Leading recruiter Michael Page, part of FTSE 250 PageGroup, has released its 2025 Salary Guides, revealing key pressures affecting the UK hiring market.
The report reveals the challenging staffing landscape for HR leaders, where almost half (49%) of organisations struggled to hire in the past year, with almost three in five (57%) citing matching candidate salary expectations as their biggest challenge.
The 2025 Salary Guides, which analyse hundreds of roles to generate data on recruitment demand, popular roles and hiring timelines for UK firms across 15 sectors, also explore the latest trends in the UK recruitment landscape.
With hiring and retaining talent emerging as the top concern in the last 12 months for leaders across HR, the report shows that businesses lacking a considered recruitment approach and competitive employer value proposition may lose out on securing top talent. With salary the primary concern for both employer and candidate, understanding wider market trends has never been more important.
Sophie Gorvett, Operating Director at Michael Page, commented:
“HR hiring managers are facing a unique set of challenges at present. As departments continue to move toward more integrated teams, with a focus on DE&I experience, the breadth of skills needed from candidates has evolved. As a result, many leaders are struggling to find candidates that fit the needs of their team.
“As businesses reintroduce in-person interviews and lengthier hiring processes, we’re continuing to see quality talent withdraw from the process in favour of a more streamlined approach. Knowing that over half of HR workers see salary as the most important aspect when accepting or applying for roles, it’s imperative that hiring managers move quickly and offer transparency throughout the process, ensuring their offer is as competitive as possible.”
Beyond mismatched salary expectations, 43% of HR leaders said that finding candidates with the right skills was a significant hurdle. For more than a third (35%) the lack of candidates available in the market was their main challenge, reflecting a growing need for specialised recruitment strategies.
Gorvett added: “There are plenty of options available to businesses to ensure they’re not falling foul of mismatched expectations – from looking at total package offers, where salary is bolstered by other provisions, through to benchmarking salaries against the industry standard. Expert consultants and tools like the Salary Guides are readily available to help businesses articulate what sets them apart, and ensure they’re not falling behind in the race for top talent.”
In addition to recruitment challenges, the report also shows that 50% of HR organisations are battling retention issues. Similar to their hiring obstacles, the main challenge in retaining staff for half (50%) of UK HR leaders is offering a competitive salary.
An additional 44% said that work/life balance has affected employee retention, with 39% also saying career progression has impacted the number of workers staying in role.
This data spotlights the opportunity for businesses to rethink their recruitment strategies in order to futureproof their teams – shifting from hiring as an immediate solution to creating a long-term talent pipeline. From drawing on specialist knowledge to working with recruitment partners to reach a broader set of candidates, the report highlights the need to forge a clear path to the talent businesses require, both now and in the future.
For businesses looking to unlock further hiring insights, the Michael Page 2025 Salary Guides can be downloaded here.
