Expert Predictions for Recruitment in 2025

 

The Influence of AI On the Recruitment Industry

 

 

A Focus on Skills-Based Hiring Over Qualifications

 

There seems to be a massive shift in focus from traditional methods of qualification-based hiring to skills-based hiring that suggests the likelihood of significant changes in the recruitment industry.

Qualifications aren’t completely inconsequential, of course, but recent trends have shown employers increasingly prioritising practical skills and abilities, hands-on experience and problem-solving skills over formal degrees. Indeed, it seems fair to expect that this trend will continue to develop in the coming years.

This shift has been driven by the rapid evolution of specific industries, especially tech, in which skill gaps tend to merge far more quickly than educational systems are able to adapt.

Thus, companies have started turning to alternative pathways including things like online certifications, bootcamps and portfolio assessments in order to identify top talent in the industry. Not only does this help broaden the talent pool, but it also helps to foster diversity by offering opportunities to candidates from slightly less “traditional” backgrounds.

 

The Rise of Remote and Hybrid Work

 

Remote and hybrid work situations have started becoming more popular since the onset of the pandemic in 2020, and this movement has continued to grow. Indeed, the expectation seems to be that although this change is no longer a brand new trend, it’s going to continue to reshape the recruitment industry in 2025 by broadening the access to global talent pools.

Indeed, geographical restrictions will become even less significant than ever before, allowing companies to hire suitable, skilled professionals from anywhere in the world. Thus, competition for op talent (and jobs, on the other hand) will continue to increase and evolve, with processes like virtual interviews, digital onboarding and more becoming the norm.

Thus, this trend will further contribute to an increase diversity and the embracing of flexible working models that’ll attract candidates looking for a healthy work-life balance, positioning themselves as employers of choice in what is clearly becoming a rapidly changing job market.

 

Expert Predictions for the Recruitment Industry in 2025 

 

For more information into what the recruitment industry might look like in the future, and in 2025 more specifically, we’ve spoken to experts in the field to gain some insight into their professional expectations.

 

 

Our Experts

 

• Nat Natarajan: Chief Product  and Strategy Officer at G-P
• Rachael Hayes: Director at Definia
• Andy Heyes: Managing Director at Harvey Nash UK, Ireland and Central Europe
• Ruby Kite: Talent and Inclusion Lead at The PHA Group
• Luke Shipley: Co-Founder and CEO at Zinc
• Louise Archer: Founder and CEO at Retrained Search
• Olivia Spruce: Director of the Payroll Compliance Authority (PCA)
• Varun Monteiro: Managing Director of Codatech
• Dan Buckley: CEO of Cognexo
• Gregor Hofer: CEO of Rapport
• Sarah Swain: Marketing Director at Welcome to the Jungle
• Mark Standen: Director of Technology at Acorn by Synergie
• Charlie Watson: Head of Staffing Transactions at Connect Corporate Finance

 

Nat Natarajan, Chief Product and Strategy Officer at G-P

 

 

“HR has long had the perception of being slow to embrace new technology, with critics labelling it a laggard. However, with the advent of AI in the workplace, HR is emerging as a leader in innovation with HR teams and professionals harnessing AI as a crucial ally to redefine and elevate its operations.

AI is reshaping HR from streamlining recruitment processes and enhancing employee experiences to delivering data-driven insights for compliance and strategic decision-making. In this new era, HR professionals and teams are incentivised to become familiar and comfortable with using AI to keep up with the demands of business.”

 

Rachael Hayes, Director at Definia

 

 

“Rachael Hayes, Director, Definia, part of The IN Group, said: “As we embrace the partnership between humans and machines, the workplace will continue to evolve. From redefining job roles to adopting new forms of collaboration, technology is unlocking opportunities for innovation and growth. The key to success lies in striking the right balance—leveraging the efficiencies of technology while celebrating the unique strengths that only humans can bring to the table.

Advantages aside, the rise of technology in the workplace also raises important questions about its integration. Organisations must ensure new tools enhance, rather than diminish, the employee experience.

Ultimately, technology is a tool. Its true value lies in how we use it to empower people, enhance their potential and create a future where work is more meaningful and impactful.”

Andy Heyes, Managing Director at Harvey Nash UK, Ireland and Central Europe

 

 

“We expect that 2025 will be a solid but unspectacular year for technology recruitment. However, the nature of the market is that it can move from red to green at a moment’s notice – with no amber in between. We saw that in the post-Covid boom.

That may have been the result of a fairly unique set of circumstances, but with AI developing at pace and many other unknowns, employers (and candidates) need to stay agile, flexible and prepared for the market to take an unexpected turn at any time.”

 

Ruby Kite, Talent and Inclusion Lead at The PHA Group

 

 

“For large businesses, 2025 will see AI agents take on administrative tasks such as screening and qualifying CVs to free up recruiters’ time so they can focus on building meaningful relationships with candidates and facilitating an inclusive experience for all. The Adecco Group, one of the world’s leading talent companies, are leading the way with their use of Agentforce, Salesforce’s new AI autonomous agent capability.

“For smaller businesses with internal talent functions, LinkedIn’s new AI-powered features will enhance resourcing results, improve candidate engagement, and optimise job posts. Personalisation will be key for organisations that don’t have a standout employer-value proposition, particularly as today’s job-seekers can afford a more passive and speculative approach than the typical ‘new year, new job’ application surge.”

 

Luke Shipley, Co-Founder and CEO at Zinc

 

 

 

 

“The recruitment industry has been witnessing a move towards a retained fees model and 2025 will be no exception to this as companies look to win the “war on talent” by collaborating closely with individual agencies on specific roles. The cost of a bad hire has been estimated to be as much as three times higher than the salary paid.

Given the weak economic growth predictions next year, many start-ups and SMEs are looking to work with long-term partners, who understand their business and have a vested interest in doing so.

Similarly, recruitment firms of all sizes will need to transition away from the current low-value, high-volume contingency “no win, no fee” model to deliver meaningful results for clients and safeguard their client pipeline. This will only be achieved by adopting a rigorous, headhunting-based search model, which requires a financial commitment from clients at the start of each project.“

 

Olivia Spruce: Director of the Payroll Compliance Authority (PCA)

 

 

“With legislation now on its way for the umbrella company market I expect this will be an ongoing theme during 2025 for all affected in the industry. I worry that the current proposal, which will make recruitment agencies ultimately responsible for Pay As You Earn (PAYE) and other tax deductions, won’t have the desired impact on compliance. 

The majority of recruitment agencies already carry out thorough due diligence and do all they can to make sure the umbrella companies they engage are compliant. However, recruiters are not accountants or fraud detectors, and some of the schemes in operation are extremely sophisticated and hard to spot.

The details of legislation we know so far may spur some agencies to be even more thorough in their checks and monitoring, however, driving sector-wide compliance in this way will be a challenge given that we are not experts in financial conduct or governance.”

 

Varun Monteiro, Managing Director of Codatech

 

 

“In 2025, the temporary recruitment market is expected to evolve significantly, driven by automation, compliance, and changing workforce preferences. Demand for temporary roles in tech, healthcare, and logistics will remain high. 

The rise of AI and data analytics will enhance candidate matching, enable more accurate back-office processing at scale, and support tighter compliance controls. 

With the proposed legislative changes by the HMRC in April 2026, a greater focus on supply chain due diligence, aided by technology, will help reduce the overhead on businesses, while minimising the risk of non-compliance. 

Recruitment agencies are increasingly likely to shift away from umbrella companies, and in some cases, open their own umbrella entities to oversee the wider supply chain.

The gig economy will continue to thrive, with more businesses and workers opting for flexibility, leading to a growth in short-term roles. Though, government needs to tread carefully around the mooted wholesale removal of zero-hours contracts.”

 

Dan Buckley, CEO of Cognexo

 

 

“By 2025, AI will transform recruitment, reshaping both pre boarding and onboarding processes. New hires will engage with intelligent chatbots and immersive platforms before their start date, receiving tailored insights into their role, company culture, and expectations. Dynamic feedback systems will provide constructive post-interview insights, enhancing goodwill and employer branding. This personalised approach fosters alignment and belonging early, creating a seamless transition into the workplace.

During onboarding, AI will personalise learning modules and resources based on individual preferences, ensuring employees feel supported from day one. Cognexo’s survey revealed that 54% of UK employees are dissatisfied with onboarding, highlighting the need for continuous learning and real-time sentiment monitoring. HR leaders must move beyond annual engagement surveys, using AI-driven analytics and auto-escalation processes to address disengagement proactively and refine strategies.

AI’s ultimate role is to automate routine tasks, allowing HR teams to focus on meaningful interactions and strategic goals. However, organisations must ensure algorithms are unbiased, trained on diverse datasets, and transparent in decision-making. AI should complement human judgment, preserving the assessment of cultural fit and complex decision-making. By 2025, AI’s integration promises a more engaged, resilient workforce across the employee lifecycle.”

 

Gregor Hofer, CEO of Rapport

 

 

“According to our research, nearly one-third of workers are ready to resign due to a distinct lack of training leaving employees unprepared for their day-to-day work. This transforms what might appear to be solely a learning and development issue into a major recruitment challenge. 

Considering this, it is critical for businesses to prioritize enhancing training opportunities to help the recruitment function retain and attract top talent in 2025 and beyond. 

The future of professional development and successful recruitment will lie in creating immersive, adaptive, and tailored learning experiences which employees are calling out for. Organizations that successfully implement these changes and communicate them effectively to potential candidates will not only address current training and upskilling issues but also attract new talent from companies that are failing to do so.

This transformation represents not just an opportunity to improve training effectiveness, but a strategic imperative in an increasingly complex business environment where upskilling and training will be key to maintaining competitive advantage.”

 

Sarah Swain, Marketing Director at Welcome to the Jungle

 

 

Mark Standen, Director of Technology at Acorn by Synergie

 

 

• There will be a strong focus on using AI ethically within recruitment. Both Candidates and recruiters will demand a greater transparency in how these tools are operated ensuring fairness and accountability
• Candidates may well use AI tools to enhance their online assessments and this will (as it already does) cause concern. Therefore regulations and processes to provide rigours fairness will be deployed on scale
• Technology will enable more personalised approach to recruitment. AI will increase in it’s use to match candidates to jobs.
• Increased use on more intelligent Chatbots for initial entry level and high volume roles
• AI Driven efficiency across all areas of recruitment, front office (customer facing) and back office operations

Charlie Watson, Head of Staffing Transactions at Connect Corporate Finance

 

 

“The recruitment industry has faced significant challenges throughout 2024. However, the recruiters we’ve spoken to remain ever-optimistic about the market’s recovery in Q1 2025.

With job postings seismically lower than a year ago, it’s tough to see the permanent market bouncing back as quickly as hoped.

In times of economic uncertainty, there’s often a shift toward temporary and contract hiring. We anticipate this part of the market to recover more rapidly in 2025.

I like to share the recruiters’ optimism, but I remain mindful that a full recovery may take some time. 

The upcoming increase in National Insurance Contributions (NIC) is likely to impact the low-skilled hiring market in particular.”