The British jobs market is encountering growing challenges in 2025. Fresh research from Morgan McKinley UK reveals that 56% of professionals plan to actively search for new roles in the next six months. This comes as only 40% of hiring managers intend to recruit, setting the stage for fierce competition for top talent.
At the heart of the issue is pay and benefits. In the past six months, 59% of businesses reported losing candidates due to uncompetitive salary and benefits packages. Employee satisfaction is equally concerning, with the same percentage feeling neutral or dissatisfied with their current benefits.
Despite rising expectations, half of UK companies kept their salary bandings static in the latter half of 2024. In a market where pay is a major motivator, this has made it tougher to attract new talent.
Flexibility is another sticking point. While professionals continue to prioritise flexible working, 45% of organisations still require employees to be in the office more than three days a week. This rigid approach risks pushing potential candidates towards more adaptable employers.
There are, however, signs of change. 63% of UK employers plan to increase salaries for hard-to-fill roles in 2025, indicating a shift towards more competitive offers. Still, only 40% of professionals expect to see a pay rise this year, showing cautious optimism among job seekers.
Victoria Walmsley, Managing Director at Morgan McKinley UK, highlights the need for businesses to adapt:
“The UK job market remains competitive, and organisations need to be more strategic in their talent acquisition efforts. Salary, benefits, and workplace flexibility continue to be key decision-making factors for professionals.”
She warns that businesses slow to respond risk losing skilled employees:
“Job seekers are demanding greater transparency on salary ranges and clear progression paths, as well as flexibility and career growth. Employers who embrace these changes will have the strongest advantage.”
As the post-pandemic hiring surge cools, companies still face economic and political headwinds. However, those that prioritise salary transparency, flexibility, and clear career development will be best positioned to attract and retain top talent in 2025.
For organisations looking to stay ahead, the Morgan Mckinley 2025 Salary Guide offers valuable insights into market benchmarks and hiring trends.
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