It has been a much more optimistic start to 2025 with hiring momentum across all disciplines of HR. The market is more active and candidate-driven, with a particular emphasis on data-led, strategic HR roles and process transformation. Across both Financial Services and Commerce & Industry, businesses are continuing to invest in efficiency improvements, responding to evolving regulatory landscapes and growth ambitions.
Financial Services
Talent acquisition
Q1 has seen a resurgence in talent acquisition mandates, reflecting renewed business growth and the evolution of TA functions. Senior TA Leads and Managers are in demand, driven by either new headcount growth or replacement hires focused on upskilling the offering for the business. Organisations are seeking data-driven, consultative TA professionals who can work proactively with senior leadership, moving beyond transactional recruiting towards strategic talent planning.
HR business partners
There has been sustained demand for HRBPs across investment banking, insurance, asset management, and hedge funds. This is largely due to replacement hiring but also a recognition of the need for upskilling and providing stronger, more strategic business support. Candidates with a strong grasp of both technical HR delivery and commercial acumen are most sought after.
Employee relations
A marked increase in complex ER issues has led to hiring at both Manager and Director levels, particularly in firms scaling their teams or responding to heightened regulatory scrutiny. There is increased focus on risk mitigation, complex investigations, and employee wellbeing frameworks.
Leadership, learning & talent development
Investment in leadership training and talent development continues, with a focus on upskilling managers and more rigour on performance management.
DEI
The focus has moved from traditional DEI roles to broader Culture & Inclusion mandates, embedded within advisory or business partnering functions—supporting leaders to actively shape team culture and inclusion from within.
HR operations & efficiency
HR Ops is evolving, with emphasis on process streamlining, tech integration, and data-led service delivery. There’s a growing appetite for professionals who can innovate and improve operational efficiency, with many firms viewing this as a strategic function and the Head of HR Operations role is evolving into a more strategic change agent, driving HRIS enhancement, service model transformation, and automation initiatives.
Reward & benefits
Reward roles have been in demand in Q1, particularly around job architecture projects and the creation of defined salary bands, largely driven by the upcoming EU Pay Transparency Directive (deadline: June 2026). There is significant activity at junior and mid-levels (Analyst/Manager), as well as increased focus on Benefits—organisations are reviewing and re-designing benefits packages to remain competitive and retain top talent.
Director level hires
While movement at the director level is increasing, many HRDs remain cautious about transitioning until market conditions stabilise. Those who are making a move are prioritising organisations where they have a strategic voice at the executive table and where HR is recognised as a genuine business partner. We have seen the most movement across Private Equity and Asset Management due to either global movement, restructures, replacement or upskilling. HR leaders are transitioning from reactive change management to proactively driving organisational progression. With a focus on workforce restructuring, AI integration, and leadership development, they need to shape agile, future-ready businesses to remain competitive.
Commerce & Industry
Hiring trends
There has been a shift from permanent roles to fixed-term contracts in Retail and Hospitality, reflecting market uncertainty and the need for workforce agility. Many businesses are taking advantage of the availability of high-quality candidates at short notice, aligning talent acquisition strategies with short-term business priorities.
HR operations & shared services:
In Technology, FMCG, and Regulated sectors, there’s a strong focus on HR Operational excellence. Clients are seeking efficiency gains through continuous improvement initiatives, including HRIS upgrades, workflow automation, and enhancing core HR service delivery. The aim is to free up business partnering teams from transactional tasks, allowing them to focus on strategic business impact.
Talent acquisition:
With hiring volumes rising, TA teams in Commerce sectors are scaling proactively, moving away from reactive hiring and branded job postings. There’s a pivot towards direct sourcing and building internal capability through experienced hires, ensuring the TA function is aligned with broader workforce planning objectives.
EMEA
We continue to support our clients across Europe with hires in Paris, Germany, Spain and the Netherlands. Dubai has also seen more HR hiring across Banking, Insurance and Technology for Senior HR Business Partners and HR Generalists, with relocations from London as well as the need for business partners who have the local regulatory knowledge.
Outlook
As we move through 2025, organisations are balancing growth and transformation. There is an ongoing shift towards strategic HR capabilities, where technology, data, and culture are at the forefront. Demand for commercially minded, agile HR professionals remains strong, especially those who can drive change, deliver efficiency, and enhance employee experience in increasingly complex and regulated environments. Clients need to be cognisant to a shift in the market with more opportunities now available for candidates and we are experiencing multiple offers. Candidates are aligning with those firms who have run an efficient and transparent recruitment process providing clear feedback and ultimately competitive in their financial offer. Employers with a flexible benefits package also highlights the firm’s support to work life balance and wellbeing and appealing to the multi-generational workforce.
If you have any further questions or would like to carry on the conversation around the HR market in the UK & EMEA you can contact Kirstin Hunt via kh@elliottscotthr.com