Employers worldwide still face difficulty filling open roles, and the United Kingdom is no different, with Bloomberg reporting that almost a fifth of U.K. workers expect to leave their current roles for new positions within the next 12 months — mainly pursuing better pay, flexible working arrangements and higher 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 working models.
To help U.K. employers better understand the disruptions in the labour market, we surveyed more than 500 British employers to identify which industries and locations are most affected by The Great Resignation, which skills gaps are hardest to fill, and the approaches employers are using to tackle recruitment barriers.
82% of employers have been affected by The Great Resignation in the past year
We analysed which U.K. cities showed the highest share of companies affected by the ‘Great Resignation’, and Sheffield in Yorkshire comes first. 92% of Sheffield employers surveyed said The Great Resignation had directly impacted their business.
Plymouth and London follow closely, at 89% and 87% respectively.
While these three cities top the list, the effects are widespread across the country, from Edinburgh in Scotland down to Plymouth in the southwest of England.
Below is a table of the top 10 U.K. cities with the highest percentage of employers affected by The Great Resignation.
Cities with the highest % of companies impacted by The Great Resignation
Rank | City | % that reported The Great Resignation has impacted 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, recruiting to fill internal skills gaps has become increasingly difficult. With demand so strong, candidates hold the leverage and can be more selective about which roles they accept.
Our research found that 92% of U.K. employers have struggled to fill roles in the past year and on average used nine recruiters to try to close skills gaps within their organisations.
The functions U.K. employers are finding hardest to staff are software engineering, HR and data analytics.
Companies that struggle to attract candidates with these specialist skills should rethink how they add value through employee benefit schemes and adapt current packages to match the expectations of the candidates they are targeting.
The table below ranks the business areas or skills employers have struggled to fill in the past year, from highest to lowest percentage.
The top 12 skills UK 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 specific roles within industries are proving hardest to recruit. Nearly every U.K. logistics employer we surveyed (96%) said they had difficulty filling a role in the past year. Fintech firms reported the biggest issue hiring for HR roles (42%), while healthcare employers struggled most with 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 offer new training to existing employees to cope with recruitment struggles
Finding and retaining top talent is a core priority for any growth-oriented business. Historically, employers recruited mainly where they already had a local legal entity. Today, a global employment partner like Remote makes international recruitment faster, simpler and more secure with employer of record services.
U.K. employers are finding practical ways to address recruitment obstacles. Half of those we surveyed (50%) now offer training to current staff, and more than a third run employee referral schemes.
Only one-third of employers surveyed are recruiting candidates from further afield. That means more than 60% are not taking advantage of the opportunity to broaden their search and tap into a much larger global talent pool.
The table below lists the tactics employers use to overcome recruitment barriers, ranked from most to least popular.
Ways employers have tried to overcome recruitment struggles | % that said The Great Resignation has impacted their company |
|---|---|
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 solve recruitment struggles
Hiring internationally to address recruitment challenges is a strategy adopted by 33% of the employers we surveyed.
33% of employers recruit internationally to solve recruitment challenges.
The growing popularity of remote work and the supporting technology mean employers can now source high-quality candidates across the globe. British employers no longer need to limit themselves to talent located in the U.K..
Large pools of skilled professionals are ready to work remotely across similar time zones to the U.K., including in Europe, the Middle East and Asia. Asynchronous work practices can make it effective for U.K. employers to open recruitment to Asia, the Americas and the Pacific – a strategic advantage for organisations seeking 24-hour sales or customer support coverage.
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However, not all employers choose to hire internationally to lessen the impact of The Great Resignation. Eight per cent said this is because they do not sponsor work permits, and a further 8% said they want employees available to travel into the office when required.
Remember, U.K. employers can still hire internationally and let employees work abroad legally with the support of an employer of record like Remote.
If your operations allow remote work, you do not need to provide relocation packages or arrange work visas to access foreign talent. Provided overseas candidates have the legal right to work in their home country, Remote enables you to hire and pay these team members in line 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 open to negotiating salaries because of recruitment struggles
To stay competitive and close skills gaps, nearly half of U.K. employers we surveyed said they have become more willing to negotiate salaries since The Great Resignation began.
There are other areas employers are more open to negotiate on, including health benefits and annual leave.
This greater willingness to offer a more complete total rewards compensation package could help retain staff and reduce further employee turnover.
The table below shows the 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 one key area businesses now consider, as this way of working rose sharply following the COVID-19 pandemic. For many industries, flexible hours are already part of permanent working policy.
How can employers attract high-quality talent to fill the skills gaps?
Filling skills gaps with experienced hires and retaining staff is always challenging, and the task becomes harder as the jobs market grows more competitive.
So, where should employers begin when trying to attract the people they need?
Be transparent in job advert specifications
Clarity is essential for everyone involved in recruitment, particularly applicants. Vague or hard-to-access job listings can confuse and discourage candidates from applying.
Set out the role’s responsibilities clearly, including experience level required, specific skills and the reporting lines. Rather than labelling the salary as ‘competitive’, we recommend stating a clear salary band.
Our research found that 41% of employers do not always include salary details on job descriptions and nearly 50% omit progression opportunities for roles.
Additionally, employers can make job ads stand out by listing key benefits and perks. Even values-based benefits such as flexible hours, remote working options and mental health support can help your offer stand out.
Employers lack transparency in job adverts
41% of employers don’t always put salary information on job descriptions for every role
47% of employers don’t mention progression opportunities for each role
Inaccessible language can create confusion and deter candidates from applying
Evaluate existing benefits plans
A key factor candidates consider is the benefits package on offer and the tangible value it adds. If you hire internationally, benefits must be appropriate for the country where the employee is based.
We advise employers to design benefits packages tailored to their workforce, taking account of geography, demographics and other local factors.
Alongside benefits, employers should regularly review salaries to ensure fair, competitive pay. Our survey showed 17% of U.K. employers do not carry out salary benchmarking, while the 80% that do review pay on average every five months.
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Download your \u2028global benefits guide and attract top global talent
Download your \u2028global benefits guide and attract top global talent
Remote's global HR experts provide practical guidance on designing benefits programmes that are locally relevant and compliant across jurisdictions, helping you attract and retain the world's best talent.
Reconsider return to office policies
Employers still insisting staff attend the office regularly may need to rethink this approach. With remote work now established for many, those who value its flexibility are unlikely to give it up if other employers offer indefinite remote working with no strings attached.
Adopt inclusive hiring practices
Practising inclusive hiring practices is not only the right thing to do but also prevents employers from excluding talent from diverse backgrounds.
Start by training your recruitment team on how both overt and unconscious bias can affect hiring, and review live job adverts to ensure inclusive language is used.
Our findings indicate that to close skills gaps, employers must adopt an employee-centric recruitment approach for 2022 and beyond, adjusting hiring and retention strategies to show the value they offer current and prospective staff. This could include personalised training plans for existing employees, hiring internationally to access a wider talent pool, or offering flexible working to suit diverse applicants such as those with childcare responsibilities.
To help employers fill open roles, we have gathered specialist advice from Remote’s experts and employment professionals covering every stage of remote hiring — from assessing remote readiness to making offers and scaling global teams. Our guide to hiring remote employees contains practical tactics and strategies to help employers fill skills gaps with talent sourced internationally.