HIRING NEWS AND TRENDS

From tech and finance to human resources (HR) and operations, here’s what you need to know

Technology and digital: predictions for the tech job market in 2025

The technology job market is poised for a rebound

After a tumultuous period marked by layoffs and strategic shifts due to artificial intelligence (AI) advancements, the tech job market is showing signs of recovery heading into 2025. But instead of returning to high-volume hiring like the post-pandemic surge that led to widespread layoffs, companies are taking a more strategic approach, prioritizing quality hires over quantity.

AI is a top priority

Demand for AI engineers has nearly doubled, with 60% of U.S. tech managers hiring for AI engineer roles. That’s up from 35% last year. Full-stack engineers are also in demand, with businesses looking for talent that will play a crucial role in building their AI systems. Beyond specialized AI roles, software engineers across the board are expected to have AI-related skills, from integrating AI into products to data science capabilities. Many tech companies are also prioritizing candidates who can leverage AI tools in code writing, output analysis, and prompt engineering.

Companies are turning to contractors and global talent

With tighter budgets and an increased focus on efficiency, 28% of U.S. tech leaders are prioritizing outsourcing via contractors. And that could lead to businesses prioritizing contractor hiring over full-time roles. At the same time, 81% of engineering leaders plan to hire abroad, increasing competition for jobs as companies seek cost-effective ways to maximize a global talent pool through nearshoring and offshoring.

Financial services companies are embracing tech hiring

Banks and fintech firms are aggressively recruiting tech talent to support AI-driven innovation and digital transformation. Case in point: The share of computer science graduates from Cornell University entering financial services jumped from 16% in 2022 to 22% in 2023. Now, banks and fintech companies are competing more aggressively for top tech talent, offering unique opportunities for professionals.

Andy Gonzalez

Managing Partner

“The hiring landscape continues to evolve, with a stronger shift toward direct hire and growing demand compared to last year—particularly in the tech sector. After a surge in 2024, nearshoring and offshoring have remained steady, keeping pace with last year’s levels.

Much of the direct hire demand is attributed to the prioritization of AI-driven projects. Over the past four months alone, we've seen a substantial increase in client engagements around AI—whether it's for structuring data, preparing for automation, or just general AI implementations. As organizations continue to refine their AI strategies, the demand for both advisory and direct expertise support will continue to grow to support these efforts.”

HIRING NEWS AND TRENDS

HR and operations: what hiring managers should know about the 2025 labor market

The job market is stabilizing, but hiring challenges remain

Job postings were down 10% year-over-year as of November 2024, but still above prepandemic levels, according to Indeed.com. The labor market cooling has made it less difficult for employers to find and retain talent compared to 2022. Yet hiring isn’t easing across all industries—most job growth in 2024 was concentrated in healthcare, government, and hospitality, and signs of a slowdown in these sectors could lead to new hiring hurdles. Employers also face a continued disconnect between job seekers who want remote work and companies that are scaling back those opportunities.

An aging workforce is reshaping hiring

The U.S. is entering “peak 65”—or the years when record numbers of American workers will reach retirement age. While some peak 65 workers are delaying their retirement due to inflation and higher interest rates, early retirements during the pandemic have already reshaped the workforce. To keep older workers engaged and leverage their experience to help the organization grow, hiring managers should consider what might make them want to stay, including remote work, part-time arrangements, or even offering grandparent leave.

Shifting immigration policies could impact the workforce

The Congressional Budget Office projects that net immigration in the U.S. will sharply decline, dropping from 3.3 million in 2024 to 1.1 million by 2027. Though some may think fewer immigrant workers could create more opportunities for U.S.-born workers, that’s not always the case. Reduced immigration can often lead to downticks in certain industries and job loss for all workers, not just immigrants. The tech sector could also see challenges if changes to H-1B visa policies push skilled foreign workers to seek opportunities in other countries.

Source: HR Dive

Clif Freeman

Managing Partner

“The 2025 labor market presents exciting opportunities for hiring managers. While competition for top talent stays fierce, employers that prioritize flexibility, strong leadership, and clear career pathing stand out. Thoughtfully curated benefits—including flexible time-off, family leave, pet friendly offices, and robust retirement savings options—have a significant impact in attracting and retaining high performers. As ‘peak 65’ professionals reshape the workforce, they are invaluable talent and consulting options. Companies that offer flexible work schedules, part-time roles, or consulting opportunities can gain a strategic advantage by retaining experienced employees, potentially at a lower cost than replacing them. Common practice often requires multiple hires, which can still fall short in matching their expertise and institutional knowledge.

Success in hiring comes down to planning and execution. A well-structured talent acquisition process combining urgency, effective communication, competitive compensation, and an immersive candidate experience will help companies secure top talent. Employers that refine those hiring strategies now will be best positioned for long-term success in an evolving job market.”

HIRING NEWS AND TRENDS

Accounting and finance: 5 trends that will redefine finance and accounting in 2025

1

Accounting and finance leaders must do more with less

With increased demand for client accounting services, chief financial officers (CFOs) are turning to AI-driven analytics and hyperautomation strategies. This helps streamline operations, improve cash flow, reduce costs, and improve risk management while providing better experiences for stakeholders.

2

Hybrid global business services models are key to staying agile

Standardization, automation, and centralization remain priorities, but hybrid global business services models—or the blending of company-owned facilities with outsourced providers—help CFOs access specialized talent, scalable tech solutions, and cost-saving innovations for better risk management and value creation opportunities.

3

Service provider distinctions are fading

As consulting firms expand into managed services, companies need to focus on their expertise that delivers real value. A process-first, tech-driven approach will also be crucial for successful transformations.

4

Complex decision-making tasks are next in line for automation

Though automation has traditionally focused on transactional tasks, companies are now investing in AI for planning, forecasting, and risk management—areas that drive strategic decision-making and shareholder value.

5

Generative AI is reshaping the CFO role

AI-powered financial planning, budgeting, and risk management are helping CFOs scale businesses, adapt to changing customer needs, and drive both immediate profitability and long-term growth in an unpredictable economic landscape.

Source: Accounting Today

Leslie Boudreaux

Managing Partner

“Workforce dynamics are shifting as companies rethink traditional location-based roles. Once CFOs realized their teams could perform effectively without being in the same office, it sparked a major shift in where talent can be based. Many roles that were once anchored in high-cost markets are now moving to lower-cost locations—both onshore and offshore—allowing companies to maintain quality while significantly reducing costs. Though companies still prefer having their strategic leaders closer to headquarters, the old rules about location no longer apply to many positions.

At the same time, AI adoption is creating both urgency and uncertainty. Boards are pushing for implementation, but finance leaders are still identifying the most impactful use cases beyond basic automation. Finance professionals need to be increasingly tech-savvy, and important questions loom around how to prepare the next generation of finance talent for roles that may look drastically different in the future.”

What the workforce is saying: workplace priorities

Besides compensation and benefits, what is most important to you for your next role?

Remote flexibility: 61%
Company culture: 19%
Career advancement: 18%
Other: 1%

Vaco LinkedIn Poll, January 2025: 3,697 respondents