Two-fifths of employers are struggling to hire despite an increase in unemployment, according to the latest Talent Trends report from Michael Page.
The recruiter found that 45% of employees are seeking more purpose from work, while 43% don’t feel that leaders balance the needs of the business with the wellbeing of the workforce.
Consequently, almost half (47%) of professionals are actively job hunting, but holding out for roles that meet all of their needs.
Salary is also an issue for almost a third of those surveyed: 31% of employees polled by Michael Page said they were unhappy with their current pay rate, and 46% would mark this as their top priority when seeking a new role.
Hiring struggles
More than half (56%) of those who had returned to the office were doing so because of company policies, despite the fact that 81% said work-life balance was their most important consideration at work.
There is also a disconnect between employees and managers when it comes to return-to-office mandates, according to Michael Page.
Forty-three percent of managers believe that productivity improves in person, while 46% of employees think they are more productive at home. Almost half (47%) said they would look for a new job if their flexible working arrangements changed.
Only around a third (35%) of employees feel they can be their authentic selves at work, down from 41% in 2024. The proportion of employees that said they were looking for a company culture that reflected their personal values was 43%, up from 34% last year.
Doug Rode, UK and Ireland managing director, described this year’s trend as a “wait and see workforce”, where candidates have an idea of their ideal workplace and want employers to live up to this.
“That said, there’s no one-size-fits-all solution and businesses that aim to appease the masses will come unstuck,” he said.
“In an increasingly competitive market, organisations that can clearly articulate their policies and employer value proposition across key considerations such as salary, flexibility, technology and inclusivity have a higher chance of securing candidates that align with their business, as two in five passive job-seekers remain open to roles that meet their requirements.”
Shazia Ejaz, director of campaigns at the Recruitment and Employment Confederation, said the findings were a “wake-up call” for employers.
“Employees want a clear sense of purpose, flexibility, and trust. To thrive in today’s market, businesses must put people strategy at the heart of their growth plans by listening to their workforce, build inclusive cultures, and offer roles that can allow people to work and juggle other needs.
“Such investments are essential not only for attracting and retaining talented workers but also for driving long-term business success.
“The survey indicates that lagging productivity in the UK is a challenge for both employers and the government. One potential solution is for companies to adopt approaches that work best for them by aligning their goals with employee feedback on the most effective ways of working.”
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
HR roles in recruitment consultancy on Personnel Today
Browse more HR roles in recruitment consultancy
