As we move further into 2025, hiring managers and business leaders are faced with an evolving talent landscape shaped by innovation, economic shifts and workforce expectations. Building on what we saw in 2024, industry predictions and insights, as well as the expertise shared by our leadership team, here are 5 key trends shaping the staffing and talent industries this year:

Addressing low employee engagement

While the U.S. economy has low unemployment and declining quit rates, employee engagement and satisfaction are at an 11-year low. Many workers feel disconnected from their organization’s mission and believe their employers don’t value them. There are many factors to this, with one notable factor being in-person work requirements -- trends show that employees are still prioritizing work-from-home and flexibility as key factors to engagement and retainment.

As Gallup states, “The Great Detachment,” presents a significant leadership challenge. Employers looking to navigate changes like AI adoption or large-scale strategy shifts will find it difficult to succeed without re-engaging their workforce. Leaders must prioritize fostering connection and commitment through clear communication, empathy and support to ensure their teams feel valued and aligned with organizational goals.

Having opportunities for growth and development, as well as being part of a supportive team culture, makes me feel truly valued as an employee. – Vijay Nair, Horizontal Talent India Country Director

Purposeful ESG and DEI investments: Attracting talent and building trust

Environmental, Social and Governance (ESG) initiatives, alongside Diversity, Equity and Inclusion (DEI), are now global business imperatives rather than optional investments. Transparency in ESG metrics and DEI strategies will help organizations stand out in a competitive market. 2025 demands actionable goals, meaningful reporting and authentic storytelling to attract top talent and strengthen brand loyalty. This year, staying ahead of regional compliance and changes to industry and government standards will be critical.

At Horizontal, our 2024 ESG Report highlights our plan for continued sustainable innovation and investment.

As ESG continues to grow, transparency and meaningful action are key to attracting talent and strengthening brands. When you’re a professional services firm like Horizontal, having a strong internal foundation, value alignment and the capabilities to understand what ESG projects our clients are invested in is very important. We’re committed to sustainable innovation and supporting our clients' ESG goals through strategic staffing, short-term teams and digital transformation. These efforts, though not always in the spotlight, make a real difference in shaping a more sustainable future. – Isabella D'Burke, Horizontal Talent Sustainability Manager

AI and automation: Transforming the workforce

The adoption of artificial intelligence and automation continues to redefine recruitment and workforce management. What started as experimentation in 2023 and 2024 has matured into integrated, efficiency-driven solutions that automate repetitive tasks, streamline workflows and enhance candidate and client experiences.

However, the human touch remains irreplaceable in relationship-building and nuanced decision-making. Organizations need to be sure that they’re closing the significant gap in employee adoption and readiness to work with AI, as shared in the fourth point of Gallup’s workforce challenges article. Closing the gap requires reskilling and upskilling efforts, clear direction and training. Forbes shares that organizations that provide learning and development will attract top talent and position themselves as growth incubators, while employees ensure their versatility in different roles and open up more doors for themselves.

AI is not just a tool for efficiency—it’s an opportunity to redefine how we work. By automating repetitive tasks, we empower our teams to focus on building stronger relationships and delivering exceptional results. The key is leveraging technology while preserving the human element that makes us unique. – Jeremy Langevin, Horizontal Talent CEO

The expanding role of SOW and services procurement

Statement of Work (SOW) solutions are experiencing rapid growth, especially for complex projects requiring specialized skills and accountability. Companies are also focusing on services procurement to better understand spending patterns, improve worker classification and ensure compliance. Strategic SOW utilization and supplier partnerships are essential for optimizing outcomes.

As workforce strategies evolve, organizations are realizing the strategic value of Statement of Work and services procurement. By aligning program goals with clear, structured engagements, we’re helping clients gain better visibility, drive compliance and maximize impact. – Kevin Erickson, Horizontal Talent Regional VP

Emphasis on compliance and risk management

With ever-evolving regulations around labor, tax and data privacy, compliance is more critical than ever. The need for suppliers and advisors who can proactively address legal complexities and help businesses stay ahead of regulatory changes is paramount in 2025.

Compliance isn’t just a box to check—it’s a foundation for building trust and sustaining long-term partnerships. By proactively addressing regulatory challenges, we not only protect our clients but also position them for success in an ever-evolving workforce landscape. – Jeff Seebinger, Horizontal Talent Regional VP

Looking ahead: Partnering for innovation and growth

2025 is a year of reinvention and reinvestment. Companies willing to embrace flexible workforce strategies and employee retention, leverage technology and invest in ESG and DEI will not only navigate challenges but emerge stronger.

At Horizontal Talent, we’re committed to being a strategic partner in your journey, delivering innovative talent, team and project solutions tailored to your goals.

Do you have ambitious goals for 2025? Let’s connect and unlock your talent potential. Reach out to one of our experts today to discuss how we can help transform your vision into reality.

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5 workplace trends and insights defining 2025

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