A staggering 69% of employers still report difficulty filling full-time roles, despite widespread innovation in hiring practices and increased investment in talent strategies, according to a new report.
The latest 2025 Talent Trends Report, from the Society for Human Resource Management (SHRM), offers a sobering look at the state of the workforce, revealing not only a sharp drop in qualified applicants but also a rise in “ghosting,” with 41% of organisations saying candidates disappear mid-interview without notice.
This dual challenge – a thin talent pipeline (cited by 51% of employers) and an increasingly disengaged candidate pool – has left many organisations rethinking their entire approach to talent acquisition. And according to the findings, traditional methods are no longer enough.
“Our latest research provides a critical lens into the dynamics shaping the future of work,” said Alex Alonso, Chief Data & Analytics Officer at SHRM. “Organisations need to move beyond reactive hiring and start building workforce strategies that emphasise adaptability, inclusion, and technological fluency.”
TALENT MARKET
One of the most significant takeaways from the report is the growing disconnect between employer needs and labour market readiness. As roles evolve, 28% of organisations say job functions now require entirely new skill sets, while nearly half (47%) are actively redefining existing positions to meet future demands.
Technical expertise is in high demand. Skills in data analysis (36%), artificial intelligence (31%), and cybersecurity (21%) top the list for employers seeking to modernize their workforces. But it’s not just about tech. Many HR leaders say it’s equally difficult to find candidates with core human-centric skills such as problem-solving, decision-making and adaptability – capabilities seen as crucial for long-term organizational success in a constantly shifting business landscape.
AI IMPACT & UPSKILLING GAP
The rise of artificial intelligence in HR is no longer theoretical. More than 43% of companies are now using AI in their people operations, with over half leveraging it specifically in recruitment, streamlining tasks like resume screening, interview scheduling, and candidate communications.
Yet the shift has created its own challenges. SHRM found that two-thirds of organizations have not yet invested in upskilling employees to work effectively alongside AI, leaving many teams underprepared for hybrid human-machine workflows. The result is a widening capability gap that threatens to limit AI’s impact unless addressed through structured reskilling programs.
RETHINKING TALENT & RECRUITMENT
Amid these hiring challenges, a growing number of companies are turning inward — developing talent from within to fill critical roles. According to SHRM, 38% of employers are now training existing employees to move into roles that would otherwise be difficult to staff. Programmes such as job rotations, internships and apprenticeships are gaining popularity and results. In fact, job rotation initiatives have a reported 92% success rate in easing talent shortages.
At the same time, external recruitment strategies are becoming more creative and more relationship-driven. Social media remains a dominant platform, used by 55% of organizations to attract candidates, but it’s employers offering flexible work arrangements and cultivating long-term engagement with passive talent who are seeing the most success in today’s labour market.
SKILLS-FIRST HIRING
While the labour market remains tight and the talent war shows no signs of slowing, SHRM’s report makes clear that employers have powerful tools at their disposal – if they’re willing to adapt. The research emphasises the importance of skills-first hiring, inclusion, and a renewed commitment to employee development as critical levers for resilience.
“Technology will continue to reshape work, but it’s people – and how we invest in their growth – that will define whether organizations sink or succeed,” Alonso said.
The message for business leaders is clear: Filling open roles in 2025 requires more than just a bigger recruitment budget. It requires a fundamental shift in how companies find, train and retain talent, blending tech-driven efficiency with a deeper human focus.
Click here to read the full 2025 Talent Trends report.
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