HR trends in professional services: restructuring, hybrid work and AI transformation
As H1 2025 wraps up, HR leaders in professional services are navigating a landscape shaped by hybrid work shifts, restructuring initiatives and the growing influence of artificial intelligence. In a mid-year market update, Charlotte Faktor, Executive Director and Head of Interim, and James Baker, Partner and Head of Professional Services and Human Capital at Frazer Jones, shared their reflections on the first half of the year and what HR professionals should expect in H2.
Hybrid work and the return to in-person collaboration
One of the most visible shifts in the HR function has been the move back to office-based collaboration. “It’s no longer a question of if,” said Charlotte. “It’s more about when and how often.” Many firms are now landing on four days in the office, up from three in previous years.
James highlighted the impact on employee experience and retention, especially for early-career professionals. “There’s a recognition that those who started their careers during the pandemic missed out on in-person learning. Being physically present is critical for development and engagement.”
This shift is influencing workforce planning, onboarding workflows and how HR teams design job descriptions to reflect new expectations around flexibility and collaboration.
Interim hiring and restructuring trends
The interim market in H1 reflected broader restructuring efforts across professional services. Charlotte noted a surge in demand for HR professionals with specialist skill sets, particularly in response to private equity investment in mid-tier accounting firms. “We’ve seen a lot of need for people who can lead redundancy processes, support organisational change and manage transitions.”
Traditional interim roles like maternity cover remain, but the focus has shifted toward transformation. “There’s a trend of blending roles,” Charlotte explained. “Talent acquisition and talent management are coming closer together. Business partners are being asked to take on branding, EVP and even project work.”
This consolidation is driven by cost efficiency and the need to optimise team structures. Many recruiters and HR professionals are now managing multiple responsibilities, often across different functions, which raises questions about long-term sustainability and burnout.
AI adoption and its impact on HR teams
Artificial intelligence is no longer a future concept. It’s actively reshaping the HR function. James observed that some firms are restructuring in anticipation of AI-driven efficiencies, while others are embedding AI technology more gradually. “Some businesses are ahead of the curve,” he said. “Others are taking a 12 to 18-month view before making structural changes.”
The use of AI in HR is expanding across multiple areas, from automating repetitive tasks to enhancing candidate sourcing and improving the recruitment process. AI-powered tools like chatbots and generative AI applications are being used to streamline onboarding, support real-time decision-making and improve the candidate experience.
HR teams are also exploring more advanced AI capabilities, including predictive analytics, natural language processing and machine learning algorithms. These technologies are helping to identify skill gaps, forecast hiring needs and support performance management initiatives.
However, James cautioned against rushing adoption. “There’s a risk of a gap between current capabilities and what AI can realistically deliver in the short term.” HR leaders must consider ethical considerations, data privacy and the human touch when deploying AI agents and systems.
The benefits of AI are clear (improved forecasting, faster hiring decisions and optimised workflows) but the transition must be managed carefully. AI models trained on diverse datasets can support informed decisions, but only when paired with strong human oversight.
Globalisation, upskilling and the future of HR
Looking ahead to H2, Charlotte expects continued demand for HR professionals with blended experience. “It’s about versatility,” she said. “Can a business partner also support branding? Do they have restructuring experience? That kind of hybrid capability is becoming more attractive.”
Upskilling and reskilling will be essential as HR teams adapt to new technologies and evolving business needs. With many professionals stretched thin, addressing skill gaps and supporting employee engagement will be key to retention.
James also noted a rise in global hiring initiatives, particularly among US-led firms expanding into Europe and Asia. “We’re seeing more dual-location and even triple-location searches,” he said. “Firms are thinking globally about their HR leadership teams and spreading talent across time zones.”
This trend is influencing how recruiters and providers approach talent acquisition. As AI tools become more embedded in the hiring process, HR teams will need to stay ahead of emerging use cases and ensure their strategies reflect both technological innovation and the human resources expertise that underpins long-term success.
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