7 recruitment trends that will define FY25

In financial year 2025, recruitment is more sophisticated, nuanced and technologically advanced than ever before. It’s also more effective. We explore the seven trends employers need to know about.

1. Skills over degrees

There was a time when employers and recruiters prioritised qualifications over almost anything else. Even entry level jobs seemed to require degrees. Needed a marketing assistant, they had to have finished a marketing degree (preferably with honours).

The labour shortages of the past few years have led more employers to connect the dots and understand that skills matter most. And, while sometimes they may have been acquired working in the same field, sometimes they may not have.

As a result the best companies and recruiters in FY25 can see through the marks, and connect the dots on how skills and experience gained in one role can translate into the next.

2. A broader talent pool

With remote and hybrid work becoming the norm since COVID-19, employers many looking to recruit for a position have a broader talent pool than ever before. That is, of course, so long as they’re prepared to be flexible in their working arrangements (and the
nature of their work allows it).

We see this as a win/win relationship between employers and employees. By offering flexible work, organisations get access to talent they may not otherwise be able to tap into. For employees, increased autonomy usually leads to greater job satisfaction.

3. Increased use of AI and automation

Generative AI may only be relatively new still (ChatGPT came out in November 2022), but it’s already making headway into the world of recruitment. AI-driven tools are being used to automate tasks such as resume screening, interview scheduling, and even to create personalised job descriptions.

This trend is reducing recruitment costs, speeding up the hiring process, and improving the accuracy of the candidates employers are selecting.

While currently many of these tools, such as Paradox and Humanly, are focused on volume hires, it’s likely that we’ll see new AI emerge to complement the role of recruiters in attracting more specialist and skilled labour too. The result should hopefully be better, faster recruitment, a stronger workplace culture and better employees.

4. Diversity, Equity, and Inclusion (DEI) to remain centrestage

DEI has been a major concern in recruitment over the past few years, and for good reason. Studies show that diverse workplaces carry genuine advantages over more homogenous ones. According to a 2015 survey of Harvard Business School alumni, 76% of senior executives believed “a more diverse workforce improves the organization’s financial performance.”

In FY25, companies are moving beyond simply acknowledging the importance of DEI. They are implementing concrete measures to build more inclusive workplaces. This includes revising job descriptions to eliminate biased language, expanding talent pools
to include underrepresented groups, and providing DEI training for hiring managers. This isn’t simply about meeting quotas, it’s about creating environments where diverse voices are heard and valued, leading to better decision-making and innovation.

5. Renewed focus on mental health and employee wellbeing

The importance of mental health and wellbeing has been gaining prominence in many workplaces. Now many employers are also seeing the value in using comprehensive mental health and wellbeing policies as recruitment tools.

Companies that demonstrate a genuine commitment to supporting their employees’ work-life balance and overall wellbeing often find it easier to attract the best talent. That’s one of the reasons, you’ll find these policies featured prominently on all the major
corporates’ recruitment pages.

6. Emphasis on soft skills

Just as recruitment is no longer all about academics, it’s also no longer just about hard skills either. In FY25, most employers recognise just how important ‘soft skills’ are – even when it comes to the most technical and sophisticated work.

The ability to communicate effectively, adapt to changing circumstances, and work well in a team are just as critical as knowledge and experience. After all, the specifics can be learned – relating to people is much harder to teach.

The best companies are increasingly investing in behavioural interviews, personality tests, and situational judgement tests to evaluate just how well a potential employee might fulfil a role.

7. Employer branding and employee experience

Increasingly, recruitment isn’t just about going out to candidates, it’s about making candidates want to come to you. Strong employer branding is essential.

This means making sure the company’s culture, values, and mission are on full display in outward facing communications (such as social media). It also means showcasing what makes your organisation a great place to work.

More than ever, today’s job seekers are doing their homework; they’re looking at company reviews, employee testimonials, and even how companies respond to social issues before deciding where to apply.

In short…

In FY25, it’s clear that the recruitment landscape is rapidly evolving faster than ever. From the increasing importance of soft skills and mental health to the rise of AI and the continued focus on DEI, staying ahead of these trends is crucial for any organisation
looking to attract and retain top talent.

It’s this pace of change that partly led us to develop our own Talent Advisory.

We stay on top of the trends and best practices across industries and around the globe. Whether you’re looking for a full-service talent advisory partner or support in specific areas like talent strategy, interview training, or personality profiling, Catalina Consultants can help you turn your business’s recruitment into a competitive advantage.

Get in touch to find out how we can help your organisation.