Future-proof your talent strategy: insights for 2025

We were recently joined by Sukhy Carey, Head of Membership Experience at The Talent Labs, to discuss strategies and tools to future-proof talent functions for 2025. It was a fascinating webinar, full of unique insights that only The Talent Labs could provide about the talent landscape. The full recording is below, but just in case you're rushed for time, here's a breakdown of the key points! 🍵

Labour market outlook: key trends shaping 2025

Sukhy highlighted that the labour market continues to shift, with various challenges influencing talent acquisition and retention. Drawing on research from The Talent Labs and the CIPD, she shared some striking statistics:

• One in four employers are planning redundancies this year due to rising costs and economic pressures.

• Skills shortages remain a concern, particularly in sectors such as defence, energy, and cyber security, where a lack of available talent threatens growth.

• Candidate confidence is declining, making recruitment more challenging as job seekers are more selective, negotiating harder, and seeking employers who offer meaningful benefits beyond salary.

• Net employment is falling, with a shrinking pool of candidates in both the 16–24 and 45+ age brackets, creating an imbalance in the workforce.

With these challenges in mind, Sukhy emphasised the need for organisations to rethink their approach to talent attraction and retention.

"Candidates are more cautious than ever. They want to know what an employer stands for, what benefits they’ll receive, and how the organisation supports their long-term career growth. Recruitment teams need to be clear on their employer value proposition (EVP) and tailor their attraction strategies accordingly."

Adapting talent strategies for the future

Sukhy stressed that businesses must move beyond transactional recruitment models and transition towards a holistic talent strategy that integrates workforce planning, skills development, and internal mobility. She outlined three core areas of focus:

1. Building a future-ready talent team

To elevate the talent function, organisations must assess their current teams' capabilities and identify skill gaps. Sukhy introduced The Talent Labs’ Skills Capture Form, a resource that helps businesses map out existing skills and highlight areas for development.

"Think about job design beyond filling vacancies. What do you need your recruiters, business partners, and talent leads to be able to do? Where are the gaps? What skills are missing? If you’re looking to embed technology or data analytics into your function, does your team have the skills to manage that?"

2. Integrating technology and data to enhance decision-making

Technology plays a crucial role in talent transformation. Sukhy noted that many HR and talent teams struggle with tech adoption and integration, often lacking the knowledge to make confident buying decisions.

"Gone are the days of relying on spreadsheets or standalone HR systems. To optimise efficiency, your systems must talk to each other. The key is working with trusted partners who can guide you through the process. Use data to measure what’s working in your recruitment strategy, from sourcing effectiveness to candidate conversion rates."

3. Prioritising employee experience and internal mobility

Employee expectations are evolving, and well-being, flexibility, and career development are more important than ever. Sukhy urged organisations to think beyond hiring and invest in internal mobility and employee development.

"Look at who you hired two years ago. Have they progressed? Are you providing opportunities for internal talent to move into new roles rather than always looking externally? Organisations that invest in their people create stronger retention and engagement."

The rise of talent intelligence and EDI

Data-driven decision-making is becoming a fundamental part of HR and talent acquisition. Sukhy encouraged businesses to leverage talent intelligence tools such as market insights, competitor benchmarking, and internal data analytics to inform hiring strategies.

Additionally, she highlighted the importance of equity, diversity, and inclusion (EDI), noting that while many organisations have expressed commitment to EDI, few have embedded meaningful policies.

"We’re still seeing a disconnect between what organisations say about EDI and what they actually do. Employers need to ensure that their recruitment and people policies actively support underrepresented groups. From flexible working for parents to accessibility in the hiring process, these are the factors that set an organisation apart."

Practical steps to elevate your talent function

To help talent teams shift from a reactive to a strategic approach, Sukhy outlined practical steps:

1. Define your competitive edge – What makes your organisation stand out? Identify what you offer beyond salary and ensure your EVP is clearly communicated.

2. Critically assess people projects – Focus on high-impact initiatives rather than spreading resources too thinly.

3. Develop a data-driven culture – Use analytics to shape recruitment strategies, workforce planning, and talent development.

4. Empower teams with the right tools – Invest in ATS platforms, HR technology, and skills development to enable efficiency and innovation.

5. Leverage leadership support – Ensure senior leaders champion and drive the talent agenda, rather than leaving it solely to HR and recruitment teams.