Ryan FowlerThe British jobs market is set for further turbulence in 2025, with more than half of professionals actively planning to search for a new role and employers continuing to lose out on talent due to uncompetitive salaries and benefits.
New research from global talent services firm Morgan McKinley UK, published in its 2025 Salary Guide, reveals that 56% of professionals are seeking a job move in the next six months. At the same time, 40% of hiring managers say they plan to recruit, adding pressure to a market already stretched by skills shortages and retention challenges.
Employers’ ability to offer attractive packages remains a key barrier. The report found that 59% of businesses have lost candidates in the past six months because their salary and benefits packages were not competitive. Employee sentiment is similarly mixed, with 59% of professionals saying they are either ‘neutral’, ‘dissatisfied’ or ‘highly dissatisfied’ with their current benefits.
Flexibility also continues to be a sticking point. Despite growing demand for hybrid working, 45% of UK organisations are requiring staff to attend the office more than three days per week. Meanwhile, half of employers kept salaries flat in the second half of 2024.
Looking ahead, 63% of businesses say they plan to increase salaries for certain hard-to-fill roles in 2025. But expectations among professionals remain subdued, with only 40% anticipating a pay rise this year.
Victoria Walmsley, managing director at Morgan McKinley UK, said: “The UK job market remains competitive, and organisations need to be more strategic in their talent acquisition efforts. Salary, benefits, and workplace flexibility continue to be key decision-making factors for professionals and employers must take a strategic approach to pay and benefits to retain top talent.”
She added: “Businesses that fail to evolve risk losing top talent. We are seeing a shift from incremental salary increases and outdated hiring models towards more strategic talent retention initiatives — job seekers are demanding greater transparency on salary ranges and clear progression paths as well as flexibility and career growth. Employers who embrace these changes will have the strongest advantage.
“The British job market has settled into a measured pace after the rapid post-pandemic shifts. While economic, political, and regulatory challenges persist, companies that invest in salary transparency, structured career progression, and flexible working policies will be best positioned to secure and retain top talent in 2025.”
The Morgan McKinley 2025 Salary Guide provides salary benchmarks across a wide range of roles and regions. The research includes data from 530 businesses and 2,751 professionals.
