Not too long ago, technology companies were aggressively hiring to meet the increased demand spurred by the pandemic. Those days are behind us, but that doesn’t mean a strategic hiring approach is out of style. In fact, we’d argue it’s more important than ever.
What can you expect as we move into the new year? What trends should be top of mind? And most importantly, how can you set yourself up for success?
Let’s dive in.
Economic Trends Shaping Hiring Strategies in 2025
The next twelve months will bring uncertainty, especially as new policies and regulations emerge under a changing administration. There’s no getting around that. But despite the unknown, there are two key trends you can count on to shape your strategy: sector-specific growth and economic stability.
- Sector-Specific Expansion: Innovation in a handful of sectors, including cybersecurity, SaaS, AI, and IT, will continue to grow at impressive rates. The cybersecurity market, for example, is expected to grow at a compound annual growth rate (CAGR) of nearly 11% between now and 2029.
- Economic Stability: Following years of economic uncertainty, inflation and interest rates are expected to stabilize as we enter 2025. The result? Improved conditions that’ll translate to businesses more confidently allocating resources to hiring.
“Navigating these trends requires both adaptability and foresight. Tech companies proactively aligning their strategies with sector growth and economic stability will position themselves to thrive in this dynamic landscape,” said Ed Leva, President & Founder of Wellington Steele & Associates.
The Challenges of Hiring in 2025 (and How to Navigate Them)
While 2025 appears promising on paper, primarily due to industry growth and economic stabilization, challenges will remain, including talent shortages, retention issues, and shifting expectations that make employee satisfaction harder to maintain.
- Talent Shortages: The need for skilled talent across cybersecurity, AI, and similar high-growth industries will continue to outpace supply, leading companies to compete intensely for the best and brightest. In fact, according to Gartner, talent will continue to outpace supply until at least 2026.
- Employee Turnover: Although the “Great Resignation” is largely behind us, employees will remain open to jumping ship if better opportunities exist elsewhere.
- Shifting Expectations: Employee expectations are currently evolving. Workplace flexibility, meaningful work, and aligned organizational values are now table stakes that companies must prioritize or avoid falling behind.
The good news? You can navigate these challenges with a thoughtful hiring strategy:
- Start Building Your Talent Pipeline: Relying on talent approaching you directly won’t cut it; the competition is too fierce for that. As a result, building a pipeline of highly skilled talent is crucial as we enter 2025. But how do you do that? Foster relationships with top talent now—even if they’re not ready to make a change. Then, when they’re ready to come on board, you can fast-track the hire and stay one step ahead of the hiring managers at your competition.
- Emphasize Flexibility: Flexibility will remain top-of-mind next year for candidates across the tech world. To adapt to these evolving demands and keep your company as agile as possible, you must prioritize contract roles, project-based positions, and hybrid arrangements.
- Focus on Retention: Winning the battle for top talent doesn’t stop when a new hire signs the contract—that’s just half the battle. Retention is equally important. To ensure long-term loyalty, developing a culture that prioritizes growth, attractive benefits, and workplace flexibility is essential.
Ed said, “2025 will reward companies that think beyond the immediate hiring challenges and focus on building a sustainable talent strategy. It’s not just about filling roles—it’s about creating an environment where top talent wants to stay and grow.”
The bottom line? Economic stabilization will bring new opportunities, but growth won’t happen by accident. Without a proactive strategy, you risk missing out on the top talent—and the momentum you need to thrive in 2025.