London Market
Tech Hiring Trends Report: Q1 2025
The recruitment landscape for tech roles in the UK has been anything but predictable, with 2025 ushering in a wave of change.
As businesses adjust to fluctuating market conditions and evolving workplace policies, tech hiring trends are shifting in response. From the rise in short-term contracts driven by market uncertainty, to the growing demand for highly specialised talent in sectors like cybersecurity and cloud infrastructure, the first quarter of 2025 offers both challenges and opportunities for businesses and candidates alike.
In this report, we explore the key hiring trends shaping the tech sector, with insights on how businesses can navigate the complexities of recruitment and what candidates can expect in the coming months.
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Executive Hiring Trends Report: Q1
Shift in Workplace Policies
The pendulum has swung, and the narrative pushed by news and media throughout 2024 has led to a significant shift in workplace policies. The era of working from home with occasional office visits is officially over, with a minimum standard of three days in the office now common
What impact will this have?
Employee resistance is being closely monitored through access card reporting, and the pressure of bonuses, combined with underlying economic concerns, is driving compliance. More companies are enforcing stricter in-office attendance policies, with some even moving towards full five-day weeks.
Q2 outlook: Expect ongoing pressure on employees to comply with in-office policies as businesses balance productivity and engagement during the shift back to traditional work structures.
Hesitancy Hangover
The London Market saw a significant amount of C-suite change in 2024. Geopolitical, economic, and catastrophe factors led to a hesitancy to pull the trigger on initiatives, which typically wrap up in a sprint at the end of the year.
What impact will this have?
As we move into 2025, the delay in decision-making is now starting to lift. Talent needs are increasing significantly as businesses ramp up initiatives that were paused or slowed in 2024.
Q2 outlook: Expect a surge in demand for talent as businesses accelerate projects and fill leadership gaps in response to the delayed momentum from the previous year.
As the London Market rebounds from a period of executive turnover and delayed decision-making, we’re seeing renewed momentum at the top. Companies are pressing ahead with strategic initiatives and reinforcing leadership teams to meet evolving challenges-while also navigating a decisive return to in-office culture.
If you're hiring at the executive level or exploring new leadership opportunities, connect with Pioneer Search’s Executive team for insight, support, and access to top-tier talent.
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Contract Hiring Trends Report: Q1
Short-Term Contracts
Amid market uncertainty, businesses are cautious about long-term commitments, but demand for tech transformation still relies on project-based work. Short-term contracts help manage costs while providing access to specialised talent.
What impact will this have?
Long-term contracts are still available, and contract recruitment is rising, with a 25% increase in vacancies in 2025. The market is active but fluctuating, with short-term engagements and immediate resource needs. Contractors must stay flexible to make the most of the market, as short-term roles often lead to longer-term opportunities.
Q2 outlook: Short-term contracts are here to stay, and the rise in contract vacancies will continue, especially with the increase in National Insurance contributions in April.
Strong Demand for Top Talent
The UK tech job market is seeing high demand for talent, especially in cybersecurity, cloud infrastructure, and automation, driven by digital transformation.
What impact will this have?
The permanent hiring landscape is challenging due to high costs and a limited talent pool. Companies are increasingly turning to day-rate contractors for flexibility and immediate expertise to fill skills gaps.
Q2 outlook: The demand for contractors is expected to remain strong as businesses continue to balance growth and budget constraints with flexible, cost-effective hiring solutions
As businesses continue navigating uncertainty, short-term and day-rate contracts are proving essential - offering the flexibility to deliver critical transformation projects without long-term commitment. With rising demand for specialised skills and cost pressures from tax changes, the contract market is expected to remain active and competitive into Q2.
If you're looking to scale your tech teams with expert interim support or explore your next contract opportunity, get in touch with the team at Pioneer Search.
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Permanent Hiring Trends Report: Q1
Market Improvement
The industry is showing signs of recovery after a downturned market in 2024, with new live projects and budgets to hire becoming available for 2025. Although job vacancy rates remain lower than usual, there are clear indications of growth, and hiring activity is on the rise.
What impact will this have?
This trend reflects a more cautious approach to recruitment, likely driven by recent UK government tax increases and enhanced employment rights. While businesses are being careful, they are still actively evaluating the best candidates for long-term success.
Q2 outlook: With the market improving, we expect to see more hiring momentum in Q2, though businesses will remain thorough in their decision-making as they navigate the evolving employment landscape.
Surge in Infrastructure Management Redundancies
A significant increase in unemployment among mid-senior infrastructure managers has been observed, with many candidates made redundant towards the backend of 2024.
What impact will this have?
The sudden influx of highly experienced, immediately available candidates indicates a shift in the job market for infrastructure management roles. This rise in redundancies suggests potential instability within companies that previously employed these managers.
Q2 outlook: Expect continued high availability of experienced infrastructure managers, leading to a more competitive market and potentially lower salary expectations due to increased competition.
Longer Interview Processes
Interview processes for IT professionals have become significantly longer in Q1, with an average of 4-5 interview stages, compared to the industry standard of 2-3.
What impact will this have?
There are higher-than-usual expectations for fit in permanent hiring, with less tolerance for skills development. This has resulted in longer decision-making gaps between the final interview and the offer, showing that candidates must prove more than before.
Q2 outlook: Expect continued lengthy interview processes and greater scrutiny on fit, leading to extended hiring timelines and potentially slower candidate movement in the market.
The permanent hiring market is showing clear signs of recovery, with new projects launching and budgets opening up. However, this growth is accompanied by increased scrutiny in hiring processes, a rise in experienced candidates on the market, and a cautious approach to long-term commitments. Businesses are being more selective, and candidates are needing to prove more value than ever before.
If you're navigating the permanent hiring landscape, whether you're hiring or job searching, Pioneer Search can help you move confidently in a competitive, evolving market. Get in touch to start a conversation.