As businesses prepare for the future of work in 2025, Matt Monette, Country Lead UK&I at Deel, shares his perspectives on key workplace trends set to shape the UK job market in the coming year.
AI-powered recruitment: a game changer for hiring
The use of AI in recruitment is set to revolutionise the hiring process in 2025. According to Monette, the UK job market has already begun integrating AI to enhance efficiency, with 67% of HR professionals recognising its positive impact. By automating routine tasks such as writing job descriptions, AI is enabling HR teams to focus on the human aspects of hiring. This technology promises to reduce human bias, assess candidates more effectively, and improve the overall candidate experience. As the adoption of AI accelerates, businesses will move towards more data-driven and objective hiring processes, improving outcomes for both employers and job seekers.
“AI in recruitment has only just started. The widespread adoption we’ll see in 2025 will allow businesses to assess candidates more effectively, reduce human bias, and improve the candidate experience.”
Evolving sick days: from illness to wellbeing leave
In the coming years, the concept of ‘sick days’ will evolve to accommodate broader definitions of wellbeing. Gone are the days when employees were expected to power through illness. Monette highlights a growing shift towards a more holistic approach to employee wellbeing, with mental health leave becoming a standard offering in many workplaces. This evolving view reflects the demands of younger workers, who increasingly seek better work-life balance. In 2025, ‘sick days’ will become more inclusive, offering employees the chance to take time off for mental health, personal emergencies, or burnout recovery, ensuring that wellbeing and happiness are given equal priority to physical health.
“Sick days will soon begin to shift towards resembling ‘wellbeing leave’ to meet younger workers’ demands for greater work-life balance, covering mental health, personal emergencies, and burnout recovery.”
Employers encouraging ‘digital detoxes’: a break from constant connectivity
With the rise of remote work and always-on communication tools like email, Slack, and Teams, employees are experiencing increasing pressure to remain constantly connected. To counter this, Monette predicts that many businesses will encourage employees to engage in ‘digital detoxes’ in 2025. While the anticipated ‘right to disconnect’ in the UK Labour Employment Rights Bill may not materialise, companies are taking proactive steps to reduce burnout and stress by promoting work-life balance. By encouraging their teams to switch off and disconnect from digital platforms, employers will foster healthier work environments and move away from the culture of ‘presenteeism’ that dominated previous generations.
“While a ‘right to disconnect’ didn’t make it into the Bill, we will see more workplaces encourage teams to switch off, a welcome change from the ‘presenteeism’ culture of past generations.”
Clearer pay transparency: a shift towards equity
Monette notes a significant shift in how companies approach pay transparency. Traditionally a taboo subject in the UK, discussions around salary are becoming more open and regulated. In 2025, the push for greater pay transparency will continue to gain momentum, particularly in the wake of new directives across Europe. As companies disclose pay scales, the gender and racial pay gaps are expected to narrow, fostering a culture of greater fairness and equity. This shift is being driven by the values of Gen Z, who prioritise transparency, fairness, and work-life balance in their professional lives.
“The landscape is changing. With increasing pay transparency directives across Europe, companies are being required to disclose pay scales, which will narrow gender and racial pay gaps.”
Crossing the pond: the rise of international talent migration
The growing demand for skilled workers and the rise of a technology-enabled workforce capable of working from anywhere will fuel the upward trajectory of international talent migration in 2025. Monette foresees an increase in UK workers, particularly in technical fields like software development, seeking opportunities across Europe, with countries such as Spain, Germany, and the Netherlands emerging as key destinations. Additionally, UK companies will continue to tap into diverse talent pools worldwide, beyond just Europe, to fill critical skill gaps and expand their workforce.
“The combination of a growing demand for skilled workers and a technology-enabled workforce will drive international talent migration to new heights in 2025.”
As we move into 2025, these trends highlight the increasing focus on wellbeing, fairness, and flexibility in the workplace. By embracing AI-powered recruitment, prioritising mental health, encouraging digital detoxes, championing pay transparency, and tapping into global talent pools, businesses will adapt to the evolving needs of the workforce and position themselves for success in the future of work.
