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Access undiscovered talent – We find, coach, mentor and train undiscovered talent to meet your organisation’s specific needs Unlock diverse expertise – Gain access to a rich pool of talent from diverse backgrounds, pre-vetted and hired by us, to bring fresh perspectives and skills to your business Define your target skillsets – Benefit from bespoke training programmes that equip the talent you want with skillsets tailored to your organisation’s needs Integrate seamlessly – Welcome new team members with confidence, backed by our comprehensive support system designed to foster retention
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Assessment and Development – Our solution supports your search for top talent by helping to identify high potential candidates Career Transitions – Access tried-and-tested modular outplacement support to smooth transitions in your organisation Digital Solutions – Our employer branded recruitment solutions enhance your EVP and target your desired audiences Diversity, Equity and Inclusion – Embed conscious inclusion into every aspect of your employee lifecycle Early Careers – Futureproof your talent pipeline and power your organisation’s strategic ambitions Salary Benchmarking – Gain an impartial and accurate overview of pay information across a diverse landscape of industries, regions and roles Talent Analytics – Support your talent strategies and decision-making with our bespoke, data-driven market analytics
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Permanent Recruitment – Secure the skills you need for the long-term Temporary Recruitment – Access skills and niche expertise with instant impact Recruitment Process Outsourcing (RPO) – Reduce time to hire with quality talent pools and tailored strategies Managed Services Programme (MSP) – Optimise and manage your contingent headcount Executive Recruitment - Steer your organisation through change by securing inspirational leaders
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For more on how we can support all your talent and workforce solutions needs with our portfolio of services, speak to your local consultant today: hays.co.uk/offices
• • • •
• • • • • • •
Recruitment
Our recruitment and workforce services
Hays is a global recruitment and workforce solutions business, with over 50 years’ experience successfully supporting, influencing and guiding organisations through the evolving world of work. From delivering against your immediate hiring needs to helping you shape your future talent strategies, our portfolio of staffing, advisory and skills services gives us the unique ability to leverage a consultative approach that will enable the seamless transformation of all your workforce requirements. A steadfast and reliable leadership partner in recruitment and workforce solutions, we leverage our truly global scale and experience, extensive talent networks and unparalleled expertise to propel your organisation towards success. Founded on our core brand values – building partnerships, thinking beyond and doing the right thing – Hays combines meaningful innovation with global scale and insights to help people and organisations’ success. We’re here today, working for your tomorrow.
Methodology The salary data in this guide was compiled using information gathered during 2024 from Hays offices across the UK, and is based on job listings, job offers and candidate registrations. Our survey was carried out between 21st August and 11th September 2024 and received nearly 11,000 responses from employers and employees from organisations of all sizes and sectors across the country. The survey on which the comparisons are based was carried out between 10th August and 11th September 2023 and secured nearly 15,000 responses.
About us
Welcome to the 2025 Hays Salary & Recruiting Trends guide. Our comprehensive and trusted guide provides you with the latest world of work insights whether you’re an employer seeking to enhance your talent management strategies and optimise your workforce, or an individual who wants to better understand the employment landscape and secure the next step in your career. Given our standing as a reliable leadership partner to both organisations and professionals, our extensive talent networks and broad portfolio of recruitment and advisory services means we’re uniquely positioned to provide you with the employment insights that matter. This year’s guide is based on our survey of almost 11,000 professionals from across the UK, covering topics including employment outlooks, hiring challenges and opportunities for the year ahead, how AI is set to impact the workplace, how salaries are changing, the importance of pay transparency, what motivates employees to move roles and how employers can make their organisation more attractive to those looking for a new job. We hope the insights and recommendations you find within this guide will enable you to meet your organisation’s needs as well as facilitate your career ambitions.
organisations and employees. Our extensive research this year shows that employers continue to grapple with skills shortages, and while there is appetite to make greater use of AI tools in the workplace, there are knowledge gaps which must first be bridged. Meanwhile, workers feel they have limited opportunities to progress their careers and are showing a growing expectation to seek new roles in the year ahead. Employers must therefore prioritise providing clear career pathways and invest in continuous learning to drive their employees’ growth, boost morale and enhance productivity and retention.
The world of work continues to evolve, and with it brings new challenges and opportunities for both
Our research shows that the biggest hurdles leaders expect to encounter in the year ahead are recruiting and retaining talent. While a competitive salary and benefits package remain key motivators for employees, there are many other factors highlighted in our guide that matter to professionals. For example, employees want their employer to be more transparent about how pay rises and pay levels are set. They want to work for organisations with a purpose aligned to their own values and which has a diverse and inclusive culture. Flexible working remains a top benefit highly prized by professionals, and many wouldn’t even consider applying to a job which doesn’t offer any kind of flexibility. Having a better understanding of what motivates your workforce can, in turn, enable you to secure the professionals you need to succeed in 2025.
Pam Lindsay-Dunn COO – Specialist Recruitment Hays UK&I
Elisabetta Bayliss COO – Enterprise Solutions Hays UK&I
Welcome
salaries for roles across the UK, split by sector and region
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insights from industry experts
employers and professionals surveyed across the UK
industries and sectors covered
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Hays UK Salary & recruiting trends 2025
The latest world of work insights
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Accountancy & Finance Business Support Construction & Property Education Energy, Oil & Gas Engineering Executive Financial Markets Healthcare Human Resources Insurance Legal Life Sciences Marketing Personal & Executive Assistants Policy & Strategy Procurement, Supply Chain & Logistics Sales Social Care Sustainability Technology
Diverse Talent Identification – Find undiscovered talent Bespoke Coaching, Mentorship and Training Programmes – Nurture learners for the entire duration of their placement and beyond Talent Creation and Retention – Transform your organisation into a talent creator Skills and Learning Optimisation – Use the latest insights in skills and learning to optimise your organisation’s output
Talent Planning – Build on your organisation’s success with strategic talent solutions, from DE&I consulting through to support with Early Careers and enhancing your EVP through the latest tools and technologies Talent Assessment – Acquire the right skills via bespoke and end-to-end talent assessment and development solutions Talent Insights – Utilise real-time, insight-led data for the most relevant talent remuneration strategies
Hays is a global recruitment and workforce solutions business, with over 50 years’ experience successfully supporting, influencing and guiding organisations through the evolving world of work. From delivering against your immediate hiring needs to helping you shape your future talent strategies, our portfolio of staffing, advisory and skills services gives us the unique ability to leverage a consultative approach that will enable the seamless transformation of all your workforce requirements. A steadfast and reliable leadership partner in recruitment and workforce solutions, we leverage our truly global scale and experience, extensive talent networks and unparalleled expertise to propel your organisation towards success. Founded on our core brand values – building partnerships, thinking beyond and doing the right thing – Hays combines meaningful innovation with global scale and insights to help people and organisations’ success. We’re here today, working for your tomorrow. Methodology The salary data in this guide was compiled using information gathered during 2024 from Hays offices across the UK, and is based on job listings, job offers and candidate registrations. Our survey was carried out between 21st August and 11th September 2024 and received nearly 11,000 responses from employers and employees from organisations of all sizes and sectors across the country. The survey on which the comparisons are based was carried out between 10th August and 11th September 2023 and secured nearly 15,000 responses.
Simon Winfield CEO | Hays UK & Ireland
opportunities for both organisations and employees. Our extensive research this year shows that employers continue to grapple with skills shortages, and while there is appetite to make greater use of AI tools in the workplace, there are knowledge gaps which must first be bridged. Meanwhile, workers feel they have limited opportunities to progress their careers and are showing a growing expectation to seek new roles in the year ahead. Employers must therefore prioritise providing clear career pathways and invest in continuous learning to drive their employees’ growth, boost morale and enhance productivity and retention.
The world of work continues to evolve, and with it brings new challenges and
© Copyright Hays plc 2024. The HAYS word, the H devices, HAYS WORKING FOR YOUR TOMORROW and Powering the world of work and associated logos and artwork are trademarks of Hays plc. The H devices are original designs protected by registration in many countries. All rights are reserved.
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Spring 2025 update
Welcome At a Glance UK Recruiting Trends Industry Insights Salaries
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10-year trends overview Employment outlook Cost of living vs cost of staying Upskilling for the future Ways of working AI in the workplace The employee experience Intergenerational working
READ OUR NEW EMPLOYMENT TRENDS 2025 SPRING UPDATE
Our findings at a glance
78
%
of employers plan to hire staff in the year ahead, almost no change from last year (77%)
57
of employees plan to move jobs in the year ahead, an increase from 52% who said the same in 2023
EMPLOYMENT OUTLOOK
There remains a degree of uncertainty in the market, but hiring plans for the year ahead remain busy and employees are showing a renewed interest in changing jobs for those that offer more robust career progression opportunities.
SKILLS IN DEMAND
Almost all employers have faced skills shortages over the last 12 months, continuing a trend from recent years. Various actions are being taken to address skills gaps, including a focus on upskilling and reskilling existing staff.
93
of employers faced skills shortages over the last year, almost no change from 92% the year prior and 93% the year before that
77
of employers would be likely to hire an individual who does not possess all the required skills, with the intention of upskilling them
AI IN THE WORKPLACE
The use of AI in the workplace continues to evolve, and professionals identify a range of benefits of using AI tools in their jobs. However, skills gaps are evident and training support is often lacking despite employee enthusiasm to upskill.
70
of employers expect their organisation will allow staff to use AI tools in the future
87
of employees have not received any training or support from their employer to adopt AI technologies in their work, although 74% would be willing to upskill in this area
SALARY STRATEGIES
Salaries continue to increase for the most in-demand roles as employers aim to attract and retain talent. However, pay transparency is a crucial issue that could negatively affect hiring plans.
44
of professionals do not think their organisation is transparent about how pay levels and pay rises are set
80
of employers increased salaries in the last 12 months, and 80% plan to do so in the year ahead
BENEFITS & WAYS OF WORKING
Flexible working is the top most important benefit that employees value. Understanding employee preferences and aligning ways of working with these can make all the difference to hiring and retention strategies.
46
of employees would not consider accepting a job in the future that didn’t offer hybrid working
60
of employers offer hybrid working to staff, and 77% expect their approach to hybrid working to stay the same in 2025
ATTRACTING TALENT
There are many factors that candidates consider when deciding on a new role. A one-size-fits-all approach isn’t enough when hiring - tailoring your offering is the key to securing in-demand talent.
of professionals have left a job in the past because it didn’t match the expectations they gained during the application process
48
of employees are not satisfied in their current job because of a lack of career progression, as well as a salary that’s too low (47%) and a lack of career development opportunities (47%)
HAYS UK SALARY & RECRUITING TRENDS 2025
Here’s a snapshot of the key employment and workforce trends based on our survey of almost 11,000 respondents from across the country. Our research explores how the world of work has changed over the last 12 months and identifies the expected challenges and opportunities for the year ahead so you’re better equipped to find and secure the talent you need.
Top reasons employees moved jobs last year
Salary too low
Lack of career progression
21
29
Steps employers have taken to address skills shortages
Reskilled existing employees into a new position
47
Adopt flexible working approaches
40
33
Developed own talent at entry level
Hired temporary or contract workers
22
What are the primary benefits of AI in the workplace, according to employees?
Support in data analysis
49
Increased productivity and efficiency
Creativity and idea generation
37
Top three benefits that employees value the most
30
Flexible working
28
Additional holiday days
24
Health insurance or private medical cover
Top three factors that make an organisation most appealing to employees when considering a new role
Tailored flexible working practices
66
65
Job security
An engaging and supportive team culture
52
There remains a degree of uncertainty in the market, but hiring plansfor the year ahead remain busy and employees are showing a renewed interest in changing jobs for those that offer more robust careerprogression opportunities.
Almost all employers have faced skills shortages over the last 12months, continuing a trend from recent years. Various actions are being taken to address skills gaps, including a focus on upskilling and reskilling existing staff.
of employers would be likely to hire an individual who does not possess all the required skills,with the intention of upskilling them
of employers in creased salaries in the last 12 months, and 80% plan to do so in the year ahead
of employees would not consider accepting a jobin the future that didn’t offer hybrid working
Talk to us about the findings
Employment trends
hays uk Salary & recruiting trends 2025
Talent retention
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Spring 2025 update Employment outlook Skills in demand AI in the workplace Salary strategies Benefits & ways of working Attracting talent
33% of professionals changed job in the last 12 months, with 29% of respondents stating the top reason they switched roles was a lack of career progression. Investing in training and development initiatives can help address the skills gaps and retention issues organisations are facing. Doing so can not only help develop and upskill current employees, but also make your organisation more attractive to potential new talent.
Invest in training and development
With optimism surrounding long-term employment opportunities dropping, it’s crucial for employers to focus on enhancing engagement from their employees. Implementing regular feedback sessions with team members for example can help create an open forum to discuss any issues those within the organisation may face.
Enhance employee engagement
RECOMMENDATIONS
36% of respondents who work as a contractor began contracting work in the last 12 months. The main reasons for becoming a contractor are for a better work-life balance and flexibility (45%), the opportunity to earn more money (36%) and the high availability of opportunities (22%). Conversely, 39% of contractors are considering moving into a permanent role in the next 12 months. Factors which are most important to contractors when considering a new project excluding the pay on offer include working on a project that challenges them, having a positive work-life balance, and fitting in well with the organisation’s team and culture.
Some permanent professionals turning to contracting
Project location
43
Challenging project
42
Work-life balance
35
Company culture and work environment
Fit with the team
Most important factors to contractors when considering a new project, aside from pay
45
Better salary and benefits package
15
Location
9
Future opportunities
8
The work itself
7
More flexible working options
Top five factors that would tempt employees to move job
8% of employers say it is their organisation’s policy to counter offer staff when they resign, and a further 53% say they sometimes do this. Almost a third (32%) of professionals say no counter offer could tempt them to stay in their current role – only 26% could be tempted by an offer of increased pay and 24% by an offer of both increased pay and improved benefits. For those not planning on changing jobs in the next year, 45% could be tempted to do so by an organisation offering a better salary and benefits package.
Counter offers have mixed effectiveness in retaining staff
More employees plan to move jobs in search of better career progression
33% of professionals changed job in the last 12 months compared to 44% who did so in 2023, although a further 35% considered doing so. Most of these professionals moved to a different organisation (75%), while 16% changed profession completely. The main reason for moving jobs was because of a lack of career progression (29%). Professionals feel less positive about their career prospects in the year ahead, decreasing sharply to 43% in 2024 from 53% in 2023. More than half (57%) expect they will move jobs in the next 12 months, an increase from 52% who said the same in 2023. Employees want to leave their current job because of their salary and benefits package (39%) followed closely by a lack of future opportunities being available in their current organisation (38%).
80%
60%
20%
40%
2018
2019
2020
2021
2022
2023
2024
53
54
38
Employees who feel positively about their career prospects for the coming year
Lack of flexible working options
Concerns about job security
Lack of future opportunities
Salary and benefits package
16
39
2/2
Top reasons employees want to leave their current role
Poor work-life balance
Poor relationship with manager
Lack of job security
17
18
1/2
Top reasons employees moved job in the last 12 months
Top challenges employers expect to face when hiring in the next 12 months
Shortage of suitable applicants
Competition from other employers
Applicants with unrealistic salary requirements
74
62
75
55
Employers forge ahead with recruitment plans
47% say their organisation’s headcount increased over the last year. In the next 12 months 78% of employers plan to hire staff, almost no change from last year (77%). 71% of employers say they plan to hire permanent employees. A further 25% expect to hire contractors, freelancers, interim or temporary workers in order to access specific skills for one-off projects (52%), to meet peaks in demand (43%) and to ensure flexibility of staffing costs (36%).
Costs and skills gaps cause for concern in the year ahead
From an internal perspective, talent retention remains the top challenge faced by organisations in the year ahead and organisations continue to face ongoing skills shortages. A higher proportion of employers than last year also predict that managing change, adopting new technology and productivity will be challenges to their organisation over the next 12 months.
Recruiting the right talent remains the top external factor causing challenges to organisations in the year ahead. Challenges around the cost of living have eased over the last year, but the economic environment and rising costs for businesses remain causes for concern over the next 12 months. Organisations are also facing increased obstacles when it comes to keeping up with technology innovation and managing cyber security risks compared to last year.
Internal and external challenges expected over the next 12 months
Internal factors
External factors
Diversity, equity and inclusion (DE&I)
Productivity
Adopting new technology
Company culture
Skills shortages within current teams
Managing change
Keeping up and implementing legislation
Managing risk including cyber security
Keeping up with technology innovation
Cost of living
Rising costs for businesses
Economic environment
Recruiting the right talent
23
58
13
19
61
14
26
27
56
20
25
41
50
Increase competitiveness
Expand product portfolio
Generate innovations
Establish sustainability
Stabilise core business
Increase turnover
Gaining market share
Increase operating profit
34
51
Which strategic goals are currently in focus for organisations, according to senior leadership?
Senior leaders identify increasing operating profit (51%), gaining market share (35%) and increasing turnover (34%) as their organisation’s top three current strategic goals. The factors senior leaders believe are most likely to limit them achieving these goals are limited finances or budgets (27%), a shortage of skilled professionals on the market (17%), rising costs for businesses (17%) and difficulties retaining their current workforce (13%). According to senior leaders, the top HR investment focus areas for the coming year include employee retention (53%), employee recruitment (35%) and employee training programmes (33%).
Skills gaps and staff retention are blockers to achieving strategic goals
Optimism about the long-term economic environment and its impact on job opportunities has decreased over the last year. 34% of employers say they’re optimistic compared to 41% last year, and 21% of employees are optimistic in comparison to 43% who said the same in 2023. However, 30% of employers and 20% of professionals say the election of a new government has positively impacted their views towards long-term employment opportunities while 29% of employers and 26% of professionals say this has negatively affected their outlook. 28% of employers and 34% of employees say this has not had an impact and 13% of employers and 20% of employees are unsure.
Long-term outlook less positive but signs of improvement
Very optimistic
Neutral
Quite optimistic
Not optimistic at all
Not very optimistic
Employees
Employers
3
11
4
5
How optimistic are employers and employees about the wider economic climate and its impact on employment opportunities in the next 2-5 years?
Although uncertainty remains in the market, hiring plans are unchanged and professionals are showing a renewed interest in changing jobs as they seek roles that offer opportunities to progress their career.
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Recruiting the right talent remains the top external factor causing challenges to organisations in the year ahead. Challenges around the cost of living have eased over the last year, but the economic environment and rising costs for businesses remain causes for concern over the next 12 months. Organisations are also facing increased obstacles when it comes to keeping up with technology innovation and managing cyber security risks compared to last year. From an internal perspective, talent retention remains the top challenge faced by organisations in the year ahead and organisations continue to face ongoing skills shortages. A higher proportion of employers than last year also predict that managing change, adopting new technology and productivity will be challenges to their organisation over the next 12 months.
Work with an expert to find the talent you need
Employers continue to face challenges finding the professionals with the skills or potential they need to achieve their business objectives. We offer a full range of recruitment services and solutions to enable you to secure the right professionals. Find the right solution for your organisation
Target the right professionals when hiring
When creating hiring plans, focusing on targeted recruitment campaigns can help ensure you’re attracting professionals with the most in-demand skills. Over the last year, 76% of employers have faced difficulties recruiting permanent staff, so showcasing the benefits of working for your organisation are key when hiring. Take a look at our digital solutions service which helps you cut through the noise and attract the permanent professionals you need through employer branded recruitment solutions. Find out more
Access undiscovered talent
We have built our Skills and Learning service to enable clients to mitigate their skills shortages by finding, coaching, mentoring and training undiscovered talent to meet your organisation’s specific needs. Find out more
Understand how your staff want to upskill
Over three-quarters of employers would hire a professional who does not possess all the required skills for a role, with the intention of upskilling them, and 40% of employees say they want to learn and upskill in their current roles. With this in mind, taking the time to understand how your staff want to learn new skills can help you to better bridge the skills gaps you’re facing.
In an attempt to address skills shortages within their organisation, 47% of employers say they have adopted flexible working approaches to attract and retain staff. A further 40% have developed their own talent at entry level to mitigate skills gaps, and 33% have hired temporary or contract workers. Reskilling existing employees into a new position has been an option for 22% of employers. Of those who have actively hired apprentices to address skills shortages (31%), nearly six in ten (58%) think doing so has allowed their organisation to meet its talent and skills objectives.
Steps taken to overcome a lack of skills
Individuals employers are actively hiring to address skills shortages
32
31
Graduates
Apprentices
Workers from other industries or professions
Those over the age of 50
Those under the age of 30
Upskilling potential is valuable to employers
75% of employers agree that an individual’s willingness to learn is more important than their existing skillset. Only 13% think that existing skills are more important than someone’s openness to learning new skills. A further 77% of employers say they would be likely to hire a professional who does not possess all the required skills, with the intention of upskilling them. Furthermore, just 16% of employers think it’s very important for a candidate to have a degree, 41% think it’s important but not essential for a job applicant to possess a degree, and 43% do not believe having a degree is important.
Upskilling opportunities employees would prefer their employer offered
Investment in training
Allow time during working hours to complete training
Provide access to online training tools
Allow time off to attend relevant conferences/ seminars/talks
Looking at the soft skills employees wish to develop, the ability to learn and upskill (40%) and people management skills (31%) are the key areas professionals want to develop to progress their career.
Soft skills in demand
Ability to learn and upskill
Negotiation abilities
People management
Critical thinking
Communication and interpersonal skills
Soft skills employees want to develop in order to progress their career
In terms of soft skills, employers are on the lookout for professionals with strong communication skills (49%), those who are able to adopt change well (36%), those with the ability to learn and upskill effectively (30%), individuals who are flexible and adaptable (30%) and those with people management skills (26%).
36
Fewer people entering the job market in their industry
Pay levels
Lack of progression opportunities
Lack of hybrid or remote working opportunities
Main causes of skills shortages, according to employers
Over the last year, 93% of employers reported facing skills shortages, almost unchanged from 92% the year prior, and 93% the year before that. The main casualties of these skills shortages are productivity (50%), employee morale (46%) and the ability to deliver projects (40%). Skills shortages are predominantly being caused by high competition for talent from other employers (51%). Pay levels are another key driver of skills shortages according to 43% of employers, as well as fewer people entering the job market in their industry (36%). Over the last year, 76% of employers have faced difficulties recruiting permanent staff, while 54% have found it hard to source temporary, contract or interim staff.
Sustained skills shortages negatively impact organisations
Skills shortages remain an ongoing challenge being faced by almost all employers. There is a focus on upskilling and reskilling existing staff to overcome these skills gaps.
Management level
Intermediate level
Entry/junior level
Categories of staff employers have found it difficult to recruit
In terms of soft skills, employers are on the lookout for professionals with strong communication skills (49%), those who are able to adopt change well (36%), those with the ability to learn and upskill effectively (30%), individuals who are flexible and adaptable (30%) and those with people management skills (26%). Looking at the soft skills employees wish to develop, the ability to learn and upskill (40%) and people management skills (31%) are the key areas professionals want to develop to progress their career.
Invest in AI training programmes
With both employers and employees agreeing that AI tools and technology can help create a more productive, efficient and creative workplace, implementing training programmes to help employees understand and utilise AI effectively can help ensure your organisation stays ahead of the trend.
Join the future, ethically
As one of the main concerns of using AI in the workplace is the legal and ethical implications of these tools and technologies, developing clear guidelines and policies around the use of AI is key. Make sure to address any potential privacy, security and safety concerns to ensure a smooth transition into the world of AI.
44% of employers are having trouble accessing the right skills to enable their organisation to make the best use of AI tools and technologies. 87% of employees say they have not received any training or support from their employer to adopt AI technologies in their work. However, 74% would be willing to take part in upskilling or reskilling programmes to adopt AI technologies in the workplace. Despite this enthusiasm to upskill, 63% of employers say their organisation is not offering training or support to staff for the use of AI.
AI skills gaps could hinder uptake
Do employees think they possess the right skills to make the best use of AI tools and technologies?
Yes, somewhat
Yes, fully
No, don’t have the right skills
Not sure
59% of professionals are not concerned about the potential risks to future employment opportunities due to AI advancement. 51% of employers do not believe there are any jobs in their current organisation that could be replaced by AI in the future, and a further 36% are not sure. AI is also influencing career plans. 15% of employees plan to change their profession or field of expertise by the end of 2025 in response to AI developments. Both employers and employees agree that the main benefits of AI in the workplace include greater productivity and efficiency, better creativity and ability to generate new ideas, and its ability to support in analysing data.
AI benefits and risks to employment
Top reasons employees left their last job
Job was unfulfilling
Lack of career development opportunities
Commute too long
Top reasons employees are satisfied with their current job
Good fit with colleagues
Flexibility in working pattern
Commute is not too long
Positive work-life balance
Good fit with manager
Benefits aligned with my needs
Employers and employees are largely aligned in what they think is important to help attract candidates to a new role. Top of the list are having an engaging and supportive team culture, followed by job security and tailored flexible working policies. Employees want to see these aspects promoted on the job advert (42%), discussed during the interview process (25%) or in the job offer (7%). Around a quarter (26%) would prefer to see these aspects addressed during all stages of the application process. People leave jobs for multiple reasons, but understanding those push factors can lend valuable insight to potential pull factors that will attract talent to a new organisation. The top reasons cited for leaving a role were because the job was unfulfilling (35%) and there was a lack of career progression (26%). In terms of retaining talent, employees cited a range of reasons for being satisfied in their current job, including a good fit with colleagues (51%), flexibility in their working pattern (49%), their commute not being too long (47%) and a positive work-life balance (43%).
What's important for attracting and retaining candidates?
Mitigation of human error
Enhanced communication and clarity
Higher quality of work
Enhanced decision-making capabilities
According to employers and employees, what are the primary benefits of using AI in the workplace?
A significant proportion of both employers and employees are utilising AI in their day-to-day jobs. 39% of employers are recommending the use of AI in their workplace while around a third (31%) of professionals say they have identified AI-based tools or applications that could help them succeed in their job. On the contrary, 30% of employers say their organisation has already banned the use of AI tools or expect to do so. The main reasons for doing so are due to ethical and legal considerations (27%), privacy concerns (25%), security risks (24%), intellectual property concerns (20%) or not recognising the benefits of using AI tools (19%). 24% of employees say they are currently using AI technologies or tools as part of their job, with those in the private sector (27%) more likely than those in the public sector (20%) to utilise said tools. It’s also unsurprising to note professionals in marketing roles (53%) and IT roles (42%) are also more likely to use AI tools and technologies than respondents with roles in accountancy and finance (20%) or healthcare (17%). The main reasons employees say they are not using AI tools in their job is because of a lack of understanding, support or training (32%) and because they don’t see the benefit of using them (27%).
Usage of AI in the workplace is mixed
Do employers expect their organisation will allow staff to use AI tools in the future?
Yes, staff will be able to use AI tools unmonitored
Yes, staff will be able to use AI tools but usage will be monitored
No, AI tools have been banned
No, expect to ban the use of AI tools
63
Where possible, the use of AI tools in the workplace offers a range of benefits. However, while employees are willing to upskill to make the best use of AI in their roles, the training being offered by employers is not yet up to speed.
View further expert insights below
Expert views
Imagine a world of work where AI is your colleague, handling the mundane while you focus on the extraordinary. According to Government figures, by January 2022, 68% of large UK companies and 15% of all UK businesses had already embraced AI. Since then, the launch of ChatGPT in November 2022 has sparked a revolution with generative AI creating everything from texts to images. As AI technology advances, it will transform various sectors, from healthcare and finance to manufacturing and retail. Already, HR teams use it for recruitment and redundancy tasks, while managers rely on it for task allocation and shift scheduling. AI automates routine exercises like transcribing meetings and reviewing documents. It can analyse data much faster and more accurately than any human. We are also seeing AI-driven chatbots becoming the go-to for information and simple queries. Beyond that, AI has many other uses in the workplace such as monitoring productivity and enhancing workplace safety. With AI taking over routine tasks, employees can focus on the more complex and creative aspects of their jobs, boosting job satisfaction. While AI may lead to some redundancies, it won't replace all jobs. In fact, people skills are expected to become even more valuable. Employers will need to upskill and reskill their workforce to fill the new roles created by AI. Organisations will also need to address the complex ethical challenges AI presents. The future of work is not about humans versus machines; it's about humans and machines working together to create a more efficient, innovative, and fulfilling workplace.
AI and the future world of work
Hilary du Randt, Partner, Womble Bond Dickinson
The Government has announced sweeping reforms to UK employment law which are likely to have a significant impact on recruitment. Foremost among the reforms are changes to unfair dismissal rights. The current two-year qualifying period for unfair dismissal is to be removed from autumn 2026, making the protection a "day one" right. Probationary periods will be allowed but employers will need to ensure employees are managed effectively during probation. The true impact on recruitment remains to be seen. Some argue the change will give employees more confidence to switch jobs, knowing they are not starting from scratch each time. Others contend that employers may be more reluctant to take on staff because of the increased protection for new joiners. Flexible working is another key area likely to impact recruitment. Recent years have seen a dramatic shift in the take up of flexible working practices, such as compressed hours, part-time, remote and hybrid working. The Government plans to bolster this, by requiring employers to demonstrate that any refusal of a flexible working request is reasonable. This may act as a further catalyst towards more roles being performed flexibly and more vacancies being advertised as flexible. As a result, employers will need to review their flexible working policies and practices, as well as the training they provide for managers on how to handle requests, whether from existing employees, new hires or candidates during recruitment. While the changes will not be implemented before 2026, employers should use the next 12 months to prepare.
Despite 80% of professionals believing it’s important for their organisation to be transparent about how pay levels and pay rises are set, only just over half believe their organisation is consistently transparent about salaries. Being transparent about these issues can help build trust and improve employee satisfaction, as well as help you progress your diversity, equity and inclusion (DE&I) initiatives. Learn how our DE&I advisory service can help your organisation be equipped with the insights and expertise you need to build a more diverse workforce.
Transparency is key
Ensure your salary packages are competitive within your industry. Regularly review and adjust salaries to reflect market trends and employee performance to help keep your staff happy and make sure you’re attracting the best talent. Find out how our salary benchmarking service can help you to create the best remuneration strategy for your organisation using real-time, bespoke data.
Keep salaries competitive
Publicise all employee salaries
Publicise salary banding structures
Set criteria for salary increases
How are organisations ensuring consistent transparency with employees about how pay levels and pay rises are set?
Actions being taken to be more transparent about pay
To ensure consistent transparency about how pay levels and pay rises are being set, employees say their organisation takes actions including setting criteria for pay increases, publicising salary banding structures, or making all employee salaries public. However, over half (53%) say their organisation doesn’t have any of these measures in place. Those working in the private sector are more likely to say their organisation doesn’t undertake these actions (61%) compared to those working in public services (25%). While gender pay gap reporting has been in force for larger organisations for a few years now, analysing pay gaps from other demographics can help to build better pay equity. However, 43% of employers say their organisation does not analyse ethnicity or disability pay gaps and a further 37% are unsure if their organisation does this.
Employees split about pay transparency
80% of professionals believe it is important for their organisation to be transparent about how pay levels and pay rises are set. However, only just over half of professionals (56%) believe their organisation is consistently transparent in this regard. 62% of employers say that their organisation is consistently transparent with all employees about how pay levels and pay rises are set. Employees are also split about whether they think themselves and their equally capable colleagues are paid the same. 31% believe they are paid equally, 34% do not believe they are, and 35% are unsure. Clarity around pay also impacts on hiring new staff. More than half (56%) of professionals would not consider applying to an organisation that does not include the salary on the job description. However, only 37% of employers say their organisation always includes salary information on job descriptions and 31% say they sometimes do. 37% of private sector organisations do not include salary information on job descriptions compared to 7% in the public sector.
Equal
Not equal
In your current organisation, do you think you and your equally capable colleagues are paid the same?
By gender
By disability status
By ethnicity
By age
85
Female
Male
84
Has a disability
Asian or Asian British
Black or Black British
White
Mixed/multiple ethnic background
86
81
Under 30
30-39
50+ years
40-49
Professionals who say it is important to them for their organisation to be transparent about how pay levels and pay rises are set
Most employees (68%) say they are satisfied with their pay, an increase from 62% last year, and almost half (49%) believe their pay is aligned with their responsibilities. Those who are not happy with their salary say they are dissatisfied because they feel it doesn’t reflect their individual performance (53%), their responsibilities (49%) or their experience and expertise (48%). 49% of employers gave staff a performance-related bonus in the last 12 months, compared to 50% who did so the year prior. Of the employees who received a bonus in the last year, 75% say they are satisfied with it.
Pay and bonus payments being positively received by staff
12
Stayed the same
Increased
Decreased
How did the bonus staff received this year compare to last year?
Increase
Stay the same
Decrease
79
1
Over the next 12 months, how are employers likely to change their workforces’ salaries?
83
2
During the last 12 months, how have employers changed their workforces’ salaries?
Average salary increase over the last year
80% of employers increased salaries in the last 12 months compared to 85% who did so the year before. Salaries across the professions included in our guide increased by an average of 2.4% over the last year. Some specialist areas saw higher-than-average salary increases over the last year, including business support (4.7%), engineering and manufacturing (4.1%), legal (4%) and accountancy and finance (3.6%). Over the next year, pay is set to continue to rise, with 80% of employers expecting to increase the salaries and rates of pay of their staff, compared to 77% who said the same the year before.
Salary rises continue
2.4
Salaries continue to rise as organisations seek to retain and attract key talent. However, pay transparency is an issue that has the potential to negatively impact hiring plans.
Top salary increases by industry
Business support
Legal
4.7
4.1
Engineering and manufacturing
4.0
3.6
Shared services
Accountancy and finance
3.5
Not Equal
40-49 years
30-39 years
Be flexible with working arrangements
The top workplace benefit identified by employees as being most important to them is flexible working. With almost half of organisations already doing so, implementing different ways of working, such as hybrid working, flexible hours and remote working options can help improve retention and attract top talent.
Lead the future of work
The four-day working week is a topic continually making headlines. With almost a quarter of employers believing it will be implemented within the next two to five years, potentially piloting this new way of working could help attract and retain the best of the 34% of talent tempted to move to a different organisation that offers it.
Within 1-2 years
Within 2-5 years
Within 5-10 years
Never
When do employers and employees believe the four-day working week will become a reality throughout the world of work?
44% of professionals say the option to work a four-day week is an important flexible working option when they’re considering a new role. 61% of employers say their workplace has not implemented a four-day working week and they are not considering doing so. A further 22% say they cannot consider doing so because of their organisation or sector. 34% of professionals would be tempted to move to a different organisation if it was offering a four-day working week, 15% would not be tempted and 51% say it would depend on the opportunity.
The future of the four-day working week
Lack of interaction with colleagues
Blurring of work-life balance
Increase in video meetings/calls
Isolation/loneliness
Less productivity
Increase in workload
Resource challenges
10
Negative impacts employers and employees have encountered as a result of hybrid working
44% of employers believe that introducing hybrid working has increased the retention of staff across their workforce, while 30% have not seen a change. Employers are more likely than those not involved in hiring to have faced certain negative impacts as a result of hybrid working, such as a lack of interaction with colleagues, an increase in video meetings and calls, and a blurring of work-life balance.
Impacts of hybrid working on the workplace
60% of employers are offering hybrid working to staff and 46% offer home or remote working. 77% of employers expect their organisation’s hybrid working offering to stay the same over the next 12 months, while 18% predict employees will be required in the workplace more often. 43% of professionals are currently working in a hybrid way, a further 41% are working fully in the workplace, and 16% are working fully remotely. 44% of professionals think they work most productively at home, while 43% believe they work best in an office or workplace. A further 13% prefer working in a shared workspace. 34% of professionals say they plan to find a new role that is more of a mix of hybrid working in the next 12 months, and a further 16% plan to find a new role based fully remotely. 46% of employees say they would not consider accepting a job in the future that didn’t offer hybrid working and 40% would be prepared to accept a lower salary for a role that was fully remote.
Flexible working options are a crucial factor to employees
Flexible – staff can choose how many days they work remotely
Three days a week minimum
Four days a week minimum
Two days a week minimum
6
One day a week minimum
No hybrid working policy agreed yet
Other
How many days do staff need to be in the workplace when working in a hybrid way?
Hybrid working
Four-day working week
Home or remote working
Agile/flexi-time
Compressed hours
Informal flexible working at manager’s discretion
Option to work from abroad
Which flexible working options are important to professionals when considering a new role?
The top workplace benefit identified by employees as being important to them is flexible working (30%), followed closely by being offered additional holiday days by their employer (28%). Outside of monetary benefits such as health insurance and pension schemes, professionals also value being offered additional days off for wellbeing.
Benefits
Additional days off for wellbeing
Employee pension scheme
Top five benefits that employees value the most
BENEFITS AND WAYS OF WORKING
Offering flexible ways of working that align with the preferences of your employees can make all the difference when it comes to securing and retaining staff.
Recognising awareness days/months with a clear call to action
Hosting in-person talks with experts
Monetary donations to good causes
Develop career opportunities in your organisation
More than half of professionals do not believe there is scope for career progression within their current organisation. Offer clear pathways for progression and regular personal development sessions for employees, as employers need to make sure their workforce understands the ways they can develop and grow in their roles.
Create a positive work environment
Foster a positive work environment to make your organisation more appealing to potential new hires, by promoting a supportive team culture, offering flexible working arrangements and ensuring employees views are heard and valued throughout the organisation.
Benefits package
Good work atmosphere
Career development initiatives
Work-life balance initiatives
Remote work
Challenging role or projects
Aside from salary, what factors do employers believe are important to help them attract and retain staff compared to those most important to professionals when considering a new role?
Factors important in a new role to employees
An organisation’s purpose plays an important role in hiring, as 85% of employees say this is a consideration for them when assessing a potential new job. An organisation’s purpose is important to 89% of women when deciding on a new role compared to 82% of men. Furthermore, 79% of employees say a diverse and inclusive organisational culture is important to them when considering a new role. This is even more important to certain demographics, such as women (86%) or those with a disability (83%), as well as those with a Black heritage (94%), an Asian heritage (89%) or a mixed/multiple ethnic background (86%). 74% of employees believe an organisation’s commitment to sustainability is important when deciding on a new role. Those from the public sector (78%) are more likely to care about an organisation’s sustainability commitment than their private sector counterparts (72%). 81% of employers say their organisation assesses its commitment to sustainability issues as important, but only 64% believe this commitment to sustainability is important to help them to attract staff.
49% of employers think their organisation’s employee value proposition (EVP) aligns with the internal experience of the staff working there. However, this is at odds with the view of employees, as 42% do not believe their organisation’s EVP aligns with their internal experience of working for the organisation. This mismatch in expectations can have negative impacts on staff retention. Almost six in ten (57%) professionals say they have decided to leave a job in the past because it didn’t match the expectations they gained during the application and interview process.
Unmet expectations driving employee turnover
of employees don’t think their organisation’s EVP matches their own experience
32% of employees say their manager or organisation contacts them outside of their contracted working hours. Although around two fifths (39%) of employers who contact staff outside of work hours expects them to respond, the majority of employees feel obligated to (64%). If organisations were banned from contacting staff outside of their contracted working hours, employees are more likely than employers to believe that this would have a positive impact on their organisation’s productivity. More than half of both employers and employees believe a ban on contacting staff outside of their contracted working hours would have a positive impact on the wellbeing of staff.
Right to disconnect could bolster employee wellbeing
Positive impact
No impact
Negative impact
What impact do you believe a ban on contacting staff outside their working hours would have on staff wellbeing?
What impact do you believe a ban on contacting staff outside of their working hours would have on productivity?
Would you be prepared to accept a lower paid job for a better work-life balance or a job with more purpose?
Yes, for a better work-life balance and more purpose
Yes, for a better work-life balance
Yes, for a job with more purpose
No
41% of professionals rate their current work-life balance as average or poor, almost no change from last year (40%). Around a quarter (26%) of employees are not satisfied with their work-life balance, 42% of whom want to change their working hours including flexible working to improve this balance. 28% of employees would be prepared to accept a lower paid job which offered both a better work-life balance and more purpose. A further 23% would be happy with a lower salary if a job offered a better work-life balance.
Professionals seek better work-life balance
Most employers (79%) believe there is scope for the career progression of their staff at their current organisation. However, employees do not feel the same way, and there has in fact been a decline in sentiment around career progression prospects. 48% of professionals do not feel there is scope for career progression within their current organisation compared to 33% in 2023.
Work to be done to improve visibility of career progression opportunities
of employers believe there is scope for career progression at their organisation
of employees do not think there is scope for career progression at their organisation
The majority of employees (71%) rate their job satisfaction positively, almost no change from last year (73%). The main reasons for being satisfied include having a good fit with their colleagues (49%), flexibility in their working patterns (46%) and their commute not being too long (44%). The main reasons for employees to not feel satisfied with their current job include a lack of career progression (48%), their salary being too low (47%) and a lack of career development opportunities (47%).
Job satisfaction revolves around flexibility and workplace culture
Lack of long-term opportunities
Lack of opportunity to upskill
Top reasons employees are not satisfied with their job
There is no one-size-fits-all when it comes to attracting great talent. From a great workplace culture through to clear career progression pathways, a positive work-life balance or feeling aligned with an organisation’s purpose, there are many aspects of a role that candidates consider.
When considering a new role, what would make an organisation most appealing to employees?
An organisation’s trajectory and growth
A clear commitment to diversity, equity and inclusion
A clear commitment to ESG (environmental, social and governance)
Aside from salary, what factors are most important to professionals when considering a new role compared to those employers believe are important to help them attract and retain staff?
Lack of long term opportunities
The disparity between an organisation’s employee value proposition (EVP) and the reality of working there is considerable, according to a large proportion of accountancy and finance professionals. 44% don’t believe their employer’s EVP aligns with their internal experience of working for them. A further 52% have left a job because it didn’t match the expectations they gained during the application and interview process. When assessing a new job opportunity, an organisation’s purpose plays a major role for staff, with 80% citing this as an important part of their decision-making process. A commitment to sustainability is also a high priority, with 70% of professionals ascribing importance to it.
68
64
Tailored flexible working policies
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60% of accountancy and finance professionals rate their work-life balance positively, which is a figure that’s stayed almost level compared to last year (61%). Hybrid working remains prolific within accountancy and finance, with 70% of employers saying they offer it. For 64% of candidates, the ability to work within a hybrid model is important when it comes to considering a new role, whilst 58% would not consider taking a job that didn’t offer it. A further 14% intend to look for a completely remote role in the coming year.
Additional vacation days
Top three benefits important to employees considering a new role
Top three important flexible working options for employees when considering a new role
Career plans
31% of accountancy and finance professionals changed jobs in the last 12 months, a drop on last year (39%). The main reasons cited for this change were a lack of career progression (34%), a too low salary (23%) and a poor employee-manager relationship (17%). Just under a third (32%) of professionals are dissatisfied with their current role, and over half (58%) plan to switch jobs in the coming year, a considerably higher proportion than last year (47%).
Better salary and/or benefits package
Top three factors that would tempt employees to move job
Top three reasons employees want to leave their current job
Salary and/or benefits package
Just over a third (35%) of accountancy and finance employers say their organisation is recommending the use of AI technologies or tools in the workplace, whilst only a fifth (20%) of employees say they are using these technologies as part of their current role. What’s more, employers aren’t at all confident that they currently possess the skills and expertise they need in their business to use AI to its full potential – less than a quarter (24%) say they currently have access to the right skills to make the best use of AI tools. A further 90% of professionals have received no training or support from their employer when it comes to adopting AI technologies, but 78% would be happy to.
59
According to employees, what are the primary benefits of using AI in the workplace?
During the last year, 88% of accountancy and finance employers increased their employees’ salaries, with 24% increasing wages by more than 5%. This is higher than the 84% who expected to increase pay this year. Salaries within accountancy and finance have increased by an average of 3.6% over the last year. Some areas have seen above average pay rises, including part-qualified professionals (5.8%), those working in accountancy support roles (5.3%) and accounts receivable professionals (5.1%). Part-qualified accountant salaries have seen larger increases as a result of strong demand but a shortage of candidates. Furthermore, higher demand for accountancy support professionals in SMEs is helping to drive up the salaries being offered. These pay rises have equated to a slight rise in salary satisfaction, with only 29% saying they are unhappy with their pay in comparison to 33% last year. A further 87% of employers expect to increase salaries over the coming year.
Discover accountancy & finance salaries
90
88
During the last 12 months how have employers changed their workforces’ salaries?
92% of accountancy and finance employers have experienced skill shortages over the past year, representing a small increase on last year (88%). This is only likely to increase since the majority (69%) are planning to recruit new staff this year, a fairly significant increase on last year (60%). Nearly two thirds (64%) intend to hire permanent staff, while a fifth (19%) are looking to recruit temporary workers. A further 45% say they have struggled to hire temporary staff over the past year – evidence of the challenge employers are facing when it comes to securing skills on a contract basis. Employers also anticipate considerable obstacles to their hiring plans for the coming year. Over three quarters (77%) expect to encounter a shortage of suitable applicants, whilst a further 58% anticipate unrealistic salary requirements from applicants. As a result, 77% would be likely to hire someone who does not necessarily possess all the requisite skills for the role – with the intention of upskilling them. Almost half (47%) say it isn’t important whether a candidate has a degree.
Top five most in-demand soft skills for employers
Coordinating well with others
Ability to adopt change
Flexibility and adaptability
How optimistic are you about the wider economic climate and long-term employment opportunities?
Not optimistic
Optimistic
Just over a third (35%) of employers in accountancy and finance are optimistic about the wider economic climate and its employment opportunities in the coming 2-5 years, representing a small drop on last year (38%). Positivity amongst employees has seen a more significant decrease, with only 24% citing optimism for their longer-term career prospects in comparison to 48% 12 months ago. The external factors that organisations feel pose the greatest threat in the coming year include the economic environment (60%), rising costs for businesses (57%) and recruiting the right talent (49%). Internally, talent retention (56%), managing change (53%), and skills shortages within current teams (37%) are seen as the biggest challenges. Accountancy and finance employers are keen to meet these challenges to the economic environment head on, with increasing operating profit (60%) and increasing turnover (45%) seen as the two strategic goals currently being given the most focus by their organisation.
Survey highlights
plan to move job in the next 12 months
have left a job in the past because it didn’t meet expectations
are not satisfied with their salary
want to upskill to adopt AI in the workplace
don’t have access to the right skills to make the best use of AI
plan to increase salaries in the next 12 months
experienced skills shortages in the last year
plan on recruiting staff over the next 12 months
92
69
Hiring plans are expected to strengthen once more in accountancy and finance over the coming year, and traditional finance and accounting skills will undoubtedly still be sought after. However, organisations are increasingly looking for professionals with holistic and cross-functional skillsets, meaning individuals possessing a combination of digital literacy – particularly regarding AI – and the ability to act as a true business partner will be highly sought-after.
Karen Young Director - Accountancy & Finance, Hays
ACCOUNTANCY & FINANCE
Hiring activity accelerates as skills shortages soar
Candidate movement in accountancy and finance has slowed a little over the past year, but hiring plans now appear to be on the increase amongst employers. This, combined with healthy salary increases, presents a wealth of opportunity for finance professionals seeking new roles, and organisations must make sure their internal culture matches expectations if they’re to hold on to the talent they need.
Top three expected external and internal challenges over the next 12 months
External challenges
Internal challenges
What type of staff will employers be recruiting?
Permanent
Temporary
Karen Young Director – Accountancy & Finance, Hays
AI and sustainability skills has been dominating the key challenge conversation for UK accountants, with the response showing a profession keen to learn and adapt. ACCA takes an annual look at the current state of the UK workplace for finance professionals in its Global Talent Trends which analyses key areas. Accountants see AI as a tool to add more value to their roles and reduce data-heavy tasks. It follows that AI and data skills are in demand. ACCA’s survey indicates three quarters (71%) are keen for more training on how to best use AI demonstrating that the UK’s finance professionals want to understand and utilise AI effectively. In addition, in 2024 ACCA undertook a skills analysis of 25,000 accountancy-related jobs. The analysis found that analytical and audit roles were most likely to require advanced capabilities – such as data science knowledge – while data management skills were in greater demand for transactional roles. The other crucial area where new skills are in demand is sustainability. ACCA has launched a pioneering Professional Diploma in Sustainability, designed for accountants at all levels who are looking to gain a comprehensive understanding of sustainability and accreditation to prove it. The knowledge covers frameworks and ethics, strategy and management, reporting and assurance. The integration of AI and sustainability into the accountancy skillset and knowledge is an evolution. Both represent challenges and opportunities for the profession, and they will permanently affect every organisation, and the way every accountant works. But with historically strong foundations, the accountancy profession is well placed to successfully embrace this exciting new era.
Strategic Engagement Lead | ACCA UK
Gemma Gathercole
4/5
The need for the accountancy and finance industry to deliver value and ethical leadership has never been more vital, as it navigates unprecedented economic and geopolitical instability. Employers continue to expect the Chartered Accountants’ (CAs) skillset to go beyond financial expertise, seeking talent with the ability to provide strategic counsel relevant to the changing environment. Transforming business models to align with climate goals presents huge opportunity for the industry. With their analytical mindset, CAs are well placed to play a leading role in supporting organisations to take accountability for their environmental and societal impact. But this new responsibility requires staying abreast of the ever-evolving sustainability reporting and assurance landscape. Rapid advancements in technology are also reshaping the industry. AI and cloud-based software integration has automated routine tasks, increasing efficiency and freeing time to focus on specialist activities. However, CAs now require advanced analytical skills to translate the large volumes of data these technologies produce into usable and trusted information, adding to their already expanding workload. To address these challenges and maintain a strong pipeline of skilled professionals, ICAS has updated its CA qualification at all levels. In addition to core technical accountancy knowledge, our future-looking syllabus has been designed to keep pace with modern advances in sustainability and technology. This ensures that the next generation are fully equipped to become the business leaders of tomorrow.
CEO | Institute of Chartered Accountants of Scotland (ICAS)
Bruce Cartwright CA
3/5
The 2024 CIPP Future of Payroll report highlights key trends shaping the payroll profession, including the importance of benefits, professional qualifications, and the impact of automation and AI. As employees seek more than a basic salary, 46% of those surveyed told us they have enhanced their benefits offerings, with 18% planning to follow. This shift shows a growing commitment to offering comprehensive rewards to attract and retain talent. Payroll qualifications remain crucial for compliance, with evolving and fast-paced changes to legislation. 57% of employers told us they offer payroll-related qualifications as a benefit, with 83% covering costs and 69% offering study leave. Additionally, 43% recognise these qualifications within their companies, offering pay raises or promotions. Earned Wage Access (EWA) is another emerging trend, allowing employees to access a portion of their earned pay, before their usual payday. In 2023, the CIPP worked with seven EWA providers to launch an EWA Code of Conduct. This was established in response to a Financial Conduct Authority (FCA) recommendation and sets best practice standards for EWA providers, to ensure positive outcomes for employees. Advances in AI could also start to reshape payroll roles. 84% of survey respondents believe AI will change the industry, enabling specialists to transition from routine tasks to more strategic roles. As the only Chartered Institute for the UK payroll profession, the CIPP remains dedicated to supporting the industry, ensuring compliance and best practice, and promoting fair pay structures, reflecting the vital contribution our industry has to the UK economy.
Marketing Manager | Chartered Institute of Payroll Professionals (CIPP)
Sarah Winnett MCIM ACIPP
2/5
Everywhere you look today, and indeed across many different industries, the availability of talent continues to be an ongoing theme. Whether its construction firms talking about a lack of carpenters or bricklayers, the hospitality sector struggling to find sufficient chefs and kitchen staff, or the healthcare sector bemoaning a shortage of doctors and nurses, it’s a message that resonates with senior management and their representative bodies in many trades and professions. The Credit industry is no different. Whereas it is pleasing to see that the ‘churn’ rate of individuals encouraged to move from one company to another with the promise of better pay and conditions is slowing, it is concerning that we still don’t have sufficient numbers of credit managers and other credit sector specialists trained and available to fill certain roles. Firms are responding by seeking to attract new talent into the industry, as well as investing significantly in the training and development of existing teams. This helps not only to bind them more closely to their employer, but also ensures they are equipped with the appropriate skills to deal with new challenges, not least Consumer Duty. But whereas Consumer Duty represents a new area of focus, many of the ‘older’ and more familiar challenges still exist, not least the need to manage and mitigate risk, and to keep the cash flowing. For however much new fashions may come and go, cash is still king and its reign shows no signs of weakening meaning Credit Management teams remain central to good business.
CEO | Chartered Institute of Credit Management
Sue Chapple FCICM
1/5
External
Internal
The 2024 CIPP Future of Payroll report highlights key trends shaping the payroll profession, including the importance of benefits, professional qualifications, and the impact of automation and AI. As employees seek more than a basic salary, 46% of those surveyed told us they have enhanced their benefits offerings, with 18% planning to follow. This shift shows a growing commitment to offering comprehensive rewards to attract and retain talent. Payroll qualifications remain crucial for compliance, with evolving and fast-paced changes to legislation. 57% of employers told us they offer payroll-related qualifications as a benefit, with 83% covering costs and 69% offering study leave. Additionally, 43% recognise these qualifications within their companies, offering pay rises or promotions. Earned Wage Access (EWA) is another emerging trend, allowing employees to access a portion of their earned pay, before their usual payday. In 2023, the CIPP worked with seven EWA providers to launch an EWA Code of Practice. This was established in response to a Financial Conduct Authority (FCA) recommendation and sets best practice standards for EWA providers, to ensure positive outcomes for employees. Advances in AI could also start to reshape payroll roles. 84% of survey respondents believe AI will change the industry, enabling specialists to transition from routine tasks to more strategic roles. As the only Chartered Institute for the UK payroll profession, the CIPP remains dedicated to supporting the industry, ensuring compliance and best practice, and promoting fair pay structures, reflecting the vital contribution our industry has to the UK economy.
Sarah Winnett
MCIM ACIPP, Marketing Manager | Chartered Institute of Payroll Professionals (CIPP)
Sue Chapple
FCICM, CEO | Chartered Institute of Credit Management
The pace of change has increased dramatically over the last few decades, and we have seen this trend intensify recently. In the past few years alone, we have experienced a global pandemic, a turbulent geopolitical context, skyrocketing inflation, and the emergence of artificial intelligence (AI) into mainstream business – it has been a bumpy ride, and one that is set to continue. As a result, organisations have had to adapt quickly, and constantly find new ways to grow, innovate, and operate more efficiently. As organisations redefine their business models, they are challenging their finance teams to focus on driving value creation and supporting strategic decision-making. To successfully embrace this change, finance professionals must possess a broad range of skills and capabilities. Beyond technical finance skills, they now also need technological skills, power skills (e.g. interpersonal, communication, and emotional intelligence skills), a digital mindset, business and commercial acumen, and deeper specialisation in emerging areas such as AI, data analytics, decision support, and sustainability. In an era of constant disruption, the ability to adjust course quickly is the difference between business failure and success. Employers have told us that they particularly value the problem-solving capabilities finance professionals develop by undertaking the CGMA Professional Qualification. For finance professionals seeking to differentiate themselves in a competitive job market, earning the CGMA designation puts them in a strong position to unlock a world of opportunities. In this context, there has never been a better time to be a management accountant.
Paul Turner
FCMA, CGMA, Vice President – UK and Ireland | AICPA & CIMA, together as the Association of International Certified Professional Accountants
5/5
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When it comes to their organisation’s employee value proposition (EVP), more than two fifths (44%) of business support professionals do not believe it aligns with their internal experience working for their organisation. 58% of employees say they have left a role because it didn't match the expectations they gained during the application and interview process. An organisation’s purpose is important to candidates considering a new role, with 86% stating so. A further 76% believe that an organisation’s commitment to sustainability is also important, as is a diverse and inclusive organisational culture to 84% of professionals.
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Looking at employees’ attitudes towards ways of working, 60% rate their work-life balance as good, with only 10% feeling negatively about it. When considering a new role, more than half (52%) of business support professionals say hybrid working is the most important flexible working option to them, followed by home or remote working (49%) and a four-day working week (43%). 37% of professionals say they would not consider accepting a job in the future that didn’t offer hybrid working. Despite preferences for flexible working, only 37% of respondents say they currently work in a hybrid way, with just under half (49%) working full-time in the office and 14% working fully remotely. In the future, 35% of professionals plan to find a new role where they can work in a hybrid way, and 15% will seek a fully remote role. 68% of business support employers say they offer staff the opportunity to work in a hybrid way. This appears to have had a positive impact, as 40% of employers state offering hybrid working has increased talent retention, with only 2% saying otherwise.
My salary and/or benefits package
In the last 12 months, 38% of candidates have changed jobs, and a further 33% have considered doing so. The main reasons business support employees left their last role was because of a lack of career progression (25%), their commute being too long (19%) and lack of job security (19%). A third (33%) of business support professionals are not satisfied in their current role, mainly because they feel their salary is too low (57%) or there is a lack of career development opportunities (56%) or career progression (48%). With satisfaction levels in mind, 58% of employees anticipate they will move jobs within the next year, a slight increase compared to those who planned to do so last year (54%). For those not planning on changing job in the next 12 months (42%), nearly two fifths (38%) say a better salary and benefits package could tempt them to switch roles.
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Discover business support salaries
The majority of business support employers (80%) have increased salaries over the last year. Pay has risen by an average of 4.7% in the last 12 months. For junior level roles, the increase in the national minimum wage as well as greater demand for those with more experience is causing pay increases. Certain roles such as receptionists are taking on more responsibilities and administrative duties resulting in pay increases for these professionals. Employees are generally satisfied with these increases, with 64% of respondents saying they are happy with their pay. The trend of increasing salaries seems to be continuing, as 78% of employers say they intend to increase salaries next year. Only 2% plan on decreasing salaries, with 20% saying they’ll stay the same.
When it comes to AI within the workplace, 62% of organisations do not recommend the use of AI technologies or tools in the workplace. Furthermore, those within business support are not adopting the new tools and technologies as rapidly as other industries, with only 18% of employees currently using them as part of their jobs. Despite this lack of use, 65% of employers expect they will allow staff to use AI tools, with most planning to monitor usage, although 42% say they do not currently have access to the right skills to enable the best use of AI tools and technology. Employers do not seem to be helping facilitate the adoption of these tools and technologies either, as 91% of employees say they haven’t received any training or support integrating AI into their work. Employees are receptive to AI within the workplace. 72% say they’re willing to take part in upskilling or reskilling programmes, but 78% of employers say they don’t offer training or support for the use of AI.
In the last year, 89% of business support employers say they’ve experienced skills shortages, an increase compared to the year before (85%). Pay levels are perceived as the main cause of skills shortages by more than half of employers (53%). A further 50% believe competition from other employers is driving a shortage of skills, whilst 26% say fewer people entering the job market in the industry is the main reason. The most difficult business support positions to fill are at intermediate level (30%) according to employers. 76% of employers say they are likely to hire a professional who does not possess all the required skills, with the intention of upskilling them, and 61% do not feel it’s important for a job applicant to have a degree. When it comes to upskilling, 56% of employees would prefer they were allowed time during working hours to complete training, 55% want their employer to invest in training and a further 37% would like time off to attend relevant conferences, seminars or talks. Over three quarters (76%) of employers plan to hire business support professionals in the year ahead, almost no change from last year (79%). However, a shortage of suitable applicants (63%), applicants with unrealistic salary requirements (55%) and competition from other employers (46%) are potential challenges employers expect to encounter when recruiting staff over the next 12 months.
Looking at the wider economic climate and the employment opportunities it may or may not create within the next two to five years, only 27% of business support employers are optimistic. Candidates are even less optimistic, with just 19% saying they are enthused about potential opportunities from the wider economic climate in the next few years. The economic environment is also described as the greatest external challenge employers think their organisations will face over the next 12 months (56%). More than half of employers also say rising costs for businesses (54%) and issues recruiting the right talent (52%) are the biggest challenges they anticipate in the year ahead. Looking internally, employers believe they will have trouble managing change (60%), as well as face issues with talent retention (55%) and their company culture (44%) in the year ahead. However, organisations are taking steps to address any challenges, such as increasing operating profit (50%), gaining market share (40%) and stabilising their core business (also 40%). These strategic goals are currently the focus of their organisations, although potential issues such as limited finances or budgets (35%) and rising costs for businesses (20%) are likely to limit these goals, according to employers.
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Addressing the critical skills gaps within the business support profession is paramount. Despite plans to recruit new talent and increase salaries, the shortage of suitable applicants remains a significant challenge, with targeted recruitment and upskilling strategies essential to bridge these gaps.
Roddy Adair Director – Business Support, Hays
BUSINESS SUPPORT
Skills shortages continue to become more acute
With the majority of employers experiencing skills shortages in the past year, it is becoming even more important for organisations planning to hire business support professionals to offer a competitive salary, clear career progression pathways flexible ways of working.
41% of employees do not believe their organisation’s employee value proposition (EVP) aligns with their internal experience of working for the organisation. Having an accurate EVP is important, given that 60% of employees say they have left a job because it didn’t match the expectations they gained during the application and interview process. When considering a new role, 84% of employees believe that an organisation’s purpose is important when considering a new role. Other factors that are important to potential new talent include an organisation’s commitment to sustainability (76%) and having a diverse and inclusive organisational culture (75%).
Discover salaries for construction & property
More than half (53%) of professionals rate their work-life balance positively, with only 10% rating theirs negatively. More than half (56%) of professionals are currently working fully in the workplace, 30% are working in a hybrid way, and 14% are working fully remotely. When considering a new role, the four-day working week is the most important flexible working option for employees in the sector (41%), followed by hybrid working (34%) and home or remote working (31%). In the next 12 months, over a quarter (27%) of professionals say they plan to find a new role that is more of a mix of hybrid working, with only 6% after roles that are more office-based. 49% of employers say they offer hybrid working, with a further 44% offering agile working hours or flexi-time, giving staff the scope to change work hours outside of "core" business periods. Where it is possible to offer hybrid working when the work is suited to it, doing so appears to have positive outcomes, as 48% of employers say offering hybrid working to staff has increased retention.
Company car or car allowance
In the last 12 months, 36% of professionals changed jobs, and a further 31% considered doing so. Professionals cite a lack of career progression (29%), a lack of job security (25%) and salaries being too low (19%) as the main reasons for their change. Over three-quarters of professionals (76%) are satisfied with their current roles, with 24% saying they are not satisfied. In terms of why they are dissatisfied with their jobs, respondents aligned with their colleagues who have switched roles, with a lack of career progression (46%), salaries too low (44%) and a lack of career development opportunities (43%) as their main reasons. In the next year, however, 59% anticipate they will move jobs within the next year for better salaries and benefits packages (35%). For those not planning on changing jobs this year, 46% could be tempted to do so by a better salary and benefits package and 24% would consider doing do for a better job location.
Over the last 12 months, 78% of employers say they have increased salaries or rates of pay, by an average of 2.5% across the industry. Some areas received above average pay increases over the last year. For example, social housing salaries increased by an average of 4.3% driven in part by National Living Wage increases. Pay for construction roles rose by an average of 2.9% and general practice roles increased by an average of 2.8%. These increases have been well received by professionals, with 69% satisfied with their salary or pay rate. Most organisations (77%) are expected to increase salaries once again in the next year.
2.5
Discover construction & property salaries
AI is not widely being adopted by the sector, with 74% of employers not recommending the use of the tools and technologies and 83% of professionals are not currently using them as part of their jobs. In the future however, 62% of employers expect their organisations will allow staff to use AI tools, with 54% of those planning to monitor usage. With this outlook in mind, only 27% of employers currently have access to the right skills to enable the best use of AI tools and technology, with 37% not having access to these skillsets. Despite the lack of AI skills within organisations, 93% of professionals say they have not received any training or support from their employer to adopt AI into their work, but 63% would be willing to upskill or reskill in this area. 74% of organisations do not offer training or support for the use of AI.
In the last year, almost all (96%) organisations within the construction and property sector have experienced skills shortages, with the majority of those (59%) facing moderate skills shortages. Employers have mostly struggled to fill intermediate positions, with 46% stating so. According to employers, fewer people entering the job market in the industry (56%), competition from other employers (49%) and pay levels (31%) are the main causes of skills shortages in the sector. Considering the skills gap employers are facing, almost three-quarters (73%) say they are likely to hire a professional who does not possess all the required skills for a role, with the intention of upskilling them. When it comes to upskilling, professionals would prefer their employers to offer an investment in training (53%), time during working hours to complete training (48%) and time off to attend relevant talks, conferences or seminars (31%). 83% of employers plan to recruit staff over the next year, almost no change from last year (82%). Hiring challenges are expected, including a shortage of suitable applicants (83%), competition from other employers (55%), and applicants with unrealistic salary expectations (54%).
Looking at the wider economic climate, 37% of employers in the construction and property sector are optimistic about the employment opportunities it may or may not create within the next two to five years. Professionals working within the sector are less optimistic however, with only 21% of respondents stating so, a decrease from 46% who said the same last year. Issues recruiting the right talent is the main external challenge that more than half of organisations expect to face over the next 12 months, followed by the organisations (55%) expect. Talent retention (52%), skills shortages (51%) and managing change (40%) are anticipated as the main internal factors presenting the greatest challenge to organisations in the sector over the next 12 months. Strategically, organisations are currently focused on increasing operating profits (53%), as well as increasing turnover (39%) and stabilising their core businesses (28%).
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The construction and property sector is facing significant skill shortages, with most employers planning to recruit in the next 12 months. Employees are prioritising job satisfaction, career growth, and flexible working, while many employers plan to increase salaries to attract and retain talent.”
Brendan Ryan Director - Construction & Property, Hays
construction & property
Hiring plans remain steady in light of worsening skills shortages
The construction and property sector is navigating a dynamic landscape, with employers eager to expand their teams but facing significant skill shortages. Offering a competitive pay and benefits package, as well as portraying an authentic view of what it’s like to work at an organisation, are vital to securing staff in the months ahead.
3/3
The relatively restrictive interest rate environment over the past year has weighed on UK construction activity, with the latest estimates pointing to around a 1.5% contraction in output across the sector over the last twelve months. Alongside financial constraints, planning and regulation issues as well as labour shortages are frequently cited as barriers to activity within the market. The former has been earmarked by the new government as an area needing urgent tackling through streamlining processes. Whilst the latter has seen moderating over recent quarters, the proportion of respondents (roughly one third) citing this as an obstacle remains significant and long-term question marks remain over the industry’s struggles to attract young professionals to the sector. Consensus forecasts indicate that, whilst output is expected to end the year 2-3% down on 2023 levels, a more positive trend is anticipated in 2025, with projections pointing to around 2% growth. In keeping with this, workloads expectations for the twelve-months ahead (taken from the latest RICS Construction Monitor) are now comfortably positive, evidenced by a net balance of +25% of respondents anticipating an uplift in activity. Furthermore, employment expectations are also firmly in positive territory at a net balance of +23%. Forecasts also indicate that infrastructure is likely to be one of the strongest performing sectors over the coming year. Within infrastructure, expectations are particularly upbeat in the energy sector with Hinkley Point C and the recent uplifting of bans on onshore windfarms likely to play a central role. Elsewhere, development workloads in the residential and commercial sector are also seen improving over the coming twelve months, even if the recent trend has been largely subdued.
Economist | RICS
Adib Munim
2/3
Every worker has the right to go home safe and well at the end of every day. In fact, a safe and healthy working environment is now recognised by the International Labour Organization as a fundamental principle and right at work. Sadly, we know that this isn’t something which is afforded to everyone. This is something we are seeking to change, driven by our members, occupational safety and health (OSH) professionals who are dedicated to protecting people. Of course, the way we work is changing and that is creating new risks to people’s safety, health and wellbeing. The introduction of new technologies, the impact of climate change and demographic changes to the workforce are among the factors that businesses need to consider, not just in terms of the effect on their bottom line but, crucially, what it means for their most important resource – their people. Key to managing this successfully are OSH professionals. They balance existing risks with new and emerging risks. To be able to do this competently, they need to be able to keep themselves up-to-date, supported by IOSH, while also ensuring they have the soft skills so they can influence at all levels of an organisation. If a business is to be truly sustainable in this volatile, uncertain, complex and ambiguous time we live in, then it starts with looking after their people. OSH professionals are front and centre of making this happen.
Director of Professional Services | Institution of Occupational Safety and Health
Nicole Rinaldi
1/3
The demand for Architectural Technology professionals remains strong in the UK, particularly due to their expertise in building safety, digital construction, retrofit and net zero. This high demand is reflected in the attractive remuneration packages being offered across the sector and in all home nations. While artificial intelligence is becoming an ever more prevalent and useful tool in the built environment, the insights it provides will still require scrutiny by professionals with a deep understanding of construction to ensure AI-driven decisions are accurate, appropriate and beneficial for projects. Developments in apprenticeships are broadening career options within the profession, making it more diverse and accessible to a wider range of individuals. Inquiries into the Grenfell Tower fire tragedy have informed new legislation and regulations, and as a consequence have created important roles, including the Principal Designer under the Building Regulations. Chartered Architectural Technologists are ideally suited for this role, prompting CIAT to develop a Principal Designers’ Register to enable them to demonstrate their competence, ensuring safer buildings for the betterment of society.
Chief Executive | Chartered Institute of Architectural Technologists (CIAT)
Tara Page
CONSTRUCTION & PROPERTY
Emoloyers
Looking at the wider economic climate, 37% of employers in the construction and property sector are optimistic about the employment opportunities it may or may not create within the next two to five years. Professionals working within the sector are less optimistic however, with only 21% of respondents stating so, a decrease from 46% who said the same last year. Issues recruiting the right talent is the main external challenge that more than half of organisations expect to face over the next 12 months, followed by the organisations (55%) expect. Talent retention (52%), skills shortages (51%) and managing change (40%) are anticipated as the main internal factors presenting the greatest challenge to organisations in the sector over the next 12 months. Strategically, organisations are currently focused on increasing operating profits (53%), as well as increasing turnover (39%) and stabilizing their core businesses (28%).
The construction and property sector is facing significant skill shortages, with most employers planning to recruit in the next 12 months. Employees are prioritising job satisfaction, career growth, and flexible working, while many employers plan to increase salaries to attract and retain talent.
Brendan Ryan Director – Construction & Property, Hays
In the last year, almost all (96%) organisations within the construction and property sector have experienced skills shortages, with the majority of those (59%) facing moderate skills shortages. Employers have mostly struggled to fill intermediate positions, with 46% stating so. According to employers, fewer people entering the job market in the industry (56%), competition from other employers (49%) and pay levels (31%) are the main causes of skills shortages in the sector employers. Considering the skills gap employers are facing, almost three-quarters (73%) say they are likely to hire a professional who does not possess all the required skills for a role, with the intention of upskilling them. When it comes to upskilling, professionals would prefer their employers to offer an investment in training (53%), time during working hours to complete training (48%) and time off to attend relevant talks, conferences or seminars (31%). 83% of employers plan to recruit staff over the next year, almost no change from last year (82%). Hiring challenges are expected, including a shortage of suitable applicants (83%), competition from other employers (55%), and applicants with unrealistic salary expectations (54%).
Communication and interper-sonal skills
Future opportunities:
Economist, RICS
Around a third of employees (34%) do not believe their organisation’s employee value proposition (EVP) matches with their own experiences working there. 54% of professionals say they have left a job in the past because it did not align with the expectations they gained during the application and interview process. Other important factors to education sector employees when considering a new role include an organisation’s purpose (90%), how diverse and inclusive an organisation’s culture is (87%) and an organisation’s commitment to sustainability (78%).
Discover salaries for education
42% of professionals in the education sector rate their work-life balance as average or poor, almost no change from last year (43%). Most employees are currently working full-time in the workplace (69%), while a further 25% are working in a hybrid way, an increase from 20% last year. Those working within independent or private schools/organisations are the most likely to be working in a hybrid way (36%) followed by those working in MATs (20%). The most valuable flexible working options to professionals in the sector when assessing a new job are term-time working with annual leave during the school holidays (41%), a four-day working week (41%), hybrid working (40%) and home or remote working (36%). In the year ahead, 28% of professionals plan to find a new role that offers them more of a mix of hybrid working, and just over a third (35%) would not consider accepting a job in the future that didn’t offer hybrid working. 36% of organisations in the sector offer hybrid working to employees, 36% of whom say offering this way of working has increased staff retention. 29% say there has been no impact on retention while a further 33% are unsure of the effects.
Term-time working
Almost a quarter of professionals (23%) are not satisfied in their current role. The main reasons for being dissatisfied include feeling their salary is too low (51%), a lack of career development opportunities (46%) or a lack of career progression (42%). More than half of employees in the education sector (51%) plan to change jobs in the year ahead, and over a quarter (26%) plan to change sector. For those not planning on changing jobs in the year ahead, a better salary and benefits package could tempt 36% to consider moving.
Outside of those following national pay guidance, 84% of organisations increased the pay of their staff over the last year and a further 14% say salaries stayed the same. A third (33%) of professionals are not satisfied with their current salary, mainly because they feel it does not reflect either their responsibilities (54%), their individual performance (53%) or their experience and expertise (53%).
In the year ahead, 84% of employers not following national pay guidance plan to increase the salaries of their staff, and a further 15% expect pay to stay the same.
Discover education salaries
Although less than a quarter (24%) of education professionals are currently using AI technologies as part of their job, 42% of employers are recommending that staff use AI tools in the workplace. 78% of employers expect to allow staff to use AI tools in the future. The main benefits that employees feel AI can bring to their workplace include creativity and idea generation (52%), increased productivity and efficiency (48%) and support in data analysis (31%). Just under half (48%) of employers don’t believe they have access to the right skills to enable them to make the best use of AI tools. 41% of employers say their organisation offers training or support to staff to use AI. Despite this, only 14% of employees say they have received AI training at work, but almost three quarters (72%) would be willing to upskill or reskill in AI technologies.
Almost all employers in the education sector (96%) have faced skills shortages over the last year, an increase from (93%) the year prior. Teachers (51%), classroom-based support staff (39%) and other support staff such as administration staff (29%) have been the most difficult roles to recruit for. Employers believe the main drivers of skills shortages in the sector are fewer people entering the job market (51%), competition from other employers (40%), a lack of hybrid working opportunities (25%) and people leaving to join a different sector (23%). Hiring plans remain high, with three quarters of employers (75%) planning to recruit staff in the year ahead, although this is a decrease from 82% who said the same last year. Recruitment is expected to be busiest within independent or private schools/organisations (86%) as well as MATs (78%). Organisations plan to lean less heavily on temporary staff over the next 12 months. 24% plan to hire temporary professionals compared to 48% last year. Most will be focusing on permanent recruitment in 2025 (68%). When hiring in the year ahead, employers expect to face a shortage of suitable applicants (86%), competition from other employers (51%) and applicants with unrealistic salary requirements (42%).
Employers and employees within the education sector do not feel positively about the impact of the wider economic climate on long-term employment opportunities, with just 26% of employers and 18% of employees saying they are optimistic. Employers expect to face a range of challenges in the year ahead, including being able to recruit the right talent (59%), the economic environment (57%) and rising costs for organisations (55%). From an internal perspective, retaining talent remains the top challenge employers predict they will face in the next 12 months (58%). This is followed by managing change (50%) and skills shortages within their current team which has increased to 48% from 41% last year.
say managing change will be a key challenge in the year ahead
Hiring plans remain busy for the year ahead, with schools focusing on securing more permanent employees. Where it’s possible, hybrid working is being offered more freely to staff and can help organisations to attract applicants to apply for roles.
Paul Matthias National Director – Education, Hays
education
Skills shortages on the rise
Employers in the education sector are facing broadening skills shortages and recruiting and retaining the right talent remain key challenges for the year ahead. Organisations that can offer clear career opportunities and some form of flexibility in ways of working to staff are the most appealing to professionals changing job.
Rising costs for organisations
Skills shortages within current teams 48%
Almost all employers in the education sector (96%) have faced skills shortages over the last year, an increase from 93% the year prior. Teachers (51%), classroom-based support staff (39%) and other support staff such as administration staff (29%) have been the most difficult roles to recruit for. Employers believe the main drivers of skills shortages in the sector are fewer people entering the job market (51%), competition from other employers (40%), a lack of hybrid working opportunities (25%) and people leaving to join a different sector (23%). Hiring plans remain high, with three quarters of employers (75%) planning to recruit staff in the year ahead, although this is a decrease from 82% who said the same last year. Recruitment is expected to be busiest within independent or private schools/organisations (86%) as well as MATs (78%). Organisations plan to lean less heavily on temporary staff over the next 12 months. 24% plan to hire temporary professionals compared to 48% last year. Most will be focusing on permanent recruitment in 2025 (68%). When hiring in the year ahead, employers expect to face a shortage of suitable applicants (86%), competition from other employers (51%) and applicants with unrealistic salary requirements (42%).
Communication and inter-personal skills
Outside of those following national pay guidance, 84% of organisations increased the pay of their staff over the last year and a further 14% say salaries stayed the same. A third (33%) of professionals are not satisfied with their current salary, mainly because they feel it does not reflect either their responsibilities (54%), their individual performance (53%) or their experience and expertise (53%). In the year ahead, 84% of employers not following national pay guidance plan to increase the salaries of their staff, and a further 15% expect pay to stay the same.
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School trusts are not immune from the changes in the wider work environment covered by the survey, but they do have some unique constraints. Working from home can be a challenging proposition when you need to have teachers physically in front of pupils for much of their working day, but lots of trusts are finding ways of offering more flexibility for staff. We have also seen trusts really drive improvements in professional development for staff. By coming together in a group they can also often offer new types of career progression, with roles that operate across the organisation. One continued strength of schools is the real purpose behind everything we do. With people increasingly seeking a better work life balance, a job that contributes to helping young people flourish remains uniquely attractive.
Steve Rollett
Deputy Chief Executive, Confederation of School Trusts
The demand for highly-skilled EAs and PAs remains high, and for experienced and qualified support staff, job opportunities can be found with scope to add wider organisational value by undertaking project work, overseeing budgets, line management and supporting and leading on company initiatives such as employee satisfaction and wellbeing. Indeed, many EAs and PAs are now asked to carry out dual-roles, such as supporting their executive or leader, and undertake team-leading or project work. Employers demand value-for-money, and competence in technical skill is a given – interviews are more rigorously aligned to exploring the management competencies and soft skills the job-holder brings to their role. Cultural fit, demeanour and mindset are increasingly important, as well as an agile approach to the fast pace of business. Additionally, job-holders who can offer a strong commercial and business-mind, and a more strategic approach to their job, with the potential to take on additional responsibility, command higher salaries than those performing the role in a more traditional way. For the high-performing PA/EA, training and development is key if they are to be retained, as well as an understanding on the part of the employer of reciprocity and recognition, above and beyond a salary. As ever, qualifications at higher-education level demonstrate to an employer higher-order skills, such as critical thinking and evaluation, as well as the soft skills which underpin strong leadership and a great culture that cannot be replicated yet by AI or ChatGPT, and remain part of the EA’s repertoire.
For many engineering professionals, there is a considerable disparity between their employer’s employee value proposition (EVP) and the actual reality of working there. 47% don’t think their organisation’s EVP aligns with their internal experience of working there. An additional 57% have actually left a role because it didn’t match the expectations they gained during the application and interview process. When it comes to considering a new role, an organisation’s purpose is a very significant deciding factor, with 86% saying it’s an important part of the decision-making process – up slightly from 83% last year. A commitment to sustainability – which is currently playing a significant role in the engineering and manufacturing sector – is also a high priority for job seekers, with 76% ascribing importance to it.
Discover salaries for engineering & manufacturing
Just under half (49%) of engineering and manufacturing professionals say they have a good work-life balance, showing a downward trajectory from the previous year (58%). Current ways of working remain roughly aligned with last year, with 59% based fully in the workplace and only 30% working as part of a hybrid model. For a significant proportion of engineering professionals, however, the ability to work in a hybrid fashion is important. Just over a quarter (26%) plan to find a new role in the coming year that’s more of a mix of hybrid working.
Employee movement has slowed slightly over the past year, with 38% of engineering and manufacturing employees switching jobs during the last 12 months in comparison to 42% the year before. The top reasons cited for moving were a lack of career progression (31%), a too low salary (20%) and a lack of learning and development opportunities (19%). Just over a third (34%) of professionals are dissatisfied with their current job, with a lack of career development opportunities (45%) cited as the main reason. A further 51% plan to find a new role in the coming year.
82% of engineering and manufacturing employers increased their employees’ salaries over the past 12 months, with 24% hiking them by more than 5%. This is nevertheless slightly lower than the 85% who expected that salaries would increase. Salaries within the industry increased by an average of 4.1% over the last year. Pay rises were especially high within defence roles, driven by demand for certain senior roles as well as an ongoing competition for professionals with experience on safety-critical projects. Project managers within technical engineering are also in strong demand and are therefore seeing above average pay increases. These pay rises have resulted in an increase in salary satisfaction amongst employees – with 72% saying they are happy with their pay in comparison to 63% last year. A further 79% of employers expect salaries to rise over the coming year.
Discover engineering & manufacturing salaries
Despite its potential, AI adoption in the engineering and manufacturing industry remains limited, with only 18% of employees saying they currently use AI tools in their current role. These technologies are, however, expected to become more prolific in the years to come – 61% of employers say that they expect to allow staff to use AI, but with the caveat that usage is monitored. If AI technologies are to be utilised effectively by organisations, however, it’s essential that they have access to the right skills. 41% of employers say they are currently experiencing some degree of skills shortages when it comes to the use of AI tools, which is higher than last year (35%). A further 90% of professionals have not received any training or support from their employer when it comes to AI adoption, but 71% would like to.
Skills shortages remain prolific in engineering, with the overwhelming majority (98%) of employers saying they’ve experienced them in the past year. Hiring plans also remain strong, with 76% planning on recruiting new staff in the coming year. Nearly three quarters (72%) intend to recruit permanent staff, while just 18% are looking to hire temporary workers. Engineering employers have found it especially difficult to secure mid-level professionals over the past 12 months, with well over half (56%) of those who’ve encountered skills shortages saying they’ve struggled to hire intermediate-level professionals. These hiring challenges are expected to continue in the coming year – 79% anticipate a shortage of suitable applicants, with 51% attributing these talent shortages to fewer people entering the job market in engineering. The competitive skills market means employers are willing to open up roles to candidates from a broader variety of backgrounds – 79% would be likely to hire someone who does not necessarily possess all the required skills for the role – with the intention of upskilling them – while half (50%) say it isn’t important whether a candidate has a degree.
Positivity around the wider employment landscape has dropped for both employers and employees this year. 34% of engineering employers say they are optimistic about the wider economic climate and its employment opportunities in the coming 2-5 years, in comparison to 46% last year, while only 22% of employees cite positivity in comparison to 44% the year before. The top three external challenges that engineering employers expect to face this year are recruiting the right talent (60%), rising costs for businesses (56%) and the economic environment (55%). Internally, talent retention (59%), skills shortages within current teams (51%) and managing change (49%) are seen as the biggest challenges. Strategically, increasing operating profit (60%) is seen as the biggest focus for organisations, followed by gaining market share (38%).
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Whether it's piloting the use of digital twins, leveraging on the potential of artificial intelligence and robotics, or factoring in the growing importance of sustainable design and energy use, the engineering sector is facing a number of challenges and opportunities over the coming year - and they'll need the right skills to meet them.
Paul Gibbens Director – Engineering, Hays
ENGINEERING & MANUFACTURING
Pay hikes equate to improved salary satisfaction
Skills shortages abound for the vast majority of engineering employers, with a lack of new entrants to the workforce placing a strain on organisations. Opening up roles to candidates from a wider variety of backgrounds and adopting a degree of flexibility when it comes to skills and experience could help employers strengthen and secure their talent pipeline.
Top three flexible working policies for employees when considering a new role
Agile working/flexitime
The need for ethical leadership has never been more important in business. People need to trust our profession and have faith that we are always doing the right thing. The Edelman Evaluating Trust in the Accountancy Sector for Chartered Accountants Survey puts trust at an all-time high. Trust in Chartered Accountants (CAs) globally increased from 78% (2021) to 85% (2023) and in Scotland from 77% (2021) to 87% (2023). Sustainability and net zero, and the need to hold businesses and organisations accountable for their environmental and societal impact, is a fast-moving field. This includes re-evaluating our business practices and increasing reporting on what we do. This presents a strong demand for new skills and the CA skills set means that we are in a great place to support this sustainable revolution. For organisations, being sustainable will be crucial to attract new talent. The new generation of CAs seeks meaningful careers that contribute to a greener planet. The integration of technology, particularly AI, offers huge opportunities for accountants. AI, combined with other technologies like robotic process automation, will enhance efficiency in routine tasks, allowing accountants to concentrate on more complex and strategic aspects of their roles. To meet these challenges, the CA skill set must evolve. The profession will need to continue to adapt, embrace uncertainty and strive for agility and resilience. CAs must adopt a mindset that embraces change and challenges, enabling them to fulfil societal needs and add value in this ever-changing landscape.
CEO | ICAS
6/6
We continue to see employers of all sizes struggling to access enough high-calibre talent to meet demand in the accountancy and finance sector, both at entry and post-qualified levels. This is felt most acutely in the external audit specialism where professional services firms are recruiting more internationally qualified staff. We expect this demand for talent to continue in 2024. Alongside technical and digital proficiency, employers are looking for talent with a broad range of professional skills, such as project management and communication. Many employers in the sector offer rich training opportunities to support the development of these skills. Artificial intelligence and the outsourcing of routine work is starting to impact roles in the sector, allowing more focus on specialisation and value-adding activities for clients. The increasing importance of sustainability reporting and assurance across the profession is likely to drive an increase in related roles. Employers have also become increasingly aware of the need to support flexibility alongside professional development, particularly with investment into graduate and school-leaver programmes.
Will Holt FCA
Managing Director, Education & Training | Institute of Chartered Accountants in England and Wales
5/6
The UK's cost-of-living crisis is now a considerable concern. With the cost of fuel still a big problem, the decision to commute and pay for fuel/public transport, or work from home and deal with high energy prices, is piling on financial pressure. We are now seeing the ramifications of this crisis across the workplace. Within our Payslip Statistics Report 2023, financial wellbeing was a hot topic. 18% of respondents said their employers provided inflationary/above-rate salary increases to help them through the economic turbulence. 6% of respondents stated 'other', with some employers providing Pay On-demand/Earned Wage Access (EWA) schemes, to support employee’s financial wellbeing. EWA is already legislated in parts of Europe and the emergence of obtaining your salary before your regular pay date is now coming to fruition in the UK, with employees wanting to choose when they access their pay. The journey towards EWA has taken a significant step forward with the introduction of a Code of Practice, which the CIPP has endorsed. The Code provides best practice for UK employers and payroll teams, to ensure good outcomes for their employees at this critical time and it’s important to stress, that such schemes must go hand in hand, with solid financial education. With over 4 million UK workers opting for it and one in 10 companies offering some form of EWA, such schemes are an opportunity to support employees, enhancing your organisation's reputation as a responsible and caring employer, whilst providing financial empowerment.
Vickie Graham
DipM ACIM ACIPP, Business Development Director | Chartered Institute of Payroll Professionals
4/6
2023 presented our profession with significant challenges, and that disruption looks set to continue into 2024. Various factors, including geo-political instability and unpredictable inflation, as well as issues like adapting to digital transformation, have resulted in management accountants being called upon to support organisations as they rapidly pivot their processes and sometimes their entire business model. A longer-term change is that environmental, social, and governance (ESG) issues are becoming increasingly important to business and their stakeholders. In addition, reporting in this field is moving from being voluntary to being mandatory. We are witnessing management accountants stepping up and taking responsibility for these activities. This role is the natural extension of their existing skill set. They already understand the importance of reliable data, and they are well-equipped to apply their analytical skills to ESG-related tasks. Ultimately, employers will always need to be confident their finance team has the skills and knowledge to analyse every part of the organisation and provide high quality strategic counsel. That reassurance is provided by AICPA & CIMA’s CGMA designation, which is respected by employers around the world. Finance professionals who are beginning their careers will find the rigorous CGMA learning is excellent preparation for building a successful career in the modern workplace.
FCMA, CGMA, Regional Vice President UK & Ireland | Association of International Certified Professional Accountants, representing AICPA & CIMA
3/6
While the dark days of the pandemic are now thankfully long behind us, the fall-out in terms of a stuttering, stumbling global economy perseveres. Uncertainty still appears to hang over businesses like the proverbial Sword of Damocles, wobbling occasionally, without ever threatening to fall completely, but irritating still the same. If there is a bright light breaking through this otherwise slightly gloomy picture, it is that the skills and expertise of a professionally qualified credit manager are very much in demand. Uncertainty of business performance, and a distrust of historical data, means having to deploy different talents and knowledge that best comes with experience, and challenging the status quo. Despite the need for quality people, it would be going too far to say it is either an employee’s or an employer’s market. Recruitment appears to be settling, and a sense of balance and calm is returning to the sector. Wage inflation also appears to be stabilising, and while some may have done well in the short term, it may be some time before salaries begin to rise at the same rate they have been accelerating over the last 12 months. Good credit managers will know their worth and the value they bring in protecting and growing the organisations they work for. Resilience remains the watchword. Those credit managers who are in it for the long term, and who are building a track record, can perhaps look forward to a bright future. Their skills will always be needed. And while you may on occasion feel like packing up and going home every time you switch on the news or click online, many business leaders and economists who we engage with have a rather more optimistic view of the future.
2/6
As we head into 2024, the Accounts Payable Association has seen significant changes within the industry, driven by a confluence of market trends, technological advancements, and changing workplace dynamics. In both the near-term and long-term future, the accounts payable profession faces several challenges. The profession is addressing these challenges through digitisation and automation. Advanced accounts payable software, artificial intelligence, and machine learning are being employed to streamline processes, enhance compliance, and improve accuracy. Additionally, organisations are investing in training and development to equip their teams with the necessary skills to navigate these challenges successfully. The accounts payable industry has experienced significant changes in the way work is conducted. Remote work has become more prevalent, and cloud-based solutions facilitate seamless collaboration among team members across the globe. Flexibility and adaptability are now key attributes of successful professionals in this field. Artificial intelligence (AI) is poised to play a pivotal role in the accounts payable industry. AI-driven software can automate repetitive tasks, reduce errors, and enhance the accuracy of financial data. This technology will enable professionals to focus on higher-value activities, such as strategic financial analysis and decision-making. While AI will change the landscape of work, it is unlikely to replace human professionals. Instead, it will complement their skills and make their work more efficient. In 2024, accounts payable is navigating a complex and ever-changing landscape. The APA have introduced new membership levels, training, events and qualifications to support the ever-changing landscape. With AI as a valuable ally, the future of accounts payable looks promising as it continues to evolve in response to the demands of a dynamic business environment.
Jamie Radford
Founder | Accounts Payable Association (APA)
1/6
AI un the workplace
When asked what would make an organisation most appealing to them when considering a new role, 72% of HR employees cite an engaging and supportive team culture, followed by job security (59%) and tailored flexible working policies (59%). HR employees continue to highly value an organisation’s purpose, with 92% saying it’s important to them when considering a new role, an increase from 86% last year. Over three quarters (76%) value a commitment to sustainability, and 89% value a diverse and inclusive organisational culture.
Discover salaries for human resources
When it comes to ways of working, the majority of HR employees prefer to follow a hybrid-working model, with 61% saying it’s important to them when considering a new role – followed by home or remote working at 56%. Expectations seem aligned with the current offering, as 65% report that they are currently following a hybrid pattern. Almost a third (29%) of employees say they have a very good work-life balance, with a further 40% saying it’s good. When it came to improving it further, though, 44% said changing their working hours would have a positive impact, followed by their commuting time (22%) and the office environment (9%). When asked where they work most productively, over half (56%) say they work best at home, while only 33% prefer their office or workplace. In regards to benefits, the top three most-valued offerings to staff from our survey are flexible working (39%), additional holiday days (33%) and employee pension schemes (25%). Interestingly, amongst the lowest-rated were technology and cycle to work schemes, transport allowances, meal vouchers and sustainability benefits.
41% of HR employees switched job in the last 12 months, with 33% attributing this to a lack of career progression. Other reasons include a poor relationship with their manager (20%) and their current salary being too low (20%). Over half plan to move roles in the coming 12 months (51%), which remains the same as last year.
Opportunity to work fully remotely
The upward trend on pay rises in HR continued this year, albeit at less of a trajectory than we’ve seen in recent years. 79% of employers increased their employees’ salaries during the last 12 months, a lower proportion than the year before (87%), which could be indicative of the wider economic climate bringing challenges not only to employees, but employers, too. However, when it comes to employee sentiment on salaries, the majority (73%) reported feeling satisfied or very satisfied with their levels of pay. Salaries within the HR profession increased by an average of 1.6% over the last year. Generalist roles and employee relations roles received above average pay increases of 2.3%, driven by strong demand for advisor-level professionals in these areas, especially those with experience. Pay increases look set to continue over the coming year in HR, with 83% of employers saying they plan to increase their employees’ salaries during the next 12 months, which remains the same as the proportion who reported planning to do so last year.
1.6
Discover human resources salaries
Just under half (45%) of HR employers say that their organisation is recommending the use of AI tools such as ChatGPT, but only 36% say their workforce has the right skills to make the best of these. This is echoed by employees – 29% say they’re using it as part of their job, but just 18% say they’ve received training or support at work to adopt these technologies. However, 76% are willing to take part in upskilling or reskilling programmes to facilitate this, clearly showing the willingness of workers to keep their skills and expertise relevant in today’s labour market. Meanwhile, 12% of HR employers have banned AI tools, and 17% are anticipating a ban in the future. The majority (63%) say they plan on allowing staff access to AI tools with monitored usage, and a further 8% say they’ll allow it to be used unmonitored.
Skills shortages in HR have slightly increased over the past 12 months, with 94% of employers saying they’ve experienced them this year, up from 93% in 2023. Our data shows that 49% of organisations believe this is due to competition from other employers, 43% believe it’s due to pay levels, and 33% believe it’s due to fewer people entering the job market in the industry. As a result, recruitment activity remains high, with 83% planning to hire in the coming year. However, almost three-quarters (74%) anticipate that there will be a shortage of suitable applicants.
In an effort to overcome these skills shortages, 77% of HR employers say they would be likely to hire a professional who does not possess all the required skills, with the intention of upskilling them. In terms of how professionals would prefer to upskill, over half (59%) would appreciate an investment in training, while 50% would like time during working hours to complete this training.
Feelings around the wider economy and its long-term opportunities have become more negative in some quarters over the past 12 months. 40% of HR employers are optimistic about the wider economic climate and its employment opportunities over the coming two to five years, down from 44% in 2023. Employees are less positive, however, with only 22% expressing optimism regarding their long-term opportunities, down from 37% last year. Many HR employers are anticipating that economic difficulties will continue to impact their day to day in the coming year. Recruiting the right talent (60%) is cited as the top external challenge they expect, followed by the economic environment (51%) and the rising costs for businesses (50%). Applying an internal lens, talent retention (54%), managing change (51%) and company culture (46%) are deemed to be the biggest concerns to address.
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Career progression is cited as the number-one driving factor for HR professionals when it comes to seeking a new role. To retain top talent, employers should consider revisiting their upskilling and development opportunities.
Joanne Allsop Director – HR, Hays
human resources
Career progression is a priority for professionals
Uncertainty around the economic climate plus the ongoing challenges with skills shortages continue to pose difficulties to HR teams, with rising business costs and external competition both contributing to the problem. To overcome persistent skills gaps, employers must bring their upskilling opportunities on a par with pay, reward and flexible working, and ensure that their offerings are relevant for the tools and technologies available in 2025.
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Adam Rice
Knowledge Counsel | Travers Smith LLP
Skills shortages in HR have slightly increased over the past 12 months, with 94% of employers saying they’ve experienced them this year, up from 93% in 2023. Our data shows that 49% of organisations believe this is due to competition from other employers, 43% believe it’s due to pay levels, and 33% believe it’s due to fewer people entering the job market in the industry. As a result, recruitment activity remains high, with 83% planning to hire in the coming year. However, almost three-quarters (74%) anticipate that there will be a shortage of suitable applicants. In an effort to overcome these skills shortages, 77% of HR employers say they would be likely to hire a professional who does not possess all the required skills, with the intention of upskilling them. In terms of how professionals would prefer to upskill, over half (59%) would appreciate an investment in training, while 50% would like time during working hours to complete this training.
When attracting potential new staff, 81% of employers feel an engaging and supportive team culture makes their organisation most attractive to prospective employees, followed by an organisation’s trajectory and growth (77%) and tailored flexible working policies (64%). Similarly, when considering a new role, three quarters (75%) of professionals agree that an engaging and supportive team culture is most important, as well as tailored flexible working policies (64%) and job security (60%). An organisation’s purpose is also a key factor when considering a new role, with 86% of employees saying it is important to them, along with an organisation’s commitment to sustainability, which 68% feel is important, and 82% said the same in regards to a diverse and inclusive culture.
Discover salaries for life sciences
Positive ratings of work-life balance have seen a slight increase this year, rising to 61% of employees rating theirs as favourable, compared to 60% who said the same last year. Just 60% of life sciences employers are offering hybrid working to their staff, a steep drop from the 78% who said the same last year. Less than half (47%) of professionals say they are currently working in a hybrid way, while 23% are based fully remotely and a further 30% are based fully in the workplace. When it comes to productivity, 51% of employees believe they work most productively at home, while 38% think they are most productive when working in the workplace. The option to work in a flexible way matters to professionals, as 56% say that hybrid working is important to them when considering a new role, and less than half (48%) say they’d consider a position that didn’t offer it. The top three benefits received by professionals in the life sciences sector are an employee pension scheme (83%), health insurance or private medical cover (76%) and flexible working (52%). In terms of the benefits they value most, employees said flexible working (38%), health insurance or private medical cover (38%) and additional vacation days (24%).
27% of life sciences professionals say they changed jobs in the past year, with a further 45% saying they had considered it. They cited a lack of career progression (54%), lack of job security (23%) and the role not being challenging enough (23%) as the main driving factors for this. Regarding sentiments to the work itself, 64% of employees feel satisfied with their job, while 36% disagreed. For those who felt dissatisfied, the main reason was a lack of long-term opportunities (72%). 65% of employees plan to move jobs in the next 12 months, an increase from those who planned to move last year (59%). The main reasons professionals want to change jobs are due to being dissatisfied with their salary and benefits packages (54%), a lack of future opportunities (35%) and feeling that their salaries are too low (23%).
The person I would be managed by
Over the last year, most employers (83%) increased their employees’ pay, and a further 17% say their salaries stayed the same. Salaries within the profession increased by an average of 2.2% over the last year. Certain in-demand areas received above average pay rises, including within commercial (4.9%), biometrics (3.7%) and scientific roles (3.4%). In regard to bonuses, 68% of organisations granted them to their staff, with 41% reporting that they had increased in value in comparison to the year prior. In the year ahead, 83% of employers expect to increase their workforces’ salaries. 35% of professionals are not satisfied with their salary, a slight decrease from 38% who said the same last year. When asked what the reasons were for their dissatisfaction, 65% said it didn’t reflect their individual performance, 55% said it didn’t reflect their responsibilities, and 52% said it didn’t reflect their experience and expertise.
2.2
Discover life sciences salaries
Just under half of life sciences organisations say they are currently recommending the use of AI tools (44%). However, looking to the future, 61% of employers believe their organisation will allow staff to use these AI tools with monitoring, but 30% plan to ban them altogether, with 9% having already done so. Currently, 47% say they do not currently have access to the right skills to make the best use of AI tools and technologies, and a further 18% only have access to some of the skills they need. Just 18% of life sciences employees say they have received training or support from their employers to help them adopt AI technologies into their work, but 50% of organisations claim they offer it. Four in five employees (80%) say they’d be willing to take part in upskilling or reskilling programmes to be able to work with AI effectively.
Skills shortages remain rife within the life sciences industry. Almost all employers (97%) have experienced skills shortages over the last year, an increase from the 90% who said the same the year before. Employers are continuing to hire staff in the year ahead with 77% expecting to do so, decreasing from 87% last year. Most employers (74%) say they would be willing to hire a professional who does not possess all the required skills, with the intention of upskilling them. 41% of life sciences employers say that it’s “quite important, but not essential” that an applicant has a degree, and 14% say it isn’t important to them. To help them upskill, 57% of professionals would like their employer to allow them time off to attend relevant conferences or talks, 54% would prefer them to invest in training, and 51% say they would like time off work to complete said training. In the year ahead, the specific hiring challenges employers expect to face include strong competition from other employers (69%), a shortage of suitable applicants (67%) and candidates with unrealistic salary expectations (54%).
Over one third (39%) of employers within the life sciences industry are optimistic about the wider economic climate and its impact on employment opportunities in the next two to five years. However, employees are not as confident, with just 26% saying they feel the same way. Similar to last year’s findings, challenges for the year ahead revolve around finding and retaining employees. The top external challenge that employers anticipate facing is being able to recruit the right talent (57%) followed by the rising costs for businesses (53%) and the economic environment (50%). The top expected internal challenge is talent retention (65%), followed by managing change (55%).
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Whilst there have been more candidates on the market in some areas, due to the highly specialised nature of roles many clients are still facing recruitment and retention challenges. Employees and prospective employees want to be challenged, see clear career progression, and favour organisations that are quick and decisive in their recruitment activities.
Chris Smith Director – Life Sciences, Hays
LIFE SCIENCES
Professionals want more flexibility and career development
Despite an unusually prolonged slowdown in recruitment demand within the sector after the peak of 2022, most employers surveyed are facing skills shortages as the sector continues to evolve. It is likely that hiring and retaining staff will be key challenges for organisations to overcome in the year ahead. Salary continues to play an important role in attracting and retaining staff, but it is also crucial to offer career development opportunities and flexible working where doable to keep teams happy and engaged.
An organisation's trajectory and growth
59% of professionals believe that their organisation’s employee value proposition (EVP) aligns with their internal experience of working for the organisation. Keeping your organisation’s EVP at the forefront of the hiring process is key, as 54% of PAs and EAs say they have left a job because it didn’t match the expectations they gained during the application and interview process. When considering a new role, there are several factors that professionals value. These include an organisation’s purpose, with 86% saying it is important to them, as well as an organisation’s commitment to sustainability, which is important for 81% of professionals. A diverse and inclusive organisational culture is also key when considering new roles for 83% of respondents.
Discover salaries for personal & executive assistants
More than half of PAs and EAs (54%) rate their work-life balance positively, with only 9% rating it negatively. This is, however, a decrease from 60% who rated their work-life balance as positive last year. In terms of how they are currently working in their roles, there is a near even split between PAs and EAs working in a hybrid way (41%) or fully in the workplace (48%). When considering a new role, hybrid working is the most important option for 73% of professionals and 45% plan to find a new role that is more of a mix of hybrid working in the next year. Despite the number of professionals planning to switch roles for more flexible working, 69% of employers in the profession say they currently offer hybrid working for their staff. Hybrid working options have had a positive impact on the workforce, with 42% of employers saying offering this way of working has improved retention. This becomes more important when hiring PAs and EAs as 53% say they wouldn’t accept a job in the future that didn’t offer hybrid working opportunities.
30% of PAs and EAs have changed jobs in the last 12 months, with 27% citing a lack of learning and development opportunities as the main reasoning, followed by their commute being too long (20%) and a lack of job security (20%). Most employees are satisfied with their current role, with just under three-quarters (73%) saying so and 27% of respondents dissatisfied. When it comes to why employees are dissatisfied with their current job, their salaries being too low is the main reason for over half (55%), followed by a lack of career development opportunities (46%) and a lack of opportunities to upskill (46%). In the next year, more than half of professionals (55%) plan to move jobs, with the majority (32%) anticipating this will happen within the next 6 months. Better salaries (44%), the location of a role (14%) and more flexible working options (14%) are the main factors that could tempt PAs and EAs to move jobs.
Discover personal & executive assistants salaries
In the past year, 81% of organisations say they have increased salaries or rates of pay, with only 1% saying they have decreased them. Salaries have increased by an average of 3.1% for PAs and EAs over the last year. Pay rises are being driven by PAs and EAs, especially those working with C-suite or board level professionals, taking on extra responsibilities such as project management, staff management, or DE&I duties. These increases have resulted in just under three-quarters of employees (73%) feeling satisfied with their salaries or pay rates, with just over a quarter (27%) dissatisfied. In the next year, 78% of employers expect to increase salaries or rates of pay within their organisations, with only 2% saying they’ll decrease them.
3.1
When it comes to AI in the workplace, 62% of employers in the profession do not recommend the use of these tools and technologies. PAs and EAs have yet to fully adopt AI also, with 81% stating they don’t use it as part of their job. In the future however, 64% of employers say they will allow staff to use AI tools, with 59% saying they will monitor usage. Only 31% of PA and EA employers say they currently have access to the right skills to enable them to make the best use of AI tools and technology, with 41% stating otherwise. When it comes to employees, 88% say they have not received any training or support from their employers to adopt AI into their work, however, 70% would be willing to take part in upskilling or reskilling programs to adopt AI technologies in the workplace. Employers will have to begin organising training for their employees, as 75% do not offer training or support for the use of AI currently. Most PAs and EAs (92%) say they do not plan to change their profession or field of expertise in the year ahead in response to AI developments.
In the past year, 90% of employers involved in hiring PAs and EAs say they have experienced skills shortages, with the majority of those (53%) experiencing moderate skills shortages. Looking at the main causes of skill shortages currently facing the industry, competition from other employers is the main reasoning for more than half of employers (53%). Pay levels (53%) and a lack of progression opportunities (26%) are also highlighted. Overall, 76% of employers surveyed plan to hire in the next year, with 71% planning to hire permanent staff and 15% after temporary staff. When recruiting staff, 63% of employers expect a shortage of suitable applicants over the next 12 months, as well as applicants with unrealistic salary expectations (55%) and competition from other employers (47%). Upskilling is a key area for both employers and employees, with over three-quarters of those involved with hiring (76%) stating they’d hire a professional who does not possess all the required skills for a role, with the intention of upskilling them. Furthermore, a degree isn’t important to most employers, with 60% saying an applicant does not need one. An investment in training (59%), time during working hours to complete training (43%) and time off to attend relevant conferences, seminars or talks (40%) are the main areas of interest for PAs and EAs when it comes to upskilling.
In the next two to five years, only 26% of employers within the profession are optimistic about the wider economic climate and the employment opportunities it may or may not create. Candidates working within the sector are even less optimistic, with only 18% stating so. Most professionals are neutral, with more than half (49%) not feeling either optimistic or negative about future long-term employment opportunities. Looking at the next 12 months, more than half of employers involved in hiring PAs and EAs (57%) believe that the economic environment presents the greatest external challenge to their organisation, followed by recruiting the right talent (54%). Internally, managing change (60%), issues with talent retention (55%) and company culture (43%) are the biggest factors highlighted as challenges for the year ahead. Almost half of employers surveyed (48%) say their organisation’s main strategic focus is to increase their operating profit, followed by gaining market share (43%) and establishing sustainability (38%) in the next 12 months.
As evident in our latest findings, it’s clear that the demand for skilled PAs and EAs remains high. Employers are increasingly focusing on hybrid working and upskilling opportunities to attract and retain talent, with these strategies being essential in navigating the current skills shortages and ensuring future growth.
Roddy Adair Director – Personal & Executive Assistants, Hays
PERSONAL & EXECUTIVE ASSISTANTS
Critical skills shortages affecting the industry
The demand for PAs and EAs remains high. However, almost all employers within the profession have faced significant skills shortages over the past year, with recruiting and retaining talent key challenges for the year ahead. Offering such things as hybrid working and upskilling opportunities can help organisations to appeal to candidates.
Adam Fidler
Principal and Founder, Adam Fidler Academy
More than half of PAs and EAs (54%) rate their work-life balance positively, with only 9% rating it negatively. This is, however, a decrease from 60% who rated their work-life balance as positive last year. In terms of how they are currently working in their roles, there is a near even split between PAs and EAs working in a hybrid way (41%) or fully in the workplace (48%). When considering a new role, hybrid working is the most important option for 73% of professionals when considering a new role and 45% plan to find a new role that is more of a mix of hybrid working in the next year. Despite the number of professionals planning to switch roles for more flexible working, 69% of employers in the profession say they currently offer hybrid working for their staff. Hybrid working options have had a positive impact on the workforce, with 42% of employers saying offering this way of working has improved retention. This becomes more important when hiring PAs and EAs as 53% say they wouldn’t accept a job in the future that didn’t offer hybrid working opportunities.
The demand for highly-skilled EAs and PAs remains high, and for experienced and qualified support staff, job opportunities can be found with scope to add wider organisational value by undertaking project work, overseeing budgets, line management and supporting and leading on company initiatives such as employee satisfaction and wellbeing. Indeed, many EAs and PAs are now asked to carry out dual-roles, such as supporting their executive or leader, and undertake team-leading or project work. Employers demand value-for-money, and competence in technical skill is a given – interviews are more rigorously aligned to exploring the management competencies and soft skills the job-holder brings to their role. Cultural fit, demeanour and mindset are increasingly important, as well as an agile approach to the fast pace of business. Additionally, job-holders who can offer a strong commercial and business-mind, and a more strategic approach to their job, with the potential to take on additional responsibility, command higher salaries than those performing the role in a more traditional way. For the high-performing PA/EA, training and development is key if they are to be retained, as well as an understanding on the part of the employer of reciprocity and recognition, above and beyond a salary. As ever, qualifications at higher-education level demonstrate to an employer higher-order skills, such as critical thinking and evaluation, as well as the soft skills which underpin strong leadership and a great culture that cannot be replicated yet by AI or ChatGPT and remain part of the EA’s repertoire.
Principal and Founder | Adam Fidler Academy
A substantial proportion of procurement professionals believe there is a disparity between an organisation’s employee value proposition (EVP) and the reality of actually working there. 45% don’t think their employer’s EVP aligns with the internal experience of working for them. Nearly two thirds (62%) have actually left a job because it didn’t match the expectations they gained during the application and interview process. When assessing a new opportunity, 83% of employees say an organisation’s purpose plays a big part in their decision. Another 70% say a commitment to sustainability is important, though this has seen a dip on last year (79%).
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Discover salaries for procurement
Pension provision above the legal minimum
62% of procurement professionals rate their work-life balance positively, which represents a decrease on last year (68%). Over half (55%) of procurement professionals are currently working as part of a hybrid model, with 23% working fully remotely. 41% are planning on looking for a role that has more of a hybrid mix – i.e. part remote and part in the workplace – in the coming year.
Location or commute time
24% of procurement professionals changed jobs in the last year, which is a decrease on the number who switched roles in the year prior (33%). The main reasons cited for this change were a lack of career progression (40%), a lack of flexibility in working pattern (27%) and poor work-life balance (27%). 31% of professionals say they are dissatisfied with their current role, and well over half (59%) say they plan to find a new job in the coming year, an increase on last year (49%). A too low salary is cited as the main reason for wanting to move (43%).
3.3
Discover procurement salaries
80% of procurement employers increased their employees’ salaries over the past year, which is nevertheless a drop on the proportion who increased them the year prior (89%). Within the private sector, demand for specialist contract managers and strategic category managers is a key driver of pay increases. Within the public sector, there is high demand for category specialists to strategically manage spend areas, as well as buyers with experience in the sector to support with operational work around the Procurement Act 2023. Pay satisfaction has seen a considerable increase on last year, with 79% saying they are happy with their current salaries in comparison to 65% last year. Looking ahead, 86% of employers plan to increase salaries over the coming 12 months, which is an increase on the number who planned to last year (79%).
There are signs of artificial intelligence technologies becoming more prolific in procurement, with over a quarter (27%) of employees saying they use them in their current role. Employers are far from confident that they have the skills they need to make the most of AI tools, however. 56% say they lack the skills to make the best use of them, increasing on last year (49%). Furthermore, the overwhelming majority (93%) of procurement professionals have received no training or support from their employer when it comes to adopting AI technologies, though 72% would be willing to upskill.
Judgement and decision-making
All (100%) of the procurement employers we surveyed said they’ve experienced skills shortages during the previous year, which represents an increase on the year prior (93%). The biggest causes of these skills shortages are competition from other employers (85%) and pay levels (56%). Hiring plans are also seeing an uptick, with 78% of employers saying they plan to recruit new staff in the coming 12 months in comparison to 72% last year. 67% plan to recruit permanent staff, while just under a third (31%) are looking to hire temporary workers. Filling these vacancies is likely to be a challenge in the coming year – 90% expect to encounter a shortage of suitable applicants while 80% anticipate competition from other employers. As a result, employers are apt to be more flexible with their candidate requirements – 88% would be likely to hire someone who does not necessarily possess all the requisite skills for the role – with the intention of upskilling them – and 41% say it isn’t important whether a candidate has a degree.
Procurement employer confidence in the long-term economic landscape has seen a small dip on last year – with 44% citing optimism about the wider economic climate and its employment opportunities in the coming two to five years, in comparison to 48% last year. Employee optimism has decreased considerably however – only 26% are optimistic about their long-term career prospects in comparison to 47% 12 months ago. The external factors that organisations are most concerned about in the coming year include recruiting the right talent (61%), the economic environment (59%) and managing risk including cyber security (55%). Internally, talent retention (64%), skills shortages within current teams (59%) and managing change (57%) are seen as the biggest challenges. Increasing turnover (80%) is seen as the biggest strategic priority by procurement employers.
100
As ESG becomes an increasing priority to society as a whole, it is becoming crucial from a brand perspective that organisations make a demonstrable commitment to it, and procurement will play a key role in this. Employers are looking to grow their teams accordingly, creating competition for talent amongst employers that is translating into salary increases.
Scott Dance Senior Procurement Engagement Director, Hays
PROCUREMENT
Talent recruitment and retention deemed biggest challenge
Higher-than-average skills shortages in procurement make the recruitment and retention of the right talent a significant challenge for employers in the year ahead. An uptick in professionals looking to move could help mitigate this struggle, but organisations will have to make sure they are acknowledging what candidates prioritise in a role – whether this is work-life balance, clear career progression or upskilling opportunities.
The environment in which we operate continues to be fraught with disruption and uncertainty. Procurement and supply professionals are operating under more pressure than ever and are subject to volatile and conflicting forces. Spending and supplier decisions are rife with uncertainty, complexity and risk. So, it comes as little surprise that organisations are increasingly looking to people with a procurement and supply chain mindset to drive them forward. Why? Because, in an anxious world we need people who do detail but who are also strategic. The CIPS Excellence in Procurement & Supply award entries are testament to the resilience and strategic mindset that professional procurement teams have to offer. Despite the volatile environment, they continue to deliver extraordinary value and make a significant contribution to both the top table and the bottom line. And it’s happening in all sectors: from food to pharma, from start-ups to global banking; in industrials and in the public sector. CIPS members are acutely aware of the value and importance of their skills and knowledge. Professionals who commit to learning and development command higher salaries and benefits than their peers. Indeed, the most highly-qualified in our profession – those who have achieved MCIPS – are in much higher demand as employers increasingly seek out those with these qualifications. Why is this? Because it demonstrates that an individual has invested in achieving the highest level of skills, knowledge and experience in delivering sustainable supply chains. And it shows they are eminently capable of being the guardians of business continuity whilst ensuring that organisations are proactively addressing issues to protect people and planet.
Emma Scott
Head of Content, CIPS
Head of Content | CIPS
More than a third of employees (37%) do not think their organisation’s employee value proposition (EVP) aligns with their own experience working for the organisation. This is important, as 56% of public services professionals have left a job in the past because it didn’t match the expectations they gained during the application process. An organisation’s purpose is an important consideration for 88% of professionals when they’re deciding on a new role, and a further 83% say it’s important that an organisation has a diverse and inclusive culture when job hunting. An organisation’s commitment to sustainability also plays a role in the decision-making process, with 78% of employees deeming it important when they’re considering a new job.
Take steps to mitigate skills gaps
Almost all employers in public services are experiencing skills shortages. To help address these shortages consider compromising, where possible, on the skills required for a role and hiring for potential rather than specific qualifications or experience. Upskilling your existing team is another way to bridge skills gaps as well as enhance the experience of your employees. You can also consider methods of building a pipeline of talent – Hays has built its Skills and Learning service designed to enable clients to mitigate their skills shortages by finding, coaching, mentoring and training undiscovered talent. Find out more
Tailor your permanent hiring strategy
Our survey findings indicate that public services employers plan to focus less on engaging with temporary professionals in the year ahead and instead hire more permanent employees. If employers are to successfully execute this plan, they will need to upscale their in-house capacity and expertise to deliver on those areas where they currently rely on outside resource. As well as an engaging and supportive team culture, a diverse and inclusive workplace and tailored flexible working opportunities, our research shows that employees are on the lookout for roles that can offer them a clear career progression pathway and skills development opportunities. This suggests that employees are ready and prepared to build their skills to successfully fill this capacity and expertise gap.
Present an authentic view of your organisation to applicants
Your employee value proposition, or EVP, allows applicants to get a feel of what it’s like to work for your organisation. However, if they gain an inaccurate view during the application process, you run the risk of them deciding to leave. The key is to not overpromise and underdeliver, presenting an accurate and authentic view of your organisation, while leveraging all the things that make it a great place to work. Our Advisory Services are built around developing the customer EVP and enhancing the candidate experience, enabling you to best leverage your EVP when hiring and retaining staff. Find out more
Get the most out of AI
There is a disconnect between the proportion of employers recommending the use of AI in the workplace and the proportion of employees actually using it. To reap the benefits that AI can bring, including enhanced productivity, efficiency and creativity, putting controls and governance in place and providing training are crucial so professionals can use AI appropriately.
Employee ratings of their work-life balance remain unchanged from last year, with 62% rating theirs positively. Just over half (51%) of public services employees are currently working full-time in the workplace, while 35% are working in a hybrid way and 14% are based fully remotely. Where it is possible, flexible working is an important consideration for professionals. In the year ahead, 29% of professionals plan to find a new role that is more of a mix of hybrid working, and 14% want to find a role based completely remotely. The flexible working options most valued by employees when deciding whether to accept a new role include hybrid working (43%), home or remote working (42%) and a four-day working week (40%). A further 43% say they wouldn’t consider accepting a job in the future that didn’t offer hybrid working.
A third of public services employees (33%) changed job in the last year, and a further 31% considered doing so. The main reasons professionals moved roles in the last 12 months was because of a lack of career progression (27%), a lack of job security (22%) or feeling their salary was too low (19%). Almost a fifth (19%) of employees who changed jobs last year decided to change their profession completely. More than three quarters (77%) of professionals working in public services say they are satisfied in their current role, a higher proportion that those working in the private sector (68%). Of those employees in public services who are not happy in their job (23%), the causes for this dissatisfaction include their pay (52%), and a lack of opportunities to either develop their career (45%) or to progress their career (43%). In the next 12 months, more than half (53%) of employees plan to move jobs, increasing from 49% who expected to do so last year. This is a lower proportion than those expecting to change jobs in the private sector (59%). Those working within the healthcare sector are the most likely to change jobs in the next year (58%), followed by those working in central government (57%) and higher education (52%).
The announcement of pay increases for public services workers in 2024 has resulted in 84% of employers increasing the pay of their staff over the last year, 48% of whom increased salaries between 2.5% and 5%. Pay rises look set to continue, with 82% of employers expecting to increase salaries in the next 12 months. 69% of employees say they are satisfied with their pay, an improvement from 60% who felt this way last year. Those working within education/further education (34%) or healthcare (33%) are the most likely to not be happy with their pay. Reasons for pay dissatisfaction include professionals feeling it does not reflect their individual performance, responsibilities, or experience and expertise (all 49%).
41% of public services employers are recommending the use of AI tools in the workplace, aligned with private sector employers (40%). A fifth (20%) of public services employees are currently using AI tools as part of their job, which is a lower proportion compared to private sector employees (27%). Skills shortages are apparent when it comes to AI. 49% of employers don’t currently have access to the right skills to enable them to make the best use of AI tools and technology. Despite this, only 35% offer AI training to their staff. From an employee perspective, only 12% say they have received training or support from their employer to adopt AI technologies at work, but 70% would be open to upskilling or reskilling in this area.
Almost all employers within public services (96%) experienced skills shortages over the last 12 months, an increase from 92% who said the same last year. Employers believe the main drivers of skills shortages in the sector are pay levels (54%), competition from other employers (49%) and fewer people entering the job market (35%). Upskilling is a key strategy organisations are taking to address skills gaps – 42% say they have developed their own talent at entry level, 22% are allowing employees study leave for external training, and 21% have reskilled existing employees into a new position. Hiring plans remain busy with 75% of employers in higher planning on recruiting in the year ahead. A higher proportion of those working in higher education plan to hire in the next 12 months (81%), as well as those in healthcare (80%), central government (79%) and local government (78%). Employers are focusing their efforts on hiring permanent staff (67% compared to 62% last year), with less of a focus on engaging with temporary staff, decreasing from 44% last year to 27%, driven by the need to reduce spend and instead build more capabilities and expertise in-house. Three quarters (75%) of employers in public services would be open to hiring a professional who doesn’t possess all the required skills with the intention of upskilling them. To help them upskill, professionals would prefer their employer allowed them time during working hours to complete training (52%), and more investment in training (50%).
A third (33%) of employers in public services say they are optimistic about the wider economic climate and the employment opportunities it may create within the next 2-5 years, only a slight decrease from those who said the same last year (35%). A further 32% are not optimistic. From an employee perspective, only 21% say they feel positive about their long-term employment opportunities, a significant decrease from 41% who were optimistic last year. Recruiting the right talent (59%) is the top external factor that public services employers believe will be a challenge in the year ahead. The economic environment (51%) and cost of living (44%) are also expected to create difficulties for organisations over the coming months. Predicted internal challenges for 2025 include retaining talent (58%), managing change (51%) and skills shortages within current teams (49%).
Skills scarcity remains a significant issue for public services, meaning investing in skills development must be a priority. Employers expect to rely less on temporary staff in the year ahead – upscaling in-house capacity and expertise to deliver in the areas currently reliant on outside resources will be key to doing this successfully. How you attract, retain and upskill your staff will be of fundamental importance to getting that right.
Matt Lewis Director – Public Services, Hays
Recommendations
PUBLIC SERVICES
Professionals want better career progression
Public services employers continue to face widespread skills shortages. Professionals are planning to move jobs this year in search of better career progression opportunities, but to retain any new hires, employers must ensure they deliver on the EVP they portray during the interview process.
Most accountancy and finance employers (85%) are not currently using AI tools within their organisation, however, 67% of employers expect to do so in the future. 41% of employers currently have skills shortages when it comes to utilising AI effectively, and a further 19% only have some of the skills they require within their current team. AI skills gaps are most acute within SMEs, with 43% of employers admitting they have a shortage compared to 39% of employers in large organisations. Almost half (47%) of accountancy and finance professionals feel they possess all or some of the necessary skills to make the best use of AI tools, however 30% feel they don’t and a further 23% are unsure. Nearly two-thirds (65%) of employees do not believe their employer is helping them to prepare for the use of AI in the workplace.
Do employees think they possess the right skills to make the best use of AI tools and technology?
No, I don’t have the right skills
Read more from leading organisations
The employee experience
63% of accountancy and finance employees say they have been deterred from continuing with a job application because of a poor first impression of an organisation, such as the people and culture not matching expectations (46%) or an overly long recruitment process (37%). Professionals have also been put off once they begin a new job. 51% say they have left a job because it didn’t match the expectations they formed during the application and interview process. When evaluating their current place of work, 61% of professionals feel their organisation’s employee value proposition (EVP) aligns with their experience working for the organisation.
Interviewers were unprepared and overall structure was disorganised
Process took too long
People and culture not as expected
Top three reasons employees have been deterred from pursuing a job application
When attracting potential new staff, 66% of employers feel an engaging and supportive team culture makes their organisation most attractive to prospective employees, followed by job security (63%) and an organisation’s trajectory and growth (54%). Similarly, when considering a new role, 67% of professionals agree that an engaging and supportive team culture is most important, followed by job security (67%), and tailored flexible working policies (56%). An organisation’s purpose is also a key factor when considering a new role, with 86% of employees saying it is important to them, along with an organisation’s commitment to sustainability, which 78% feel is important. 84% said the same about wanting to work in an organisation with a diverse and inclusive culture.
Discover salaries for shared services
When it comes to work-life balance, 66% of shared services employees rate theirs positively, more or less on a par with last year (65%). When asked what would make it better, 38% said amends to their working hours (including flexible working), 19% said commuting time, and 13% said the office environment. 61% of employers currently offer hybrid working to their staff, with 48% saying it has increased talent retention in their organisations. When asked where they believe they work most productively, 54% of employees said at home, 34% said in the workplace, and 12% said in a shared work environment. If they were considering a new role, 38% said they would look for a position that offered a better mix of hybrid working, 21% said they’d prefer completely remote working, and just 7% said they’d look for a role that’s more office-based.
Just under one third (32%) of shared services employees moved jobs in the last 12 months. Over a quarter (27%) left due to a lack of career progression, 22% felt that the salary was too low, and 18% said it was because of a lack of job security. For those thinking of moving in the next 12 months (59%), financial remuneration is the main influencing factor, with 42% stating their salary and benefits package makes up one of their top three reasons, followed by a lack of future opportunities (34%) and concerns about job security (26%).
During the last year, 83% of shared services employers have increased their staff’s pay by an overall average of 3.5%. Salaries increased above the average for certain shared services roles. For example, helpdesk salaries increased by an average of 5.9% over the last 12 months, driven by strong demand for experienced team leaders and Global Process Owners. Cross-shared services salaries increased by an average of 4.3% over the last year, as demand for digital technology specialists and project managers has spiked. Furthermore, the demand for customer service associates has driven overall customer service salaries to rise by 4.2%. When asked about performance-related bonuses over the past 12 months, 61% of employers said their staff received them, and 54% said the bonuses had increased in value on the previous year. Out of these increases, 27% said the value had gone up by 5% or more. When it comes to salaries, 72% of employees said they were satisfied or very satisfied with their remuneration. For the remaining 28%, the top reasons for their dissatisfaction were beliefs that their pay rate does not: reflect their individual performance (53%), responsibilities (53%) or experience and expertise (46%). Over the next 12 months, 82% of employers expect salaries to increase.
Discover shared services salaries
When it comes to using AI tools and technologies in the workplace, 56% of employers say they’re recommending them to their workforce, but just 35% of employees are using them. There is a strong appetite amongst professionals in this sector to make the most of AI though, with 81% of those surveyed saying they’d be willing to take part in upskilling or reskilling programs to adopt AI technologies at work. Currently, just 20% of employees reported having actually received training or support on this from their organisation, despite 53% of employers saying they offer it. However, it’s clear to see that employers are aware of the gaps – 35% say they don’t have access to the right skills to enable them to make the best use of AI tools and technology. At the moment, 18% of employers anticipate that they will ban the use of AI tools, with a further 10% saying they have already done so. Just 6% say they plan to allow staff to use this technology unmonitored, but the vast majority (66%) plan to allow staff to make the most of it while monitoring usage.
Over the past 12 months, the vast majority of shared services employers (93%) reported skills shortages within their organisation. Employers have found it more of a challenge to hire experienced talent, with 47% reporting that intermediate level staff have been especially difficult to recruit, and 32% saying the same for positions at management level. Looking towards the future, 80% of shared services employers plan to recruit staff in the next year, with 73% planning to recruit permanent staff and a further 29% expecting to hire temporary staff. However, there are challenges on the horizon. 65% of employers say they fear there will be a shortage of suitable applicants, 53% are concerned about facing competition from other organisations, and 51% say they think applicants might have unrealistic salary expectations. The majority (74%) of shared services employers say they would be open to hiring professionals who don’t possess all the required skills, with the intention of upskilling them. It will be important to consider this, given the consideration most organisations are giving to skills needed within artificial intelligence (AI). When it comes to the best ways to upskill those employed in shared services, over half (59%) of employees would prefer their employer to invest in training, with a further 48% wanting time during working hours to complete training and 41% preferring time off to attend relevant conferences, seminars and talks.
Both employers and employees share similar sentiments regarding the economic environment for the coming two to five years. Just over a third (36%) of employers within shared services feel optimistic about the wider economic climate and the potential employment opportunities it may create, and 27% of employees in this sector feel the same. The economic environment (51%), recruiting the right talent (51%) and the cost of living (45%) are expected by employers to pose the greatest external challenges to organisations, whereas internally, potential pitfalls include managing change (52%), talent retention (52%) and skills shortages within current teams (44%).
Skills shortages continue to pose a challenge to the shared services sector, and with concerns around talent retention and competition from other organisations increasing, it’s crucial that employers think about their offering to staff and how they can support their long-term career growth and personal development.
Karen Young Director, Hays
shared services
An engaging and supportive team culture is important to employees
Although the economic environment is expected to pose challenges for both employers and employees across the coming 12 months, 80% of employers in shared services do plan to recruit over the next 12 months. Skills shortages continue to be a challenge for employers to navigate, who are giving consideration to whether they have the right skills in their organisation to make the best use of AI.
Over the past 12 months, the vast majority of shared services employers (93%) reported skills shortages within their organisation. Employers have found it more of a challenge to hire struggled to hire experienced workers, with 47% reporting that intermediate staff have been especially difficult to recruit, and 32% saying the same for positions at a management level. Looking towards the future, 80% of employers plan to recruit staff in the next year, with 73% planning to recruit permanent staff and a further 29% expecting to hire temporary staff. However, there are challenges on the horizon. 65% of employers say they fear there will be a shortage of suitable applicants, 53% are concerned about facing competition from other organisations, and 51% say they think applicants might have unrealistic salary expectations. The majority (74%) of shared services employers say they would be open to hiring professionals who don’t possess all the required skills, with the intention of upskilling them. To help them upskill, over half (59%) of employees would prefer their employer to invest in training, with a further 48% wanting time during working hours to complete training and 41% preferring time off to attend relevant conferences, seminars and talks.
When it comes to making the use of AI tools and technologies in the workplace, 56% of employers say they’re recommending them to their workforce, but just 35% of employees are using them. There is a strong appetite amongst professionals in this sector to make the most of it, though, with 81% of those surveyed saying they’d be willing to take part in upskilling or reskilling programs to adopt AI technologies at work. Currently, just 20% of employees reported having actually received training or support on this from their organisation, despite 53% of employers saying they offer it. However, it’s clear to see that employers are aware of the gaps – 35% say they don’t have access to the right skills to enable them to make the best use of AI tools and technology. At the moment, 18% of employers anticipate that they will ban the use of AI tools, with a further 10% saying they have already done so. Just 6% say they plan to allow staff to use this technology unmonitored, but the vast majority (66%) plan to allow staff to make the most of it while monitoring usage.
When it comes to work-life balance, 66% of shared services employees rate theirs positively, more or less on a par with last year (65%). When asked what would make it better, 38% said amends to their working hours (including flexible working), 19% said commuting time, and 13% said office environment. 61% of employers currently offer hybrid working to their staff, with 48% saying it has increased talent retention in their organisations. When asked where they believe they work most productively, 54% of employees said at home, 34% said in the workplace, and 12% said in a shared work environment. If they were considering a new role, 38% said they would look for a position that offered a better mix of hybrid working, 21% said they’d prefer completely remote working, and just 7% said they’d look for a role that’s more office-based.
When attracting potential new staff, 66% of employers feel an engaging and supportive team culture makes their organisation most attractive to prospective employees, followed by job security (63%) and an organisation’s trajectory and growth (54%). Similarly, when considering a new role, 67% of professionals agree that an engaging and supportive team culture is most important, as well as job security (67%), and tailored flexible working policies (56%). An organisation's purpose is also a key factor when considering a new role, with 86% of employees saying it is important to them, along with an organisation's commitment to sustainability, which 78% feel is important, and 84% said the same in regards to a diverse and inclusive culture.
NEW: Employment Trends 2025
More than a third (35%) of sustainability employees say their organisation’s employee value proposition (EVP) does not align with their internal experience of working there. 66% of employees also say they have decided to leave a job because it didn’t match the expectations they gained during the interview and application process. An organisation’s purpose is an important factor that 85% of professionals consider when assessing a new job. Other key considerations include an organisation's commitment to sustainability (83%) and how diverse and inclusive the organisation’s culture is (77%).
Discover salaries for sustainability
Most professionals (63%) rate their work-life balance positively, a slight decrease from 67% last year. In their current role, 42% of sustainability professionals are working full-time in the workplace, while a similar proportion (41%) are working in a hybrid way. 17% are working fully remotely. Most organisations in the sector offer hybrid working opportunities to their staff (73%), and 39% of employers agree that allowing their teams to work in a hybrid way has increased employee retention. Only 9% state otherwise. Agile working, which involves the scope to change work hours outside of ‘core’ business periods, is also a popular offering from employers, with 56% doing so. When considering a new role, the most important flexible working option for 58% of professionals is the four-day working week. Just under half (48%) value home or remote working, with a further 45% saying hybrid working is important. In the next 12 months, 39% of professionals plan to find a new role that is more of a mix of hybrid working, and 51% say they would not consider accepting a job in the future that didn’t offer it.
In the last 12 months, 32% of professionals within the sector have changed jobs, compared to 57% who expected to do so. A further 30% considered moving jobs in the last year. The main reasons for moving jobs were due to poor relationships with management (38%), the commute being too long (25%) and a lack of career progression (19%). This is in comparison to the most common reasons cited last year, such as a lack of fulfilment (38%), a lack of career development opportunities (30%) and lack of career progression (30%). Around a fifth of sustainability professionals (21%) are not satisfied in their current role, due to a lack of career development opportunities (46%), a lack of career progression (41%) or a lack of job security (41%). Almost half of respondents (48%) anticipate they will move roles within the next 12 months, driven by a lack of future opportunities (42%) or because they are not happy with their current salary and benefits package (42%). For those not planning on changing jobs in the year ahead, more than half (53%) could be tempted to do so by a better salary and benefits package.
Discover sustainability salaries
2.6
This year, almost all organisations within the sustainability sector have increased salaries, with 94% stating they have done so. Looking at the previous year, 15% of employers believed salaries would stay the same, but only 6% say this has been the case. No employers have decreased pay, as was seen in the previous year. Salaries across the sector have increased by an average of 2.6% over the last year. High demand and low supply have meant that certain roles, such as experienced ESG specialists and environment managers have received above average pay increases. 67% of employees say they are satisfied with their salary or pay rate, with only 33% being dissatisfied. Looking ahead at the next 12 months, again, no employers expect salaries or rates of pay to decrease, with 84% anticipating they will increase and only 16% expecting them to stay the same.
Most employers in the sustainability sector (60%) are not currently recommending the use of these tools and technologies in the workplace. Uptake is also not widespread amongst employees, with three-quarters (75%) saying they do not currently use AI tools as part of their job and most (88%) not expecting to change their field of expertise in the next year in response to AI developments. Looking ahead, employers expect their teams to use AI tools in the future. 78% say they will monitor usage and a further 7% will allow staff to use AI tools unmonitored. However, 40% say they currently don’t have access to the right skills to enable the best use of AI tools and technology. Although more than half of employers within the sector (56%) offer training or support to staff to upskill in using AI, 89% of professionals say they have not received any training or support from their employers to adopt AI in their work. There is appetite to upskill, with 73% of professionals being willing to take part in upskilling or reskilling programs to adopt said tools and technologies.
Problem-solving
In the last year, almost all sustainability employers (88%) experienced skills shortages. Intermediate roles were the most difficult for employers to recruit for (57%), meaning those involved in hiring must try different routes to attract and retain talent. The sustainability sector is relatively new, and employers cannot expect all the required experience to be readily available. 69% of respondents believe that competition from other employers is the main cause of skills shortages in the sector, with pay levels (35%) and fewer people entering the job market in their industry (28%) also highlighted. To bridge the skills gap, employers are broadening their requirements when hiring, as 75% say they’re likely to hire a professional who does not possess all the required skills for a role, with the intention of upskilling them. Employers within the sector believe in the value of a degree, as 70% consider it important for an applicant to have one. In terms of upskilling, six out of ten (60%) employees would prefer their employer offered them time during working hours to complete training, more than half (51%) look for greater investment in their training and 42% want time off to attend relevant conferences, seminars or talks. 80% of sustainability employers plan to hire in the year ahead, a slight decrease from last year (89%). When recruiting over the next 12 months, 70% of employers expect a shortage of suitable applicants, applicants with unrealistic salary expectations (62%) and competition from other employers (60%).
Most employers in the sustainability sector (52%) are optimistic about the wider economic climate and the employment opportunities it may or may not create within the next two to five years. Employees, however, are more cautious about their long-term career opportunities in the sustainability sector, with only 22% feeling optimistic and 42% feeling neutral. The economic environment does concern employers though, as 66% believe it presents the greatest challenge to their organisation over the next 12 months. 57% worry about recruiting the right talent and a further 37% are concerned about rising costs for businesses. Internally, talent retention is the biggest challenge organisations expect to face over the next 12 months (65%), followed by managing change (56%) and skills shortages (43%). Senior leaders say their organisation’s most important strategic goal for the year ahead is increasing turnover (57%). Increasing operating profit (50%) and establishing sustainability (43%) are also highlighted as other key focus areas.
Despite cost-of-living challenges, sustainability remains a core business agenda for organisations. Roles have evolved, with more reporting positions emerging. Upskilling is crucial, and while net zero and climate change are key, social impact and nature-based solutions are gaining importance. Talent issues persist, and the sector is still grappling with AI adoption compared to others.
Paul Gosling Director – Sustainability, Hays
SUSTAINABILITY
Employers in the sector navigating widespread skills shortages
The sustainability sector continues to evolve and many employers plan to recruit sustainability staff in the year ahead. Salaries continue to grow in the sector, but other factors also matter to professionals outside of pay, including future career opportunities and flexible working options.
A key challenge in the sector is ensuring the workforce has the skills required for the jobs we need for a sustainable future. Green skills apply to any role, and it’s crucial that all parts of the workforce are equipped to play their part in meeting net zero targets and driving sustainable practices. Transferable skills are as important, though often overlooked. To work together towards a green future, we need people with the skills to inspire others, empower teams to make sustainable decisions and foster collaboration. Employers are seeking professionals with both the technical skills and knowledge to carry out sustainability roles, and the transferable skills developed over their careers, like effective communication, to help lead the way to more sustainable ways of working. On the other side, increased salaries and career progression are motivating professionals to apply for new roles. There’s a clear eagerness to drive the industry forwards, and those working in the sector are determined to grow their skills and take on new challenges. We’re also seeing an increase in career changes from people without a sustainability background taking up new roles in the sector, suggesting an increase in awareness of the positive impact they can have on sustainability through their careers. At IEMA, the Green Careers Hub has been helping industry professionals, and those interested in sustainability, to find new opportunities and access information about green skills, jobs and careers. As sustainability becomes more embedded in organisational and business structures, green upskilling will become more important than ever.
Sarah Mukherjee
MBE, CEO | IEMA
In the last year, almost all sustainability employers (88%) experienced skills shortages. Intermediate roles were the most difficult for employers to recruit for (57%), meaning those involved in hiring must try different routes to attract and retain talent. The sustainability sector is relatively new, and employers cannot expect all the required experience to be readily available. 69% of respondents believe that competition with from other employers is the main cause of skills shortages in the sector, with pay levels (35%) and fewer people entering the job market in their industry (28%) also highlighted. To bridge the skills gap, employers are broadening their requirements when hiring, as 75% say they’re likely to hire a professional who does not possess all the required skills for a role, with the intention of upskilling them. Employers within the sector believe in the value of a degree, as 70% consider it important for an applicant to have one. In terms of upskilling, six out of ten (60%) employees would prefer their employer offered them time during working hours to complete training, more than half (51%) look for greater investment in their training and 42% want time off to attend relevant conferences, seminars or talks. 80% of sustainability employers plan to hire in the year ahead, a slight decrease from last year (89%). When recruiting over the next 12 months, 70% of employers expect a shortage of suitable applicants, applicants with unrealistic salary expectations (62%) and competition from other employers (60%).
39% of tech professionals do not think their organisation’s employee value proposition (EVP) aligns with their internal experience of working for the organisation, and more than half (54%) have left a job in the past because it didn’t match the expectations they gained during the application and interview process. An organisation’s purpose is important to 77% of tech professionals when they’re considering a new role, and a further 71% say a diverse and inclusive organisational culture is an important factor when assessing a new job. In addition, 68% of tech employees value an organisation’s commitment to sustainability when deciding on a new role.
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68% of tech employees rate their work-life balance positively, no change from last year. Just over half (51%) of tech employees are currently working in a hybrid way, an increase from last year (44%). A further 34% are working fully remotely, decreasing from 42% last year. 15% are based full-time in the workplace. When considering a new role, tech employees say the most important flexible working options to them are home or remote working (71%), followed by hybrid working (57%) and agile/flexi-time (50%). In the year ahead, 31% of tech employees plan to find a role that is more of a mix of hybrid working, and 26% want to find a job based completed remotely. Given that 58% would not consider accepting a job in the future if it didn’t offer hybrid working, it’s crucial for organisations to keep flexible working options high on their agenda.
Career progression has become one of the most important factors for tech professionals. 24% of employees changed jobs in the last year, while a further 42% considered doing so. The main reasons for moving roles were because of a lack of career progression (32%) or feeling their salary was too low (28%). Just over a quarter (26%) of tech employees are not satisfied in their current job because of a lack of career progression (60%), career development opportunities (54%) or long-term opportunities (49%). In the year ahead, 63% of tech professionals intend to change job, an increase from 58% who planned to last year. A lack of future opportunities (44%) is again the driving force behind these plans to move role, followed by their salary and benefits package not being competitive enough (39%). It’s therefore important for organisations to develop clear career progression pathways for tech professionals from the outset if they are to attract and retain talent. For those not planning on moving job in the year ahead, 51% could be tempted to do so if they were offered a better salary and benefits package.
Over three quarters (76%) of tech employers say they increased their employees’ pay over the last 12 months, a higher proportion than intended to (71%). Salaries across the tech industry rose by an average of 1.4% over the last year, following an extended period of significant pay increases. Certain specialist areas still seeing high demand received above average salary rises, such as those with expertise in Oracle (2.8%), SAP (2.7%), cloud (2.6%), infrastructure (2%) or data (1.9%). The last 12 months have also seen more regional variations in salary increases than previous years, as certain locations that were behind on offering more competitive pay for in-demand skillsets catch up to regions such as London. The majority of tech employees are satisfied with their current salary (75%), an improvement from last year (67%). In the year ahead, a similar proportion of employers expect to increase their workforces’ salaries (74%) with a further 24% anticipating pay to stay the same.
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1.4
When it comes to AI in the workplace, more than half of tech employers (57%) say their organisation is recommending the use of AI tools to staff. However, 36% say they don’t have access to the right skills to make the best use of AI. From an employee perspective, 42% of tech professionals are currently using AI technologies or tools as part of their job. Furthermore, 17% of tech professionals plan to change their profession or field of expertise by the end of 2025 in response to AI developments. Around half (49%) of tech employers say their organisation offers training to enable staff to use AI. However, 79% of tech employees say they have not received any training or support from their employer to adopt AI technologies in their work, but most (86%) would be willing to upskill or reskill to better adopt AI tools. Organisations which are exploring the use of AI should be considering how best to bring their teams along the journey in tandem.
Almost all tech employers have faced skills shortages over the last year (93%), only a slight decrease from 95% the year prior. Skills shortages tend to be more acute for high-demand specialist areas such as architecture, cyber, data and cloud. Employers believe skills shortages are being driven by competition from other employers (55%), as well as pay levels (51%). There has been an uplift in employers planning on recruiting in the next 12 months, from 74% in 2024 to 82%. Hiring plans have shifted from contractor to perm as organisations continue to grow and invest in their technology, with 73% of employers planning on hiring permanent employees in the year ahead, compared to 62% last year. 29% plan to engage with tech contractors, a decrease from 35% last year, with more organisations choosing to implement different hiring models to engage with contractors, such as resource augmentation or statements of work. Skills-based hiring is becoming more of a focus for hiring organisations. More than three quarters (77%) of tech employers would be open to hire someone who did not possess all the required skills with the intention of upskilling them. To help them to upskill, tech employees would prefer that their employer invested in their training (54%) and allowed them time during working hours to complete training (53%) and attend relevant conferences or talks (41%).
Around a quarter of tech employers (24%) say they are not optimistic about the wider economic climate and the employment opportunities it may create in the next 2-5 years, an increase from 19% who said the same last year. A further 37% of employers are optimistic. From an employee perspective, a third (33%) say they are not optimistic, up from 21% last year, while 24% say they are positive about their long-term employment opportunities. The top external factors tech employers believe will present the greatest challenges to their organisation in 2025 are the economic environment (51%), recruiting the right talent (50%) and keeping up with technology innovation (41%). From an internal perspective, the top three expected challenges remain unchanged from last year: talent retention (57%), managing change (46%) and skills shortages (45%).
Skills-based hiring, where employers assess candidates based on their skillsets rather than other aspects like their experience, will be key to diversifying and developing the next generation of the tech workforce. However, hiring processes will need to evolve to in order to adjust to this model.
Amanda Whicher Director – Technology, Hays
TECHNOLOGY
Career progression opportunities driving employee movement
Hiring plans within the tech industry are set to see an increase over the next 12 months as we see continued investment in technology. As well as a competitive salary, employers should offer clear career progression and development options to access a diverse range of talent.
Contractor
Investment into UK tech startups and scaleups continues to slow. Beauhurst’s latest estimates suggest that investments in 2024 will be down 25% compared to 2023. But that would still mean over 5k businesses raising between them just shy of £15b. This macroeconomic bird’s-eye-view obscures some of the turbulence that sits underneath that data. Some sectors are winners and some are losers. Winners include AI (obviously) and CleanTech, which overtook fintech recently as the more attractive sector for investors. As investment has been slowing, however, we’ve not seen the concomitant increase in business administrations and insolvencies. But we have at the same time seen record numbers of new businesses being started. There’s a confusing mix of red and green on the economic dashboard for the UK’s tech sector. We’ll therefore be watching for the fallout from the next budget with eagle eyes.
Henry Whorwood
Managing Director – Research & Consultancy | Beauhurst
In our Making AI work for Britain report techUK highlighted how the potential of AI to boost productivity, and its increasing adoption, has put a new lens on the digital skills challenge. Businesses are looking to increase investment in new tech like AI but, if the benefits are to be fully realised, a workforce equipped to use these tools will be essential. Notably, gaps in AI and data analytics are some of the most common talent issues. Although over half of businesses consider hiring talent with AI skills and experience a priority, around 71% can’t find the talent they need, and only 14% of workers consider themselves to have advanced AI fluency. Almost a third of IT leaders reported having the most difficulty hiring staff qualified in AI and ML systems. Many companies are exploring ways to tackle skills gaps without replacing staff or increasing headcount. One survey noted that 44% are allowing staff to upskill and 34% offering workers the chance to retrain, with a big increase in businesses looking to AI tools to boost efficiencies and manage gaps. While in recruitment, a recent paper identified that graduates with ‘AI capital’ or business-related AI studies on their CVs are more likely to get a job interview and receive salary offers that are around 13% higher on average. Further research shows that in fields and functions as diverse as IT, R&D, sales, marketing, finance, business operations, compliance, and HR, employers are willing to pay more for AI skills.
Jake Wall
Policy Manager, Skills and Future of Work | techUK
Agile working/ flexitime
Managing Director - Research & Consultancy | Beauhurst
If you’re interested in how these findings can impact your hiring process in the year ahead, or need further support with your hiring needs, our expert talent consultants are on hand to help. Your success is at the heart of our business. Whether you’re looking for help transforming your organisation or seeking your next role, we have the knowledge, expertise and experience to deliver on your ambitions. Simply fill in the form to request a callback and we’ll be in touch. From talent plannning, assessment and insights to expert permanent and temporary recruitment, our suite of services delivers the right outcomes for your organisation. To find out more, visit our employer services hub. If you’re looking for your next role or seeking a career change, check out our latest jobs.
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In the meantime, take a look at the latest trends and reports produced by Hays to help support your decision-making in attracting the best talent in the market.
At Hays, we invest in lifelong partnerships that empower people and organisations to succeed. With over 50 years experience, and expert recruitment consultants spanning 21 industries, our comprehensive salary guides will help you navigate your talent sourcing strategies in an increasingly complex market. Click through the relevant industry thumbnails below to access the salaries for 2025 for your field.
At Hays, we invest in lifelong partnerships that empower people and organisations to succeed. With over 50 years experience, and expert recruitment consultants spanning 21 industries, our comprehensive salary guides will help you navigate your talent sourcing strategies in an increasingly complex market. Click through the relevant industry thumbnails below to access the salaries for 2024 for your field.
Employment trends update
of employees are optimistic about the long-term economic environment and its impact on job opportunities, compared to 21% in 2024 and 43% in 2023
of employers are optimistic about the long-term economic environment, compared to 34% in 2024 and 41% in 2023
MARKET OUTLOOK
Long-term confidence in the economic environment remains low for employees, and has decreased for employers, following a continued trend from 2023. Rising costs have become the forefront challenge for organisations in the short term alongside talent retention.
The 2024 Autumn Budget included several changes that impact businesses, such as increases to Employer National Insurance, the National Minimum Wage and the National Living Wage. This has put pressure on finances and is causing some employers to plan to hire less staff. However, most say the Budget will not have an impact on their hiring plans, and as skills shortages remain persistently high, employers are continuing to recruit in the short term with a renewed investment in temporary staff.
Most employers have increased the pay of their staff over the last 6 months, and a similar proportion intend to do so in the 6 months ahead. The 2024 Autumn Budget has caused a minority of employers to plan smaller pay rises for staff, but most say it has not affected their approach to salary increases. There has been a notable decline in employee satisfaction with their salaries or pay rates, with fewer believing it is aligned with their responsibilities.
EMPLOYMENT TRENDS 2025 SPRING UPDATE
The UK employment market is constantly changing, with organisations facing a range of challenges and opportunities. Our 2025 Spring Update, based on our survey of over 8,000 respondents, provides you with the insights you need to know for the next 6 months, whether you’re planning on hiring staff, want to retain talented individuals, or are thinking about changing jobs soon.
How have the changes announced in the 2024 Autumn Budget that affect business impacted hiring strategies?
Plan to hire more staff
Plan to hire less staff
Say no impact
At a glance
of employers have faced skill shortages in the last 6 months, compared to 93% in 2024 and 92% in 2023
HIRING TRENDS
of employers are planning to hire in the next 6 months, compared to 78% who planned to hire in the next year in 2024
Top hiring challenges in the next 6 months:
of employers increased salaries in the last 6 months, and 64% plan to in the next 6 months
of employees are satisfied with their salary or pay rate compared to 68% in 2024
of employees think their pay is aligned with their responsibilities compared to 49% in 2024
of professionals expect to change jobs in the next 12 months compared to 57% in 2024
CAREER PROGRESSION AND DEVELOPMENT
There has been a sharp increase in professionals planning to change jobs in the year ahead. A lack of progression opportunities is the driving force behind many employee decisions to move job, over and above their salary. Although most employers feel there are opportunities for their staff to progress their career in their organisation, employees are less likely to agree.
How do employees feel about their career prospects for the next 6 months?
Positive
Uncertain
Negative
of employees working in a hybrid way feel that working from home allows them to work more efficiently
of employers say a proportion of their staff are working in a hybrid way
WAYS OF WORKING
More than three-quarters of employers offer hybrid working options to their staff, and employees feel this approach allows them to work more effectively. Employers overall do not believe location impacts an individual’s productivity, and most do not plan to alter their approach to hybrid working. However, a small proportion are asking employees to return to the workplace more frequently.
of employees would consider leaving their job if their employer mandated a return to the office
There has been an uplift in employers recommending the use of AI tools in the workplace over recent months, but actual uptake by employees remains low. When it comes to the skills needed to make the best use of AI, employers are still facing gaps in knowledge. Although more employers are offering training to staff for the use of AI, a significant majority of professionals say they have not received any training or support in this area.
2025
How has AI usage changed in the workplace?
% of organisations are currently recommending the use of AI tools in the workplace
% of employees are currently using AI as part of their job
How are AI skillsets developing?
% of employers do not have access to the right skills to allow them to make the best use of AI
% of organisations are offering training or support to their staff for the use of AI
100%
% of professionals have not received any training or support from their employer to adopt AI technologies in the workplace
The survey on which these findings are based was carried out between 3rd-19th February 2025 and received 8,247 responses from employers and employees working in a range of organisations and sectors across the UK.
Methodology
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Advisory solutions
Top external and internal challenges in the next 6 months
plan to hire contractors, freelancers, interim or temporary workers
plan to hire permanent staff
plan to mandate a return to the office in the next 6 months
have asked employees to be in the workplace more often in the last 6 months
Main reasons employees want to leave their current organisation
My salary and benefits package
My manager
of professionals do not think there is scope to progress their career in their current organisation
of employers believe there is scope for career progression for their staff at their current organisation
How are employers encouraging workers back into the workplace?
Paid or subsidised travel
Perks such as onsite cafe, free snacks, drinks fridge
Social events
Pay rise
Option to bring pets into the office
Onsite childcare or subsidised childcare
None of the above
How do employers view the productivity of employees working from home compared to those working in the office?
Home workers are more productive
Productivity is the same
Office workers are more productive
Are not sure
Top skills employers think are important for someone to possess to be able to work most effectively with AI tools:
How has the 2024 Autumn Budget changed the approach organisations are taking to pay rises in the next 6 months?
Plan to give smaller pay rises
Not giving pay rises at all
No changes to approach
