Quick-to-read HR news & insights
From recruiting and retention to company culture and the latest in HR tech, HR Brew delivers up-to-date industry news and tips to help HR pros stay nimble in today’s fast-changing business environment.
Apologies to anyone still betting on a Great Resignation 2.0: It seems the labor market cooldown may continue into next year, a recent HR Brew survey suggests.
Pumping the brakes. Most employers plan to hire fewer workers in early 2025 than they did in the same period this year, according to a survey of more than 220 HR professionals conducted between Nov. 12–14.
Some 45% of respondents plan to hire 1–10 employees in Q1 2025, up from 39% in Q1 2024, and 28% plan to hire 30 or more employees, down 33% YoY. Around 10% of respondents do not plan to hire at all during Q1, up from 6% in 2024.
Small businesses with fewer than 500 employees seem particularly likely to pause recruiting at the outset of the new year, with 17% not planning to hire, versus just 2% of large businesses.
Why so hesitant? Respondents said several factors were causing them to be bearish on recruiting in early 2025. Some cited external factors, like regulatory uncertainty with the incoming Trump administration and economic headwinds.
“Our business day-to-day is slow right now, which is not the usual time of year to be slow,” one respondent said.
Other respondents noted challenges with “finding quality, skills-based candidates with experience directly related to our industry,” and with “candidates wanting higher pay rates, fewer qualified candidate applications coming in, challenging positions to hire for, more competitive markets,” adding that “new hires seem to be less likely to have longevity in a position than they had in previous years.”
Some respondents said they plan to instead dedicate more time to upskilling and reskilling their current workforce.
“[We] will be focused more on internal development and career pathways to retain and upskill existing staff,” a respondent said.
In-demand roles. Among HR professionals planning to hire in early 2025, 34% said they’ll be looking to fill customer service and support roles. Other top roles include sales and business development (30%), operations and supply chain (26%), and engineering and development (22%).
Large companies primarily plan to recruit for engineering, facilities and administration, and HR and people operations roles.