Role of artificial intelligence (AI) and automation in hiring
AI has revolutionised a number of industries, including recruitment. As technology continues to improve, many recruitment agencies and in-house talent acquisition teams are embracing AI-driven technologies to help streamline the hiring process.
From writing job descriptions and screening potential candidates to assessing talent and simplifying the onboarding process, AI can be used to improve efficiencies throughout the recruitment process. Not to mention, the use of AI during the screening process can also help to minimise the inherent bias that often impacts the recruitment process, leading to a more diverse and inclusive workforce.
While AI and automation are likely to replace more manual aspects of recruitment, it’s not likely that they’ll put recruiters out of jobs completely. Instead, it’s more likely to lead to an increase in demand for professionals who are skilled in AI and automation. In fact, LinkedIn reported that there was a 14% increase in recruiters adding AI skills to their LinkedIn profiles in 2023.
Skills shortages impacting Australia
While there are some signs that certain skills shortages are easing across Australia, other areas are still impacted by skills shortages. According to Jobs and Skills Australia, technicians and trade workers, along with professionals across health, engineering, teaching, and science roles, continue to experience high shortages.
Similarly, aged or disabled carers, primary school teachers, secondary school teachers, truck drivers, electricians, and child carers are also in high demand with limited skilled employees.
As skills shortages persist in these fields, employers are shifting away from traditional degree-based requirements and prioritising demonstrable skills and competencies instead. With this in mind, upskilling and micro-credentials will become critical for job candidates.
Skills shortages are also impacting executive recruitment. As companies seek senior leaders with specialised expertise, the demand for executives with technical and AI skills is growing. Read more on how this trend is shaping executive hiring here.
Increasing hybrid employment opportunities
While the COVID-19 pandemic may be over, there’s no denying it’s left a lasting impact on the job market, especially when it comes to remote and hybrid work models.
The pandemic led to a seismic shift in a number of industries, with many businesses moving to remote working environments to curb the spread of the virus. Consequently, the hybrid work model, which incorporates a combination of remote and on-site work, is being embraced across a number of businesses and industries.
While hybrid work models come with several challenges, they also allow businesses to access a more geographically dispersed talent pool. Companies will have the opportunity to access talent from across the country and even globally, helping to increase diversity within the workplace.
Many workplaces are offering hybrid work opportunities to attract top talent, while employees and job seekers are on the hunt for more flexible work opportunities. Employees value the flexibility that comes with remote and hybrid work models, not to mention the time and money saved on not having to travel to the office every day. As of August 2024, remote employment opportunities were over 3-times higher compared to pre-pandemic levels. This just goes to show that remote and hybrid work models are here to stay as we head into 2025.
The rise of virtual recruitment
While remote and hybrid opportunities are quickly gaining traction in terms of employment models, virtual recruitment approaches are also becoming more commonplace.
In particular, virtual interviews are becoming standard practice among many recruitment agencies. Many companies are turning to video platforms like Zoom, Microsoft Teams, and Google Meets to conduct virtual interviews, helping them save time and resources. Not to mention, conducting interviews online also helps to streamline the recruitment process and allows companies to access a wider talent pool without geographic constraints.
But that’s not all. Onboarding processes are also moving online, with companies using digital tools to integrate new hires into their teams remotely. This includes virtual orientation sessions, e-learning modules, and online mentoring, ensuring employees are prepared to contribute from any location.
Virtual recruitment processes seem to be well-received by applicants. Indeed found that job seekers view virtual interviews as convenient and comfortable. According to their research, 45% of candidates like being able to interview from anywhere, and 37% felt less intimidated when interviewing remotely.
Data-driven recruitment decisions
The term ‘big data’ has been thrown around for some time now, so it was only a matter of time before recruitment agencies started to harness the power of analytics to drive recruitment strategies. From tracking candidate engagement to predicting performance, in 2025, recruitment decisions will be more data-informed than ever.
Companies are increasingly using predictive analytics to assess how well a candidate will perform in a specific role. By analysing historical hiring data, job performance metrics, and employee turnover rates, organisations can identify patterns that predict which traits and qualifications lead to successful hires.
Emerging recruitment software tools have the ability to analyse job descriptions and optimise them for better candidate attraction. By assessing factors like keyword effectiveness, tone, and inclusivity, companies can ensure their job ads reach the right talent, boosting engagement and application rates.
These tools can also allow recruiters to track how long candidates spend on application pages, where they drop off, or how they interact with follow-up communications. Ultimately, companies can fine-tune their processes to keep candidates interested throughout the hiring process.
The introduction of four-day work weeks
In August 2022, 26 Australian companies participated in a 4-day work week trial. Overall, the trial proved to be a success, with companies rating the overall impact of the 4-day week trial as 8.2/10. Employees also rated the work week trial highly, with 96% wanting to continue. The trial resulted in positive health and wellbeing outcomes, as well as improved work-life balance.
According to the ADP Research Institute’s ‘People at Work’ survey, 30% of Australian workers foresee the four-day working week becoming standard practice in their sectors within the next five years.
Navigate the future of recruitment with Ampersand
For recruiters and businesses alike, staying ahead of these trends will be crucial to attracting and retaining the best talent. The changes happening in the broader recruitment market are mirrored at the executive level, where the demand for specialised leadership skills continues to rise. For more insights on how executive recruitment is being impacted by these trends, especially in relation to AI, data-driven decisions, and hybrid work, make sure to explore our article on the top trends shaping executive employment in 2025 here.
As the job market continues to evolve, it can be difficult for organisations to keep up with emerging trends. If you need a hand navigating the latest trends, future-proofing your business, or simply sourcing the right talent for your needs, Ampersand can help. Connect with us to learn more about how we can help you with your recruitment journey.
