The role of procurement in human resources (HR) is rapidly evolving as organisations strive to optimise talent acquisition, employee benefits, and workforce management. With the rise of digital transformation, changing workforce expectations, and the need for greater agility, HR procurement must adapt to remain effective. Here, we explore key trends and innovations shaping the future of HR procurement as we move into 2025…
Technology driven HR procurement
The adoption of Artificial Intelligence (AI), automation, and data analytics is transforming HR procurement. AI-powered recruitment tools help streamline hiring by automating candidate screening, reducing time-to-hire, and enhancing decision making with predictive analytics. Procurement teams must assess vendors based on their technological capabilities and ensure solutions integrate seamlessly with existing HR systems.
The rise of total talent management
Traditional workforce models are being replaced by total talent management, where organisations view permanent employees, contractors, and freelancers as part of a single, cohesive workforce. HR procurement must source solutions that support this integrated approach, including vendor management systems (VMS) and freelancer management platforms (FMP) that enable businesses to manage diverse talent pools efficiently.
ESG and ethical sourcing in HR procurement
Environmental, Social, and Governance (ESG) considerations are becoming a top priority in procurement decisions. Businesses are scrutinising HR service providers to ensure they align with ethical labour practices, diversity and inclusion initiatives, and sustainable operations. Procurement teams must establish robust supplier evaluation frameworks to promote responsible sourcing and compliance with ESG standards.
The impact of hybrid and remote work
As remote and hybrid work models become the norm, HR procurement is adapting to new demands. Organisations are investing in digital collaboration tools, virtual onboarding solutions, and employee engagement platforms to maintain productivity and connectivity. Procurement professionals must evaluate these solutions for scalability, security, and user experience to ensure they meet the needs of the evolving, diverse and ever-more global workforce.
Data driven decision making
HR procurement is increasingly leveraging data to optimise supplier selection, track workforce performance, and forecast future talent needs. Advanced analytics enable procurement teams to make more informed decisions, negotiate better contracts, and measure the return on investment (ROI) of HR solutions. Investing in data driven procurement tools will be essential to inform decision making, underpin strategy and – ultimately – to remain competitive.
Flexible benefits and employee wellbeing
Employee expectations around benefits are shifting, with greater demand for flexible and personalised offerings. HR procurement must source providers offering benefits such as mental health support, wellness programmes, and on-demand pay. Partnering with vendors that provide adaptive benefits solutions will be key to enhancing employee satisfaction and retention.
How a procurement consultancy can help
The future of HR procurement lies in innovation, strategic supplier partnerships, and data-driven decision making. Procurement professionals must embrace new technologies, prioritise ethical sourcing, and adapt to changing workforce trends to drive long term value for their organisations. By staying ahead of these trends, businesses can build a more resilient, agile, and people-centric HR function.
Is your organisation ready for the future of HR procurement? At Accelerate, we understand the unique challenges of the HR sector. We are a team of experienced, entrepreneurial procurement consultants and supply chain leaders who have led and transformed global procurement functions and service provider organisations. We have a wide range of experience within the People Services sector, which means we bring the best outside-in thinking to the table. Contact our experts to explore how we can help you stay ahead.