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Employment Trends

3 Employment trends that are taking over the job market in 2025

Published on December 1st, 2022

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As we approach the year 2025, significant shifts are underway, reshaping the way we work and the opportunities available. From advancements in technology to changes in work culture, the employment scene is undergoing a transformation that demands attention.

So, let's delve into the future of work and discover what awaits us in the employment realm in the coming year.

1. Skills are King

Skill-based hiring or skills-first hiring has recently become one of the preferred hiring methods for a variety of companies in the job market. Employers are realizing the value of skills over qualifications in industries with ever-growing demands. The top companies of these industries have begun offering certification in various skills and technologies so that applicants in the job market can certify that they possess the practical and technical knowledge required for specific positions. 

As employees hired through skill-based hiring have proof of their merit they are taking preference over those with qualifications such as college degrees, workshops, etc. By acting as a proof of potential, skill-based hiring removes any uncertainty for the hiring company in regards to the employee’s ability to perform their duties effectively. It has also been shown that employees hired in this manner tend to have better retention rates and productivity than their peers. They also take less time in training and in getting used to their work.

Skill-based hiring has switched from being an employment trend to a necessity for tech-based companies. Having the ability to utilize specific software is vital for most roles. Proficiency in any particular field of coding for example can be proven through various online platforms such as GitHub or Stack Overflow. The existence of these resources streamlines the hiring process of tech companies. By testing their applicants in multiple stages, they also guarantee that their hire will be able to excel at their assigned role. This has prompted companies in other industries to introduce testing while hiring as well.   

The demand for skills has also diversified into a blend of hard and soft skills.

Hard skills are the technical and practical knowledge required for completing a task such as knowing how to code in Python or how to edit thesis papers. 

Soft skills are attributes that get work done efficiently. These are personal to the employee and relate to how they interact with their work environment. These for example can be expressed in the form of personal characteristics such as creativity and perseverance or as skills such as conflict management and communication. 

Soft skills have emerged as a growing need in recent times as they highlight candidates with a greater ability to adapt to their work environment. Skills that can help interpersonal relations or boost productivity are a huge bonus for any employee. In the face of rapid innovation throughout the globe, identifying beneficial soft skills helps secure promising employees for the long term. Ascertaining the soft skills of an applicant is usually tricky but can be picked up by a skilled recruiter while interviewing candidates

LinkedIn conducted a survey on recruiters and HR employees regarding global employment trends, and discovered that 92% of them value soft skills over hard skills when gauging potential hires. 89% of the survey demographic stated that a lack of soft skills damages an applicant's performance both in and after the hiring process. 80% of the survey respondents also identified soft skills as being a catalyst for the growth of any business.

Companies that have identified the trend towards skills in the job market have also begun training their current employees in various skills and technologies so that they can boost the potential of their workforce. 

By training employees, companies can prepare for changes in their industries as well as create a potential pool of candidates ripe for promotion to higher positions, reducing hiring costs. Corporate skill training sessions can also help improve interpersonal relations, employee engagement, and employee retention rates.

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2. Employers are adapting to trends in technology

With the global pandemic and shift to either remote or hybrid work, there have been a variety of changes to work and work culture overall that are trending in every industry. There has been a visible pattern of positions that have become flexible in terms of whether they are office, remote or hybrid. Advancements in technology have facilitated this by providing a way to effectively work and communicate regardless of location. Monitoring employees has also become easier for employers thus prompting its adoption in every industry also possible. This has also assisted office employees by letting them take their work home reliably. 

Having a common platform for work also makes it so that employees can communicate and collaborate in their professional endeavors at any time or place. Software built for remote work has also influenced the work schedule of many roles by allowing for their work schedules to be flexible and suited to their choice. The same software is able to relay messages to them, allow them to submit work and access resources available. 

Remote meeting software has developed features such as hand raising, private chat, screen and engagement level monitoring, etc.  in order to make the experience as comfortable as possible for everyone involved. Employees have reported better productivity, lower stress and a better opinion of their employer when there was a shift to the use of software of this nature.

It has become possible to disseminate information in ways that do not disturb employees at work. These same tools can be used to also ascertain how employees utilize the information provided to them. It has been shown that utilization of remote work software has improved employee engagement, reduced lag in the workplace and is able to accurately track employee growth in a company. Employment trends have shown that companies that adopted remote work software have had a greater rate of job applications per post as well as a boost in employee retention.

In spite of this, a survey revealed that 64% of managers and executives view office employees as better performers than remote employees, and 76% of them maintained that office workers are more likely to receive a promotion.

In the case of managerial roles, various HR entities have created products and services that serve to automate or replace many aspects of a manager’s role such as reviewing reports, monitoring tasks and employees, scheduling activities and relaying information. Therefore the role of a manager is either going to evolve in its duties and responsibilities or reduce in number. 

While the elimination of the role of a manager might seem logical, it is important to remember that a manager is essentially a link between a company and its employees. They are the face that employees will most likely associate with their employer and are the person who can address their concerns in the workplace.

An effective manager is able to identify effective elements in the workplace and coordinate amongst them to boost productivity. They are able to identify potential chokes in workflow and eliminate them. They can optimize the utilization of resources based on their employees capabilities. These are again human aspects of a manager's role that cannot be addressed by automation directly. Therefore it is highly probable that in the coming years employment trends will reflect the need for effective judgment for the position of manager.

3. Restructuring of Company culture

Employee well being

The well-being of employees has also become a topic of discussion in the domain of employment. There has been a positive trend of companies that are focussing on maintaining a comfortable and holistic work environment for their employees. The benefits of this have been well documented and maintaining their employees well being helps companies show that they care, which increases the employee retention rate and lowers incidents of conflict in the workplace.

Diversity

There has been a push for diversity in companies for quite some time now and it has only continued to ramp up in importance. A company that is rich in beliefs, backgrounds and values is better equipped to deal with the social climate that has developed in the past few years. A boost in diversity helps companies prevent discrimination and promote the growth of new ideas and perspectives in the workplace. By actively seeking a more diverse pool of employees, companies are able to grow toward being more accepting and tolerant. 

Pay Transparency

Pay transparency is on the rise as an employment trend and the reason is quite simple. In the past, it was a social taboo to discuss one's salary with employees rarely knowing what their colleagues earned or what they were worth in the job market. This lack of transparency led to discontent and pay inequality in the job market, with employees left undervalued and underpaid.

To remedy this, there has been a shift towards pay transparency, with a greater number of companies adopting open and transparent remuneration policies. This has been driven by factors such as an increase in competition for top talent, the desire to create a more equitable workplace, and the increasing value of the company or brand’s online image.

Recruiters need to be upfront and transparent about pay when recruiting candidates. Vague salary ranges and negotiations are unacceptable in today's job market. Applicants possess the resources to do their own research to find out what a fair salary is for a given role. By being upfront about pay, recruiters can avoid any misunderstandings and build trust with candidates.

Pay transparency can also help attract top talent. By being open and transparent about the expected salary, a commitment to fairness and equity is conveyed to all applicants, which are among the qualities top candidates are looking for in their employer. In addition, pay transparency can also help retain top talent, by providing them with certainty and security regarding their salary. Employment trends are influenced by those who are hiring and those who are hired. Pay transparency is a positive development for both employers and employees and therefore companies that have embraced pay transparency have been able to secure the ideal candidates for their job postings.

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Authors

author

Radhika Sarraf

Radhika Sarraf is a content specialist and a woman of many passions who currently works at HireQuotient, a leading recruitment SaaS company. She is a versatile writer with experience in creating compelling articles, blogs, social media posts, and marketing collaterals.

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