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Steve Warnham
14 min read

Hiring Trends Index: a look at the recruitment landscape of Q4 2024

The Hiring Trends Index explores key UK labour market trends. In this edition, we unpack insights from late 2024 and delve into the application process, exploring why candidates drop out, how long they expect the process to take, and the rising demand for automated updates.

The Q4 edition of our Hiring Trends Index provides insights from 1,000 HR decision-makers and 3,000 UK workers, delivering a comprehensive view of the latest hiring trends. Covering shifts in the average time to hire, key recruiter challenges, and candidate expectations, it’s packed with actionable insights and offers a clear picture of what to expect in 2025.

As hiring slows down, job vacancies have returned to pre-pandemic levels. However, the number of company restructures is also on the decline, suggesting that the UK job market is stabilising as employers take stock at the start of the year.

This is reflected in the increase in the average time to hire, which now sits at 5.1 weeks, up from 4.8 weeks in Q3 2024. This points to employers being more cautious in the face of wider economic factors.

One of which is a response to the government’s Autumn Budget. From April 2025, National Insurance rates are set to rise from 13.5% to 15%, and the threshold for employer contributions will drop to £5,000. In addition, the National Minimum Wage will rise by 6.7% to £12.21, an increase of nearly 75% since October 2016.

But there are plenty of reasons to be optimistic. The UK economy unexpectedly grew by 0.1% in November 2024, and inflation is falling, which raises hopes for interest rate cuts. Plus, with 24% of businesses increasing their hiring efforts in Q4 2024, the overall demand for talent remains strong.

While rising staffing costs are a concern, employers are recognising the need to meet their workforce demands and invest in retention strategies. With 27% of job moves being driven by the allure of better opportunities elsewhere, and 1 in 3 workers planning to change jobs in 2025, retention has become a major focus.

  • While job vacancies have returned to pre-pandemic levels, 24% of businesses increased their hiring in Q4 2024.
  • 66% of recruiters feel confident in hiring the people they need in Q1 2025 (down from 74%).
  • The hiring process now takes 5.1 weeks (5.6 for larger businesses)—indicating a shift towards more careful recruitment decisions.
  • In Q4 2024, just 17% of businesses restructured a team or department—down from 23% in the previous two quarters.
  • Despite a slight slowdown in hiring, the UK economy grew by 0.1% in November 2024, suggesting that growth is on the horizon.

Looking ahead: Hiring in Q1 2025

Positively, just 17% of businesses restructured a team or department in Q4 2024, and only 21% plan to do so in the next three months—down from 26% in Q1 2024. Reliance on freelance or temporary staff has also fallen, from 27% in Q1 2024 to 19% in Q4.

This suggests we’ve entered a period of stability, with a focus on building long-lasting teams. However, with 1 in 3 workers planning to switch jobs this year, retention has become a top priority.

For employers actively hiring, this presents the perfect opportunity to strengthen teams and attract ambitious talent. A fifth (21%) of businesses are planning to expand their teams in the coming months.

The challenge lies in how to achieve this. Hiring confidence has dipped slightly—66% of recruiters feel confident about securing the talent they need, down from 74%—pointing to an increasingly competitive market.

In Q4, over a quarter (27%) of workers moved jobs for better career prospects or improved packages. This highlights the importance of regularly reviewing and improving salaries, benefits, and the overall package on offer to attract and retain top talent.

Key hiring challenges and how to overcome them

As we’ve touched upon, recruiters are facing growing pressure to find skilled candidates, manage budgets, and maintain a seamless hiring process. But with the right strategies, and an improved candidate experience, businesses can not only navigate these hurdles—they can turn them into opportunities.

Our findings show that the top hiring challenges in Q1 2025 include: finding the right candidates with the right skills (67%), decreasing hiring budgets or difficulty securing budget (60%), time pressure to fill open positions (59%), meeting candidate salary expectations (58%) and lengthy time to hire (57%).

Let’s explore some of the key challenges in more detail.

The skills gap continues

Finding people with the right skills remains the top challenge for 67% of recruiters, and when it comes to the skills in question, there’s a need for both technical expertise and transferable soft skills.

Top skills employers need in Q1 include:

  • Customer service and customer centricity (29%)
  • Technical skills (e.g. programming, data analysis, engineering) (28%)
  • Soft skills (e.g. problem-solving, critical thinking, communication) (25%)
  • Leadership and people management skills (25%)
  • Sales and negotiation skills (20%)

    So, what’s the solution?

    By investing in learning and development, employers can not only upskill their current teams but bolster their attraction and retention strategies to boot. Alongside dedicated training programmes and role-specific courses, mentorship and coaching can help develop key soft skills like leadership and critical thinking.

    This, combined with offering benchmarked and competitive packages could be the edge employers need.

    Budget constraints & salary expectations

    Financial constraints are also front of mind, with 60% of employers saying they’ve faced difficulties securing hiring budgets following changes announced in the Autumn Budget.

    What’s more, with the rise in living costs, 58% of businesses are now struggling to meet candidate salary demands. This is proving decisive, as over a quarter (27%) of people who left their roles in Q4 did so with salary in mind.

    So, in short, the cost of hiring is rising, and with it, the risk of losing great employees to better-paying competitors.

    To combat this, salary benchmarking is a must—getting pay right can improve retention and avoid costly churn. A 4.5% pay rise might feel steep, but it’s often still cheaper than losing talent.

    To help, you can use our latest UK Salary Trends Report to conduct a full review of your offering and put yourself in the best place to keep hold of your top talent.

    The impact of long hiring processes

    These challenges make it more important than ever to optimise recruitment processes and offer a brilliant candidate experience.

    As it stands, slow and clunky hiring processes are turning candidates away. Unclear job descriptions, lengthy applications, and poor communication can make finding the right fit harder than it needs to be.

    When it comes to the application process:

    • 49% of candidates won’t apply if job details aren’t clear
    • 45% drop out when applications take too long

    As a result, many businesses are turning to technology, automation, and AI to streamline hiring. For example, AI-powered tools can speed up CV screening, improve candidate matching, provide automated updates, and even automate scheduling for interviews—helping reduce time to hire, meet candidate demands, and maximise efficiency.

    Industry-specific recruitment challenges

    While 24% of the job market is seeing an increase in hiring, some industries are particularly keen to ramp up their efforts.

    Nevertheless, many still face significant challenges due to skills shortages. Understanding where demand is rising—and where skills gaps are most pronounced—can help businesses better navigate these hurdles.

    Industries that increased hiring in Q4 2024 include:

    • IT & Telecoms (35%)
    • Medical & Health Services (31%)
    • Construction (30%)
    • Logistics & Transport (27%)

    This increase in demand is especially notable in sectors where skills shortages are most pronounced, such as:

    • IT & Telecoms (74%)
    • Finance & Banking (73%)
    • Manufacturing (72%)

    To tackle these challenges, businesses can turn to AI-driven recruitment and data-backed hiring strategies to enhance targeting and candidate matching, reduce time-to-hire, and attract the right talent.

    Candidate preferences: What employers need to know

    Jobseekers aren’t just looking for the right career opportunity—they’re looking for a hiring process that’s clear, quick, and convenient. From faster applications to transparent salaries and better communication, employers able to meet these expectations will have the edge in attracting top talent.

    Application experience matters

    Having a seamless and efficient application process can make the difference when it comes to converting candidate interest into completed applications.

    Jobseekers want to apply quickly, regardless of the device they’re using. With the average application taking 42 minutes to complete, it’s worth asking: where can the process be streamlined?

    Here’s what candidates are looking for when applying for jobs:

    • 3 in 4 are more likely to complete applications that take less than 10 minutes.
    • 58% prefer applying via mobile devices, making mobile-friendly applications essential.
    • 41% want the option to upload a CV instead of filling out lengthy forms.

    Once candidates have submitted their applications, it’s all about communication and flexibility.

    In fact, 3 in 4 candidates expect updates at every stage of the application process, while over half (53%) are looking for roles that offer remote interviews to save time and commuting costs.

    To improve your application process, consider:

    • Stripping back unnecessary steps: If a CV and a short cover letter will suffice, you’ll open the door to a larger pool of candidates.
    • Making it mobile-friendly: Ensure the application process works smoothly across all devices and is regularly tested.
    • Communicating regularly: Use automation to keep candidates informed without overwhelming your team.

    Transparency in job listings

    When it comes to job ads, transparency is everything. Candidates want to know what’s on offer, and if key details—like salary—are missing, they’re far more likely to move on.

    Clear job descriptions not only build trust and increase applications, but they can reduce the risk of wasting time on unsuitable candidates. With 39% of candidates viewing clear job descriptions as a sign of a great employer, it’s worth the effort.

    Our data shows that:

    • 74% of candidates avoid roles that don’t list a salary range.
    • 49% will abandon the application process if the job description is too vague.
    • 41% of recruiters see potential to improve their company’s application process.

      To boost transparency in your job listings, consider:

      • Being upfront about salaries: Benchmark your salaries against competitors and publish them alongside the role to set clear expectations.
      • Writing clear, appealing job descriptions: Make sure the listing accurately reflects the role and is easy to understand. You can even get input from your current team or colleagues in other departments to ensure clarity.

      The role of technology in hiring

      Technology is transforming recruitment, offering innovative ways to target, filter, and engage potential hires. As employers face challenges like lengthy hiring times and candidate drop-offs, leveraging AI and automation can be the game changer they’re looking for.

      AI & Automation in recruitment

      With the average role now taking over five weeks to fill, businesses need to find ways to streamline processes and keep candidates engaged. That’s where automation and AI come in.

      Here’s how AI and automation are set to help both candidates and recruiters:

      • Faster application processes: 60% of candidates are open to using AI chatbots to complete job applications by answering a series of questions. This not only speeds up applications but also keeps candidates engaged.
      • Improved candidate engagement: With three in four candidates wanting automated updates throughout the process, two-thirds (67%) of recruiters agree that real-time updates, automated tracking, and reduced bottlenecks make candidates more likely to stay in the pipeline.

        What’s more, recruiters are rethinking traditional application requirements to keep up with modern expectations. For example, nearly half (48%) of employers now support removing cover letters, signalling a shift toward more accessible, tech-driven hiring practices.

        Embracing technology for hiring success

        To make the most of technology in recruitment, organisations can look to:

        • Use AI chatbots: These can guide candidates through applications, answer FAQs, and provide instant feedback, reducing drop-offs.
        • Automate application tracking: Keep candidates informed with regular updates, reducing time-to-hire while improving their experience.
        • Adopt candidate matching technology: Screen CVs and assess suitability with AI to identify the best talent faster.
        • Challenge outdated norms: Simplify your process by removing unnecessary steps, such as cover letters, to attract a wider pool of candidates.

              By integrating AI and automation into your hiring strategy, you can fill roles faster, enhance the candidate experience, and stay ahead in an increasingly competitive job market.

              Final takeaways for employers

              As another year begins, employers should refine their hiring strategy to enhance the experience of both candidates and employees. Here’s a recap of things to keep in mind.

              Retention starts with pay and flexibility

              A pay rise of just 4.5% can reduce turnover, while flexible working remains the top benefit candidates seek—66% would even trade a pay increase for it. Regularly reviewing your offering ensures you stay competitive and attract top talent.

              Streamline your hiring process

              Clear job descriptions, transparent salaries, and automation are essential. With 74% of candidates avoiding roles without salary information, and three in four wanting updates, simplifying and automating your process keeps candidates engaged and reduces drop-offs.

              Leverage technology to stay ahead

              AI and automation tools—like smart screening and real-time updates—are a long-term investment in your hiring. They speed up recruitment, ease recruiter workloads, and improve the candidate experience, helping you fill roles faster.

              Plan ahead

              Now is the perfect time to plan for the year ahead. By anticipating recruitment peaks, you can dedicate the time you need to craft engaging job listings and ensure your processes are ready to meet demand.

              The job market may be evolving, but the fundamentals remain the same: great candidates expect a seamless hiring process, competitive packages, and a workplace that values flexibility and growth. By refining your strategies—whether through transparency, technology, or retention-focused initiatives—you can stand out to attract, engage and retain top talent in 2025 and beyond.

              Totaljobs – Your hiring solution partner

              Work with an industry-leading hiring solutions provider that understands your challenges and can help you find the skilled talent you need.

              Part of the global recruitment technology company, The Stepstone Group, Totaljobs is a cutting-edge recruitment solutions partner whose goal is to find the right job for everyone. Find the right people for your business by reaching wider talent pools, increasing your brand’s visibility, and maximising your hiring budget.

              About the research

              All figures, unless otherwise stated, are from a survey conducted with Opinium Research. Total sample size was 1,000 HR decision-makers across the UK. Fieldwork was undertaken between 24th December 2024 and 6th January 2025. The survey was carried out online. As we work to improve our findings and insights, we recruited a new panel of HR decision makers representing different industries and business sizes. We have also updated one of our recurring questions around the average time to hire*, specifying this period from ‘advertising a role’ to ‘filling a role.’

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