The changing landscape – challenges for recruitment

I was delighted to be invited recently to join a panel for The People, Culture & Law Conference 2025, hosted by Winckworth Sherwood LLP. The event brought together HR leaders, legal experts, and social impact advocates to explore the evolving recruitment landscape from both the commercial and non-profit sector.  The panel discussion chaired by Malini Skandachanmugarasan was titled 'The Changing Landscape – Challenges for Recruitment'.  I was joined by Elijah Amoako from 100 Club and Katy Fridman from Flexible Working People to share perspectives on the pressing issues shaping hiring today.

The shifting recruitment landscape

The conversation highlighted how market stagnation and rising redundancies are influencing candidate behaviour.  Employees are “job hugging” and prioritising job security over mobility and career progression, signaling a significant shift from previous trends. 

This could lead to employers having a false sense of security over their attrition rates and when the market stabilises, employees who have been holding back may make moves quickly, triggering an unexpected spike in resignations and pressure on internal talent teams and budgets.

Another major theme was the role of AI in recruitment. While AI offers efficiency in managing high application volumes, it also raises concerns around bias, fraud, and accessibility.  

Interestingly, a live poll revealed that 58% of attendees are not currently using AI tools in recruitment nor planning to in the next 12 months, despite the technology’s rapid advancement. This contrasts sharply with TPP’s recent survey showing 60% of applicants use AI in their job applications, highlighting a disconnect between employer adoption and candidate use.

What job seekers value most

The conference explored what employees and candidates seek in today’s market. The top three priorities identified were:

• Competitive salary (although we see this less of a priority in the non-profit sector)
• Work-life balance
• Flexible or hybrid working arrangements

The non-profit sector has long been seen as an employer of choice because it offers a strong balance between purposeful work and personal wellbeing. This makes the sector especially attractive to jobseekers who value this approach.

Recruitment vs. redundancies: A topsy-turvy market

Poll results revealed the current focus areas for HR teams:

• Recruitment of new talent – 37%
• Training & development – 25%
• Redundancies – 23%
• Retention of current employees – 15%

Organisations are not simply shrinking or growing, they’re reshaping. This creates a paradox: while hiring for future skills, they’re also letting go of roles that no longer align with strategic priorities. For HR leaders, this means balancing empathy during redundancies with a compelling narrative for new hires, ensuring both processes uphold organisational values.

The human element: Back to basics

Despite technological advances, the overarching message from the panel and delegates was clear: 'Focus on the human element.' Employers must prioritise equity, talent development, flexibility, inclusivity, and authenticity to attract and retain top talent. There is a danger of over automating, which whilst helpful when dealing with an overwhelming response to live roles leads to a sense of process over people which can be in stark contrast to your organisation’s values.

As the discussion made clear, recruitment is undergoing a complex transformation shaped by economic uncertainty, shifting candidate expectations, and rapid technological change. Yet amid these pressures, the organisations most likely to thrive are those that keep people at the heart of their strategy - balancing innovation with fairness, supporting internal capability while attracting new skills, and shaping working environments that genuinely reflect their values. By staying attentive to these dynamics, employers can navigate the challenges ahead with clarity and confidence, ensuring they remain resilient and competitive in an evolving landscape.

If you are interested in a further conversation on any of these topics or wish to discuss your plans for 2026, contact me on jcmorris@tpp.co.uk.