Despite a rise in unemployment, many UK employers still deal with talent shortages, as job seekers become more selective about the roles they pursue. According to the latest Talent Trends report from recruitment firm Michael Page, two out of every five employers report difficulties in hiring, highlighting a growing mismatch between what businesses offer and what professionals are now demanding.
The research reveals a shifting mindset among employees, with 45% of workers saying they are actively searching for a greater sense of purpose in their careers. Meanwhile, 43% believe that business leaders are failing to strike a balance between achieving commercial goals and supporting employee well-being.
This discontent is reflected in the job market as almost half (47%) of professionals are currently on the hunt for new roles, but many are adopting a “wait-and-see” approach, holding out for positions that align with their personal and professional expectations. Salary concerns remain prominent, with 31% expressing dissatisfaction with their current pay, and 46% citing compensation as the top priority in any new job.
Return-to-office policies
Michael Page also reports ongoing tension around the return-to-office policies. While more than half (56%) of employees are back on-site due to employer mandates, 81% say that maintaining a healthy work-life balance is their most important workplace priority. This growing divide is further underscored by contrasting views on productivity: 43% of managers believe in-person work improves results, yet 46% of employees claim to be more productive working remotely. Nearly half (47%) would even consider leaving their job if flexible arrangements were reduced or revoked.
Employers also need to address cultural alignment in the workplace. Only 35% of employees say they feel comfortable being their authentic selves at work—a notable decline from 41% in 2024. Simultaneously, a rising number of professionals—43%, up from 34% last year—are actively seeking employers with values that mirror their own.
Doug Rode, Managing Director for the UK and Ireland at Michael Page, describes this emerging dynamic as the rise of the “wait and see workforce.” Today’s candidates are no longer settling—they have a vision of their ideal workplace and are ready to hold out until they find it. However, Rode cautions against overly generic solutions: “There’s no one-size-fits-all approach. Companies that try to please everyone risk losing direction. Instead, they should focus on clearly defining their policies and unique value propositions in areas such as compensation, flexibility, technology, and inclusivity.”
Shazia Ejaz, Director of Campaigns at the Recruitment and Employment Confederation, echoed the urgency of these findings, calling them a “wake-up call” for businesses. “Employees want meaning, flexibility, and trust,” she said. “Firms that prioritise people strategies, foster inclusive environments, and accommodate the varied demands of modern life will be best positioned to attract and retain top talent.