Future Trends In Talent Acquisition: How Technology Is Shaping Hiring Practices

future trends talent acquisition technology hiring

Table of Contents

  1. Digital Shifts in Modern Hiring
  2. The Role of Artificial Intelligence in Recruitment
  3. Data-Driven Hiring Decisions
  4. Evolution of the Candidate Experience
  5. Remote Work and Accessing Global Talent
  6. Shifting Focus: Skills Over Degrees
  7. Promoting Diversity, Equity, and Inclusion Initiatives
  8. Embracing the Future of Digital Recruitment

Digital Shifts in Modern Hiring

The landscape of talent acquisition is experiencing rapid transformation as technology reshapes how organizations approach hiring. Traditional recruitment methods—such as paper resumes, face-to-face interviews, and manual job postings—are quickly being outpaced by digital-first strategies that prioritize efficiency, accessibility, and data-driven outcomes. This fundamental digital shift has been particularly accelerated by global events, such as the COVID-19 pandemic, compelling companies to adapt and innovate at an unprecedented rate.

Modern employers are increasingly relying on advanced digital platforms to source, assess, and onboard talent, with leading solutions found on every reputable recruiting website. These platforms centralize hiring processes, offer automation tools, and integrate analytics that empower HR professionals to make more informed decisions, enhance communication, and tap into broader talent pools.

The Role of Artificial Intelligence in Recruitment

Artificial Intelligence (AI) is revolutionizing recruitment by automating routine tasks and providing deep insights into candidate fit. AI-powered tools now handle everything from resume screening to interview scheduling, freeing up valuable time for HR teams and ensuring a more objective review of applicants. These algorithms can rapidly analyze thousands of resumes, flagging top candidates based on skill match, experience, and even culture fit. According to experts, including research highlighted by SHRM, AI is increasingly shaping both recruitment and retention strategies, helping organizations make smarter, data-driven decisions while reducing bias.

Machine learning and natural language processing are further enhancing the process by enabling predictive analytics, which helps organizations identify candidates with high potential and lower the risk of early turnover. This not only accelerates the time-to-hire process but also creates a fairer and more unbiased recruitment workflow.

online resume

Data-Driven Hiring Decisions

The influx of recruitment technology has led to a wealth of analytics that fundamentally change how hiring decisions are made. Access to real-time data enables recruiters to evaluate the effectiveness of their strategies, forecast future workforce needs, and refine the candidate pipeline.

Organizations that employ a data-driven approach to recruitment enjoy increased efficiency, reduced hiring costs, and better workforce planning. Metrics on time-to-fill, candidate sources, and applicant drop-off rates guide strategic adjustments, ensuring continual improvement.

Evolution of the Candidate Experience

Candidate expectations have shifted swiftly in the digital age. Modern applicants anticipate a hiring process that is transparent, efficient, and interactive. This has led companies to embrace technology-driven methods such as asynchronous video interviews, online skills assessments, and real-time chatbots.

Ensuring a positive candidate journey is essential—not just for hiring success, but also for employer branding. Dynamic communication, constructive feedback, and user-friendly interfaces are key differentiators for organizations.

Remote Work and Accessing Global Talent

The expansion of remote and hybrid work has rewritten the rules of talent acquisition. Teams are no longer limited by geography, allowing companies to access a broader range of skills and backgrounds. This global reach enables the creation of richer, more diverse workforces and promotes greater inclusivity.

With the proper digital infrastructure and collaborative tools, organizations can seamlessly manage hiring, onboarding, and collaboration across borders. This expanded access to global talent creates new opportunities for innovation and growth, particularly for companies that are willing to adopt flexible work arrangements.

Shifting Focus: Skills Over Degrees

A profound shift is occurring in how organizations evaluate potential hires. Increasingly, hiring managers are prioritizing demonstrable skills—both technical and soft—over traditional academic credentials. This change is largely driven by the dynamic needs of modern workplaces, where success often depends on adaptability, problem-solving, and up-to-date expertise.

New tools allow employers to assess skills through simulations, gamified challenges, or stackable micro-credentials. This not only opens opportunities for candidates from diverse educational backgrounds but also ensures a more equitable evaluation process.

Promoting Diversity, Equity, and Inclusion Initiatives

Technology is also a powerful ally in advancing diversity, equity, and inclusion (DEI) within organizations. Automated screening and structured interviews can help mitigate unconscious biases that might arise in manual processes. Sophisticated platforms support ‘blind’ hiring practices, anonymizing candidate data to further level the playing field.

By using digital tools, companies attract a broader range of candidates and foster a fair environment where merit is prioritized.

Embracing the Future of Digital Recruitment

The world of hiring is evolving at an unprecedented pace, driven by technology, data, and changing workforce expectations. Digital tools, AI, and analytics are no longer optional—they are essential for organizations seeking efficiency, fairness, and access to global talent. From enhancing candidate experiences to prioritizing skills over traditional credentials, modern recruitment empowers companies to be more agile, inclusive, and strategic. By embracing these digital shifts, organizations can build stronger teams, foster diversity, and stay competitive in an increasingly dynamic talent landscape.

PMS Strategies Losing Investor Confidence – What Caused The Recent Outflows?

portfolio management strategies losing investor confidence outflows

Portfolio Management Services (PMS) have long been a preferred choice for wealthy investors in India. With customised strategies, personalised attention, and potential for higher returns than mutual funds, PMS once stood out as the “personal chef” of wealth management. 

Yet, despite their premium positioning, the past few quarters have seen significant investor outflows from PMS strategies. What went wrong? Why are investors pulling back from what was once a high-growth investment segment? 

In this blog, we explore the underlying causes of this dip in investor confidence, how portfolio management companies in India are responding, and what this means for investors. 

Understanding PMS And Its Appeal 

Unlike mutual funds where money is pooled, PMS provides each investor with a dedicated portfolio tailored to their risk appetite and goals. Some key features that made PMS attractive include: 

● Customisation: Investment plans aligned with individual goals. 

● Transparency: Direct ownership of stocks and securities. 

● Potential for Higher Returns: Managers can take concentrated positions. 

● Prestige Factor: Long considered an HNI-exclusive product. 

However, as markets evolve and investor awareness increases, these strengths are now being re-examined. 

Recent Outflows From PMS – The Numbers 

According to SEBI’s 2023–24 data, PMS assets under management (AUM) touched an all-time high of over ₹32 lakh crore. Yet, inflows have been uneven. 

● Client numbers have stagnated, failing to recover fully post-COVID. 

● Quarterly data shows selective outflows in strategies that underperformed benchmarks. 

● PMS companies with aggressive bets in mid- and small-caps saw sharper redemptions compared to conservative strategies. 

This suggests that while PMS remains a large industry, investor faith in certain strategies has weakened. 

What Is Driving The Loss Of Confidence? 

1. Performance Gaps vs Benchmarks 

Several PMS funds failed to beat indices consistently. While top performers delivered alpha, many lagged behind mutual funds, creating dissatisfaction. 

2. High Costs and Fee Structures 

PMS fees typically include management fees (1.5–2.5%) and profit-sharing. In a low- return environment, these costs erode investor gains, leading to comparisons with lower-cost mutual funds. 

3. Market Volatility 

The sharp swings in 2022–24, especially in mid-cap and small-cap segments, exposed PMS strategies with concentrated bets. Investors preferring stability began moving towards safer instruments in 2025 or 2026. 

4. Transparency And Reporting Concerns 

Despite SEBI’s regulations, investors feel reporting in PMS is less frequent and harder to interpret than in mutual funds. This lack of clarity impacts trust. 

5. Rising Competition From Alternatives 

Products like AIFs (Alternative Investment Funds), passive ETFs, and even global investing platforms have attracted HNIs seeking diversification. 

The Bigger Picture – Shifting Investor Behaviour 

Investor psychology has evolved. Earlier, PMS appealed to those chasing exclusivity and higher alpha. Today, investors are more cautious, preferring: 

● Cost-efficiency over prestige. 
● Liquidity and transparency over concentrated high-risk bets. 
● Diversification across asset classes. 

This behavioural shift is a big reason for recent PMS outflows. 

How Portfolio Management Companies In India Are Responding 

Leading PMS providers are: 

● Tweaking strategies towards more balanced allocations instead of extreme bets. 
● Lowering fee structures or offering performance-linked models. 
● Enhancing digital dashboards for transparency. 
● Diversifying offerings by launching hybrid PMS-AIF models. 

However, rebuilding trust will take time and consistent performance. 

The Dezerv Perspective 

At Dezerv, we believe investor trust is built on: 

● Transparency: Simple, jargon-free reporting. 
● Evidence-based strategies: Focus on risk-adjusted returns rather than chasing headlines. 
● Access: Helping investors understand the trade-offs of PMS versus mutual funds or AIFs. 

By keeping client-first principles at the core, portfolio management can still play a valuable role in a high net-worth investor’s wealth journey. 

Frequently Asked Questions (FAQ) 

Q1. Why are investors pulling out of PMS now? 

Outflows are driven by underperformance of certain strategies, high costs, and a shift in investor preference towards more transparent and cost-effective products. 

Q2. Is PMS still better than mutual funds? 

Not always. While PMS offers customisation and flexibility, mutual funds often outperform after adjusting for costs. The right choice depends on your portfolio size, risk appetite, and goals. 

Q3. What is the minimum investment in PMS? 

In India, the SEBI-mandated minimum is ₹50 lakh. Q4. Are PMS fees justified? Fees can be worthwhile if a PMS consistently beats benchmarks net of costs. However, many investors are questioning whether this value is being delivered. 

Q5. Should I consider PMS in 2025? 

Yes, if you have a significant corpus, a high-risk appetite, and prefer personalised strategies. Otherwise, diversified mutual funds or AIFs might be more efficient. 

Conclusion 

The recent outflows from PMS highlight a trust and performance gap. While portfolio management companies in India are adapting, investors are demanding more value for the high fees charged. 

For investors, the key takeaway is this: Evaluate PMS not by prestige, but by alignment with your goals, costs, and risk tolerance. 

At Dezerv, our approach is to help you cut through the noise, focus on evidence, and craft strategies that protect and grow your wealth sustainably.

The Lean Startup Life Media Network Newest Blog Posts: