The talent landscape is evolving rapidly, and midsized businesses must stay ahead of the curve to remain competitive. To understand how senior executives are approaching talent and workforce strategy in 2025, FXG Partners surveyed over 50 CEOs, CFOs, GMs, and other C-suite leaders. The 2025 CXO Talent Monitor highlights key trends, challenges, and opportunities that businesses need to consider as they navigate an increasingly complex labor market.

The Labor Market Outlook: More Hiring, Stable Retention

Midsized organizations are optimistic about hiring in 2025. According to the report:

• 60% of executives expect hiring to increase over the next six months.
• 80% anticipate retention will remain neutral or improve.
• 64% believe labor market competition will stay the same or decrease.

While hiring is expected to accelerate, competition for talent may ease slightly. However, this dynamic could shift quickly, especially as HR leaders predict retention challenges in the broader labor market. Businesses must remain proactive in their workforce planning to avoid talent shortages.

Top Talent Priorities for 2025

When asked about their most pressing talent challenges, executives overwhelmingly pointed to acquiring and developing key talent. The top three priorities included:

1. Developing Leaders (25%) – Leadership development is essential for scaling businesses effectively.
2. Key Talent Acquisition (21%) – Finding and hiring the right people remains a top concern.
3. Developing Talent (8%) – Businesses are investing in upskilling and reskilling their workforce.

Other priorities included organizational design, career pathing, culture shifts, benefits enhancements, and employee engagement. The focus on leadership development and talent acquisition underscores the need for structured HR strategies that align with business growth goals.

Executives Want a Better HR Support Model

Despite recognizing the importance of HR, many executives are dissatisfied with their current HR capabilities. The survey found that the most critical areas—managing talent, developing leaders, and employee development—are also where businesses feel the least supported.

HR leaders must bridge this gap by adopting a more strategic, integrated approach to workforce planning. This means investing in HR technology, refining talent acquisition strategies, and strengthening leadership development programs.

How FXG Partners Can Help

The findings from the 2025 CXO Talent Monitor reveal a clear need for flexible, strategic HR leadership. FXG Partners offers tailored solutions to help midsized businesses:

• Build a scalable HR framework that aligns with growth objectives.
• Implement best-in-class tools and templates for workforce planning.
• Access fractional HR leadership to fill expertise gaps efficiently.
• Enhance HR team training and development for long-term success.

As 2025 continues to unfold, the ability to attract, develop, and retain top talent will be a defining factor in business success. The FXG 2025 CXO Talent Monitor provides a roadmap for executives looking to refine their HR strategies and ensure their people and culture initiatives drive organizational growth.

If you're ready to optimize your talent strategy, explore the full FXG 2025 CXO Talent Monitor report and see how FXG Partners can support your HR needs.

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