Businesses Setting Themselves Up For Failure As Skills Shortages Grow

Recruitment budgets are not expected to grow in line with the economic landscape, putting employers on the back foot with 2025 recruitment plans. That’s according to data from resourcing transformation expert, Omni RMS, and the CIPD, the professional body for HR and people development.

The latest edition of the Resourcing and talent planning report revealed that just under a third (32%) of private sector organisations expect an increase in recruitment budgets for 2024 – 25. With business and employment costs set to surge – particularly with the announcement of NICS increases in the Chancellor’s Budget – hiring budgets need to be reviewed urgently.

According to Omni RMS, this is more pertinent given the growing skills gaps. The report revealed that more than two thirds (69%) of employers in the UK feel that competition for well qualified talent has increased over the last year. A further 56% indicated that talent is more difficult to retain.

Louise Shaw, Managing Director at Omni RMS commented:

“Business costs are, broadly speaking, increasing in line with the economic climate and the growing costs of living. But the area that is likely to see greatest pressure on budgets and workload – namely talent acquisition and retention – is seemingly being ignored in 2025 investment plans.”

“People are typically the largest cost for an organisation, but they are also their greatest asset. Even without the skills shortages that are prevalent across all remits, HR and recruitment budgets aren’t increasing at a rate we would expect. When you add to this the difficulties around attraction and retention, organisations are heading into the New Year already on the back foot from a talent attraction point of view. Using tools like Omni’s true cost of hiring and retention calculator, allows organisations to rethink how the can optimise budgets and gain greater value from the right investments.”