market is that we have very quickly moved from a talent surplus market to a talent shortage market. This shift heavily favours employees, accentuating their position of power in many parts of the world. Failing to recognise this fundamental change risks overlooking a crucial aspect of the evolving landscape.
Secondly, organisational reinvention is becoming widespread across industries. Large organisations like Disney and Netflix, are actively transforming their identities to adapt to evolving market demands.
Another critical theme revolves around the transformative impact of AI. Over the past year, AI’s impact has become increasingly pronounced. Those who underestimated its potential to revolutionise various aspects of business were at risk of being left behind. Despite the challenges it presents, understanding and embracing AI’s capabilities is essential for maintaining competitiveness.
Employees are increasingly vocal about their expectations and preferences, making it important for organisations to transition from traditional employee experience models to a focus on employee activation. This approach requires companies to respond promptly to employee signals and adapt strategies accordingly, similar to how consumer product companies react to market demands.
Redefining recruitment
Traditional recruitment methods are increasingly inadequate against the backdrop of today’s evolving business environment. Organisations must embrace a more holistic strategy that emphasises on internal mobility, upskilling, reskilling and reinventing to meet complex business objectives effectively.
AMS’s innovative approach has garnered recognition, illustrating the importance of aligning talent strategies with broader organisational goals. Considering the underlying dynamics, it is crucial to influence the global market, particularly amidst ongoing debates about recession and job growth.
Despite headlines suggesting job losses, the reality is more nuanced. Job openings are often swiftly filled, reflecting a seismic shift in global demographics. This presents significant challenges for talent acquisition professionals and highlights the need for innovative approaches to address evolving workforce dynamics.
Traditional notions of lifelong employment within a single industry are replaced by a new paradigm where individuals prioritise experiences and versatility over long-term loyalty to a single employer or industry. This shift is particularly pronounced among younger generations, who are more willing to switch jobs in pursuit of fulfilling experiences.
An analysis of LinkedIn data reveals a remarkable trend: nearly two-thirds of job changers are now switching industries, reshaping traditional recruitment norms. Recruiters are urged to adopt a skills-based approach, acknowledging that conventional boundaries between industries are becoming less relevant as skill sets continue to evolve.
In response to these challenges, HR and TA professionals must adopt a holistic approach to talent management. This includes upskilling and reskilling initiatives to align with evolving job demands, and actively encouraging open conversations about career transitions within the organisation. Instead of defaulting to mass layoffs, organisations should explore opportunities for internal mobility and skills development, capitalising on the transformative potential within their current workforce.
Adopting a skills-based recruitment strategy
By adopting a skills-based recruitment approach, promoting internal mobility, and fostering a culture of continuous learning and development, organisations can effectively navigate these challenges and position themselves for success in a rapidly changing global landscape.
Traditionally, employers held the upper hand due to an ample supply of talent. However, the landscape is changing, marked by the dwindling talent and the widening talent gap. We are transitioning into a post-industrial era where traditional HR practices may no longer suffice.
In this new paradigm, work and skills take precedence over job titles, demanding that organisations leverage technology for talent intelligence and create dynamic talent marketplaces. This approach promotes more flexible and responsive workforce management, aligning with the evolving needs and expectations of both businesses and employees.
By focusing on skills, organisations can uncover latent potential within their workforce. This approach aligns with the concept of “licensed work”, which prioritises human capabilities over repetitive tasks, fostering a more adaptive and innovative environment.
Harnessing AI
Just as Excel revolutionised the approach of data analysis, AI is poised to revolutionise how we approach work. By harnessing AI, organisations can optimise processes in areas like recruitment and career mobility. For instance, Starbucks has streamlined its hiring process to make it as easy as ordering a cup of coffee, demonstrating the power of removing friction in high-volume recruitment.
Similarly, AI is reshaping learning and development, thereby unlocking new opportunities for skill enhancement and career advancement. However, it is crucial to distinguish between AI as a mere feature and AI as a foundational solution. True integration of AI requires a fundamental shift in mindset and approach, heralding a new era of workplace efficiency and effectiveness.
When evaluating technology solutions, it is essential to discern between those merely augmented with AI and those fundamentally built on AI principles. This transition towards AI-native applications poses a significant challenge for established industry players like Oracle, SAP, and Workday, as they grapple with retrofitting their platforms for seamless AI integration.
The talent acquisition landscape is saturated with vendors offering a multitude of solutions. Partnering with experts like AMS, who bring valuable insights from the real-world experiences of hundreds of clients, can be transformative. As talent intelligence grows in importance, the use of AI in recruitment processes becomes crucial. For instance, AI can uncover additional skills not explicitly listed on resumes, thereby broadening the candidate pool and enhancing the alignment between job roles and applicants.
Consider the concept of “top of license” for recruiters, where they focus on the crucial 20% of the hiring process that requires human intuition and emotional intelligence. AI can manage the transactional aspects, freeing recruiters to focus more on assessing cultural fit and soft skills. While AI boosts efficiency, it is the human touch that remains irreplaceable for evaluating candidates’ suitability, particularly in aspects that require a nuanced understanding of personality and team dynamics.
These advancements herald a new operating model for HR, characterised by systemic HR practices. This paradigm shift compels a deeper understanding of AI-native technologies and their transformative potential for HR success. By embracing AI and effectively leveraging its capabilities, organisations can gain a competitive edge in talent acquisition and management.
The imperatives for the future
The research on systemic HR emphasises the need to rethink the HR function to operate more horizontally, directly aligning with the business’s primary concern: efficiently filling vacancies with the right talent. This involves breaking down traditional silos and fostering collaboration across HR domains, such as recruitment, retention, re-skilling, and job re-design.
Organisations must also redefine work processes in environments where skills are scarce, enabling employees to operate at their full potential. This means that departments, which have historically operated independently, must now collaborate in unprecedented ways, laying the foundation for systemic HR.
In India, where the pace of technological change is swift, it is crucial to embrace advanced concepts like AI in recruitment and agility in adapting to evolving skill sets. By aligning these concepts with organisational needs, businesses can effectively navigate the complexities of talent acquisition and management, ensuring a responsive and competitive stance in the global market.
Interested in learning more about the Talent Climate?
Our Talent Climate Series is a set of quarterly reports created in partnership between AMS and The Josh Bersin Company. They explore today’s challenging and turbulent world of talent, providing up-to-date and in-depth market insights, trends, and solutions for how to tackle the changing global conditions – so you can stay ahead of the talent forecast.
Technology companies are at a pivotal point of evaluating talent attraction and retention strategies. Historically, tech companies have been quite lucrative for potential talent, having a level of swagger and benefits that were perceived by candidates to be above other industries.
With the sector being faced with some unsettlement and apprehension over the past 12 months, this is the perfect time for technology companies to re-evaluate their talent attraction and retention strategies to make them the destination of choice. This can begin by looking at the Employee Value Proposition, but it goes beyond reconsidering the EVP and creating or refreshing Talent Value Propositions to care for the various worker types at tech companies versus taking a broad brush.
Through scrutinizing the approach at a talent segment level, developing a tailored approach, and being transparent about the market dynamics, tech companies can be the place to be again.
Before layoffs, tech companies were more renowned for workplace cultures that serviced employees with free benefits and premium amenities in state-of-the art offices. But gourmet chefs and meditation rooms weren't introduced just to keep workers on site for as long as possible – they were a means of attracting talent.
