A new Michael Page study has revealed that over two in five HR professionals (43%) struggle to find candidates with the right skills, showing the ongoing challenges in UK recruitment. The report highlights the growing pressures caused by skill shortages and workforce changes, despite government initiatives such as the creation of Skills England and reforms to the apprenticeship system.
Claire McCartney, resourcing and inclusion manager at the CIPD, emphasized that many businesses now focus on upskilling their current workforce to bridge skill gaps. However, she warned that the labour market remains under pressure due to skill shortages, workforce exits, and slow migration growth.
In addition to skill shortages, the report found that the time to fill a permanent role has extended to 35 days, further complicating hiring efforts. Despite signs of economic recovery after the 2024 election, companies are taking longer to make hiring decisions, often opting to manage recruitment internally due to cost and resource concerns.
However, this slower, more rigid hiring process is backfiring. Skilled candidates withdraw from prolonged interview processes in favour of faster-moving opportunities, leaving businesses struggling to secure top talent.
Flexibility and work-life balance have become top priorities for candidates, with 73% saying they expect flexible work options such as hybrid models when considering job offers. Without these options, businesses risk losing qualified applicants.
Meanwhile, salary expectations continue to pose challenges. The report highlights a mismatch between what companies are willing to pay and candidates’ expectations. Over half (57%) of organizations cited salary disagreements as a major hiring obstacle, while 50% of candidates rated competitive pay as their top priority.
To address recruitment challenges, experts recommend that companies focus on continuous recruitment efforts, transparency about pay, and building strong employer brands. Maintaining relationships with talent pools and considering transferable skills or reskilling could also help fill roles more effectively.