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2025 is here and with it, the time to reassess your workforce strategy. As you look to build a strong team over the next 12 months, knowing the latest hiring trends and the market outlook can help you successfully navigate hiring in the year ahead.
As a leading recruitment agency, we keep a close eye on hiring trends and various factors that impact it. Moving forward, businesses will need to be more strategic about their talent acquisition and retention approach. Keep reading to learn more about the hiring landscape and how to make informed decisions in 2025.
And if you need the latest salary data, the new Michael Page 2025 Salary Guides include salary benchmarks for key roles in your field.
Download now
2024 presented several challenges that won’t immediately disappear in 2025, including political uncertainty and tight economic conditions, which have significantly impacted hiring.
Our latest Talent Trends report revealed that over a third (34%) of organizations found it difficult to hire in the last year, citing the following as the primary reasons why:
The good news: the job market is expected to improve as the political landscape comes into focus and the Federal Reserve executes strategic interest rate cuts, easing inflation. At this point, the competition for skilled talent will likely heat up. When it does, your hiring practices from 2024 may not generate the results you want.
In 2024, widespread caution led to extended hiring timelines. It was common for decision-makers to prolong feedback between interviews, hindered by large hiring panels and the fear of wasting resources by hiring the wrong person. On the other hand, candidates have been more reluctant to move jobs as factors like salary, flexibility, and job security become major priorities.
To attract top talent, companies will need to do their best to meet candidates' expectations. So, the big question is: how can employers regain confidence and drive movement in the labor market?
In 2025, efficient hiring processes will be key to building a strong team. As you start candidate searching, try to keep an open mind. Instead of immediately discounting those who don’t meet all your requirements, identify their potential to grow.
Transferable skills and an eagerness to grow make for effective upskilling, allowing you to fill roles and skills gaps sooner. Improving your workforce’s adaptability will prove useful as 75% of companies plan to increase adoptions of AI and other technological advancements in the future, according to the World Economic Forum.
Upskilling will also help improve retention in the long term, as nearly a third of workers say a lack of career advancement is a top reason to look for opportunities elsewhere.
Despite the passing of five years since the start of the pandemic, workers’ desire for flexible work arrangements is not going anywhere. In fact, our recent survey revealed that employees who work remotely reported a more positive impact on their work-life balance (86%), overall productivity (80%), and time management (79%) compared to when they’re in the office.
As a result, flexibility has become a significant draw for professionals and a source of tension as major corporations enforce return-to-office mandates. To appeal to workers’ priorities, companies should remain open to offering hybrid or fully remote work options, specifically for compatible roles.
In our report, 54% of workers say a higher salary is essential when considering accepting or applying for a new role. For employees across multiple industries, compensation is king and remains a critical piece of improving your talent strategy in 2025. The first step? Salary benchmarking.
What is salary benchmarking? Learn more.
Explore Michael Page’s 2025 Salary Guides for the latest salary data for roles in your specific sector. Learn more about your market’s latest trends and craft competitive offers that help you secure the best talent.
Access Salary Guides
Once you’re equipped with accurate salary benchmarks, it’s time to leverage it to attract your ideal candidates. If you need hiring support, we can help. Get in touch to discuss how we can tailor our recruitment solutions to best meet your needs.
