Hiring trends

Hiring rates are declining in the UK.

What LinkedIn Chief Economist Karin Kimbrough says:

Globally, this year we are seeing a slower pace of growth, as the economy comes back down to earth after a meteoric rise last year in one of the fastest recoveries we have ever seen.

Nevertheless, labour-market dynamics remain tight. So, in many ways, employees still hold the power to demand more from their employers when it comes to salary, flexibility, and benefits. But this power balance is likely to start leveling out in the coming months.

Amid this uncertain backdrop, we anticipate further deceleration in hiring from the historical highs seen last year.

Karin’s counsel to talent leaders:

Continue to understand the skills your company has – and the skills it needs. That knowledge will help you weather economic and labour-market volatility.

Trends in workforce confidence

Workers in the UK are bracing for an economic downturn.

What LinkedIn Senior Public Policy & Economic Graph Manager Karim Palant says:

UK data shows a continued loosening of what has been a very tight labour market. The incredibly tight conditions of the first half of the year brought their own challenges, and some will welcome a more 'normal' situation.

But given warnings from the Bank of England and others about recession, others will fear that a softening in the labour market foreshadows more challenging times ahead.

This is reflected in a sharp fall in confidence in UK workers – something which will be particularly concerning given that workers are also consumers, these risks becoming a self-fulfilling cycle.

Karim’s counsel to talent leaders:

Company leaders should think about ways to maintain the confidence of their workforce – clarity on business conditions, a realistic conversation about compensation and living costs, and thinking about how financial support or greater flexibility can help with other costs like commuting and childcare.

Trends in what UK candidates value

Flexibility and compensation are the top priorities for UK candidates.

What LinkedIn VP of Global Talent Acquisition Jennifer Shappley says:

People are looking for stability amidst the economic volatility we live in and read about daily, so it makes sense that candidates are prioritising compensation as they evaluate opportunities.

More interesting to me is that, even facing an uncertain future, people still highly value two areas that have gotten a lot of attention since the start of the pandemic: work-life balance, and flexible-work arrangements – including remote work. I expect those two attributes to remain top talent drivers for years to come.

Jennifer’s counsel to talent leaders:

These days, candidates are looking for companies that will value their whole selves and provide support in achieving work-life balance. As talent leaders, we need to be prepared to speak to candidates about what our organisations value and how we support our employees. And this isn’t just a hiring strategy – it’s key to ensuring we retain our best talent as well. Understanding these drivers and listening to our employees have never been more important in ensuring we’re building hiring and retention strategies that attract and retain top talent.

Trends in employee growth and transformation

Internal mobility increases employee retention.

What LinkedIn VP of Talent Development Linda Jingfang Cai says:

We know people want to learn and grow at work, regardless of economic and market conditions. This almost always translates to employees asking themselves and their managers, “How can I do a better job so that I can get paid more, promoted, or land my next dream role?” Our new data insights show us that, even with some industry and regional nuances, if companies leave those questions unanswered, in most cases, people will leave the moment they find a better opportunity elsewhere.

I often think what gets lost in conversations about providing learning and growth opportunities that will help retain employees is: What do your employees want? And this may vary depending on the job functions and demographics. Just as businesses need new skills, employees need to discover their career possibilities and change, too.

Linda’s counsel to talent leaders:

Give employees more ownership over their career paths at your company. Start the conversation with them on their possibilities for learning, growth, and – ultimately – internal career transformation on Day 1.

Hear from a LinkedIn Talent Solutions customer Peter Brock, Director, Future Learning Capability, Finastra