As we come to the end of Q1 2025, here’s a look at the key HR job market trends:
Strategic Workforce Planning Takes Center Stage
Although our overall success this quarter has been positive, it’s worth noting that job flow and the volume of new roles remain stable (no sharp increase in new roles). Rather than focusing on large-scale hiring, companies are taking a strategic workforce planning approach, prioritizing internal mobility, skill-based hiring, and targeted capability-building.
What’s particularly interesting is that close to 50% of our work is coming through passively—meaning many roles are not formally advertised, but HR Leaders and hiring managers remain receptive to meeting great talent, even without immediate openings. This signals a continued shift toward proactive talent pipelining, where companies want to engage with top HR professionals ahead of future hiring needs rather than reactively filling roles.
With longer decision-making cycles, hiring is highly selective, and organizations are being more intentional about the talent they bring in, ensuring a strong alignment with business strategy and future workforce needs.
HR Jobs: A Highly Selective but Competitive Market
While hiring remains measured and selective, competition for high-impact HR roles is strong, particularly in Total Rewards (Compensation & Benefits), HR Operations, and People Analytics. Companies are increasingly looking for HR professionals who are equipped to adapt to changes brought on by AI and technological advancements, particularly in areas like workforce planning and HR tech integration. Candidates who can demonstrate their ability to leverage technology, drive efficiency, and support strategic workforce initiatives are standing out.
At the same time, the role of the HR Business Partner (HRBP) continues to evolve, requiring stronger business and financial acumen to align HR strategy with commercial priorities. The “Head of HRBPs” model is becoming more common, ensuring consistency in business partnership execution while allowing for regional customization.
One of the commonly perceived ways to demonstrate business acumen is through industry experience, as companies often seek HR professionals with direct exposure to their sector, believing it equips them with a deeper understanding of business challenges, talent trends, and workforce dynamics. However, this approach may also create a gap in diversity of thought, potentially limiting fresh perspectives and innovative problem-solving in HR leadership.
For HR professionals looking to stand out in this competitive market, it’s critical to be strategic in how they present their expertise—both in their pitch, LinkedIn presence, and CV. Clearly articulating business impact, HR strategy execution, and measurable outcomes is key. Hiring managers are looking for HR leaders who don’t just support the business but actively contribute to its commercial success through talent strategy.
Talent Acquisition: Signs of Rebuilding
Over the past 12 months, Talent Acquisition (TA) roles have been at historic lows, but we are finally starting to see an uptick in individual contributor (IC) TA roles. This could indicate that companies have done the hard work and are now looking to re-build their TA functions. However, the expectations for TA professionals have evolved—they must now be seen as specialists with deep relationships in specific talent pools rather than generalist recruiters.
AI & HR Tech: A Game Changer
AI is by far the hottest topic in HR today. Companies are doubling down on operational excellence through AI, leveraging automation in every aspect of HR—from recruiting and onboarding to performance management, DEI analytics, and predictive workforce planning.
AI-driven talent intelligence tools are helping companies make more data-backed hiring decisions, reduce bias, and enhance internal mobility strategies. HR tech platforms are evolving rapidly, requiring leaders to not only implement AI but also master it as a core competency. The next wave of AI in HR will focus on hyper-personalization, creating tailored employee experiences, learning journeys, and career development paths based on real-time data. HR leaders who fail to upskill in AI risk being left behind, as proficiency in AI-driven analytics, automation, and workforce forecasting is now a must-have skill at the senior level.
Low Attrition, High Retention Focus
The low voluntary attrition trend continues, making passive candidate engagement tougher. Organizations are doubling down on retention strategies, offering enhanced total rewards, leadership development, and career progression pathways to keep top HR talent engaged.
Performance Management: The Next Iteration of Talent Strategy
Last year, the Talent function gained greater prominence, and we’re now seeing the next phase—a complete revamp of performance management processes.
Measures of success that were relevant in previous years may not hold in 2025. The approach varies depending on an organization’s philosophy and maturity—some are focusing on ROI-driven metrics to optimize headcount costs, while others are prioritizing internal capability-building and leadership development.
The role of HR in defining performance success has never been more critical, with an increasing push toward more dynamic, business-integrated performance metrics.
Flexibility vs. Return to Office – The Ongoing Debate
Hybrid work remains the standard, but return-to-office mandates are tightening in certain sectors. For the record, most of our clients are requiring 3 to 5 days in the office. However, as firms push for more in-person collaboration, we’re seeing a shift in accountability—many companies are putting the onus on their People Leaders to provide flexibility on an individual level. Flexibility remains a major driver of job moves, particularly at the senior level, and organizations that take a case-by-case approach may find it easier to retain top talent.
HR Transformation and the ‘Build vs. Buy’ Dilemma
As HR leaders focus on HR transformation and upskilling their teams, many companies face a “build vs. buy” decision—investing in L&D for existing employees or making targeted external hires. This trend is becoming increasingly common across various HR functions.
The phrase “up-leveling our talent” has been common among HR leaders, but those in the midst of major HR transformations are increasingly realizing that their current teams may not have the necessary skills to succeed in their future state.
As a result, some firms are still undergoing reductions in force (RIFs) and then repurposing headcount to bring in external talent with stronger capabilities.
This restructuring trend is particularly evident in organizations that are embedding AI, automation, and advanced workforce planning into their HR strategies, as new skill sets are required to drive these initiatives forward.
2025 Outlook: Navigating Uncertainty with Agility
Despite some economic uncertainty, HR leaders are prioritizing agility, resilience, and skills-based strategies to future-proof their organizations. The demand for strategic, commercially minded HR leaders is stronger than ever.
Key takeaway: Companies want impact-driven HR talent but are highly selective. HR professionals who can blend business acumen, HR tech expertise, and strategic workforce planning will be in the highest demand.
If you would like to continue the conversation around the US HR recruitment market or have any questions regarding this, please reach out to Rosh Jayawardena at rj@elliottscotthr.com