UK employers are facing increasing pressure to justify higher staffing costs – which in turn is leading to concerns over workforce burnout, according to research.
The findings, published on recruitment agency Robert Half’s 2025 Salary Guide, show that over a third (39%) of employers plan to introduce tougher performance metrics in an effort to boost productivity.
This follows recent increases in National Insurance Contributions (NICs) and the National Minimum Wage, both of which have contributed to a higher cost of employment.
Risk of fatigue crisis
The report noted a change in employer strategy, with many businesses now aiming to improve output from existing teams. Robert Half warns that this approach may risk the well-being of workers, especially as 62 percent of employees say they are already concerned about being overworked. The combination of tighter budgets and productivity demands has raised the risk of what the firm describes as a potential “workforce fatigue crisis”.
Matt Weston, Senior Managing Director UK & Ireland at Robert Half, said, “We’ve seen a growing trend in worker concerns around mental exhaustion for some time now. However, we are now in a position where the majority of staff are worried that they will be over-worked. What is perhaps more concerning is that employers are potentially at risk of exacerbating this issue as they attempt to justify the increased costs of hiring.”
As businesses absorb the financial impact of statutory pay increases and higher employer contributions, many are focusing on reducing overheads through selective hiring and internal efficiency gains. Some companies are choosing to prioritise candidates with more experience, hoping that a smaller number of high-performing staff will generate greater return on investment.
Changing hiring and retention strategies
With limited scope to expand headcount, some employers are investing in technology and upskilling programmes to enhance the productivity of their current workforce. However, Robert Half notes that revised hiring strategies may be accompanied by a reduction in non-salary incentives such as workplace perks and well-being support.
The report suggests that changes to benefits may have longer-term implications for talent attraction, especially as workers continue to prioritise company culture and work-life balance. The perceived decline in workplace support could affect how businesses are viewed by prospective candidates and may also contribute to retention challenges.
Weston added, “With budgets being stretched, it’s no surprise that companies are looking to improve productivity levels, and with people a company’s greatest asset – but also biggest expense – attentions have understandably turned to the workforce and how to get more value for money.
“When we also consider that there is a general consensus that recruiting higher-performing individuals requires greater financial investment, it perhaps makes sense that firms are considering how they can get more from their people.”
He also noted the potential value of alternative staffing models in the current environment.
“In this context, contractors and temporary staff augmentation models could provide a cost-efficient alternative to hiring permanent staff, particularly at a time when hiring costs are on the rise and business critical processes need to be maintained,” he said.
Employer brand and long-term resilience under threat
The focus on short-term cost control carries risks for organisational resilience, according to the report. If not managed carefully, heightened productivity demands could lead to increased staff turnover and longer-term damage to employer reputation. Weston emphasised the need for balance, warning that failing to address burnout concerns may lead to lower productivity and higher absence rates over time.
“Nonetheless, the risk of staff overload and long-term workforce strain is very real, and employers need to be mindful of the lasting impact this could have. Aside from the fact that it is the responsibility of businesses to protect the well-being of their people at work, there’s also the potential for productivity to be damaged further down the line as staff absences and attrition rates increase,” Weston said.
“There is also the possibility for employer brands to be impacted as a result of worker dissatisfaction and high levels of staff turnover. It’s understandable that businesses want to improve productivity – particularly at a time when employment costs are so high – but a careful balance needs to be struck so as not to hinder future growth opportunities and longer-term recruitment prospects.”
