The last few years have been a whirlwind for talent acquisition strategies.
In 2023 and 2024, businesses were forced to adapt to a world of lean operations. Board members and VC investors pushed for efficiency, profitability, and, above all, caution. The market uncertainty led to companies cutting back on hiring, especially in roles that didn’t directly contribute to revenue generation (G&A…which is all we hire for at Guild Talent). But as we move into 2025, goddamnit, it feels good to see the tide is turning. Economic optimism is on the rise, planning is happening for next year, and with it, a shift in how companies approach talent & hiring plans.
While growth is back on the table, it’s not the unchecked hiring spree of 2021, and I doubt we’ll see a market like that for decades. Instead, we’re seeing a more calculated approach. It’s a cautiously optimistic/proceed-with-caution-type mentality. Companies are now looking to balance efficiency with scalability, learning from the lean times but preparing for a future of expansion & are needing internal bandwidth and infrastructure to do so. This shift presents both challenges and opportunities for executive teams and operational leaders.
Reflecting on the past few years, efficiency took center stage
Last year, internal hiring and talent strategies were all built with survival in mind, not growth. With economic uncertainty looming large and minimal VC $ being put to work, companies had to cut costs and tighten their operations. It was a quick shift from the 21/22 ‘grow at all cost’ mentality. G&A roles, which traditionally support the scaling of businesses, were often the first to see cuts. These departments, including finance, HR, and operations, were asked to do more with fewer resources.
The mantra was clear: stay lean, stay profitable. Hiring was restricted to essential roles across sales, product, and eng—positions that directly impacted the bottom line. G&A teams operated on a shoestring, often with only the bare minimum to keep things running. It worked — to a point. But as we enter 2025, there’s a realization that companies can’t stay in survival mode forever.
The 2025 Pivot: from lean to growth
As the economic outlook improves and more time passes (time heals all wounds), companies are starting to think beyond the short-term need for efficiency/survival. 2023 was about making do with lean teams, and in 2024, we’ve been seeing things thaw out a bit. Companies are starting to hire, but with cautious optimism. And the 2024 planning season is bringing back conversations about growth heading into 2025. This shift feels like it is largely driven by an improving market — unemployment is down, inflation is stabilizing, and interest rates are decreasing (and again, time heals all wounds, so folks are forgetting about the 2023 s***storm). Companies that were hesitant to expand last year are now revisiting their growth plans.
However, the approach is different from that of previous years. Rather than hiring rapidly to fill gaps, companies are being more slow & thoughtful. Many learned valuable lessons during the lean period of 2023. They realized they could do more with fewer people and saw the impacts of overhiring & inefficiencies. Now, as growth comes back into focus, companies are looking to strike a balance. They want to grow, but they also want to ensure their teams are efficient and sustainable.
What this means: evolving talent profiles
One of the biggest shifts we’re seeing moving into 2025 is in the types of leaders that companies are looking to hire. In 2021, companies were chasing growth at all costs. They hired executives who could rapidly scale teams, often looking for leaders with a track record of quadrupling headcount. The only thing that mattered was ‘up and to the right.’. But now, with the lessons of the past few years in mind, companies want more versatile executives — what we’re starting to call “frontier leaders” who can manage growth and also navigate downturns.
This shift in leadership profile reflects a broader change in how businesses approach hiring. Companies want leaders who can do more with less, who can think critically about when and how to scale, and who are comfortable making decisions in uncertain environments. They also want teammates who will stick around even if the company doesn’t 10x this year.
Another major factor influencing talent strategies is the rise of automation and AI tools. Over the past two years, many companies have adopted new technologies to streamline their operations. This trend has had a significant impact on hiring. Companies are now looking for leaders who can leverage these technologies to drive efficiency and scalability. Even if there isn’t a well-defined answer yet as to how to incorporate AI into the back office, if candidates aren’t thinking about they’re already behind, and the ability to work with AI and automation is quickly becoming a must-have skill for modern executives.
The 2025 talent playbook
Looking ahead to 2025, businesses need to be ready to adapt again. After the wild ride of the past 36 months, (plus, not to get political, but who knows what impact the election will have) the key to success lies in building versatile teams that can handle both growth and tough times. Companies learned a lot from staying lean, but now it’s time to gear up for the future with leaders who can do both: keep things efficient and know when to scale.
The talent market is heating up, and if you want to win…be prepared. It’s no longer a company-driven market — having your s**t together when you hit the market to hire is critical. We’re getting back to the days of candidates having multiple offers. No more dragging your feet and it’s time to forget that your board has been telling you to stay lean for the past 24 months. The market has changed, and the urgency to hire needs to match that shift.
And best your figure out how you want candidates to be talking about incorporating AI and automation. If your leaders aren’t thinking about using these tools to make things run smoother and scale faster, they’re already behind. The future of talent is focused on growth with a purpose, and the companies that get it right are the ones that will have a clear edge in 2025.
Feel free to reach out to Jamie@guildtalent.com if you have any questions or are wanting to talk about any of the above (or anything else talent related) further!
