It’s September and everyone has that ‘back to school’ feel with a focus on new starts, planning and, dare we say it, the end of the year! Organisations looking ahead to their recruiting strategy within the UK and Europe in 2025 will need to adapt to several key trends that have emerged throughout 2024.
There are many who still want to return to the pre-Covid days of everyone in the office full time but to remain competitive, flexibility is key. Many industries are also still focused on face-to-face meetings as a key part of their recruitment process. Consider if you will an example of how far the world of virtual recruitment and candidate expectations have come as, according to a Forbes report, 77% of workers say they would accept a job without visiting a physical office!
Here’s the key trends to note for your recruitment planning for 2025
1. Hybrid and Remote Work
In 2024, hybrid work was highly favoured across Europe, and in the UK around 68% of workers prefer a hybrid model, according to Korn Ferry’s Talent Acquisition Trends Report for 2024. Many European companies followed this trend by reducing office space to accommodate the increasing demand for flexible work arrangements. Additionally, in continental Europe, remote work has become widely accepted, especially in countries like Germany and the Netherlands. Employers that fail to offer remote or hybrid options may find it difficult to attract top talent in 2025, as work-life balance and flexibility are increasingly prioritised by candidates.
2. Pay Transparency and Compensation
Pay transparency has become a legal requirement in several European countries. For example, Germany introduced laws requiring employers to disclose pay scales, and similar regulations are being adopted across the EU. In the UK, 74% of candidates identified competitive compensation as the primary factor in job selection. As more European countries adopt pay transparency rules, organisations will need to ensure compliance and offer clear, competitive salary packages to attract and retain talent.
3. Skills Shortages and Upskilling Initiatives
The skills gap continues to widen across the UK and Europe. In 2024, 34% of UK recruiters noted a significant increase in the skills gap, particularly in technology and digital sectors, according to Korn Ferry. European companies are heavily investing in reskilling and upskilling programs to address this issue, with many partnering with educational institutions and offering in-house training to bridge the gap. Organisations recruiting in 2025 must focus on offering development opportunities to remain competitive in a talent-scarce environment.
4. Sustainability and ESG (Environmental, Social, and Governance) Focus
Sustainability is becoming a core priority for both employees and employers throughout Europe. As climate concerns grow, younger generations, particularly Gen Z, are seeking employers that align with their values. In 2024, sustainability credentials were a significant factor for 40% of job seekers right across Europe according to Korn Ferry’s Talent Acquisition 2024 report. Organisations will need to embed ESG initiatives into their recruitment strategies and emphasise their commitment to sustainability to attract purpose-driven candidates in 2025.
5. Diversity, Equity, and Inclusion (DEI) Initiatives
DEI remains a top priority for European companies. In the UK, diversity and inclusion were major factors in employer attractiveness in 2024, with 66% of workers emphasising the importance of working for an inclusive organisation. Across Europe, DEI initiatives are also gaining traction, with many countries focusing on increasing gender diversity and reducing discrimination in the workplace. Employers will need to demonstrate their commitment to DEI by fostering inclusive work environments and eliminating bias from recruitment processes.
6. Adoption of Artificial Intelligence in Recruitment
AI is transforming recruitment across Europe. In 2024, many companies began using AI to enhance candidate screening, automate interview processes, and reduce hiring timelines. However, 31% of HR leaders in the UK expressed concern over the ethical implications of AI in hiring. By 2025, organisations will need to balance AI's efficiency with human oversight to ensure fairness and improve the candidate experience.
7. Focus on Mental Health and Well-being
Mental health support is now an integral part of the employee value proposition in the UK and Europe. In 2024, 33% of UK workers cited mental health as a key reason for not participating in the workforce. Employers that offer comprehensive mental health programs, flexible work conditions, and wellness initiatives will be better positioned to attract and retain talent in 2025.
Our Summary
Recruitment in 2025 across the UK and Europe will be shaped by flexible working arrangements, transparency in compensation, addressing the skills gap, and prioritising sustainability and DEI. As an employer you will also need to integrate AI carefully into your recruitment processes while focusing on well-being if you want your organisation to stay competitive. Adapting to these trends will help you attract the best talent in an evolving workforce in 2025 and beyond.