The UK job market faces increasing challenges in 2025, with over half of professionals planning to look for new roles while businesses struggle to attract talent due to dissatisfaction over salaries and benefits, according to new research.
The research from global talent services company Morgan McKinley UK reveals that 56 percent of British professionals intend to actively search for a new job in the next six months. At the same time, 40 percent of hiring managers plan to recruit, highlighting a competitive hiring landscape.
The findings, published in the Morgan McKinley 2025 Salary Guide, highlight a key challenge for employers: attracting top talent. Over the past six months, 59 percent of businesses reported losing out on candidates due to uncompetitive salary and benefits packages. Employee satisfaction with benefits remains low, with the same percentage of professionals feeling ‘neutral’, ‘dissatisfied’ or ‘highly dissatisfied’ with their current offerings.
Salary increases for in-demand roles
Despite strong demand for flexible working arrangements, 45 percent of organisations now require employees to be in the office for more than three days a week. Meanwhile, half of UK companies kept their salary bandings static over the second half of 2024, making it harder to attract new talent in a market where remuneration remains a key factor.
Looking ahead to 2025, 63 percent of British employers plan to increase salary offers for certain hard-to-fill roles. However, professionals remain cautious, with only 40 percent expecting to receive a pay rise this year.
Victoria Walmsley, managing director at Morgan McKinley UK, says businesses must take a strategic approach to hiring and retention. “The UK job market remains competitive, and organisations need to be more strategic in their talent acquisition efforts,” she explains. “Salary, benefits and workplace flexibility continue to be key decision-making factors for professionals.”
The talent retention challenge
Walmsley warns that businesses failing to adapt risk losing skilled employees. “We are seeing a shift from incremental salary increases and outdated hiring models towards more strategic talent retention initiatives.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.”
Walmsley adds that while the post-pandemic hiring surge has slowed, companies still face economic, political and regulatory challenges. “Businesses 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 research surveyed 530 businesses and 2,751 professionals to assess hiring intentions, salary expectations and job change motivations for 2025.