The global hiring landscape continues to evolve, with organizations competing harder than ever to attract and retain skilled professionals. Since mid-2021, there have consistently been more open jobs than available candidates, creating a long-term talent gap that persists into 2025. According to SHRM’s latest benchmarking study, over half (56%) of recruiting leaders identify talent shortages as a major challenge — and one in five say it’s the biggest economic threat to their organization.
To shed light on how hiring teams are adapting, SHRM’s 2025 Recruiting Executives Benchmarking report analyzes data from more than 2,300 HR and recruiting professionals across industries and company sizes. Below are the most significant trends shaping the state of recruiting this year.
1. Recruitment Costs Are Shifting
While the average cost to hire non-executive roles has declined since 2017, executive hiring expenses have surged, more than doubling in recent years. This suggests organizations are prioritizing critical leadership positions by investing more to secure top-tier talent quickly.
2. Larger Organizations Manage More Requisitions
Most mid- to large-sized businesses now have dedicated recruiters. However, as company size grows, so does recruiter workload — with each recruiter managing more requisitions simultaneously, particularly in enterprises with 5,000+ employees.
3. Faster Executive Hiring
For the first time, both executive and non-executive roles now take roughly the same time to fill — around six weeks. This is a notable improvement from previous years when executive positions often took two weeks longer on average. The data indicates that companies are speeding up senior-level hiring by investing additional resources in the process.
4. Internal Hiring Gains Ground in Large Firms
Although external recruitment remains dominant, large and extra-large organizations are increasingly turning inward to fill key roles. About half of very large companies (50%) and one-quarter of large firms (25%) are now promoting internal talent for executive positions — a sign that structured career mobility programs are beginning to pay off.
5. Tracking Recruitment Outcomes Remains Limited
Only about one in five organizations measure “quality of hire” metrics — leaving most without a clear view of the long-term success of their hiring efforts. As the competition for talent continues, tracking outcomes will be essential for improving retention and recruitment ROI.
Hiring Timelines: Speed vs. Cost
In 2025, the median time-to-fill stands at approximately 45 days for both executive and non-executive roles — a balance that reflects greater efficiency in recruitment operations. Yet, while hiring is getting faster, costs per hire are rising, suggesting that speed often comes with a price.
For companies with more than 5,000 employees, average time-to-fill is 61 days for non-executive roles and 60 days for executive positions.
Unlocking the Power of Internal Talent
Many organizations still rely heavily on external hiring, but that approach is becoming increasingly unsustainable. SHRM’s research shows that 51% of companies report too few applicants, 50% lose talent to competitors, and 41% experience rising candidate “ghosting.” In contrast, employers who invest in internal mobility are beginning to see clear benefits — faster time-to-fill, higher engagement, and improved retention.
The good news: internal mobility programs are growing. In 2025, 35% of organizations report having an internal talent marketplace, up from 25% in 2024. This shift signals a broader recognition that the best talent may already be within the organization.
3 Ways to Strengthen Internal Talent Pipelines
1. Build a Culture of Talent Mobility
Encourage employees to explore opportunities across teams or departments. Offer rotational programs, project-based assignments, or internal “gig” roles to help employees expand their skills and stay engaged.
2. Redesign Job Postings for Internal Candidates
Simplify the internal application process and focus job descriptions on transferable skills rather than external experience. This shows employees that growth within the company is not only possible but encouraged.
3. Use Data to Uncover Hidden Talent
Leverage workforce analytics to identify employees with the skills or potential to step into new roles. Data-driven insights can help match people to opportunities more efficiently, reducing time-to-fill and strengthening engagement.
Why Internal Mobility Matters Now
Relying solely on the external market is no longer practical. Internal talent offers a faster, more reliable, and often more cost-effective path to filling open roles. Organizations that actively promote from within enjoy higher retention rates, stronger morale, and greater agility in responding to market changes.
As competition for talent intensifies, those that invest in internal mobility today will be better positioned to thrive tomorrow — unlocking the full potential of their workforce and securing a sustainable recruitment advantage.
