Insights from 2024 and Predictions for 2025

Executive recruitment and evaluation are crucial for the development of businesses, as they not only determine the success of an organization but also help build sustainable teams capable of adapting to changing market conditions and addressing complex situations. An effective recruitment and evaluation process allows the identification of leaders who possess not only the necessary professional skills but also the ability to inspire, make bold decisions, and foster a positive organizational culture. These factors are especially important for maintaining competitiveness and promoting innovation in an era where the business environment has become more dynamic and complex than ever before. Therefore, this process is more than just selecting a leader – it is a strategic step towards the long-term success of the organization.

I.Gaile: “We began 2024 with predictions about what this year would bring and the trends in executive recruitment. Our KESTRIA colleagues from various countries around the world predicted a significant impact of artificial intelligence on the automation of the recruitment process and the objectivity of decision-making, the determining role of candidates’ skills rather than experience, and the demand for leaders who can integrate environmental and social responsibility into the organization’s culture. I agree with these predicted trends, but despite the immense influence of artificial intelligence on various recruitment processes, decisions about the final outcome are still made by company shareholders, owners, or executives, not artificial intelligence. I hope this will remain the case in the future.

One cannot ignore the global processes and the impact of the war in Ukraine on the rapid development of several industries, such as the military sector. This also determined the demand for leaders at various levels within companies in these sectors. On the other hand, in several industries, such as construction, there was a noticeable stagnation and uncertainty, which made business leaders more cautious and significantly affected decisions regarding company development and recruitment strategies. Overall, in the Baltic market, we have observed two different demands from companies regarding executives: (1) short-term results-oriented leaders with a focus on quick problem-solving and crisis management, or (2) long-term strategists who can build and implement the company’s development for several years ahead.”

K.K.Ziediņa: “Based on my observations and conclusions, I can say that in 2024, executive recruitment in Latvia and globally was driven by an increasing demand for leaders who can combine strategic thinking with practical execution. A crucial role was also played by the need to find leaders who can adapt to unpredictable situations and maintain organizational stability in changing conditions.

There was also a growing need to find leaders who not only understand but are also capable of operating in international markets, as Latvian companies increasingly seek to expand their presence in export markets.

In addition to what has already been mentioned, there are many different competencies expected from leaders in Latvia, which may vary depending on the company, industry, and economic conditions. However, one thing is clear – without strategic thinking, adaptability, a focus on development, digital literacy, and emotional intelligence, it is “difficult to survive” as a leader today, as confirmed by the outgoing year of 2024.”

I.Gaile: “This year has been a period of significant growth for our team! We have expanded our operational region by starting collaborations with companies in new industries. Additionally, new countries – South Africa and Panama – joined our global alliance KESTRIA, which allows us to help our clients find executives in over 40 countries worldwide. Overall, 2024 has been both a valuable learning journey and a time we can proudly reflect on our achievements. These successes are a testament to our team’s professionalism, passion, and ability to collaborate with clients in the long term.“

K.K.Ziediņa: “This year has been very interesting, dynamic, and exciting for our team. We have carried out various recruitment and assessment projects in both the private and public sectors, which has provided us with the opportunity to develop our own competencies and skills. We have also successfully carried personnel management projects at different levels, adding value and satisfaction to our work, as we are able to help organizations develop and improve their internal processes. However, the most significant achievement I’m particularly proud of is that we can now offer our clients HOGAN Assessments professional assessment tools in a wide range, providing organizations with the opportunity to develop and enhance their leaders and leadership teams.“

I.Gaile: “Latvia’s business environment is closely connected to the global political and economic situation. Looking at the Bank of Latvia’s forecasts for 2025, according to their experts, the next year is expected to be better than this one. I hope this will be the case, and the planned business development projects that were not realized this year will be launched next year, including improvements in GDP and investment indicators, and a reduction in uncertainty within the business environment.

The key competencies for leaders will certainly include the ability to think and act strategically, make data-driven decisions based on the situation, and adapt to changing market conditions. I believe that leaders who can collaborate across different generations will be increasingly valued. It is also important to acknowledge that new generation leaders are entering the market with innovative approaches, challenging traditional management norms. Additionally, more and more organizations are planning and purposefully conducting evaluations of existing leaders and planning their long-term development, as this is strongly correlated with the company’s overall performance.”

K.K.Ziediņa:“I see that in 2025, in the field of human resource management, we can expect recruitment processes for both leadership and professional roles to become much more personalized and focused on creating a positive candidate experience, thus building a more favorable and attractive employer brand.

In the area of senior leadership and evaluation, there will be an increased emphasis on sustainable leadership and strategic self-awareness, the skills to lead companies in line with ESG standards, a willingness and capability to implement and develop the latest technologies and artificial intelligence, as well as a significant focus on fostering internal company culture and ensuring alignment of mutual values.

A critical leadership competency, both now and in the future, is critical thinking, decision-making, and problem-solving. In a time when technology is highly advanced and many are utilizing the opportunities offered by artificial intelligence, it is essential to analyze available information and make well-founded, objective decisions based on the information from various resources. However, the ability to inspire, empathy, mutual understanding, and the skill to motivate a team will be the way for leaders to maintain their humanity in the age of technology.”

I.Gaile: “ASTRAL Executive Search team’s plans for the upcoming year are focused on strategic development and providing even higher-level services. We will definitely focus on a more personalized approach for each client, offering individual solutions based on their unique needs, as well as developing and promoting the integration of technological tools into our processes. I also believe that next year will not be an exception and will bring us interesting, previously unrealized projects from which we will gain new experiences, competencies, and satisfaction.”

K.K.Ziediņa:“Next year, ASTRAL Executive Search definitely plans to further increase its market share in executive recruitment and assessment, expand its range of services, and provide many more companies with the opportunity to foster the targeted leadership development of their executives and leaders.

We will also be attending the annual KESTRIA international conference, where we will discuss current global trends and opportunities in executive recruitment with colleagues from various countries around the world. Additionally, we plan to organize events and seminars here in Latvia to promote the exchange of best practices and foster leadership culture in Latvia and the Baltic region.

Our main priority is to help companies find and develop leaders who not only achieve results but also inspire change. Just like in 2024, in 2025 we will continue to seek and develop leaders who will change the game, modernize companies, and are essential for driving the development of the country’s economy.”

I.Gaile: “First and foremost, it is important to find joy and passion in what we do. That is what I wish for! However, the modern business environment is highly unpredictable and ever-changing, especially as we have experienced in recent years. You can be a leader of a thriving company, and then everything suddenly changes. Therefore, I wish leaders to land like cats – always on their feet, and to look at each new situation with a philosophical perspective, as every new challenge is also a new opportunity!”

K.K.Ziediņa: “I wish companies a clear strategic vision and the ability to adapt to dynamic market conditions, while for leaders – the courage to embrace challenges and become role models for their teams and industries, as well as investing resources in the development of management skills. Create a work environment based on trust, respect, and engagement, to inspire your teams to achieve excellence! And take pride in the effort you put in!”

On behalf of the entire ASTRAL Executive Search team, we wish you a successful, dynamic, and exciting new year in 2025!