Return-to-Office Pressure Drives Resentment

Candidate availability in the UK labour market has increased at the fastest rate since December 2020. Our 2025 people2people UK Market Report highlights the same trend that has been flagged, with the volume of candidates rising sharply due to redundancies and subdued hiring activity. Market Supply Meets Reduced Demand Liz Jones at people2people UK notes that the shift represents a clear imbalance. "Candidate supply is surging as job openings contract," she commented, in line with findings from our 2025 market report. "More people are actively looking but there are fewer roles available. This impacts how recruiters and HR managers plan talent attraction and engagement strategies." Salary Impact and Recruitment Strategy The increase in candidate availability has also influenced pay trends. Salary growth has remained modest due to reduced hiring budgets and greater competition for fewer active roles. "With more talent available and slower demand from employers, organisations are better positioned to be selective," Liz shared from our analysis. "This is a chance to focus on quality of hire rather than speed of hire." What This Means for Employers In a market with rising candidate supply and fewer opportunities, jobseekers become more discerning. They are assessing potential employers based on culture, flexibility, development opportunities, and brand values. Liz Jones advises that businesses should: Clearly articulate what makes them stand out to candidates Review their employer value proposition against market expectations Consider investing in candidate experience platforms and employer branding Maintain recruitment agility so they can swiftly fill roles when market conditions improve Preparing for Market Recovery Our 2025 report shows that while hiring activity remains subdued, there are early signs of resilience in sectors such as engineering, logistics and healthcare. "This market may feel cautious," Liz explains, "but there are pockets of opportunity. Organisations that maintain readiness will be first to tap into recovering sectors and talent pools."

Flexible working is no longer a perk. It is a priority. Our people2people 2025 Market Report confirms that a lack of flexibility is pushing a significant portion of the workforce to look elsewhere. Employers who fail to adapt are already seeing the consequences. According to our research, more than one million people in the UK left their jobs in the last 12 months due to rigid working conditions. That is nearly three percent of the workforce walking out of roles that did not meet their expectations for flexibility. This shift is not limited to remote working. It also includes flexible hours, part-time arrangements and compressed working weeks. Employees are looking for control over when and how they work. A Disconnect Between Policy and Preference While flexible work continues to rank high on the list of job seeker priorities, our data shows that more than half of employers have increased expectations for in office attendance in 2025. This rise is driven primarily by leadership mandates rather than operational need. "There is a growing disconnect between leadership expectations and employee preferences," I said while reviewing our report findings. "The result is avoidable turnover and a widening talent gap in key sectors." This trend is most visible in professional services, finance and tech roles where hybrid work is both possible and preferred. Employers insisting on a return to pre 2020 working patterns are facing greater difficulty attracting and retaining skilled candidates. Flexibility Strengthens Recruitment Outcomes The business case for flexibility is clear. Our report found that job adverts which include flexible options receive up to 40 percent more applications and fill faster. These roles also report lower early-stage attrition, suggesting a better match between employer and candidate expectations. "Flexibility improves both the volume and quality of applicants," Liz Jones noted. "It gives companies an edge in a market where top talent has choices." Candidates now assess flexibility before they consider salary, commute or even job title. Those who have experienced hybrid or remote work environments are unlikely to go back to rigid models without significant trade offs. What Employers Can Do Now The solution is not a one-size-fits-all model. Instead, companies should aim to provide structure around flexibility that meets both business and employee needs. Based on our research, I recommend: Making flexibility a default part of job design and recruitment messaging Offering a mix of remote, hybrid and flexible hour options depending on role Providing training for managers to lead distributed teams effectively Tracking turnover data linked to flexible work policies to spot early warning signs The expectations of the workforce have changed. Flexibility is now a deciding factor for candidates and a retention tool for current employees. Firms that ignore these expectations will continue to lose talent. Those that embrace structured flexibility will gain a clear advantage in attraction, engagement and long-term workforce planning.

What’s Holding HR Back from Formal AI Adoption? AI use in HR is increasing across the UK. In 2025, 66% of professionals said they have used tools like ChatGPT to write policies, generate job descriptions or support internal communications. Despite this, only 3.6% of HR departments have formally integrated AI into their systems and processes. This informal use may seem practical, but it highlights a growing divide between experimentation and long-term strategy. Without formal adoption, organisations risk falling behind in areas like recruitment efficiency, data governance and candidate experience. A Lack of Time and Resources The most common reason HR professionals give for delaying AI adoption is a lack of time. Many teams are already stretched with administrative responsibilities and see AI integration as a project that requires more capacity than they currently have. Liz Jones, Recruitment Director at people2people UK, says the concern is valid but short-sighted. “We see time cited as the biggest barrier,” says Jones. “But formalising AI use actually saves time long-term. The our people2people 2025 UK Employment Trends Report shows that teams using integrated AI tools reduce administrative workload by up to 23 percent. That’s a significant gain for any HR function.” Skills and Confidence Gaps A second challenge is the skills gap. Many HR teams are unsure how to assess AI tools or ensure they are being used fairly and effectively. Without training, professionals are left guessing whether the tools they are using are making sound decisions. “Confidence is a real issue,” Jones adds. “According to our report, fewer than one in three HR professionals feel confident evaluating AI outputs. That means the majority are using tools without fully understanding how they work, or how to manage bias and risk.” This gap can create inconsistency across hiring, performance reviews and internal policies. It also limits HR’s ability to lead digital transformation initiatives. The Policy Disconnect Only a third of UK organisations have formal policies in place to manage AI use in HR. This lack of structure exposes companies to legal and ethical risk. As AI becomes more embedded in decision-making processes, clear policies will be essential. “Our report found that organisations with AI policies in place saw higher levels of trust from both employees and candidates,” says Jones. “Without those guardrails, even well-meaning use can go wrong. Formal guidance protects both the business and its people.” Recruitment Implications AI is already transforming recruitment, from automating CV screening to helping personalise outreach. But without structure and oversight, these tools can reinforce bias and exclude strong candidates. This is especially important as the UK faces a downturn in graduate hiring. According to People Management, graduate openings have dropped to their lowest level in seven years, with AI partially to blame. “Hiring fewer entry-level roles does not mean less work,” says Jones. “It means that teams need to be smarter with how they assess and engage candidates. Formal AI adoption helps ensure that recruitment remains inclusive, consistent and aligned with business goals.” Moving Forward Formal adoption of AI does not need to be complex. The key is to start with simple, structured steps such as: Using HR platforms that include integrated AI tools Creating internal guidelines to support ethical and consistent use Providing training in AI literacy and bias awareness Reviewing AI-supported decisions with human oversight  The tools are already being used. The question is whether HR teams will take the lead in making their use strategic, secure and fair. Those that do will be better placed to support their people, meet compliance expectations and stay competitive in a changing labour market.

Why AI Won’t Steal Your Accounting Job, But It Will Change It AI is making waves across finance and accounting, with over 75% of Australian financial firms already using or integrating automation into operations. As adoption grows, so does the speculation, will AI replace human workers? The answer is more nuanced. While automation is speeding up processes and enhancing accuracy, it isn’t wiping out roles. Rather, it’s transforming them. Automation: Evolution, Not Extinction AI has reached the point where it can generate financial reports, flag anomalies, and even draft basic client communications. But, as history shows, the introduction of new technology often expands job scopes rather than eliminating them. This echoes recent findings from the UK, where graduate job openings have dropped to their lowest level in seven years. According to our people2people Market Report 2025, AI is a key contributor, but not for the reasons you might think. It's less about eliminating jobs, and more about reshaping entry-level expectations. What Recruiters Are Seeing on the Ground “Entry-level hiring is absolutely shifting,” says Liz Jones, a recruiter specialising in UK finance roles. “Firms want new grads who can do more than process data. They want relationship builders, critical thinkers and candidates with the emotional intelligence AI lacks.” This aligns with UK trends from the latest people2people market data: hiring remains steady for strategic and advisory roles, while junior roles are becoming more project-based or part-time. Personalisation at Scale Another area where AI shines is communication. Instead of sending the same generic tax update to hundreds of clients, firms can now generate personalised messages based on client behaviour and context. “Hyper-personalisation is a game-changer,” Liz adds. “It means client managers can spend more time advising and less time drafting emails. It’s a win-win—and it’s here now.” The Cloud Divide The biggest barrier to AI adoption in accounting isn’t fear, it’s outdated systems. Cloud-based platforms are the backbone of AI integration, and firms that haven’t modernised their tech stacks are falling behind. “Based on our UK research, firms still relying on on-premise systems are 2x more likely to delay hiring for AI-enhanced roles,” Liz notes. “It’s not about willingness, it’s about readiness.” Looking Ahead Rather than eliminating roles, AI is carving out new opportunities. Accountants are moving from number-crunchers to consultants, focusing more on strategic guidance, risk analysis, and business growth. And for recruiters like Liz, this shift brings clarity: “Firms aren’t hiring fewer people, they’re hiring differently. If you’re adaptable, tech-savvy, and can build strong client relationships, your value in this market is only increasing.”