The business of hiring: Insights from CHROs and CIOs nationwide

July 10, 2025

 

Trent Cotton

4 min read

The role of the CHRO has officially entered a new era. According to the 2025 iCIMS CHRO Report — based on insights from 1,000 HR executives and 500 CIOs — HR is no longer sitting behind the scenes. It’s now a force at the forefront of business strategy.

This year’s data uncovers four pivotal trends shaping how organizations attract, hire, and retain talent — and the challenges HR leaders face as they lead transformation in the age of AI.

Key takeaways from the 2025 CHRO Report:

• HR is no longer a back-office function: Nearly 9 in 10 CHROs say they’re driving strategic change, as talent strategy becomes central to business success.
• Perception gaps are limiting TA’s impact: While CHROs view talent acquisition as mission-critical, many CIOs still underestimate its business value.
• AI adoption is accelerating, but not without friction: HR and IT alignment is essential as leaders integrate AI across the hiring process.

1. HR is the unseen engine accelerating business transformation

Nearly 9 in 10 CHROs (88%) say they’re actively driving strategic change in their organizations, not just supporting it. This includes shaping how their companies respond to economic pressures, and leading on critical initiatives like workforce planning, internal mobility, and upskilling.

• 70% of CHROs expect to hire more people in 2025 than they did in 2024.
• 53% report involuntary turnover rates below 2%.
• Top concerns: preparing the workforce for AI, retaining top talent, and navigating new regulations.

This strategic shift didn’t happen overnight. In 2024, most HR leaders said they expected to become strategic advisors. In 2025, it’s clear that shift is now a reality.

2. A disconnect in perception is limiting talent acquisition’s potential

While CHROs are doubling down on talent acquisition, the rest of the C-suite isn’t fully aligned on its strategic value. Just 27% of CIOs believe TA has a significant impact on business outcomes, and nearly 1 in 3 view it as having only a small one.

• 75% of CHROs plan to increase their TA budgets in 2025.
• 53% are spending more time on TA than they were two years ago.
• Top TA priorities: integrating AI (22%), building more diverse pipelines (21%), and improving analytics (20%).

This disconnect may stem from how talent acquisition success is measured. For HR, the most important TA metrics are quality of hire (34%), candidate and recruiter experience (30%), and time to hire (29%); outcomes that don’t always tie directly to near-term ROI.

3. HR and IT must move in lockstep to win on talent

Technology is at the center of talent acquisition, meaning collaboration between HR and IT is no longer optional. Nearly 9 in 10 CIOs agree: a strong partnership with HR is essential to attracting top talent.

• 85% of HR leaders say TA tech is a higher priority now than it was two years ago.
• Top outcomes: improved recruiter efficiency (30%), scalability (30%), and compliance (29%).

But partnership takes work. CIOs point to several friction points: lack of alignment on strategy (51%), limited resources (48%), and gaps in understanding tech capabilities (48%). To bridge these gaps, HR and IT need to share ownership across the TA tech lifecycle — from business case to implementation — and commit to frequent, informal communication.

4. AI is both the opportunity and the obstacle

Artificial intelligence is becoming indispensable in talent acquisition. But successful adoption requires more than just plugging in new tools. AI strategy needs executive buy-in, cross-functional alignment, and ongoing investment in skills and change management.

• 60% of CHROs say they’re already using AI across the TA process.
• 64% plan to implement more AI in the next 12 months.
• Top benefits: recruiter productivity, scalability, DEI outcomes, and compliance.

CIOs are on board, too: 72% plan to implement agentic AI within the next three years. But as adoption accelerates, the challenge for HR leaders is to move from experimenting with AI to using it as a core part of their TA strategy.

Or as Laura Coccaro, Chief People Officer at iCIMS, puts it: “If we want the business to see talent acquisition as a true strategic partner, we have to show up with results — not just activity.”

Final takeaways

This is a defining moment for HR. The data confirms what many talent leaders already feel: that their role is central to business growth and resilience.

But sustaining this momentum requires cross-functional alignment, smarter tech strategies, and a clear view of how TA drives bottom-line outcomes. As HR and IT leaders navigate rapid transformation together, the organizations that win on talent will be those that treat it as a shared — and strategic — priority.

For deeper insights, download the full 2025 CHRO Report here.