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5 Attraction and Retention Trends to Monitor in 2025

Employers will likely continue to struggle to attract and retain talented employees this year. In fact, a report found that 38% of employees are likely to leave their jobs in 2025.

Despite looming employee turnover this year, employee resignations consistently decreased throughout 2024. Approximately 181,000 job-to-job resignations occurred in the third quarter of 2024, compared with 204,000 in the previous quarter. Some workers may have opted to stay in their current jobs, potentially due to reduced optimism about the job market. However, market trends could shift back to workers more confidently exploring job openings in 2025. As such, employers may need to hone their attraction and retention tactics to find and keep talent this year.

In order for employers to effectively find and keep employees, it’s essential to understand the factors driving attraction and retention. This article explores five attraction and retention trends for employers to watch in 2025.

1. The Significance of Company Culture In today’s digital world, jobseekers can access company reviews and cultural insights, enabling them to understand an organisation’s values before applying. Clearly communicating the organisation’s ethos across social media platforms and company websites may be necessary in 2025, as many employees desire to work for an employer with similar values. According to LinkedIn research, more than half of workers wouldn’t work for a company that doesn’t share their values, and not even a pay rise would change their minds. Office perks and generic cultural statements may not be sufficient to attract and retain talent this year. Employers should showcase meaningful projects that align with company goals and share authentic employee stories to aid attraction and retention endeavours.
2. The Rise of AI and Automation Artificial intelligence (AI) and automation are undoubtedly changing the future of work. Employers have integrated AI into several job roles and tasks, including HR practices. For recruiters, AI can evaluate candidates, provide recommendations and automate routine tasks, increasing the efficiency of scouring for top talent. Furthermore, AI chatbots can send tailored messages to candidates and facilitate round-the-clock interactions, which is especially beneficial for global companies who work across time zones. However, AI can undermine the hiring process if mismanaged. For instance, unintentional biases in the AI tool’s algorithms can lead to unfair or even discriminative outcomes, which could expose organisations to privacy and legal risks. In fact, 29% of hiring managers feel uneasy about AI legal compliance, and 39% have concerns over how AI will use their data. Overall, AI can help organisations simplify talent acquisition in 2025. Yet, savvy organisations will take the time to scrutinise AI’s risks and introduce appropriate risk mitigation measures, especially as it pertains to data protection.
3. The Value of Internal Mobility Employees with a clearly defined career path and frequent growth opportunities may be less likely to leave for new challenges. According to LinkedIn Learning’s 2024 Workplace Learning Report, 47% of companies are investing in career mentoring and coaching to enhance employee retention. Mentoring programmes and robust upskilling initiatives can help employers enhance workforce skills and increase engagement. Other learning and development initiatives that may witness traction in 2025 include virtual reality training, gamification and microlearning.
4. The Importance of Diversity, Equity, Inclusion and Belonging Initiatives A survey found that 66% of workers say the acceptance and inclusion of employees from all backgrounds is important to them when searching for jobs, making workplace diversity a top priority for employers. Organisations should scrutinise ways to foster a culture of inclusivity throughout the company. This could include initiatives to increase the representation of underrepresented minorities in leadership roles.
5. The Popularity of Freelance Work Freelance work has surged over the past decade, which could continue in 2025. An estimated 7.4 million people currently freelance in the UK. Whether as a “side hustle” or full-time commitment, the flexibility and control of freelance work make it an attractive way to earn a living. Therefore, organisations may increasingly find themselves competing with the appeal, accessibility and flexibility of freelance work. To compete, traditional employers may explore ways to match the freelance economy’s advantages by offering autonomy, schedule flexibility and faster access to earnings. For example, on-demand pay, also known as earned wage access, allows employees to be paid as soon as they’ve earned their wages. Alternatively, freelance workers can be an attractive alternative to relying on traditional employees to address current attraction and retention challenges.

Conclusion

Employers can remain competitive in an evolving labour market by monitoring employees’ current and prospective needs and desires throughout the year. Staying abreast of market trends and considering ways to elevate their talent strategies can help organisations find, advance and keep more talented workers in 2025.

Contact us today for further workplace guidance.