Apr 3, 2025

Global trends are merging with the unique characteristics of the local market, reshaping the way organizations recruit, develop, and retain talent. Tzurit Golan In 2020, a major shift occurred in the world, and one reality that took root was that the “Work from Home” model was here to stay. One of the key sectors that led this trend and spoke about the long-term adoption of hybrid work was the tech industry. The integration of remote work allowed companies in the sector to recruit top talent from anywhere in the country and even globally. It also served as a tool for achieving work-life balance, helping companies retain employees. Fast forward five years, as the world marks the fifth anniversary of the COVID-19 outbreak, we are witnessing a shift led by corporate giants like Amazon, Walmart, and Dell, as well as the U.S. federal government, which are requiring their employees to return to a full workweek in the office. (Photo: Yarin Ternos) While this is not a sweeping trend, it signals the changes that 2025 is bringing to the field of human resources in Israeli tech. Global trends are merging with the unique characteristics of the local market, reshaping the way organizations recruit, develop, and retain talent. Here are some of the key issues that will occupy Israeli tech companies in the coming year 1. A New Balance Between Hybrid Work and Physical Presence After a long period of hybrid work that emerged out of necessity, Israeli tech companies are still grappling with the question of the optimal work model. We are now seeing more companies establishing clear policies for specific in-office workdays or increasing office presence without entirely eliminating remote work—and rightly so. The key metrics should be based on productivity, but just as importantly, on organizational and team engagement. Moreover, the local reality cannot be ignored: Employees serving in the reserves, those whose spouses are serving, employees forced to leave their homes due to the ongoing situation, and children who are out of their regular educational frameworks all require companies to be attentive to their needs and flexible where necessary. 2. Employee Experience Management: Beyond "Fun" to Meaning In the past, employee experience was primarily associated with fun activities during work hours and gourmet meals. Today, the focus has shifted to mental well-being, work-life balance, personal growth, and community involvement. Israel’s security, political, and moral climate requires HR teams to invest in understanding employees' emotional and professional needs. In response, companies are offering personalized career development programs as well as mental health support mechanisms—not only for employees but also for their families. 3. Data, AI, and People Analytics The integration of AI-based tools in HR has become the standard in most tech companies. People analytics systems enable precise measurement of key parameters such as employee satisfaction, organizational engagement levels, attrition risk, and performance. Additionally, recruitment processes now leverage smart tools for automated resume screening, video interviews with emotional analysis, and candidate matching based on organizational culture. The result: Time savings, improved hiring quality, and a smoother experience for candidates. 4. Diversity and Inclusion Despite the shifting winds from the U.S. that have led many companies to scale back their diversity and inclusion goals, Israel has not abandoned these objectives. Even if budgets have been cut due to the war, no Israeli company has taken this issue off the agenda, and there is a shared desire to see more underrepresented populations integrated into the Israeli tech industry. Several social initiatives are also working in collaboration with tech companies to promote this goal. Hopefully, the local tech sector will not drop the ball on this issue. It goes without saying how crucial diversity is—both for the resilience of Israeli society and for the strength of tech companies themselves 5. The Battle for Talent Continues Despite all the changes of the past few years, one trend remains unchanged: The Israeli tech sector has proven its resilience over the past two years. Even companies that have laid off employees still cannot afford to lose talented workers. Recruitment and retention require flexibility, such as incorporating remote work, balancing work and life, providing meaningful work, and similar efforts. 6. Redefining Talent In an era of rapid technological change, the concept of "talent" is expanding. Instead of focusing solely on graduates from top universities or individuals with specific experience, many companies are adopting a potential-based approach—looking for curious people with high learning ability, mental flexibility, and alignment with the organizational culture. This approach gains even more importance as we enter the age of generative artificial intelligence (GenAI), both in the tools employees use in their daily work and in the processes within organizations, as well as the products developed by tech companies. Talent is not just what you are today, but also what you have the potential to become tomorrow. Tzurit Golan is the Chief People Officer at the cybersecurity leader Pentera. TAGS