Nearly half (49%) of employers have struggled with recruitment in the past year, with nearly three in five (57%) highlighting the biggest hiring challenge as a mismatch in salary expectations.
Michael Page’s 2025 Salary Guide, which explored the main pressures impacting the UK recruitment market, revealed that overall hiring and retaining talent was top concern for HR leaders in the past 12 months.
The report also found that 43% of HR leaders thought finding applicants with the right skills set was a major hurdle, while for more than one in three (35%) a key concern noted was a lack of available candidates.
Sophie Gorvett, operating director at Michael Page, said: “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.”
Salary expectations
Salary transparency “hits rock bottom”
The research also found that half (50%) of organisations are struggling with retention, with the same percentage of employers citing their key challenge in this area as offering competitive pay.
Other factors affecting employee retention were identified as work–life balance and career progression, noted by 44% and 39% respectively.
According to Michael Page, the findings should encourage businesses to rethink their recruitment strategies – from hiring as a “quick fix” to creating a sustainable talent pipeline – so they can futureproof their teams.
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.”
She advised employers to use all available resources to “articulate what sets them apart, and ensure they’re not falling behind in the race for top talent”.
The analysis of hundreds of roles across 15 UK sectors, also showed the most in-demand roles in the HR industry to be HR manager, recruitment partner, HR project manager, head of HR and people director.
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