We explore the HR challenges of 2025 and the strategies to tackle new labor market dynamics while attracting talent.

HR challenges for 2025: change continues

From talent war to talent exchange

As we enter October and the third quarter of the year comes to a close, it's time to look ahead and start planning for the company objectives for 2025. This period represents a key opportunity to outline the strategies necessary to meet future goals while also identifying the challenges that will arise along the way. The Human Resources sector is no exception, where the ability to address these challenges successfully is crucial to ensuring the company's growth and competitiveness.

We discussed these topics with Sara Tamburro, Marketing and Communication Manager at Cegos Italia, part of the Cegos Group, which boasts a global presence and nearly a century of experience in managerial and behavioral training. "We are present in over fifty countries worldwide, and have been in Italy for sixty-five years," explains the manager. "We help companies align their employees' skills with strategic needs, focusing on 'soft' topics like leadership, project management, and personal development."

HR challenges for 2025: change continues

According to Sara Tamburro, HR professionals will face multiple and complex challenges in 2025, but the main one will be adapting to hybrid work models. "Although it's widely discussed, the organizational culture necessary to implement these models is not yet widespread," she says. "HR must balance employee expectations for greater flexibility and a better work-life balance with business needs, often constrained by operational realities. Movements like the Yolo and Great Resignation have radically changed how people view work, with more focus on well-being and quality of life."

Another crucial aspect will be integrating technology into HR processes. "Through our study, 'HR Department Insights,' we found that despite recognizing the importance of artificial intelligence, 70% of HR professionals have yet to integrate it into their processes," Tamburro notes. However, digital transformation is no longer an option but a necessity to support HR professionals in their activities. "AI will dominate the optimization of candidate search and selection processes and data analytics, which is crucial for improving strategic decisions on performance tracking, skills development, and well-being. Additionally, automating administrative tasks like payroll and attendance tracking will free up resources for higher-value activities. Even the Learning and Development (L&D) sector will benefit from new technologies, offering increasingly personalized training paths tailored to individual needs. This will not only improve training effectiveness but also increase employee satisfaction, making companies more attractive."

"In parallel," continues the manager, "reskilling and upskilling employees will remain central themes as the pace of change constantly requires acquiring new skills or updating existing ones."

"Diversity and inclusion will become increasingly central in talent attraction and retention strategies. Young people, in particular, are highly attentive to these aspects, and companies that invest in CSR policies are perceived as more attractive."

From talent war to talent exchange

As highlighted in the aforementioned study for 2024, talent attraction and retention will continue to be top priorities in 2025. "Competition for the best profiles will keep increasing," Tamburro states. "Companies will face a dual challenge: on the one hand, finding qualified professionals in key sectors like technology and sustainability; on the other, ensuring that the needed skills are kept up to date. The labor market is evolving rapidly, and it's not just about finding people with the right skills but ensuring those skills stay relevant as transformations unfold."

However, Sara Tamburro proposes a new vision of the labor market: "We must move away from the idea of a 'war for talent' and adopt the concept of 'talent exchange.' Today, we are in a fluid environment where people move between companies, gaining new skills and experiences. Organizations must focus on becoming attractive and retaining talent for a reasonable period, rather than hoping they will stay forever. The key will be investing in employer branding, continuous learning, and employee well-being. The goal is to make people want to stay long enough to add value to the company, knowing that sooner or later, they will seek new opportunities elsewhere."

In this new approach, candidate experience plays a crucial role. "The candidate experience is the company's business card and can make the difference between attracting or losing talent. In such a competitive labor market, candidates evaluate multiple offers simultaneously, and even a small mistake in the selection process can push them toward another company. Taking care of every aspect of recruiting, from start to finish, is therefore essential to avoid missing valuable opportunities."

For this machine to run smoothly, however, it is necessary to "have a driver's license," or in other words, to invest in recruiter training. "Too often, recruiters do not receive adequate training," says Tamburro. "It is essential for them to have digital skills, be able to use AI platforms, master candidate experience techniques, and also acquire marketing and communication skills to strengthen employer branding. Making a mistake in hiring can have serious consequences, especially in small teams, so properly training recruiters is essential to ensure long-term success."