Despite renewed economic and political uncertainty stemming from geo-political tensions and evolving trade agreements in early April, the European HR market has remained broadly resilient through Q2. However, this backdrop has brought with it a shift in tone, with companies becoming more cautious in their hiring strategies and organisational planning, particularly at the senior leadership level.
Unlike previous post-bonus cycles, this quarter did not bring the typical volume of HR Director-level movement. Many senior leaders appear ready for a new challenge, but opportunities have become more limited due to a slower than expected release of Director level roles. C-suite hiring has paused in several sectors, with organisations opting instead to internally promote or extend interim arrangements while macroeconomic uncertainty plays out.
In demand roles
Employee Relations The continued push for return-to-office (RTO) policies across the continent has driven a surge in ER cases. From increased grievances to resistance around hybrid policy enforcement, HR teams are being called on to manage sensitive workplace challenges. A renewed focus on workplace culture, especially how it is monitored, influenced, or even enforced, is emerging. Companies are balancing between perceived visibility and actual engagement, with the best HR teams able to mediate growing tensions between apathy and proactiveness.
Talent & Learning Development Leadership development has remained a critical area of investment, especially in organisations navigating structural change or integration. Programmes focused on adaptive leadership, influencing skills, and coaching for performance are in high demand, particularly across regulated sectors like financial services and life sciences. There’s a notable shift from one-off leadership training to integrated development journeys linked to talent pipelines and succession planning.
Mid–Senior HR Business Partners Businesses experiencing either transformation or growth continue to rely heavily on strategic HRBPs with strong organisational development capabilities. These HR professionals are being tasked with embedding behavioural and cultural shifts, supporting leaders through structural change and coaching. Demand is especially strong for those with experience in scale-ups, integration or restructures.
Employee Experience & Culture A growing number of companies, particularly within financial services, technology, and fast-growth scale-ups are building dedicated employee experience teams. These roles are tasked with delivering people-focused programmes, cultural interventions, and new ways of driving engagement beyond traditional HR practices. There is significant activity in creating cross-functional roles spanning HR, comms, DEI and ESG to ensure culture is embedded company-wide.
Compensation & Benefits (C&B) Reward remains steady. Organisations are rethinking their total compensation offering to align with employee expectations, regulatory changes, and cost constraints. Activity this quarter has included:
- Increased hiring of global reward specialists to benchmark and rationalise pay structures
- Introduction of benefits experts to revamp flexible and inclusive offerings
- Projects around pay transparency in preparation for the EU Directive
- Executive compensation remits are receiving additional governance focus
Market activity by sector and region
Financial Services Q2 saw continued HR hiring momentum across Asset management, Quantitative Trading houses and Insurance. Hiring demand was concentrated in Paris, Frankfurt, Amsterdam, and Zurich, with many firms investing in both local HR Business Partners and centralised Centres of Excellence (CoEs) to support European growth.
Professional Services & Consulting Some stabilisation occurred after a slower Q1, with more lateral moves at the manager and senior manager level. OD consultants and change partners with digital transformation experience have been in demand.
Technology & Scale-ups HR hiring across European tech has been selective, with most investment focused on key strategic roles: employee engagement, HR business partners and HR operations, with a focus on driving efficiencies and a more data-led approach.
What HR candidates are looking for in 2025
HR professionals are being more selective and purpose-driven in their next move. Common themes include:
- Impact Over Routine: They don’t want to just “turn the handle”; they want to add value, identify what’s working, and drive meaningful change.
- Strategic Alignment: Candidates seek roles where HR is aligned with the business strategy, and they can influence through strong stakeholder engagement.
- Curiosity & Innovation: There’s a growing appetite to embrace digital, data, and AI tools to modernise the employee experience and work more intelligently.
- Human-Centred Leadership: They’re drawn to cultures that value empathy, humility, and learning, not just performance.
- Commercial Credibility: Candidates want to sit at the table with the business, challenge constructively, and help shape what’s next.
Looking ahead for Q3, we anticipate:
- A slow but steady uptick in HRD and senior CoE movement post-summer
- Continued growth in people analytics and workforce planning as organisations seek to do more with tighter budgets
- Evolving DEI approaches — not necessarily growing teams but integrating DEI into core HRBP and talent strategies
- A spike in HR hiring within regulated environments as compliance pressures grow
If you are interested in finding out more about the UK/EMEA market, please reach out to Kirstin Hunt at kh@elliottscotthr.com
