Rethinking recruitment: a leader’s guide to the UK hiring market

As people become increasingly recognised as a strategic asset, senior leaders are being asked to look beyond traditional hiring metrics. It’s no longer just about filling roles; it’s about building resilient, high-performing workforces that can adapt, innovate, and deliver long-term value. 

Hays’ Global Talent Tracker offers a fresh lens on this challenge, benchmarking 35 countries across five key dimensions: value, participation, development, market flexibility, and innovation. Examining the UK’s performance and key opportunities, decision-makers can formulate informed, data-driven workforce strategies that are ready for both the domestic and world stage. 

Value isn’t just about cost – it’s about return 

The UK scores well on workforce value, but not because it’s a low-cost labour market. Rising wages and national insurance contributions (NICs) have made hiring more expensive, yet the UK’s real strength lies in the productivity and quality of its workforce. Sectors such as life sciences, fintech, and engineering continue to deliver strong returns on investment, thanks to the deep expertise and high output of the people driving them.  

So how are organisations extracting real value, mitigating rising hiring costs while continuing to utilise skilled domestic workers? Some employers are increasingly adopting blended workforce models, along with combining leading UK-based skills with offshore delivery. 

Participation Is high, but expectations are shifting 

The UK’s workforce participation is strong, ranking 7th globally. But high engagement doesn’t equate to frictionless hiring. Candidate expectations have evolved: flexibility, autonomy, and purpose are all front of mind, and employers can’t rely on pay alone to secure the people capable of making a difference. 

Moreover, demographic pressures are beginning to surface. An ageing population and declining birth rates could impact future talent supply, making it even more essential for organisations to rethink their employee value proposition (EVP). Those that align with modern expectations will be better positioned to attract and retain the people they need. 

Development is robust – and misaligned 

The UK’s academic institutions are world-class, yet the transition from education to employment remains uneven. Skills gaps persist, particularly in technical fields, and regional disparities continue to affect access to high-quality professionals. 

This misalignment between education and industry needs is a missed opportunity. Organisations that invest in local development – whether that be through partnerships, training, and internal mobility – can build more resilient workforces and help cement their position as a forward-thinking employer with stronger ties to the communities they deliver for. 

Flexibility is narrowing 

The UK is still seen as one of the strongest employment markets globally, but labour flexibility is challenging this position. Regulatory complexity, wage inflation, and employment reform are slowing down hiring decisions and making it harder for businesses to scale quickly. While the UK still offers high-quality candidates, agility is increasingly compromised by a complex hiring environment. 

This is prompting a shift toward contingent workforce models, automation, and in some instances, offshoring. For many organisations, permanent hiring is no longer the default. Instead, they’re exploring more agile approaches that allow them to adapt without sacrificing quality or compliance. 

Innovation is promising, but lacking support 

The UK has strong foundations for innovation, particularly in digital fluency and AI capability. Tech hubs like London and Cambridge continue to attract high-value professionals, and world-leading academic institutions provide a steady stream of knowledge-rich workers. 

Yet innovation depends not only on capability, but also on effective deployment, with regulatory caution and infrastructure gaps slowing momentum. To stay competitive, organisations need to build environments where people can experiment, learn, and grow. That means investing not just in technology, but in the people who power it, with committed upskilling programmes and meaningful AI initiatives. 

Strategic imperatives for business leaders 

Like any market, the UK’s hiring arena contains both challenge and opportunity. During a period of immense technological and social change, being open to new approaches, and generating greater connections with local communities, will help organisations achieve the results they are looking for. Here are three priorities for leaders: 

1. Rethink workforce models for agility

Rising costs and regulatory complexity demand a more flexible approach to traditional hiring. Leaders should therefore look towards blended models, combining permanent roles with contract, freelance, and project-based profressionals to maintain agility and secure greater value. 

2. Engage with policy – or influence it

Immigration and wider employment frameworks are rapidly evolving, and leaders will need to closely monitor these changes and adapt their approach accordingly. Better yet, workforce leaders should help shape the conversation, engaging industry bodies to ensure reforms reflect real-world workforce needs and challenges unique to their locality.  

3. Align your EVP with new realities

Cost-of-living pressures and generational shifts are redefining what tomorrow’s workforce values. In response, leaders must design and communicate a compelling employee value proposition that balances security, purpose and flexibility. Investing in development should also be a priority, bridging the education-to-employment gap through partnerships, internal mobility, and upskilling initiatives. 

What’s next for your workforce? 

The insights found in our Global Talent Tracker won’t offer quick fixes, and no single market delivers on every need. What the findings do provide, however, is a strategic framework for understanding where the UK stands – and where it could go.  

For senior leaders, it’s a chance to move beyond reactive hiring and toward proactive workforce planning. Whether you're navigating cost pressures, skills shortages, or the need for greater agility, the Global Talent Tracker offers insights that can help you shape a workforce that’s fit for the future. 

Explore the full Hays Global Talent Tracker to benchmark your strategy and uncover new opportunities for growth.