2025 hiring trends: employers boost pay and focus on AI-driven retention

SOME of the world’s largest employers are planning to scale back hiring in 2025 as they focus on raising salaries and upskilling their existing workforce, according to a new report. 

The Hiring Trends Report 2025, from UK-founded global candidate screening platform Willo, surveyed more than 100 senior talent acquisition executives globally, including leaders from industries such as automotive, technology, and professional services. It revealed a significant shift in priorities around hiring this year – driven principally by shifting market conditions and the influence of technology, including AI. 

The findings show a 48% decline in companies planning substantial workforce growth compared to 2024. Meanwhile, there has been a 33% increase in employers intending to boost salaries and a striking 78% rise in those prioritising upskilling existing staff.

The results of the survey arrives as the UK Government announces a sweeping action plan to increase 20-fold the amount of AI computing power under public control by 2030 and deploy AI for everything from spotting potholes to freeing up teachers to teach.

The survey showed the role of artificial intelligence (AI) in recruitment remains a focal point, though not without controversy. More than half (53%) of organisations plan to change their AI capabilities in 2025, with 10% saying they will replace their recruitment AI tools completely. However, scepticism is growing. The number of leaders who believe AI should play no role in hiring more than doubled in 2024, reaching 9%.

Despite this, AI adoption continues to rise. Currently, 65% of organisations use AI in recruitment, although this falls short of the 80% predicted in last year’s survey.

One notable finding is that nearly a fifth (18%) of hiring managers are using AI to help make final hiring decisions, a practice that has drawn criticism.

Euan Cameron, Co-Founder and CEO of Willo, said: “While AI offers incredible efficiencies at scale, its use in making final hiring decisions is surprising and concerning. The final stage of the hiring process is where human judgement is most valuable. I would question the wisdom in placing such significant business decisions in the hands of an algorithm.”

AI is proving effective in other areas, such as assessing candidate abilities. Nearly 40% of firms use it to evaluate skills, helping recruiters conduct fairer and more consistent assessments. By automating repetitive tasks, such as resumé reviews, AI reduces bias and ensures each candidate receives a fair chance.

Additionally, 35% of respondents said they use AI to enhance internal efficiency, including tasks such as transcribing interviews and summarising key insights. These tools allow recruiters to dedicate more time to face-to-face interactions and gain a clearer picture of candidates.

The report also highlights a 59% rise in employers implementing flexibility programmes, reflecting the growing demand for hybrid working arrangements.

Cameron added: “The shift towards fewer hires, higher wages, and upskilling mirrors broader economic and technological trends. Employers who focus on retention through flexibility, diversity, and inclusion will not only strengthen their workforces but also enhance their appeal to new talent. The firms that take bold steps to attract and retain talent will be the ones to thrive in 2025.”

Founded by entrepreneurs Euan Cameron and Andrew Wood in 2018, Willo has grown to become one of the world’s leading candidate screening platforms, used by some of the world’s biggest employers including Toyota, the NHS, EasyJet, and Din Tai Fung.

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