Employers worldwide still find it difficult to fill vacancies, and the United Kingdom reflects this trend, with Bloomberg reporting that nearly one in five U.K. workers expect to move jobs within the next 12 months — principally in search of better pay, more flexible working arrangements and improved job satisfaction.
This appetite for remote and flexible work is reshaping the jobs market, making it harder for employers to attract and retain top talent unless they adopt these new working models.
To help U.K. employers understand the labour market disruptions, we surveyed more than 500 British employers to identify which industries and locations have been hit hardest by The Great Resignation, which skills gaps are hardest to close, and what strategies employers are using to overcome recruitment obstacles.
82% of employers have felt the effects of The Great Resignation during the past year
We analysed which U.K. cities had the highest share of companies affected by The Great Resignation, and Sheffield, in Yorkshire, ranks top. Ninety-two per cent of Sheffield employers surveyed said The Great Resignation had directly affected their company.
Plymouth and London follow closely, at 89% and 87% respectively.
While those three cities top the list, the effects are widespread across the country — from Edinburgh in Scotland right down to Plymouth in the south‑west of England.
The table below lists the top 10 U.K. cities by percentage of employers affected by The Great Resignation.
Cities with the highest percentage of companies affected by The Great Resignation
Rank | City | % that said The Great Resignation has affected their company* |
|---|---|---|
1 | Sheffield | 92% |
2 | Plymouth | 89% |
3 | London | 87% |
4 | Birmingham | 87% |
5 | Brighton | 87% |
6 | Southampton | 86% |
7 | Glasgow | 85% |
8 | Newcastle | 84% |
9 | Bristol | 80% |
10 | Edinburgh | 80% |
*Figures rounded to the nearest %.
92% of employers have struggled to fill roles in the past year
Partly driven by The Great Resignation, employers are increasingly challenged when recruiting to close internal skills gaps. With demand so high, candidates hold the advantage and can be more selective about the roles they accept.
Our research shows 92% of U.K. employers struggled to fill roles over the past year and used an average of nine recruiters to try and address skills shortages within their companies.
The business areas U.K. employers find hardest to recruit for are software engineering, HR and data analytics.
Companies struggling to attract candidates with these specialist skills should rethink how they can add value through employee benefit schemes and adjust existing packages to match the expectations of the candidates they target.
The table below ranks the business areas and skills employers have struggled to fill in the past year, from highest to lowest percentage.
The top 12 skills U.K. companies struggle to recruit for
Rank | Business areas/skills | % of employers that have struggled to fill roles in these areas in the past year* |
|---|---|---|
1 | Software engineering | 27% |
2 | HR | 26% |
3 | Data analytics | 24% |
4 | Customer experience | 23% |
5 | Business operations | 23% |
6 | Executive leadership | 23% |
7 | Marketing | 20% |
8 | Sales | 19% |
9 | Product management | 18% |
10 | Finance | 17% |
11 | Design | 17% |
12 | Legal | 12% |
*Figures rounded to the nearest %.
The survey also examined which roles specific industries struggle with most. Almost every logistics employer we surveyed in the U.K. (96%) reported difficulty filling roles in the last year, fintech firms struggle most with HR roles (42%) and healthcare providers report the biggest shortages in customer experience roles (25%).
Industry | % that have struggled to fill any job role (past year) | Business area | % that have struggled to hire for business area |
|---|---|---|---|
Fintech | 92% | HR | 42% |
Healthcare | 90% | Customer experience | 25% |
Logistics | 96% | Data analytics | 50% |
Marketing & Advertising | 91% | Marketing | 45% |
Technology | 94% | Software engineering | 58% |
*Figures rounded to the nearest %.
Half of employers now provide new training to existing staff to address recruitment challenges
Securing and retaining top talent is central to any growth-focused business. Historically, employers concentrated recruitment where they already have a local legal entity. Today, a global employment partner like Remote makes international recruitment faster, simpler and safer with employer of record services.
U.K. employers are adopting inventive solutions. Half of respondents (50%) provide training to existing employees, and more than one third offer referral schemes.
Only one-third of surveyed employers are recruiting beyond their home city. That means over 60% are missing the chance to widen their hiring net and access a far larger global talent pool.
The table below ranks the tactics employers use to tackle recruitment barriers, from most to least popular.
Ways employers have tried to address recruitment struggles | % that reported using the tactic |
|---|---|
Offering training to existing employees | 50% |
Offering a referral scheme to current employees | 35% |
Recruiting outside of the city where you are based | 33% |
Offering an apprentice program | 33% |
Hiring external recruitment resource | 33% |
Recruiting internationally | 33% |
Proactively sourcing more diverse candidates | 33% |
Outsourcing work to freelancers and contractors | 29% |
Offering bursaries and scholarships in the underskilled areas | 26% |
*Figures rounded to the nearest %.
Hiring internationally can ease recruitment pressures
Hiring internationally to solve recruitment challenges is a strategy used by 33% of the employers we surveyed.
33% of employers recruit internationally to tackle recruitment challenges.
The growing popularity of remote work and the tools that enable it mean employers can now find strong candidates across the world. British employers no longer need to limit themselves to professionals based in the U.K..
Large numbers of highly skilled professionals are prepared to work remotely in time zones close to the U.K., across the rest of Europe, the Middle East and Asia. Asynchronous work practices can make it productive for U.K. employers to open recruitment pipelines to Asia, the Americas and the Pacific – a strong strategic asset for any organisation aiming for 24-hour sales or customer support coverage.
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However, some employers choose not to recruit internationally to mitigate The Great Resignation’s impact. Eight per cent said they do not sponsor work permits, and a further 8% said they require employees to be able to travel into the office when needed.
Keep in mind, U.K. employers can still hire internationally and permit employees to work abroad legally with support from an employer of record like Remote.
If your operations support remote work, you need not provide relocation packages or sponsor visas to access foreign talent. So long as overseas candidates have the legal right to work in their home country, Remote makes it easy to hire and pay these team members in compliance with relevant labour laws through our fully owned local entities.
When recruiting, does your company consider international candidates? | % |
|---|---|
Yes, because we have a remote working policy | 40% |
Yes, because we work with international clients | 36% |
Yes, but they are offered a wage representative of where they live | 22% |
Yes, but only if they have the right to work where we are based | 20% |
No, because we don't sponsor work permits | 8% |
No, because we want to ensure employees can come into the office when needed | 8% |
No, but it is something we are considering | 6% |
No, because we do not have a remote working policy | 5% |
*Figures rounded to the nearest %.
Almost half of employers (46%) are now willing to negotiate salaries due to recruitment pressures
To remain competitive and fill skills needs, nearly half of U.K. employers we surveyed said they have become more open to negotiating salaries since The Great Resignation began.
Employers are also more willing to negotiate over areas such as health benefits and annual leave.
This increased readiness to offer a more comprehensive total rewards compensation package could also help retain current staff and reduce further turnover.
The table below shows areas where employers have become more willing to negotiate since The Great Resignation.
Area of negotiation | % that said they have been more open to negotiating in the last year |
|---|---|
Flexible working policy | 49% |
Salary | 46% |
Remote working policy | 46% |
Annual leave | 43% |
Training benefits | 43% |
Health benefits | 42% |
Home office allowance | 40% |
*Figures rounded to the nearest %.
Unsurprisingly, remote working policy is a key area businesses are open to consider, given the large increase in remote work since the COVID-19 outbreak. For many industries, flexible working hours are already embedded in permanent policy.
How can employers attract high-quality talent to close skills gaps?
Closing skills gaps with experienced hires and retaining existing staff is difficult at any time, and becomes tougher as the market grows more competitive.
So, where should employers begin when trying to attract the talent they need?
Be transparent in job advert specifications
Clarity is essential for everyone in the recruitment process, particularly prospective applicants. Vague or hard‑to‑find listings can deter candidates and cause confusion.
Set out the role’s responsibilities clearly, including required experience, any specific skills and the reporting structure. Rather than labelling pay as ‘competitive’, we recommend stating a salary band.
Our research found 41% of employers do not always include salary information on job descriptions and nearly 50% do not mention progression opportunities for every role.
To make your advert stand out, outline key benefits and perks. Even values-based benefits such as flexible hours, remote work provisions and mental health support programmes can help your offer stand out.
Employers lack transparency in job adverts
41% of employers don’t always include salary information in job descriptions for every role
47% of employers do not mention progression opportunities for each role
Inaccessible language can cause confusion and deter candidates from applying
Review existing benefits plans
Benefits are a key factor candidates consider when applying. If you recruit internationally, ensure benefits are appropriate to the employee’s country.
We recommend crafting tailored benefits packages that reflect geographical differences, demographics and other influences.
Alongside benefits, regularly review salaries to ensure fair, competitive pay. Our survey found 17% of U.K. employers do no salary benchmarking, while the 80% that do typically review pay every five months on average.
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Remote's global HR experts provide practical guidance on designing benefits programmes that are locally relevant and globally compliant, helping you attract and retain the world's top talent.
Reconsider return-to-office policies
Employers that still require regular office attendance should reassess. Employees who value remote work’s flexibility are unlikely to give it up, especially when competitors allow indefinite remote working with no caveats.
Adopt inclusive hiring practices
Not only is practising inclusive hiring practices the right approach ethically, it also prevents employers from excluding parts of the talent pool with diverse backgrounds.
As a first step, educate your recruitment team on how internal biases — both overt and unconscious — can affect hiring, and review live job adverts to ensure inclusive language is used.
Our research suggests employers must adopt an employee-centric recruitment approach for 2022 and beyond, revising hiring and retention strategies to show the value they can add to current and prospective candidates’ lives. This might include tailored training for existing staff, recruiting internationally to widen the talent pool, or offering flexible working policies that suit diverse lifestyles, such as employees with childcare responsibilities.
To make it easier for employers to fill open roles, we have gathered specialist advice from Remote’s experts and employment professionals for every stage of the remote hiring process — from checking remote readiness to making offers and scaling your global team. Our guide to hiring remote employees contains practical tactics and strategies to help employers fill skills gaps with internationally sourced talent.