Hiring optimism holds steady

​

Skills shortages continue to threaten UK economic recovery with 64% of firms saying that addressing the skills gap coupled with the availability of talent and staff retention remain major concerns for their businesses, according to research by Robert Half.  As such over a third of UK employers (36%) within professional services plan to increase permanent headcount in the next six months, signalling cautious optimism amid ongoing economic and geopolitical uncertainty.

While these statistics show some recruitment stability for workers in professional services, underlying concerns around access to skills are resurfacing.  Robert Half’s latest Hiring Intentions research reveals that  71% of employers are expressing concern over the speed of hiring, while 70% say the availability of qualified candidates, and holding on to top talent are top challenges impacting their workforce strategies.  Re or upskilling the workforce is a significant concern for the coming months as 54% of respondents battle to address skill shortages in their businesses.

“It’s encouraging to see that many employers in the professional services sector are still planning to grow their teams despite the economic headwinds ahead of the Autumn Budget.  However, our data does suggest that the current cautious optimism we are seeing from hiring managers could be tempered by fears around talent pipelines and skills readiness,” comments Matt Weston, Senior Managing Director for UK & Ireland, Robert Half.  

“Concerns about skills availability across the UK workforce have been bubbling under the surface for some time, but have recently been overshadowed by the challenging economic environment.  Now, though, this issue is coming back to the fore, and it risks the potential for further growth in the recruitment market.”

Despite rising employer taxes and increasing costs associated with hiring, the research indicates that many employers are pressing ahead with essential recruitment plans that unlock growth, meet competitive challenges and build resilience.  “Firms recognize that bringing in the right talent is crucial not just to fill roles, but also to introduce the skills needed to drive business change and ensure organizational success,” continues Weston.

“The pressure to find qualified candidates quickly, coupled with retention challenges, means that organisations must think beyond short-term hiring and outside of traditional talent pools.  Investing in upskilling, reskilling and diversifying recruitment efforts, whether by reaching into overlooked regions for attracting skilled remote workers, attracting candidates from different sectors, or broadening access for underrepresented groups, is no longer optional – it’s essential for future-proofing the workforce.”
“As we approach a pivotal moment in the economic calendar, businesses should use this time to reassess their recruitment strategies, strengthen internal capabilities and ensure they’re building resilient, inclusive teams that can thrive in a changing landscape,” comments Weston.

Robert Half’s research also reveals a gap between permanent and contract hiring intentions, which further reflects market caution.  While 36% of employers plan to increase permanent headcount, 31% are turning to additional contract talent to maintain agility and tackle skills shortages.