December 20th, 2024 – By Rebecca Taylor, CCO and Co-founder of SkillCycle
The pace of workforce development has accelerated in the past few years. From rapidly expanding markets to new visions for where and how your employees connect and conduct business, navigating change is a constant.
It’s wise to look ahead at this time of year and prepare your organization for factors that are likely to influence key business outcomes. Identifying the top talent management trends for 2025 can help ensure your organizational strategy is built to weather the shifts ahead.
For example, according to The World Economic Forum, 23% of jobs will change by 2027, displacing 83 million roles and creating room for 69 million new ones.
Give yourself the space to pause and consider what changes are happening in your industry and how your company may need to adapt. Most importantly, ask yourself if you’ve prepared your talent to meet the future needs of your organization. If not, developing a clear talent management strategy should be a priority as you kick off the year.
Let’s have a closer look at developing talent management trends and explore:
Talent management is all about finding, developing, and keeping the right people to help your organization thrive. It connects key HR functions such as hiring, training, performance management, and workforce planning into one clear strategy.
When done well, it doesn’t just engage employees; it helps them perform at their best and drive results. When you align talent management with your company’s goals and culture, you build stronger, more motivated teams and create a competitive edge that’s tough to beat.
Proactive talent management goes beyond having the right people in the correct roles today. It helps you understand how to measure, plan, and execute development strategies to prepare people for the future.
Let’s look at an example from Gartner. The firm’s research shows that only 8% of organizations have reliable data on which skills currently exist in their workforce, and which of those skills have the greatest impact on business success.
Without this data, you may struggle to create learning and development plans that will prepare your employees to step into the roles you’ll need to fill in the future. Worse, you may invest in programs that don’t advance the larger goals of your organization, driving down your capacity to compete with peers.
Companies need proactive strategies to retain their best employees and prepare for the future. Creating learning pathways that meet the needs of the business and its employees can drive significant benefits, and it is vital to pay attention to trends affecting these plans.
Learning drives organizational goals by ensuring employees have the skills and support needed to drive key business outcomes. Identifying critical roles and tracking relevant HR metrics allows leaders to directly connect employee success to achieving strategic objectives.
Whether the focus is boosting revenue, improving customer experience, or driving innovation, success ultimately depends on people. HR leaders play a critical role in identifying which roles are essential to specific goals and ensuring employees have the tools, training, and resources to succeed.
Learning and development strategies can enhance the employee experience through improved career opportunities and learning pathways. They can also help your company achieve its growth and future success goals by supporting other key business priorities.
An increasingly complex work environment will challenge HR leaders to deliver meaningful learning experiences throughout the year. We’ll see more strategic action to support employees in their current roles and help prepare them for future roles.
Monitoring the trends shaping multiple industries can help you navigate the changes ahead and prepare your organization for the future you envision.
Here are three of the top trends we see taking shape for 2025.
Many organizations promote their high performers into managerial roles to retain talent by offering raises, titles, and increased responsibilities. While this strategy makes sense for keeping top contributors engaged, it often exposes a critical gap: these high performers may lack the people skills needed to succeed as leaders.
Without intentional development, their technical expertise can outpace their ability to collaborate, communicate, and inspire, leading to breakdowns in team culture and overall effectiveness.
The challenge lies in shifting high performers from negotiating to collaborating, where they learn to gather insights from others, adapt to different perspectives, and work toward collective success. Collaboration requires well-rounded people skills, which don’t always come naturally to those accustomed to excelling as individual contributors.
Companies need to invest in developing their leadership and interpersonal capabilities to amplify the impact of high performers. This means equipping them with the tools to communicate effectively, foster collaboration, and lead teams with a balance of technical expertise and emotional intelligence.
Helping top performers grow into well-rounded leaders allows organizations to create a stronger, more connected workforce, where leadership by example is not just encouraged but becomes the standard.
The rapid evolution of HR technology has shifted from standalone tools to integrated platforms with increasing depth and complexity. In the past, organizations often relied on multiple systems, each with clear, isolated features.
Today, those systems are interconnected, offering broader capabilities but requiring deeper understanding. Technical literacy is no longer optional for HR professionals; it’s essential for maximizing the value of these tools.
With more software solutions available and greater integration across platforms, HR leaders must understand what their systems can do, how data flows between tools, and how to leverage these insights effectively. This includes knowing where data originates, how to interpret it, and how to use it to inform and advocate for strategic decisions.
Companies expect HR teams to extract maximum efficiency and insights from their chosen technologies. At the same time, HR professionals need the technical know-how and the confidence to use these tools to their full potential.
Building technical literacy empowers HR leaders to align technology with business goals, communicate the impact of their strategies, and make data-driven decisions. As technology becomes more integral to HR operations, the ability to navigate, integrate, and optimize these tools will set forward-thinking organizations apart in the new year.
Diversity, equity, and inclusion (DEI) initiatives remain critical for organizational success, but external pressures and shifting sentiments have made these programs harder to sustain.
Rather than abandoning DEI, forward-thinking companies are rebranding their approach to emphasize “diversity of experience” as a core strategy for driving innovation and competitiveness. This reframing highlights the tangible benefits of diversity in helping achieve high-level goals across an organization.
Hiring individuals with a variety of perspectives, backgrounds, and skills is no longer optional. In a global marketplace, organizations can face competition from anywhere in the world. To succeed, businesses need teams that can approach challenges from multiple angles, think creatively, and adapt quickly.
Companies with diverse experiences in their workforce are better equipped to innovate, solve problems, and grow revenue. This is not about meeting quotas or adhering to trends. Instead, it’s about building resilience and ensuring your organization has the broad perspective needed to thrive.
By positioning diversity of experience as an innovation driver rather than a program, organizations can focus on the outcomes that matter: genuine innovation, smarter solutions, and a competitive edge.
Embracing this shift will better position companies to weather societal changes while fostering a culture that values collaboration and growth. Rebranding DEI ensures organizations retain the cultural strengths that have propelled them forward — without losing sight of their future potential.
Over the past few years, learning and development strategies have focused on addressing pivotal shifts in workforce dynamics. Topics like the future of work, developing leaders, and upskilling employees have dominated organizational priorities.
These strategies were essential as businesses adapted to a rapidly changing world and sought to align learning and development initiatives with broader goals. However, these are no longer uncharted territory. Instead, they should be foundational practices woven into your operations.
For example, preparing for the future of work was once an ambitious endeavor that emphasized long-term talent planning and aligning learning and development with business strategy. Today, this forward-looking mindset is simply good business practice.
Similarly, developing leaders and retaining talent by addressing leadership gaps has been a focus for years. While crucial, organizations should consistently fulfill this responsibility rather than revisit it as a new goal.
Other areas, like upskilling the workforce and embracing skills-based hiring, have underscored the importance of closing skills gaps and valuing potential over traditional qualifications.
Likewise, supporting employee wellbeing, facilitating training for hybrid teams, and navigating digital transformation were once cutting-edge conversations, but they’ve matured into established elements of effective workplace strategies.
Do these themes still matter? Absolutely. They are critical for sustaining a competitive edge and maintaining an engaged workforce. However, your focus should now shift to preparing for more timely challenges and opportunities facing your organization.
Building talent management strategies that meet the needs of your organization and its employees can help boost retention, increase engagement, and create a happier, healthier workforce.
Why not book a demo with our team to learn how a talent management system like SkillCycle can support your organization with these and other challenges in the new year?