7 Recruitment Trends to Watch in 2025

A recruiter is always on the look for ways to streamline their hiring processes and recent developments in recruitment technology have helped them achieve these goals

Given below are seven such developments and solutions that will be ubiquitous for recruiters in the coming years.

The Rise of Automation

Automation of the recruitment process is something that has been facilitated by technological advancements in the HR domain. Recruiters have been utilizing software to automate several stages of the hiring process and two of the most prevalent forms of recruitment technology, CRMs and ATSs are elaborated on later. Automation is advantageous due to the reduction in time needed for hiring as well as the streamlining of the entire process in general. HR software also cuts down on costs and now, is also being used to automate the sourcing and screening of candidates.  

Candidate Sourcing Software can search the various databases that exist on the internet and find the job profile that perfectly or adequately satisfies the needs of the job or role. The requirements of an ideal candidate are uploaded to the software and it scours job profiles to find one that meets them. The current employment status of the candidate is irrelevant to the software which enables the recruiter using it to identify passive candidates. There also exist sourcing software packages that have established a database of skilled workers in a particular domain, making it easy to recruit qualified employees in those fields

Candidate Screening Software can handle aspects of the applicant screening process. They can analyze multiple applications at a time and organize the findings for the recruiter. They remove the need for human scrutiny when clearly defined prerequisites exist for the job. They help the recruiter sift through the vast number of applications they receive for a job application and shortlist suitable candidates. This form of recruitment technology can work alongside Candidate Sourcing Software to make the hiring process much more efficient.

Social media in recruitment

Social media has become an integral part of our daily lives, and it's no surprise that it has also become an important tool for recruiters in the hiring process. Social media platforms such as LinkedIn, Facebook, Instagram, etc have become the preferred channel for networking used by recruiters to hire top talent in the job market. It provides them with a wider view of the job market and allows them to evaluate the applicant as a cultural fit for the company. It can be used to provide information about job posting and hiring events and generate interest in the same.

It is able to complement standard recruiting practices while cutting down on the costs involved therein. It allows recruiters to engage with applicants on a more personal basis and most importantly it can improve the brand image of the company. This is because effective virtual engagement on social media can influence opinions regarding the company. This is extremely beneficial for the company as this increases its market value and increases the chances of attracting talented applicants for recruitment.

Applicant Tracking Systems

An applicant tracking system or an ATS is a development in the domain of recruitment technology that has assisted in digitalizing the entire hiring process. It collects and manages the virtual applications that a company receives and the candidates who send them in. This removes the need and hassle associated with physical documents and cuts down on the time the recruiter has to invest in that stage of the hiring process. It helps the recruiter track the status of the applicant and streamline the onboarding of new hires. It makes it easier for an applicant to apply for the role they desire and improves the chances of them accepting a job offer. 

It is a boon for recruiters as they can document various stages of the hiring process and the candidate’s activity and performance in those stages. The software can check and provide the recruiter with the candidate’s employment history and can help acquire talented employees. It directs the recruiter’s attention towards important aspects of a candidate’s application, letting them focus on reviewing the data available to them

Different countries, even states can have different employment rules and regulations. An ATS is able to assist the recruiter by ensuring that the processes they follow are legally compliant within the applicant’s country of residence. Therefore they can prevent any legal issue from arising during hiring. Currently around 70 to 90 percent of recruitment firms have begun employing ATSs in their hiring practices as more applicants shift to an online work search which has allowed it to dominate the domain of recruitment technology

Recruitment CRMs

Candidate relationship management systems or CRMs are a category of recruitment technology that have become vital to HR in a post pandemic world. With more and more work entering the online or remote category, there has also been a need for an effective way of managing applicants who are applying virtually for jobs and roles. 

CRMs, in the recruitment domain act as a repository of data regarding candidates from where a recruiter can proactively find a suitable candidate for a job or role in the company. They assist recruiters in building and maintaining relationships with large sets of candidates. They make the hiring process more efficient and save time by automating data input and management. 

Recruitment CRMs are often talked about in relation to Application Tracking Systems (ATSs) as they synergize to make the hiring process much more effective than it would be if you employed a single one of them. ATSs track and manage the candidate during the application process while CRMs are the place where this information is stored and can be accessed from.

The growth of the “gig” economy

The gig economy is a section of the informal economy where employees are hired on a contractual basis for a specific period of time rather than being offered full time positions.As a result of this gig workers gain flexibility in their work schedule and responsibilities but have little to no job security. The workforce of the gig economy had been a huge part of the music industry where artists were often contracted to perform, record or produce for an institution or entity. Think of a piano player at a restaurant or a singer hired to sing backup vocals on another artist’s album. These were the gig workers that the world had primarily been familiar with.

However, in recent times with the rise of “hustle” culture and freelancing websites such as Fiverr and TaskRabbit, the gig economy has started trending upwards in supply and demand. Freelancing on such websites can involve any type of work and applicants can display their capabilities and provide the remuneration they expect for their services. This is recruitment technology that is available for all. 

The usefulness of gig workers is highlighted by the nature of their work.  Gig workers are useful for short term tasks or duties which need specific skills that the company might not possess or have available at the time of need. Therefore they can be seen as an on-demand workforce. 

The rise of the gig economy is evident through the rise of contractual ride hailing apps such as Uber and Lyft. Not only have these taken over the cab market in many regions, but have also started diversifying into food delivery and package delivery services, increasing their scope of utility. 

The upsurge of “hustle” culture has also influenced many individuals to start working multiple jobs particularly in the gig economy. Studies have estimated that around 30% of all workers are involved in the gig economy. It has also been estimated that the number of gig workers in the US is going to grow threefold over the next few years. Therefore recruiters need to start looking at members and technology in the gig economy to implement freelancing and contractual work in their organizations.

Chatbots

Chatbots are a form of recruitment technology that have existed for a fair bit of time. They were primarily used for sending prompts to candidates about job listings relevant to them or redirecting them to pages on the company website. However, they have recently evolved in their range of utility and capabilities.

Recruiters have begun using chatbots in order to reach out to potential candidates and are using them to automate and optimize the initial stages of the hiring process. Chatbots are able to conduct conversations with candidates like a real person, collect their questions and responses, perform a pre-screening of the candidate, update them on the status of their application, and schedule interviews. Their data collection and analysis also assists them in guiding the candidate towards job listings that match their capabilities and preferences. 

As the uses and benefits of chatbots increase they will continue to grow in prevalence. They have developed to the point where they can have empathic and intuitive responses to a candidate, which can improve the candidate’s hiring experience.Due to the automation of various tasks, they can cut down on up to three quarters of the total time that a recruiter spends in communicating with a candidate. Therefore we can be assured in saying that chatbots are a category of recruitment technology which are going to be around for the foreseeable future.

Human Capital Management Software

Human capital management software, often referred to as HCM software, is a type of recruitment technology that helps businesses streamline and automate their human resource management. From hiring and onboarding new employees to managing employee benefits and performance, HCM software can help recruiters save time and effort, while also improving the candidate’s experience. HCM software provides more administrative support than other similar software and is utilized following hiring for maintaining records of employees as well. Therefore it is an integrated software solution that offers more in depth tracking and analysis of potential and current employees when compared to similar software such as ATSs and CRMs.

One of the key benefits of HCM software is its ability to centralize all information in one place. This can include things like contact details, job titles, salary information, and test evaluations. Another important aspect of HCM software is its ability to automate parts of the recruitment process. For example, the software can handle tasks such as scheduling interviews, sending out offer letters, and tracking employee attendance and time off. This can help recruiters save time and easily monitor new hires. 

HCM software also has the ability to provide insights and analytics on the recruitment process. By tracking data such as the number of applications received, the time it takes to fill a position, and the quality of candidates, recruiters can identify trends and make data-driven decisions to improve their recruitment efforts. 

In addition to helping recruiters, HCM software can also improve the candidate's hiring experience. Many HCM systems offer self-service portals where applicants and employees can access and update their own information or express any doubt or need in the HR domain.This can help candidates apply to the job they want and have a smooth onboarding process. 

Implementing HCM software solely as a form of recruitment technology can be a significant investment, but it can also bring many benefits to a company. By using HCM software, recruiters can manage the employee lifecycle and evaluate their performance by tracking employee progress and providing feedback and support. It can be used to set goals and objectives and provide training and development opportunities. By helping employees grow and develop, HCM software can help recruiters retain employees and improve overall engagement.