Budget constraints will be the primary driver of change in workplaces this year, with 69% of professionals identifying company financials as the key factor influencing business decisions.
A survey conducted by global talent solutions firm Robert Walters found that wider economic conditions (12%), employee preferences (10%) and competition (8%) ranked lower as forces shaping workplace transformation.
Despite the increasing focus on talent acquisition and retention, only 10% of respondents believe their employer will prioritise employee needs when making decisions. Chris Eldridge, CEO of Robert Walters UK and Ireland, noted that businesses must adapt to remain competitive. He stated that leading organisations are focusing on digital transformation and a human-first approach to create an environment where top talent can thrive.
The findings are part of the company’s latest Talent Trends 2025 report, which highlights key shifts in hiring, leadership and workplace culture. The report suggests that AI integration, flexible work models and people-first leadership will play a significant role in shaping the workforce.
AI in Recruitment and the Rise of Human-Centric Leadership
The use of AI in hiring processes is increasing, with 30% of companies incorporating automation into recruitment. While AI can accelerate hiring, the report highlights that businesses must balance technology with human judgement to avoid depersonalising the process.
Candidate experience is also becoming a critical factor, as 83% of professionals say a poor interview experience can negatively affect their perception of a company.
Leadership styles are evolving, with organisations that adopt empathy, flexibility and purpose-driven leadership being 2.6 times more likely to achieve business success. Employers are placing greater emphasis on fostering inclusive and adaptable workplaces to improve engagement and productivity.
Flexible Work and Changing Career Paths
Hybrid work models continue to evolve, with businesses testing new approaches such as the four-day week and ‘window working’—a concept allowing employees to structure their work around peak productivity hours. Traditional career progression is also shifting, with employees favouring lateral moves, cross-functional roles and skills-based growth over rigid hierarchical advancement.
The workforce is becoming more diverse, with over 2.8 million retirees in the UK returning to work. This trend, known as the ‘un-retiring’ boom, is contributing to multi-generational teams and bringing valuable experience back into businesses.
Skills development remains a priority, with 39% of job market skills expected to change by 2030. Companies are focusing on upskilling employees in both technical and soft skills to stay competitive in an evolving job market.
