Navigating the talent shortage: recruitment lessons for the year ahead

The jobs market is inevitably shaped by economic factors, and the UK has faced no shortage of challenges in recent years. A short-lived boom in the summer of 2022 briefly raised hopes that the worst might be behind us. However, the subsequent downturn following the mini-budget, compounded by soaring material costs and a severe talent shortage, has meant that there has been little let-up in obstacles that employers have had to navigate in recent years.

Going into 2025, what we would all like is a bit of stability and economic growth. And with a new government, there is hope that this may be on the horizon. While the budget announcement in October was widely well received by our industry, a few negative ripple effects have emerged in the months since, and we have not seen the economic boost we expected… yet.

The key budget announcement directly linked to employment is the increase in Employers’ NI coming in April. This move will raise wage bills across the board, placing additional pressure on firms already operating with tight margins. As a result, it could further limit their ability to raise salaries to attract and retain talent.

On the positive side, the aim of this increase is to support better public services and invest in critical areas such as infrastructure and housing – initiatives that should ultimately benefit the industry.

The government pledging a ‘building boom’ with major infrastructure and new housing targets can only be good news for our industry. As a result, after years of sluggishness, we would expect the multi-residential market to get a long-awaited boost.

In recent years, firms have shown no signs of slowing down as the year end approaches. With every billing hour critical, companies have been pushing forward to meet deadlines and secure work. However, many firms are delaying hiring decisions until the last minute, waiting for projects to be confirmed before committing to new hires.

While this is understandable, it significantly limits the hiring pool to those who are immediately available, often excluding highly skilled candidates with longer notice periods. This can leave firms with fewer options and higher competition for ready-to-start candidates, potentially driving up costs.

If urgent recruitment is unavoidable, the best piece of advice I could give is to move fast with interviewing. Get organised, plan your interview process, check the availability of key players, and block out interview slots. If possible, avoid starting with video interviews, as this tends to extend the whole process. When time is of the essence, you want candidates to experience the environment they could be working in from the outset. First impressions are everything – use the first interview to sell your practice.

More and more practices we are working with are having great success with apprenticeship programmes, along with a commitment to upskill their existing workforce

For later-stage interviews, be flexible, as it may be difficult for candidates to get out of work at short notice. Meeting the team could be done in a social setting after work; this also gives candidates the opportunity to get to know their potential colleagues in a more relaxed setting.

The talent shortage continues to be the biggest challenge for hiring managers. Our recent survey for the Bespoke Careers Global Salary Guide revealed that the UK is feeling this most acutely compared to Australia and the US. Accessing the widest talent pool possible will obviously give you the best opportunity to find the best talent. Partnering with specialist recruiters will make your job easier – 88% of respondents in our survey who worked with recruiters said that it made their hiring more effective.

The talent shortage has been further compounded by the increase in the minimum salary threshold for Skilled Worker Visas, which has effectively ruled out an entire swathe of professionals able to get visas in the UK.

However, a positive trend we have seen over the last 12 months is a welcome return of talented designers from Australia and New Zealand arriving with Working Holiday Visas in place. Often with strong technical skills, they are very employable. We work closely with our Australian offices to help these designers to find work when they come to London.

However, we often need to give them a reality check on salary expectations, as UK salaries are the lowest in comparison to our Australian and US colleagues. This, coupled with the cost of living in London, which has become even more extreme in recent years, can make the move challenging.

Many candidates who we place via our international offices opt for contract work, which often pays higher due to the uncertain nature of the relationship. Contract work also allows them to gain experience in different sectors and working environments during their limited time on the visa.

Looking ahead to 2025 and beyond, it is clear that the UK must adapt by investing in domestic talent from the ground up. More and more practices we are working with are having great success with apprenticeship programmes, along with a commitment to upskill their existing workforce.

This also applies to recruitment – hiring people who may not have every skill required but, with the right attitude and potential, will increase the talent pool. Career development and training are key things that jobseekers consider when moving jobs, and prioritising this in your practice will undoubtedly improve staff retention in the longer term.