HR Hub Poll Results: What’s Shaping Hiring and Workforce Trends in 2025?

Here’s what you told us:

Hiring Activity: Stability Over Expansion

• 48% of organisations expect hiring to remain the same in 2025
• 28% anticipate an increase
• 24% predict a decrease

While more than a quarter of respondents are planning to expand their workforce, nearly half expect no change - indicating a cautious but steady hiring landscape. The 24% expecting a reduction suggests that some businesses are taking a measured approach in response to external pressures, such as market volatility and cost increases.

What This Means for Employers:

• Hiring is still happening, but businesses are being more selective.
• Talent competition remains strong, meaning securing the best candidates still requires strategic recruitment.
• Retention and internal upskilling will be key priorities for businesses maintaining their current headcount.

Impact of National Insurance Contribution (NIC) Increase: Business as Usual?

• 55% of businesses say the NIC increase will have no impact on hiring
• 17% expect it to decrease hiring
• Only 1% plan to increase hiring in response
• 27% remain unsure of the impact

The recent rise in employer NICs from 13.8% to 15% was expected to put cost pressures on businesses. However, over half of our respondents don’t anticipate making any changes to hiring plans as a direct result.

With 27% unsure, this suggests many organisations are still assessing the financial impact of this policy and may adjust hiring strategies later in the year depending on further economic shifts.

What This Means for Employers:

• Higher payroll costs may impact salary budgets, leading to more focus on retention strategies.
• Flexibility in hiring models (e.g., temporary or contract staff) could become more attractive as businesses seek cost-effective solutions.
• HR teams should monitor recruitment budgets closely and factor in these changes when planning workforce expansion.

Salary Growth: Moderate Increases Expected

• 61% anticipate salary increases of 2.1%–4%
• 26% expect lower increases of 0%–2%
• 13% anticipate growth between 4.1%–6%
• No organisations expect increases above 6%

While wage growth remains strong, most businesses anticipate moderate increases - likely influenced by inflation pressures, rising operational costs, and cautious financial planning. With no respondents forecasting raises above 6%, employers seem to be maintaining controlled salary adjustments in response to economic uncertainty.

What This Means for Employers:

• Compensation strategies must remain competitive, especially in sectors where talent is scarce.
• Non-monetary benefits (such as flexible working, learning and development opportunities, and well-being support) will play a key role in employee retention.
• Sector-specific salary benchmarking will be crucial to ensure businesses remain attractive to top candidates.

Hybrid & Remote Working: A Stable Trend

• 87% expect no change to their current flexible working arrangements
• 4% predict an increase in remote or hybrid working
• 8% expect a decrease
• Only 2% plan to shift fully back to in-office work

The results show that flexible working is here to stay, with the vast majority of organisations planning no changes to their current arrangements. A small percentage expect either an increase or decrease, but there is very little appetite for a full return to office-based work.

What This Means for Employers:

• Businesses that offer flexibility have a competitive advantage in talent attraction and retention.
• Maintaining productivity and engagement in hybrid models will remain a key HR focus.
• Office space strategies should align with current workforce preferences to ensure cost efficiency and employee satisfaction.

Final Thoughts: 2025’s Workforce Trends at a Glance

• Hiring remains steady, with most businesses maintaining or cautiously expanding their teams.
• National Insurance increases are not drastically altering hiring plans, but some businesses remain uncertain.
• Salary increases will be moderate, with most firms planning between 2.1%–4%.
• Flexible working is stable, with minimal changes expected to hybrid and remote policies.

With economic pressures, workforce planning, and shifting employee expectations, 2025 will require a strategic, balanced approach to hiring, retention, and reward structures.

We’ll continue monitoring these trends, and we look forward to discussing them further in our next HR Hub on 27th February 2025, where Kate Benefer from RWK Goodman will discuss Hot Topics in Discrimination.

Stay Connected & Get Involved

Need support with hiring? Contact Eleanor Bromage or visit our Employers Page

Thank you to everyone who participated in our latest HR Hub. Your insights help shape the conversation and provide real-world data on how organisations are planning for the year ahead.

We look forward to seeing you at our next session!