What Should Your Hiring Strategy Be in 2025?

The competition for top talent is fiercer than ever in 2025—and today’s prospective employees have drastically different priorities. Read on to learn how you can refocus your hiring strategy to win the war for talent.

Blaise Radley March 20, 2025
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Hiring in 2025 looks drastically different than it did just a few years ago. As the job market continues to change at an increasingly fast pace, the dynamic between candidates and organizations is also shifting. Specifically, the candidate experience matters more than ever—for organizations that want to attract and retain top talent, modernizing their hiring strategy must be a priority.

Today, nearly half (42%) of job candidates decline job offers because they have a negative interview experience. The days of employers calling the shots are gone—to score the best talent, organizations must treat candidates like they treat customers and other stakeholders.

That means designing hiring strategies focused on what matters to today’s workforce, while also modernizing with new technologies and the talent management capabilities they deliver. This guide covers the key hiring strategies your organization needs, from skills-based hiring to AI-driven recruiting, to ensure you can attract and retain top talent.

Understanding the 2025 Hiring Landscape

The job landscape has been in constant flux over the last half-decade. In 2020, the pandemic upended the world as we knew it. A few years later, the Great Resignation led to a scramble to adapt recruiting processes to match the rising demand for flexible work environments and high value alignment.

“The job market is shifting to favor employers, but, at the same time, workers are getting more confident in what they want.”

Ashley Goldsmith, Chief People Officer, Workday

The hiring landscape has since settled, but it remains complex to navigate. Applications are growing faster than requisitions—a sign it’s become an employer’s job market—but candidates are still demanding more than in the past.

“The job market is shifting to favor employers, but, at the same time, workers are getting more confident in what they want—competitive pay, clear growth paths, and meaningful work,” said Ashley Goldsmith, Workday Chief People Officer, recently. "It's up to leaders to help employees find meaning in their work in order to retain the high performing people who drive their organization's success."

For recruiters and HR teams, the challenge right now is becoming more efficient while also finding the best hires and keeping overload at bay. In the process, a handful of important trends for effective recruitment are emerging:

  • Skills-based hiring: Where employers traditionally focused on degrees and rigid experience requirements, the new priority is skills—namely, what can a candidate do? Many organizations are minimizing requirements in favor of skills assessments, AI-driven talent matching, and competency-based interviews, widening the talent pool and helping employers find high-potential candidates who might have otherwise been overlooked.
  • AI and automation: AI has streamlined the hiring process at every stage. From automated resume screening to predictive analytics that forecast retention risks, AI is helping recruiters make faster, smarter hiring decisions. In 2025, AI’s impact on hiring is only set to grow—three in four business leaders say their use of AI in hiring processes will increase in the next 12 months.
  • Evolving candidate expectations: 82% of employees say it’s important to work for companies in which the culture and values align with their own. They want opportunities to upskill, reskill, and advance within the company, they want the flexibility necessary to maintain a healthy work-life balance, and they want their workplace to be premised on sustainability. Companies that fail to communicate their values transparently may struggle to attract talent.

82% of employees say it’s important to work for companies in which the culture and values align with their own.

Key Hiring Strategies for 2025

As the hiring landscape continues to evolve, and candidate expectations evolve alongside it, having the right hiring strategy in place will be a major differentiator for success. A strong strategy demands an intentional and candidate-focused approach that effectively integrates technology while maintaining a strong human connection. Here are seven areas of focus that are key to building a strong and aligned workforce.

    1. Shift to Skills-Based Hiring

On LinkedIn, recruiters are five times more likely to search for candidates based on their skills than education background—so don’t filter out great candidates with your job posting just because they don’t have a specific degree.

Create more well-rounded job profiles and hiring criteria to account for a combination of education, real-world skills, and other competencies. Then, use skills assessments and structured interviews to get a real sense of what top candidates can do. There’s a reason why 78% of Workday survey respondents experienced positive impacts from skills-based hiring.

    2. Prioritize the Candidate Journey

The way you present your company to job seekers matters just as much for talent acquisition as presenting it to customers matters for sales.

Make sure your employer brand is intentional and aligned with your company mission and values. Update your career site and social media to clearly communicate what it’s like to work at your organization. Keep the application process simple and intuitive. Most importantly, always respond to candidates quickly and be transparent about timelines—the interview process should be a positive experience, not an obstacle course.

    3. Use AI and Data to Recruit Smarter

AI can make hiring faster and more efficient, but only if it’s used correctly. Candidates want efficiency, but they also want to feel like they’re more than just an application in a database. 

Use AI where it works best: To automate the tedious parts—like resume screening and interview scheduling—so your team can spend more time actually connecting with candidates. Use data insights to identify hiring trends, reduce bias, and make better decisions. Technology should enhance the hiring process, not replace its human element.

    4. Improve Your Employee Experience

Candidates are paying close attention to factors such as employee engagement and satisfaction. If your existing employee experience isn’t up to scratch, prospective candidates will likely hear about it online.

Take a close look at your existing approach to employee experience and identify any weakness and strengths. Use an employee survey tool to identify changes in sentiment amongst employees. Empower people leaders to take action against any feedback received. A sustainable approach to hiring doesn’t just focus on getting talent in the door—you have to think about and plan for how you’ll support employees long term.

78% of Workday survey respondents experienced positive impacts from skills-based hiring.

    5. Optimize Interviews and Onboarding

A slow, disorganized hiring process is a fast way to lose great candidates. Keep interviews structured and efficient, focusing on real job-related skills rather than gut feelings. Make sure you’re assessing soft skills, not just technical ability—things like communication, adaptability, and problem-solving are just as important.

Once a candidate accepts an offer, onboarding should be just as thoughtful. Give new hires a clear plan, connect them with potential mentors, and make sure they feel like part of the team from day one.

    6. Build a Strong Talent Pipeline

Hiring shouldn’t start when a position opens—it should be ongoing. Stay engaged with passive candidates before you need to hire them. Build relationships through networking, employer branding, and outreach. Institute a strong employee referral program and focus on internal mobility so your existing talent can progress into new roles.

Invest in upskilling and reskilling so employees can grow within the company instead of looking elsewhere when they want to advance. A strong pipeline means you’re never scrambling to find the right person—you already know who they are.

    7. Plan Proactively for the Future

Don’t wait until a position is vacant to start thinking about talent needs. Strong hiring strategies are proactive, not reactive. Work closely on workforce planning with department leaders to anticipate future staffing needs based on business goals, industry trends, and projected skills gaps.

Use workforce analytics to track hiring patterns and identify areas where talent shortages could slow growth in the future. Align data insights with your talent pipeline development to identify where existing employees can fill roles and when external hiring will be necessary. By planning in advance, you’ll avoid rushed decisions, reduce costly last-minute hires, and get the right people in place to support immediate and future success.

Measuring Hiring Success

Maintaining a great hiring strategy is an ongoing effort. The best way to do it is by quantifying success where possible, tracking the right metrics, and continuously refining your approach. Here are three methods critical to measuring successes—and improving on them. 

Key Metrics and KPIs

If you want to measure hiring success, you need to look beyond how many positions you’ve filled. The right data can tell you where your process is working and where it’s falling short. Focus on:

  • Time-to-hire: How long does it take to move a candidate from application to offer? A slow process can mean losing top talent to faster-moving competitors.
  • Cost-per-hire: What’s the total investment in recruiting for each new hire? Reducing unnecessary expenses without cutting quality is key.
  • Quality of hire: Are new employees performing well and staying engaged? Measuring their impact in the first six to twelve months can help gauge success.
  • Retention rates: Hiring doesn’t stop once someone accepts the offer. Tracking how long employees stay can reveal whether your hiring process is bringing in the right people.

In 2025, the companies that treat recruitment as a dynamic, continuously improving function will stay ahead.

Improving Candidate Experience

To attract and retain top talent, treat candidates like you would treat customers—making the experience smooth, respectful, and transparent. A great candidate experience will strengthen your employer brand, increase offer acceptance rates, and ensure your new hires feel valued from the start:

  • Use candidate surveys to gather real feedback on what’s working and what’s not.
  • Keep communication open and set clear expectations about timelines and next steps.
  • Leverage real-time feedback throughout the hiring journey to make quick improvements instead of waiting until problems pile up.

Continuous Optimization

The best hiring strategies evolve. In 2025, the companies that treat recruitment as a dynamic, continuously improving function will stay ahead. That means adapting to trends, analyzing their results, and making ongoing improvements based on data-driven insights:

  • Review hiring metrics regularly and identify bottlenecks slowing down the process.
  • Use AI and analytics to spot hiring patterns, including which sourcing channels bring in the best candidates and where applicants drop off.
  • Gather insights from hiring managers and new employees to refine job descriptions, assessments, and onboarding for future hires.

Hiring for the Future

Hiring in 2025 is more than just filling open roles—it’s about finding the right talent for the right roles at the right time, all while creating a positive candidate experience and employer brand. Hiring teams that embrace forward-thinking approaches like skills-based hiring, talent pipeline building, and AI-powered recruitment will have an edge in attracting and retaining top talent.

At the same time, hiring success requires staying adaptable. As workforce expectations continue to shift and technology evolves, the best hiring strategies will be the ones that balance efficiency and modernization with a strong human touch.

Learn how Workday can help you future-proof your hiring strategy at every stage of the talent acquisition cycle.

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