As 2025 kicks off, hiring managers and job seekers alike are entering a dynamic employment landscape shaped by macroeconomic trends, evolving workplace norms, and rapid advancements in technology. The market is experiencing shifts that will influence recruitment strategies and career paths throughout the year.
Here are three key trends shaping hiring for 2025:
1. Return to Office Gains Momentum
The pendulum is swinging back towards in-office work environments, particularly in functions like accounting and finance, where collaboration, mentorship, and hands-on problem-solving are critical. In 2024, a significant number of firms including big names such as Amazon and Zoom (the irony?) began re-evaluating the balance between remote and on-site work. This trend is expected to accelerate in 2025, as companies prioritize:
- Collaboration and Innovation: Organizations are finding that physical proximity fosters stronger teamwork and innovation, especially when dealing with complex financial analyses or strategic decisions.
- Workplace Culture: Many employers are focusing on rebuilding corporate culture that suffered during prolonged remote work periods. In-person interactions are seen as essential to reinforcing company values and fostering engagement.
- Talent Development: Junior team members, especially in the accounting and finance fields, benefit greatly from in-person mentorship and real-time feedback—aspects that are difficult to replicate in remote settings.
For candidates, this shift means being prepared to navigate discussions about flexibility while demonstrating a willingness to embrace the benefits of in-office collaboration.
2. Increased Hiring in Lower Middle Market Private Equity Portfolio Companies
A promising economic indicator is driving demand for finance professionals in lower middle market private equity (PE) portfolio companies. On November 25, 2024, the Russell 2000 Index—the bellwether for U.S. small-cap companies—reached a record high for the first time in three years. This milestone reflects growing confidence in small and mid-sized businesses, many of which are owned by private equity firms.
Key drivers behind this trend include:
- Economic Resilience: As these companies thrive in a strengthening economy, they’re scaling their operations, leading to increased demand for finance and accounting talent to support growth initiatives.
- Operational Improvements: PE firms are focusing on operational efficiencies and strategic acquisitions, creating a need for skilled professionals in FP&A, acquisition accounting, and financial reporting roles.
- Value Creation: With a spotlight on maximizing returns, there is heightened demand for individuals who can deliver value creation strategies, improve financial controls, and drive profitability.
For accounting and finance professionals, this trend represents exciting opportunities to work in dynamic environments where they can directly contribute to business transformation and growth.
3. Continued Incorporation of AI in the Hiring Process
Artificial intelligence continues to revolutionize recruitment, making it faster, more efficient, and increasingly data-driven. In 2025, companies are leveraging AI tools to enhance every stage of the hiring process, including:
- Candidate Sourcing: AI-powered platforms can scan vast networks to identify candidates whose skills and experience align with specific job requirements.
- Screening and Assessment: AI tools streamline initial screening by analyzing resumes, matching keywords, and even conducting preliminary video interviews using natural language processing.
- Decision-Making Support: Advanced analytics provide hiring managers with insights into candidate compatibility, cultural fit, and potential performance, reducing bias and improving decision quality.
- Onboarding Optimization: AI-driven onboarding platforms are automating repetitive tasks, such as document collection and compliance checks, while personalizing the onboarding experience. For example, AI tools can create customized training programs and provide real-time feedback to help new hires acclimate more quickly and effectively.
However, the adoption of AI also brings challenges. Candidates should be aware of how to optimize their resumes for AI systems and prepare for tech-enhanced assessments. Employers, on the other hand, must strike a balance between AI efficiency and maintaining the human touch in building relationships with top talent.
Preparing for 2025
The hiring landscape in 2025 will demand adaptability from both employers and candidates. Companies will need to:
- Align hiring strategies with economic trends, such as growth in small-cap businesses.
- Embrace technological advancements to enhance the recruitment experience while ensuring inclusivity and fairness.
- Build compelling workplace cultures that attract top talent amidst a return to the office.
For job seekers, understanding these trends can provide a competitive edge in navigating the job market. Whether you’re aiming to join a PE portfolio company, advance within a corporate finance team, or find your next great role, staying informed and adaptable will be key to success in 2025.
At Ascension Search Partners, we’re here to guide you through these evolving dynamics. Whether you’re hiring or seeking your next opportunity, we’re committed to connecting exceptional talent with outstanding organizations. Here’s to a prosperous 2025!
About Ascension Search Partners
Boasting more than 50 years of combined recruitment experience, we know what it takes to deliver the right talent. Ascension Search Partners was founded on the belief that talent acquisition is a true business partnership, and we believe search partners should offer extensive market and functional knowledge, with an in-depth, consultative approach.
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As 2025 kicks off, hiring managers and job seekers alike are entering a dynamic employment landscape shaped by macroeconomic trends, evolving workplace norms, and rapid advancements in technology. The market is experiencing shifts that will influence recruitment strategies and career paths throughout the year.
Here are three key trends shaping hiring for 2025:
1. Return to Office Gains Momentum
The pendulum is swinging back towards in-office work environments, particularly in functions like accounting and finance, where collaboration, mentorship, and hands-on problem-solving are critical. In 2024, a significant number of firms including big names such as Amazon and Zoom (the irony?) began re-evaluating the balance between remote and on-site work. This trend is expected to accelerate in 2025, as companies prioritize:
- Collaboration and Innovation: Organizations are finding that physical proximity fosters stronger teamwork and innovation, especially when dealing with complex financial analyses or strategic decisions.
- Workplace Culture: Many employers are focusing on rebuilding corporate culture that suffered during prolonged remote work periods. In-person interactions are seen as essential to reinforcing company values and fostering engagement.
- Talent Development: Junior team members, especially in the accounting and finance fields, benefit greatly from in-person mentorship and real-time feedback—aspects that are difficult to replicate in remote settings.
For candidates, this shift means being prepared to navigate discussions about flexibility while demonstrating a willingness to embrace the benefits of in-office collaboration.
2. Increased Hiring in Lower Middle Market Private Equity Portfolio Companies
A promising economic indicator is driving demand for finance professionals in lower middle market private equity (PE) portfolio companies. On November 25, 2024, the Russell 2000 Index—the bellwether for U.S. small-cap companies—reached a record high for the first time in three years. This milestone reflects growing confidence in small and mid-sized businesses, many of which are owned by private equity firms.
Key drivers behind this trend include:
- Economic Resilience: As these companies thrive in a strengthening economy, they’re scaling their operations, leading to increased demand for finance and accounting talent to support growth initiatives.
- Operational Improvements: PE firms are focusing on operational efficiencies and strategic acquisitions, creating a need for skilled professionals in FP&A, acquisition accounting, and financial reporting roles.
- Value Creation: With a spotlight on maximizing returns, there is heightened demand for individuals who can deliver value creation strategies, improve financial controls, and drive profitability.
For accounting and finance professionals, this trend represents exciting opportunities to work in dynamic environments where they can directly contribute to business transformation and growth.
3. Continued Incorporation of AI in the Hiring Process
Artificial intelligence continues to revolutionize recruitment, making it faster, more efficient, and increasingly data-driven. In 2025, companies are leveraging AI tools to enhance every stage of the hiring process, including:
- Candidate Sourcing: AI-powered platforms can scan vast networks to identify candidates whose skills and experience align with specific job requirements.
- Screening and Assessment: AI tools streamline initial screening by analyzing resumes, matching keywords, and even conducting preliminary video interviews using natural language processing.
- Decision-Making Support: Advanced analytics provide hiring managers with insights into candidate compatibility, cultural fit, and potential performance, reducing bias and improving decision quality.
- Onboarding Optimization: AI-driven onboarding platforms are automating repetitive tasks, such as document collection and compliance checks, while personalizing the onboarding experience. For example, AI tools can create customized training programs and provide real-time feedback to help new hires acclimate more quickly and effectively.
However, the adoption of AI also brings challenges. Candidates should be aware of how to optimize their resumes for AI systems and prepare for tech-enhanced assessments. Employers, on the other hand, must strike a balance between AI efficiency and maintaining the human touch in building relationships with top talent.
Preparing for 2025
The hiring landscape in 2025 will demand adaptability from both employers and candidates. Companies will need to:
- Align hiring strategies with economic trends, such as growth in small-cap businesses.
- Embrace technological advancements to enhance the recruitment experience while ensuring inclusivity and fairness.
- Build compelling workplace cultures that attract top talent amidst a return to the office.
For job seekers, understanding these trends can provide a competitive edge in navigating the job market. Whether you’re aiming to join a PE portfolio company, advance within a corporate finance team, or find your next great role, staying informed and adaptable will be key to success in 2025.
At Ascension Search Partners, we’re here to guide you through these evolving dynamics. Whether you’re hiring or seeking your next opportunity, we’re committed to connecting exceptional talent with outstanding organizations. Here’s to a prosperous 2025!