30% of businesses are struggling to keep up with salary demands in the UK

Currently, almost a third (32%) of small business owners are looking to invest significantly in their recruitment over the next year, whilst 72% have had business progression delays because of not being able to find the right staff.

The new data, taken from Adobe Express’ extensive hiring study, takes an in-depth look at the current recruitment landscape from both the employer and employee perspectives.

Building an A-Team is essential to driving success within a brand, but what are new workers looking for in a role, what are the biggest challenges employers are facing when hiring and what are the primary motivations for people in different cities and industries to find a new role?

Which factors do business owners think are most important in their new role?

When asking business owners which elements of the job are most important to employees, the majority (67%) think a work-life balance is essential, this is followed by half (50%) thinking a competitive salary is also crucial. 29% nod to flexible working, adding to the importance of the harmony both at work and at home:

The factors business owners think are most important to employees looking for a new role Percentage
A good work-life balance67%
Competitive salary50%
Flexible working arrangements (e.g. remote working, flexible hours)29%
Competitive compensation and benefits package19%
Opportunities for professional development and growth14%
Good company culture13%

What are the current challenges businesses are facing when trying to find new talent?

Having more appeal than larger companies received the most votes, with 36% struggling to compete with salaries, perks and the reputation of a household name. Interestingly, 30% can’t keep up with salary expectations from candidates, with many demanding more to keep up with cost-of-living increases. The right education and skillset has also been an issue for small business owners, with 26% and 19% picking these challenges respectively:

The biggest challenges business owners are having when trying to find new talentPercentage
Competition from larger companies36%
Salary expectations of candidates being too high30%
Lack of qualified candidates26%
Difficulty in attracting candidates with specific skills19%
Uncertainty about future business needs12%
Lengthy recruitment process11%
Retaining new hires10%
Cost of recruitment10%
Difficulty in assessing candidate fit remotely9%

From an employee perspective, below are the primary reasons Brits would look for a new job:

Higher salary (23%) and work-life balance (21%) match the factors employers think would attract new staff, topping the table. However, opportunities for career growth and development (11%) is further up the list for employees with many thinking of a long-term progression plan.

What is your primary motivation for looking for a new job in 2026?Percentage
Higher salary/better compensation23%
Better work-life balance21%
Opportunities for career growth and development11%
More challenging or interesting work10%
A more positive or supportive work environment/culture5%
Better job security3%
More flexible working arrangements (remote/hybrid)3%
Ethical or mission-driven company3%
Seeking a role in a specific industry2%

To help business owners with their working arrangements, employees have given their preferred approach:

Almost half (48%) prefer flexible start and end times to help with work-life balance, as well as hybrid working (45%). Just 19% opted for remote working for more face-to-face interactions:

What type of flexible working arrangement are you most interested in?Percentage
Flexible start and end times48%
Hybrid work (a mix of office and remote)45%
Fully remote work19%
Compressed workweeks16%
Work from anywhere including abroad for a set period14%
Job sharing6%

When it comes to culture, employees prefer the following environment to work in.

Half of workers (50%) expect a focus on employee wellbeing, and 40% prefer open and transparent communication. A supportive structure is vital to 35%, whilst a company of value and ethics is important for 26%. 21% would also like to be involved in a diverse and inclusive workplace.

What aspects of company culture are most important to you when considering a new employer?Percentage
A focus on employee well-being50%
Open and transparent communication40%
A supportive and collaborative environment35%
Opportunities for social interaction and team building31%
A clear sense of purpose and mission31%
Strong ethical standards26%
A commitment to diversity, equity, and inclusion (DEI)21%
A culture of innovation and continuous improvement21%

Workers from cities across the UK were asked their primary motivation to look for a new role, the highest percentages for each criteria are below:

  • Higher salary / better compensation: Belfast (46%)
  • More challenging or interesting work: Bristol (44%)
  • Better work-life balance: Nottingham (43%)
  • Opportunities for career growth and development: Sheffield (25%)
  • A more positive or supportive work environment / culture: Leeds (10%)
  • Better job security: Leeds (7%)
  • More flexible working arrangements: Belfast (8%)
  • Ethical or mission-driven company: Manchester (11%)
  • Seeking a role in a specific industry: Newcastle (11%)

Workers from industries across the UK were asked their primary motivation to look for a new role, the highest percentages for each criteria are below:

  • Higher salary / better compensation: Law / Environment and agriculture (50%)
  • More challenging or interesting work: Leisure, sport and tourism (31%)
  • Better work-life balance: Law enforcement and security (40%)
  • Opportunities for career growth and development: Science and pharmaceuticals (33%)
  • A more positive or supportive work environment / culture: Law enforcement and security (20%)
  • Better job security: Creative arts and design (9%)
  • More flexible working arrangements: Law (13%)
  • Ethical or mission-driven company: Marketing, advertising and PR (33%)
  • Seeking a role in a specific industry: Media and internet (33%)

For tips on how to retain the best talent, as well as further data on hiring in the UK, visit here: https://www.adobe.com/uk/express/learn/blog/hiring-guide

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