Key insights from our 2025 recruiting trends report

While companies plan aggressive growth, recruiting teams aren't scaling alongside them. Instead, TA leaders are doubling down on technology and AI to bridge the gap between hiring demand and team capacity.

Gem partnered with Growth by Design to survey 200+ talent acquisition and recruiting operations leaders to understand how teams navigate 2025. The results reveal a noteworthy shift in how successful recruiting organizations operate. Here are the key takeaways that every TA leader needs to know.

Companies are asking recruiting teams to do more with less

The data reveals a striking paradox: 87% of teams expect to grow this year, yet 39% expect flat or shrinking TA teams.

This isn't just about budget constraints. It's influencing a reimagining of recruiting operations. Teams aren’t necessarily adding recruiters to meet growing hiring demands. Instead, they're investing heavily in automation and technology to multiply the impact of existing team members.

The pressure to do more with less forces TA leaders to become more strategic about resource allocation and operational efficiency. Those who adapt will gain a competitive advantage, while those who don't will struggle to meet their organization's growth objectives.

AI adoption is now nearly universal

AI has moved from experiment to mainstream adoption. 96% of recruiting teams now use AI in some capacity, with 47% describing themselves as "AI-enabled" across multiple workflows. However, usage still concentrates heavily on basic applications like writing job descriptions (70%) and personalizing outreach (65%).

More sophisticated applications that could deliver greater efficiency gains remain underutilized. Only 39% use AI for screening and matching applications, 36% for scheduling interviews, and 18% for candidate rediscovery. This represents a massive untapped opportunity for teams looking to scale their operations.

The gap between basic and strategic AI use suggests many teams are still in the early stages of AI transformation. Those who advance beyond practical applications to leverage AI for sourcing, candidate matching, and pipeline intelligence will see the most significant competitive advantages.

Recruiting budgets are holding steady in 2025

Despite pressure to control costs, recruiting technology budgets aren't being slashed. 59% of budgets are staying flat, while 33% are increasing. This budget stability creates a runway for strategic technology investments to help teams bridge the capacity gap.

Rather than cutting recruiting expenses, organizations are directing their budget toward tools and platforms that increase team productivity. This approach recognizes that recruiting capability directly impacts business growth and competitive positioning.

Teams should view this budget stability as an opportunity to make transformational investments in their technology stack, especially platforms that can consolidate multiple point solutions while adding AI capabilities.

Manual work is the biggest productivity drag

Teams are drowning in repetitive tasks that could be automated, with 50% of TA leaders ranking “Time-consuming manual tasks and administrative work” as their top recruiting challenge.

The focus on automation makes sense given the scaling challenges teams face. When you can't add more people, eliminating manual work becomes essential for meeting growing hiring demands. The teams successfully navigating this challenge are those who aggressively automate routine tasks to free up capacity for relationship-building and strategic work.

Integration challenges are driving demand for consolidated platforms

While teams manage a reasonable 4-6 tools on average, 35% struggle with poor integrations between systems. This creates workflow friction that undermines productivity gains from individual tools.

With 85% of teams planning new technology investments and AI topping the priority list at 70%, there's demand for platforms that add AI capabilities without creating additional integration headaches. The most successful vendors will be those who can consolidate multiple point solutions while delivering the AI functionality teams need.

The fragmentation challenge also impacts reporting and analytics. Building holistic dashboards becomes much harder when data lives across ATS, sourcing tools, and scheduling platforms. Teams want unified platforms that provide complete visibility into their recruiting operations.

Interview processes are creating major operational bottlenecks

Manual interview logistics top operational pain points at 44%, followed by poor note-taking (41%) and slow decision-making (40%). These challenges directly impact candidate experience and time-to-hire metrics, which teams are pressured to improve.

However, teams are making progress in addressing these bottlenecks. 56% have implemented automated scheduling to improve logistics, and 47% have added interview calibration sessions to improve consistency and decision speed.

The opportunity lies in strengthening process discipline around structured interviewing practices. While 79% conduct interview debriefs and 75% do prebriefs, only 53% use scoring rubrics — the biggest gap in ensuring consistent evaluations and faster decisions.

Teams are prioritizing efficiency to meet demands

Seventy percent of teams cite AI & automation as a top priority, while 63% emphasize technology modernization. This operational focus reflects the reality that when you can't add headcount, you must optimize the productivity of existing team members.

The emphasis on efficiency over candidate-facing enhancements represents a pragmatic response to current market conditions. Teams invest in the infrastructure and capabilities that multiply impact rather than initiatives requiring additional resources.

This focus creates opportunities for vendors who can deliver measurable efficiency gains and proven ROI. Teams want solutions that demonstrably improve productivity, not just impressive technology demos.

TA leaders look to each other for tech recommendations

Eighty-two percent of TA leaders trust peer recommendations when evaluating technology. The complexity of modern recruiting tech decisions has made peer validation more valuable than traditional marketing channels.

This preference for peer insights reflects the high stakes of technology decisions in the current environment. With limited resources and budget, teams can't afford to implement solutions that don't deliver promised results. Hearing from other leaders who've successfully implemented and used these tools provides validation.

Professional networks and TA communities (74%) significantly outrank LinkedIn, social media (44%), and industry publications (39%) as trusted information sources. Teams want authentic insights from practitioners, not polished marketing content.

What this means for recruiting 

The data reveals that 2025 will be a defining year for talent acquisition organizations. Success will depend on making technology investments that multiply team productivity while building the operational discipline needed to execute at scale.

Teams that thrive will move beyond basic AI applications to leverage technology strategically across their entire recruiting workflow. They'll prioritize platforms that consolidate multiple tools while delivering the automation capabilities needed to eliminate manual work.

Most importantly, they'll focus on building enablement and fluency across their teams—ensuring that technology investments translate into measurable improvements in hiring outcomes and operational efficiency.

Ready to dive deeper into the data and insights? Download the State of Talent Acquisition in 2025 report to access detailed findings, strategic recommendations, and actionable frameworks for transforming your recruiting operations.

Download the full report: https://www.gem.com/resource/state-of-ta-2025