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5 recruitment trends for small businesses
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5 recruitment trends for small businesses. What really matters this year?

Tags: EDI, Recruitment Process, Research and Data

“Not another recruitment trends for 2025 article”, you’re probably thinking. But you also know how valuable it can be:

  • To know where other recruiters are focussed
  • To know you’re not missing any big trends
  • To know, despite a small team (or no team), you’re not alone. 

We talk to hundreds of small business recruiters, so we know 2025’s talked-about recruitment trends. Here’s what we think the year ahead holds. 

1. AI adoption goes mainstream for SME recruiters

OK, OK. Let’s dive straight into a recruitment trend nobody could have predicted (*eye roll*, etc): AI. The past year saw AI adoption explode, as GenAI and conversational chat interfaces burst onto the scene. 

Many enterprises were quick to leap on the bandwagon and invest into dedicated AI solutions. But high costs and implementation uncertainties meant smaller businesses tended to tread more carefully. 

In late 2023, for example, only 22% of small businesses said they understood how to best deploy AI in their business. 

But 2025 will be the year AI turns everything we know about everything on its head. And SMEs can’t afford to watch and wait.

As tools become more refined, user-friendly, accessible, and lower cost, 2025 will see small business recruiters increasingly leverage AI to drive efficiency, improve recruitment outcomes, and boost the candidate experience. 

Be aware of the ethical implications of AI too though. Walk into the water, don’t jump in head-first.

Not sure where to start? We spoke to Recruiting Brainfood’s Hung Lee about 12 ways AI could change small business recruitment.

2. Proving your value matters more than ever

The UK hiring market is pretty bleak right now, reflecting the pretty-bleakness of the wider economy. 

Permanent vacancies just fell at the sharpest rate since 2020. The number of available candidates for roles continues to rise, as redundancies increase. Business confidence is low (although not rock-bottom).  

So what does that mean for small business recruiters?

More pressure, less resources. An equation you’re probably more than familiar with, unfortunately. And less job security too. When times are tough and organisations tighten their belt, talent acquisition is too often what’s sacrificed. 

Nearly two-thirds of UK workers are worried about burnout in 2025. Recruiters are at the pointy end. 

It becomes a spiral of death, with recruiters facing chronic underfunding that hamstrings your ability to add value, which then threatens the limited funding you do have.

But we spoke to Katrina Collier about exactly this recently, and one message is loud and clear. Do NOT accept this as the status quo. It’s a false economy. We hope one of the recruitment trends for 2025 is recruiters knowing your worth — and proving it.

Here are some pointers from our chat with Katrina:

3. Data security and compliance demands attention

There’ve historically been huge differences in how seriously enterprises and small businesses take data security and compliance. 

Where enterprises often have dedicated compliance budgets, teams, structures, and processes, smaller businesses often have… tumbleweed. Until something goes wrong, and everyone scrambles.

The 2024 UK Business Data Survey, published January 2025, shines a football-stadium-sized spotlight onto this situation. 

With it, we’d expect to see smaller businesses taking a more proactive approach to data management. (This comes hand-in-hand with the explosion of AI pushing data security questions to the centre of the table.)

Recruiters – who handle vast swathes of sensitive people data – are bound to face scrutiny. Excel sheets aren’t doing to cut it. Do you use compliant, secure recruitment software? Do you conduct compliance checks in a safe way?

We expect to see these questions becoming more central over 2025, especially as cyberthreats across the UK become increasingly aggressive and complex.

4. Skills-based hiring soars

Another consequence of skyrocketing AI adoption is the growing shift towards skills-based hiring. Last year saw what Tribepad partner Arctic Shores call the rise of the “AI-enabled candidate”, with AI proficiency soaring and 59% of candidates using GenAI to complete applications or assessments.

As recruiters are bombarded by 10x the volume of applications, traditional screening methods are falling short. With 54% of UK employers planning to shift to a skills-based hiring process, this will be a major recruitment trend for 2025. 

Recruiters must build confidence, capability and cost-effective tooling here. Or risk falling leagues behind talent competitors.

 5. An opportunity to plant your ED&I flag

Despite what’s happening over the pond and loud questions about how that’ll impact us, ED&I continues to be a major recruitment trend for 2025. (Or focus area is perhaps more appropriate language.)

We’d like to think businesses will continue to invest into building inclusive, diverse workforces, given the overwhelming business case for ED&I. But there’s evidence that many won’t – and we think that’s a mistake.

There’ll be clear winners and losers over the coming years, based on actions taken today.

ED&I was never a quick fix. It was always about long-term gains: about the compounding impact of having rich, inclusive workforces where everyone can thrive.

SME recruiters in 2025 have an opportunity to add enormous value by advocating for ED&I. And by ensuring you’ve got the processes and tools to deliver.

Let’s keep fighting the good fight. 

Recruitment faces change and challenges this year, as it’s done in all the years before. Our status quo isn’t smooth sailing — and we’ve become expert navigators. (Even if it doesn’t always feel like it. Or like business leaders believe it.)

So let’s keep fighting the good fight. Advocating for people; empowering people. And working towards recruitment that’s fairer, faster, and better for everyone.

Tribepad Gro is ready built, ready-to-go recruitment software for growing teams. Take your recruitment to the next level. 

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