2025 recruitment trends

After a year of navigating economic and political uncertainty, rapid technological advancements, and shifting workforce expectations, it’s time to put 2024 behind us and look at what recruitment trends 2025 will bring.

To explore the future of 2025, Justin Somerville-Cotton, Head of Flexhuis UK, Renee Burn, Head of Client Solutions, and Malak Serarfi, Client Solutions Manager, have shared their perspectives on the upcoming recruitment and talent solutions trends. Their insights provide a valuable understanding of the challenges and opportunities ahead, and identify the primary factors influencing business and talent in 2025.

Automation and AI in workforce management

AI and automation are no longer futuristic buzzwords – we saw in 2024 that they’re reshaping recruitment in real time. From streamlining candidate screening to automating onboarding processes, these tools are helping businesses save time and reduce hiring costs.

In 2025 AI may begin to focus more on predictive skill mapping, enabling HR teams to make more accurate data-driven decisions, identify recruitment trends, and create more personalised candidate experiences. However, balancing efficiency with humanity remains a challenge.

As Malak suggested “chatbots will guide candidates through recruitment, increasing efficiency and reducing time-to-hire. But it’s crucial we balance this with human interaction.”

Companies are beginning to embrace AI but remain mindful of its limitations. Candidates still value personal connections, and AI has yet to fully automate the hiring process, so ensuring a human touch in key stages of the recruitment process will remain essential.

Interestingly, candidates are increasingly using AI tools to help with their applications – whether it’s writing CVs, tailoring cover letters, or even practising interview answers. While this can help candidates in the application process, it also poses a challenge for employers, such as making it harder for recruiters to assess authenticity and accurately gauge a candidate’s true capabilities.

Striking the right balance between leveraging technology and maintaining human insight will be essential as companies refine their recruitment processes in 2025 – Find out more about AI in recruitment in our ‘AI revolution’ article.

Skills-based hiring

Skills-based hiring, which focuses on assessing candidates’ abilities rather than traditional qualifications, was one of the biggest recruitment trends in 2024.

However, full-scale adoption remains a challenge, and Head of Flexhuis UK, Justin Somerville-Cotton has reservations, “We’re going to see some impressive use cases, but whole-scale adoption of skills-based hiring in 2025? I’m sceptical”

It’s a concept many businesses are intrigued by but often struggle to implement due to a general lack of compelling case studies and clear methodologies on how to apply skills-based hiring into their recruitment process.

We may see businesses dipping their toes into skills-based hiring, particularly in tech and creative industries, where transferable skills are highly valued. If AI and automation tools become increasingly more mature, they have the potential to play a pivotal role in enabling organisations to identify hidden talents and match candidates to roles based on their potential rather than their CV credentials alone.

However, it’s important to approach this with caution, as AI can carry biases that may result in discrimination or exclude certain candidates. While AI is a powerful tool, organisations must implement the right safeguards to ensure fairness and inclusivity in the hiring process.

The rise of green jobs and sustainability

Sustainability has long been a topic of discussion for businesses, but 2025 demands a shift from words to action. Industries like agriculture, finance, and technology are experiencing growing pressure to create green jobs, driven by stricter regulations and societal demands to combat climate change.

Yet, our 25th Annual Digital Leadership Report reveals a concerning divide: while 53% of businesses have set net-zero targets, 47% have not. This gap underscores the need for tangible commitments and workforce strategies that prioritise sustainability to meet rising expectations and stay ahead. [1]

Furthermore, there’s a real concern about a skills gap in this sector, with 200,000 skilled workers needed to meet the UK’s decarbonisation plans. This has heightened the need for upskilling and transferable skills in the sector to meet the demand. [2] In 2025 we may see increased investment in training programmes that prepare employees for roles in renewable energy, green manufacturing, and sustainable supply chain management.

Renee Burn emphasised this “Certification will be key – not just for businesses, but for employees too. Training and development will play a significant role in building the green workforce of the future.”

In 2025 expect more industries, including those you wouldn’t traditionally expect to embrace sustainability, and with this a rise in green jobs.

The expanding gig economy

The gig economy continues to grow and redefine traditional employment, with businesses increasingly relying on freelancers and project-based workers. Managing a decentralised workforce offers significant opportunities but also comes with unique challenges, particularly as regulations around gig work continue to tighten.

However, with the growth of this type of work, it has become increasingly more regulated to protect the interests of gig workers. In 2025, proposed changes such as the UK Government’s plan to ban zero-hour contracts will bring new pressures for employers. While these changes aim to ensure fair treatment for workers, they risk creating administrative burdens for HR teams, particularly in smaller businesses. [3]

With the increase in regulations, banning of zero-hour contracts, and a shift towards a decentralised workforce, it may become somewhat of a headache for businesses. Collaboration across time zones, maintaining company culture, and ensuring legal compliance are just a few hurdles businesses must overcome as they tap into this growing talent pool, Renee added “You’ll need to think about communication, accountability, and legal compliance when managing a decentralised workforce.”

In 2025 we may see an increase in investment in workforce planning tools and strong communication strategies to help bridge gaps and ensure seamless collaboration.

DE&I and EVP, a competitive advantage

Diversity, equity, and inclusion (DE&I) coupled with strong and well-practised employee value proposition (EVP) are no longer just recruitment trends or niceties – they’re core to business success and integral to retaining a company’s most critical talent.

Today’s workforce places greater emphasis on workplace culture, purpose, values, and inclusivity than ever before. Salary alone is no longer enough to attract or retain the best candidates. Top talent is seeking organisations that align with their personal values, foster inclusivity, and provide a sense of belonging.

As Justin highlights “If you’ve got culturally aligned employees who want to grow within your organisation, helping them stay is key. Internal moves make them five times more likely to stay twice as long.”

A strong DE&I strategy and EVP in 2025 will be critical not just for recruitment but for nurturing growth and fostering long-term loyalty within the workforce.

Evolving RPO models for rapid scale-ups

Recruitment Process Outsourcing (RPO) is no stranger to adaptation, but 2025 could see a significant shift in its use. Increasingly, RPO models are being tailored to support shorter-term, high-intensity projects like digital transformations and rapid scale-ups. Mid-sized businesses, in particular, are turning to RPO providers for specialist expertise they may not have in-house, such as attracting niche tech specialisms and skills.

Justin Somerville-Cotton, Head of Flexhuis UK

Justin added, “We are seeing more demand for short-term and project-based RPO models because in-house teams are growing… Mid-tier organisations require expertise in specialist areas such as tech to build out programmes of work.”

While this isn’t entirely new, the collaboration between RPOs and in-house teams may become more sophisticated in 2025. Businesses are realising the value of an embedded approach, where external providers work seamlessly alongside internal recruitment teams.

The impact of economic conditions

Global and national economic conditions remain a significant factor influencing recruitment strategies. Volatility, driven by geopolitical tensions, changing governments, new policies, and inflation, continue to create a cautious hiring environment.

While 2025 may bring a slight stabilisation compared to previous years, businesses are unlikely to see a dramatic rebound, as Justin stated “Anything that creates uncertainty affects the job market. 2025 might see some improvements, but it won’t be a sudden uptick.”

Uncertainty is the new norm – it’s crucial that organisations remain agile in the coming years, building resilience and adaptability to thrive amid ever-changing conditions. Organisations may look at developing robust contingency plans, diversifying their talent pools, and gaining a clear understanding of the skills already within their workforce.

Prioritising internal upskilling and recognising transferable skills will also be key strategies in building resilience and ensuring adaptability in 2025.

Preparing for 2025 and beyond

The recruitment landscape of 2025 will be defined by evolving recruitment trends, whether it’s the rise of maturity in AI and automation, the focus on sustainability, or the growing importance of inclusivity.

But what will emerge as the defining buzzword of 2025? Will AI and automation continue to dominate the conversation, or will sustainability and inclusivity take centre stage? Only time will tell.

December 16, 2024