For many organisations, the Autumn Budget 2025 and proposed changes to employment laws have arrived at a difficult time. Employers are navigating persistent inflation, rising operating costs, and an evolving labour market. At the same time, government policy continues to reshape statutory Employment Rights, expanding protections for workers and creating higher compliance requirements.

As the Employment Rights Bill edges toward Royal Assent, HR teams are preparing for one of the most extensive overhauls of UK employment law in decades. The Bill, which has expanded to more than 300 pages since its introduction in October 2024, has been slowed by parliamentary debate but is now close to implementation. Once enacted, reforms will take effect via staggered regulations. The phased implementation will reshape trade union frameworks, workplace enforcement, family leave entitlements, whistleblowing protections, and statutory sick pay.

On top of this, further rises to the National Minimum Wage and Living Wage are putting pressure on existing pay structures as the gaps narrow between the lower pay grades. This pay crunching causes instability and inconsistency within pay frameworks, requiring employers to reassess their reward across all levels in order to maintain fairness and transparency around progression.

In light of these upcoming changes, the tensions are clear: businesses are expected to do more, yet their capacity is under strain. Workers are seeking greater security, yet the cost of delivering that security is rising. The challenge for employers is no longer simply how to comply with legislation; it is how to create a sustainable people strategy that balances cost pressures with the expectations of a modern workforce.

What’s changing?

In terms of the Budget 2025, the following changes to wages will be implemented by April 2026:

• The National Living Wage will be boosted to £12.71/hr (from £12.21) for those 21 and over
• Minimum Wage for under-21s is set to rise to £10.85/hr from £10.00
• Under 18s and apprentices will see a rise to £8.00/hr
• Changes to pension salary sacrifice rules will come into force from 2029, capping tax-efficient contributions at £2,000 annually

The key changes to employment rights include the following:

• Strengthened day-one protections: this is to include Paternity Leave and Ordinary Parental Leave, alongside new miscarriage bereavement leave, and unfair dismissal protection
• Expansions of leave rights: including Extended Eligibility for Statutory Sick Pay (SSP)
• Improvements of rights for gig/zero-hours workers
• Making flexible working requests easier to grant
• Boosting trade union access: reforms will strengthen union powers and streamline industrial action processes

The financial burden on employers is growing

The uplifts to wages, and the latest round of statutory Employment Rights, both aim to address long standing concerns over fairness and job quality. The changes are particularly targeted at those in variable hour roles, casual arrangements, and zero hours contracts, and reflect a genuine shift in public sentiment toward predictability and stability in work.

However, each additional obligation represents another layer of cost for employers – with those that rely heavily on flexible labour models facing some of the steepest adjustments. The cumulative effect can be significant, especially for those in sectors such as retail and hospitality that have a higher proportion of lower-paid staff. Compliance with the upcoming changes will require more administrative oversight, more robust workforce planning, and, in many cases, higher direct labour costs.

At the same time, rising employer National Insurance contributions and further pension changes will create additional drag on traditional reward structures, with Reward Strategy stating about the pension cap that the “industry response has been overwhelmingly negative”. When the marginal cost of each pound of salary increases, the conventional pay and pension package becomes less efficient as a tool for motivating and retaining talent.

These pressures make it harder for organisations to rely on linear pay growth or incremental benefit enhancements, and there is a growing trend amongst employers to look more holistically at the overall employee value proposition (EVP), as well as their pay progression structures, to mitigate the challenges ahead.

The HR Director stated that “For employers, the landscape is challenging: higher wage floors, rising employment costs, and a major shake-up of tax-efficient benefits. The next few years will demand agility, foresight, and a renewed focus on balancing cost, competitiveness and employee value.”

A new generation of workers expects more stability

Cost pressures, however, are not the only potential challenges as we head towards 2026. The labour market is also changing from the bottom up. Younger workers (Gen Z in particular), and those in more precarious forms of employment, are increasingly vocal about what they consider fair and acceptable in the workplace.

More than ever, they expect stable earnings with predictable schedules, alongside access to personalised benefits. They want to see fairness across groups of employees, with reward systems that value temporary or variable hour staff rather than leaving them on the margins. This reflects a wider cultural shift, with workers expecting immediate value from their employment, as well as clear signals that their employers are taking their wellbeing seriously and investing in their long-term potential.

Why old reward models can’t keep up

Within this clash of employer costs and worker expectations, traditional pay and pension models cannot always rise to the challenge. Old reward models tend to rely on predictable payroll patterns and a stable workforce, but this framework loses its effectiveness in light of the more dynamic staffing models that are emerging. Costs that scale automatically with headcount or salary can become unpredictable when a company’s workforce composition changes from month to month.

This challenge is amplified by the increasing employer NICs and pension obligations. The more expensive it becomes to add pay, the harder it is for employers to differentiate their offer or respond to employee needs in real time. This creates a strategic gap where wage inflation cannot keep pace with employee expectations, yet the organisation cannot afford to do more.

In this environment, employers that continue using legacy pay and pension structures risk locking themselves into high cost, low agility reward systems. These systems may meet statutory minimums, but they struggle to support workforce engagement or organisational resilience.

The solution? More strategic and holistic reward models that can adapt to change

For employers, it’s not about spending more; it’s about spending smarter. Rising statutory obligations and increasing labour costs leave little room for the incremental adjustments of the past. A holistic reward model would give employers more control over cost, while offering employees more meaningful value for their efforts.

So, what could your company consider for a strategic approach?

Scaling up benefit offerings can be a positive move for both employers and employees. This can allow organisations to provide support to their workers, without the structural cost burden of a higher fixed pay rate. As well as this, companies could consider flexible allowances or points-based/personalised benefit systems, allowing workers (particularly those in variable hour roles) to curate and choose the benefits that fit their individual needs and circumstances.

In a similar vein, providing opportunities for learning and development can be a smart way for companies to elevate the employee experience as a whole. Younger workers, in particular, consistently rank learning and progression as a high priority, so facilitating this for employees is likely to increase motivation, satisfaction and engagement.

Offering benefits such as financial wellbeing tools, emergency pay access or earned wage access can also be a helpful approach, as this provides some financial security to workers without requiring long term payroll inflation.

Providing transparent reward frameworks is a strategic way to build trust and demonstrate an employer’s commitment to pay equity and fairness. This could include reassessing pay grading and progression structures, in order to prevent pay crunching at the lower end of grading systems, and to ensure there are clear and understandable pathways for career and pay movement. Predictable pay cycles are another way to demonstrate fairness, as they improve stability for those on zero hours or variable hours contracts.

These approaches would allow organisations to meet new legal requirements, while giving employees a more relevant and cohesive experience through enhancements to the overall EVP. They also create room for strategic differentiation since value can be delivered through choice, flexibility, and impact rather than solely through salary increases. A recent article from HR Grapevine states that “employers should act now: model future payroll and NI exposure [and] review reward and benefits to ensure they remain competitive… Those who plan ahead will be better placed to manage rising costs while still attracting and retaining the people they need”.

Conclusion: 2026 as a turning point for the employer offer

Both the Autumn Budget and the Employment Rights Bill represent a profound shift for UK employers. Workers are asking for a fundamentally different kind of employment relationship based on reward predictability, fairness, and perks that meet their individual needs.

With implementation unfolding over several years, HR teams should begin preparing now by auditing policies, strengthening compliance frameworks, and considering enhancements to family and wellbeing benefits. There should also be a focus on reassessing pay grading structures to ensure progression frameworks remain fair and motivational, and to mitigate the challenges of increasing base wage levels.

Employers that respond with strategic, holistic reward models will not only navigate the cost pressures more effectively, but will also position themselves as credible, attractive places to work in a competitive labour market.

Want to find out about how Henley Insights Group can support your organisation in the coming months with tailored talent intelligence and reward strategies? Get in touch with us today for a confidential chat!

In an era of heightened talent mobility, it’s no wonder organisations are seeking smarter strategies to retain their top performers. Research from Totaljobs at the start of the year highlighted that almost a third (31%) of UK workers expressed a desire to change jobs in 2025. In response to this climate, companies are shifting their focus from recruitment drives to employee retention, striving to create a more stable workforce that will fuel productivity and sustain future growth.

With the ongoing sluggish economy forming a challenging backdrop to talent acquisition initiatives, it’s crucial for organisations to carefully consider their strategies regarding retention. This means looking carefully not only at salaries being offered, but also at the entire employee value proposition, taking into account the overall compensation package. Remuneration benchmarking is an invaluable tool when it comes to the development of reward policies and can play a significant role in retaining the talent needed for companies to thrive.

So, what is it, and why is it something every company should consider as a smart approach to talent retention?

What is benchmarking?

Benchmarking uses market research to ascertain data-led industry standards for levels of remuneration, which are then used to make comparisons against what a company is offering for specific roles. The process can include base salaries, employee benefits, and other aspects of a total reward package. Salary benchmarking on a regular basis, and implementing these standards, ensures that companies are paying their staff at a level that is competitive against their direct peers and comparable with the wider market – as well as remaining in line with inflation, skills demand and the changing economic climate. This ensures that staff are motivated and feel fairly compensated for their efforts, which in turn maximises company loyalty and employee retention.

Without up-to-date reward data from the market, companies can put themselves at risk of losing staff to higher paying competitors, leading to costly recruitment processes and high staff turnover. This may also result in companies gaining a reputation for being ‘low payers’ relative to industry standards. After all, seeking better pay and benefits is the number one reason that Brits change jobs, according to research by InvestorsInPeople.com. Benchmarking can help firms to minimise these staff turnover risks, by analysing how their market position compares to that of similar companies for the same job roles. It supports informed decision making around competitive compensation levels, which helps to attract and retain top talent.

Why is there a growing focus on talent retention? How does benchmarking fit into this?

In the wake of the pandemic, we experienced the Great Resignation – a period of mass movement and change in the talent market that caused huge instability and upheaval. Because of this, organisations across all sectors placed a heavy focus on recruitment, in an attempt to fill the gaps left by departing staff. Work culture shifted dramatically, with greater emphasis on flexible working and employee wellbeing, which are both now set to remain as a lasting legacy from the Covid era.

Given this huge recruitment drive, salaries became inflated beyond the usual levels of increase – partly due to companies scrambling for talent, and partly because new hires tend to command greater salaries than existing employees holding the same position. This subsequently led to financial strain for many companies, on top of the rise in inflation and the cost-of-living crisis which has stifled growth across a wide range of industries.

In the midst of this challenging post-pandemic economy, and following on from the recruitment rush of the past few years, the priority on hiring is now waning in favour of retention. We are now witnessing “The Big Stay” – a trend of employers choosing to maintain their current workforce, and employees choosing to remain where they are. But why is this happening? Why are companies shifting their focus to retention?

One major factor is the cost of recruitment. It is no secret that the overall cost of the hiring process far outweighs the cost of keeping salaries in line with the market, or even providing a pay rise or promotion to an existing employee. Recruiting and training a new hire can cost a business between 20%-30% of an employee’s salary, according to Bravo Benefits, and the impact is even bigger when taking lost productivity into account. Therefore, retaining talent keeps costs down in the long run.

Another reason for the focus on retention is around skills shortages and skills gaps. When it comes to skills shortages, these are often caused by a rising demand for specific skill sets but an inadequate supply of appropriately qualified people to fill the positions. For example, in the field of technology and AI, advancements are being made more rapidly than people are being trained up to manage the systems. These skills gaps lead to a highly competitive talent market, with increased movement as companies hike up their salaries to attract the talent needed. Organisations therefore want to hold on to their existing people who possess these hard-to-obtain skills, to avoid a potentially strenuous hiring process.

On the other hand, with skills gaps, this refers to gaps of certain skills and experience within the workforce, often caused when those at the upper levels (in terms of leadership, experience and age range) begin to retire or change occupation, and there is a lack of sufficiently qualified talent moving upwards. There may be talent at an entry level gaining the necessary skills, or people with a few years’ experience; however, gaps often present within the middle management tier, where more experience is needed but the talent at this level is hard to come by. Retention is key, then, for companies to avoid this kind of gap in their workforce.

Benchmarking your company’s remuneration packages is a valuable part of developing effective people strategies, especially if staff retention is high on the list of priorities. Whatever their level of experience or expertise, employees want to work for companies that are open about how salaries are determined, and ones that pay at a fair and appropriate level. Developing an equitable workforce where people feel valued and appreciated is a vital part of navigating the uncertain talent market.

By investing in market research and analysis and setting clear, evidence-based pay strategies, this demonstrates to employees that you are committed to looking after your people, just as they are committed to your business. Employees’ pay perception can often be just as important as your reward packages, so clear communication around pay is key to a satisfied staff cohort who understand (and stay loyal to) your company’s pay ethos.

What is the process of remuneration benchmarking?

When it comes to planning your remuneration benchmarking, the first step is to look at your workforce as a whole and think about any roles, levels, or even entire directorates that may be on outdated salaries or pay scales. It may be that some positions in the company are starting to lag behind market rates, especially in areas such as technological development where there is a high demand for skills. Identifying the areas where there are retention risks is crucial for prioritising the right roles within the benchmarking process.

The next step is to carry out the research – either manually, through a dedicated system, or by enlisting the help of a consultancy firm to undertake the research and provide the relevant data. This will give you the important numbers (often given as quartile ranges and averages) around up-to-date industry standards for pay within your sector. In the research process, it’s important to factor in aspects such as geographical location, job scope and experience levels – so having clear, well-defined job descriptions for each job role is essential for making accurate comparisons against similar roles in the market.

Remuneration benchmarking can cover many aspects of compensation packages, including but not limited to: base pay, bonus provision, Long Term Incentive Plans (LTIP), pension rates, annual leave policies, health benefits, family friendly policies (such as enhanced maternity & paternity leave policies) and car allowances. Data around pay and benefits can be gained from a number of sources, such as market salary reports, job advertisements and online databases – and benchmarking software can also be used. For more tailored research approaches, consultancies can carry out confidential conversations with relevant post holders within a target market, harnessing the most accurate and real-time data.

Once the pay data has been collected, you need to compare the market salary ranges for each role against your current remuneration rates, to identify any gaps or discrepancies (these will be your main areas of risk when it comes to talent retention). Based on the analysis, your company can then make adjustments to base salary levels or salary structures, to ensure it is remaining competitive and maximising retention.

What are the potential challenges around the process of benchmarking?

Obtaining the data in the first place can be challenging if you don’t know where to look. For adequate remuneration benchmarking, companies need to get hold of data which is accurate, relevant to their specific organisation and sector, and tailored to factors such as company size and role scope. Publicly available information is often hard to find, or too generic to provide the accuracy needed for informed decision making in pay setting. The data needs to be real-time, using quality research processes, and represent roles from the most relevant comparators.

Another challenge is around the constant change and fluctuation when it comes to salary levels, due to how quickly the market can shift. As mentioned above, salaries for certain roles can change quickly due to market skills demand for particular job roles, or due to other factors such as economic fluctuations and even international politics. Therefore, it’s important to undertake regular reviews of salary information, because the numbers can quickly become outdated – but this high frequency of market testing can pose a challenge for organisations, especially when HR teams are already stretched.

Benchmarking salaries can also be quite labour intensive and time consuming, especially if you want the research to be accurate and relevant. All of this can add to an ever-expanding to-do list for HR and Reward Managers, and so the smart move is often to use a reward benchmarking consultancy service, who can tailor their research to the specific needs of your organisation, providing information that is accurate, timely and relevant.

Overall, why is benchmarking advantageous? Why is it a smart approach to retaining talent?

If your company is truly invested in its people and committed to being a great place to work, then ensuring that you are paying a fair and market-comparable rate is the best place to start. Benchmarking should therefore go hand-in-hand with the setting of pay policies – especially if you want to be competitive against your direct peers, and attract the best talent.

Perhaps most importantly, benchmarking your remuneration policies can help towards reducing staff turnover, because paying a competitive wage undoubtedly leads to improved employee morale and job satisfaction. When employees feel valued and fairly compensated for their hard work, they are more likely to be engaged and motivated, which will ultimately drive company performance. Having a low turnover will also save companies on the costs related to hiring and training new employees; so, ultimately, it’s beneficial for both sides if your people are happy.

Offering attractive pay rates that are informed by salary benchmarking also serves to give companies a competitive advantage in recruitment processes and prevents them from lagging behind the market. Salaries for some jobs can rise quickly and unpredictably due to skills shortages or changes to legislation, leading to an increased demand for particular skills. It is therefore important for companies to stay proactive, keeping track of the market on a regular basis and making adjustments where needed – after all, employees often know where to look for salary information online, so if your company is lagging behind with pay, then your best people will head for the door.

Base pay is not the only consideration here: pay structures are also positively impacted by a focus on benchmarking. This is because the process of market testing helps to inform the development of salary bands, which shows employees what they can expect as they grow and develop – helping to boost performance and retention at an individual level through robust pay progression frameworks. This also aids in general pay transparency, which is an increasingly important aspect of company culture for much of today’s workforce; data from Indeed’s Hiring Lab suggests that salary transparency in the UK has increased by 49% since 2019.

When it comes to justifying the potential cost and effort of remuneration benchmarking as a smart approach, here’s the bottom line: benchmarking is a data-driven method for decision making around pay, providing concrete evidence to support targeted interventions for bolstering retention. In today’s competitive job market, your reward strategies must be attractive, fair, and aligned with the wider market. Without the right data to drive your decisions around pay setting, it’s easy to miss out on (or to lose) the top skills that your business needs to thrive.

Conclusion

Remuneration benchmarking is a reliable, data-driven strategy that can have a hugely positive impact on pay setting by enabling organisations to make informed decisions around pay based on their position within their direct market. By offering fair and competitive salaries, companies can build a solid reputation within their relevant sector, leading to the attraction and retention of high-quality candidates. Organisations that have an effective talent retention strategy will ultimately have a competitive advantage over their peers in the long run, ensuring they have the best people on board to drive innovation, growth and success.

Do you want to know more about remuneration benchmarking services and how they can help your business to thrive?

Get in touch or visit our sister company, Henley Reward Consulting, for an informal chat about how we can support the development of your people strategies.

Introduction

It’s widely accepted in today’s talent climate that skills-first hiring will inevitably become an essential part of corporate hiring strategies – but what is it, and why is it set to be “the future of talent acquisition”?

Skills-First Hiring – What Is It?

Skills-based hiring prioritises an applicant’s skills over traditional indications such as education levels or previous work experience. It focuses on matching individuals with roles based on their abilities and competencies, rather than solely considering job history, formal qualifications or personal characteristics.

Many job seekers will attest to the frustrating paradox within hiring – you have to have experience in order to get experience – and so with skills-based hiring, ability becomes the measure of a candidate; in short, you can have the job if you can do the job. A willingness to judge people on an individual basis, with their unique expertise, opens up a much bigger pool of potential candidates. Talent, after all, comes in all shapes and sizes and from different career backgrounds and age groups. A skills- based approach removes the focus on education and experience. It shifts this focus to capability, reducing bias in the hiring procedure.

The Process

Looking at the process of skills-first hiring within talent acquisition practices, the skills- first approach is more likely to involve a practical element, so a candidate’s claims can be put to the test before an offer of employment is made. This method of screening potential hires offers an evidence-based approach to recruitment, so there may be targeted skills-based questions and tests to reveal competency in specific areas. Instead of relying on previous job roles as signals of talent, the idea is to look beyond just what’s on the CV and really understand what someone can do.

The process differs from that of traditional hiring procedures, because employers are likely to take into account things like soft skills, life experiences outside of the workplace, and natural capabilities (including ones that may not have previously been used at all within an employment context). More nuance is required in order to see a person’s potential beyond a cover letter, and the overall process may look a little more complex – but the results can be hugely advantageous.

The Advantages

For the Company:

The benefits of this new approach to hiring can be numerous for a company. The method serves to expand the talent pool, reduce bias, and improve the quality of employment. Organisations adopting skills-based hiring tend to be the ones staying agile and keeping pace with both the changing nature of work, and the ever-shifting market demands.

By focusing on what individuals can do, rather than where they have come from, companies can better align their hiring practices with their strategic goals. This goes on to reduce the number of mis-hires and boost retention, transforming the hiring process. Liz Newman, HR Director at Stratospheric Platforms*, states that “interview practical tests have been a game-changer for certain roles at SPL, revealing real talent beyond the CV and ensuring confident hiring decisions.” When companies invest in their people, they are also demonstrating a commitment to employee development. By prioritising the upskilling and reskilling of their existing employees, they can utilise the talent they have, rather than relying on costly external hires.

*stratosphericplatforms.com

A further potential advantage is that by hiring based on skills rather than traditional qualifications, firms can be better positioned to respond to rapid technological advancements and industry changes, which may be out of their control. With the recent pandemic being a good example of this, it demonstrates that companies with a skills-led approach are able to pivot far more effectively during periods of change, as their workforce is more adaptable. With technology advancing more and more quickly, a focus on skills can get firms the talent that they need in order to stay ahead.

When focusing on skills, companies can build a more versatile and capable workforce, driving innovation and growth. An organisation that endeavours to increase diversity within the employee cohort, and to boost overall employee satisfaction and engagement through investment in existing talent, will inevitably see a spike in their attractiveness – as well as their employee retention and loyalty. After all, people will remain where they feel valued.

For the Individual:

Skills-first hiring can provide an open door into roles that may previously have been inaccessible through traditional hiring techniques, creating a more level playing field for those who have learnt skills in non-traditional environments, are self-taught, or have acquired skills through apprenticeships or on-the-job learning.

By looking at skills, a person is more likely to be considered within a talent pool that, based on the arbitrary practices of old hiring techniques, may have discounted them right at the start. For example, if someone has the same skills as another candidate but without the specific degree or previous identical job role, then traditional hiring processes may have excluded them at the very first stage of shortlisting, based on their CV alone. For this reason, a skills-first approach is bound to increase diversity. This provides new opportunities and greater chances for those on the outskirts of a candidate cohort.

There is a plethora of other positives for the individual when it comes to their skills being the main asset. When there is a focus for the individual on skills development, training and upskilling, it ensures the employee remains adaptable and motivated in their career. A person is also more likely to feel fulfilled and confident in a workplace environment that perceives and utilises the unique offerings that they, and they alone, can bring. A skills-first approach provides an individual with more options for career changes and internal movement, increasing their assurance in their own abilities. Their personal potential is expanded, in addition, if they know it can be possible to land a particular job without the traditional hurdles that keep many stuck on a restrictive career pathway.

For the Talent Market and the Wider Economy:

It’s clear, then, that using a skills-first approach in the hiring process can help to create a more diverse and inclusive talent base – something that can only be a good thing, in light of the rising importance of DE&I standards. What’s more, evidence from Deloitte* shows that organisations using this approach are 107% more likely to place talent effectively, 98% more likely to retain high performers, and more likely to build reputations as good places for career progression. The positive response from candidates, and the ability to tap into hidden talent pools, means it also makes acquisition easier for employers when they’re in the market for talent.

Skill Collective, a UK-based consultancy specialising in skills transformation, state that if talent acquisition teams take ownership of collecting, verifying and distributing skill data, this could completely transform the way businesses operate. Having hard, verified data around skills would show exactly what a candidate can do and how they’ll contribute to an organisation’s future. skillcollective.co.uk

With all of this considered, skills-first hiring has the potential to decrease unemployment, retain great talent, and improve hiring practices through skills-based data technology. With less unemployment and higher retention, there can be more productivity – leading to a better performing economy overall.

*Read the article here:

https://www2.deloitte.com/us/en/insights/topics/talent/

organizational-skill-based-hiring.html

The Challenges

This change in approach when it comes to hiring doesn’t come without its potential challenges, however. There will probably be a need to create brand new strategies and structures dedicated to hiring and internal talent progression, requiring an investment of both time and cost.

Time and Training:

Taking a new stance towards talent acquisition will require extra time and training for those who are involved in the process – in particular, HR personnel. A skills-based approach requires hiring managers to know how to assess skills in a measurable way. This may include workshops, e-learning modules, and instruction in the creation of clear skills-focused job descriptions. Hiring managers who haven’t received sufficient training on a new hiring system may naturally default to what they know, so adequate guidance is essential.

Additionally, it is likely that increased time will be needed on candidate screening – especially where soft skills are being brought into the equation – due to the nuanced nature of decision making in the skills-first approach. It can be difficult to assess soft skills through tests alone, and it can be challenging to verify the authenticity and quality of a candidate’s skills without the traditional verification benchmarks such as degrees. Companies will need to invest time in meticulously mapping out the skills required for each role, including proficiency levels, to ensure the right person is hired.

The training needs of candidates must also be considered. New hires with non- traditional educational backgrounds might require additional training to align with company-specific practices and culture, in addition to their on-the-job learning process.

Technology:

As well as the manual aspects of the process, there is also the technological side to consider. Organisations may need to implement new skills assessment platforms and AI-driven tools to record data, and to streamline the process of assessing, tracking and comparing candidates’ competencies. Tools such as these can be time- consuming and costly to develop and administer, but without integrating this tech, hiring teams may struggle to scale up their skills-based practices. This is because older, legacy HR systems may not be equipped to handle skills-based data or to integrate it with other talent management systems.

Risk of Bias:

While skills-based hiring is designed to be inclusive, there’s a risk of creating bias against those with traditional qualifications, and potentially missing out on great candidates with strong experience. Those who may have been to very good schools, or spent years in relevant roles, might be overlooked in favour of those with the right skill set but less experience.

It’s important to remember that there are positives to traditional hiring techniques, so a holistic approach to the decision making process is required in order to remain inclusive and open-minded when finding the right talent for the role.

Conclusion

So, considering all the points above, why should your company consider a skills-first approach to hiring?

In the context of modern business practices, prioritising recruitment means rethinking how we identify, engage and attract talent into a company. And, in the increasingly competitive talent market, the businesses that have established a skills-based talent acquisition process will often have the competitive advantage over their peers.

With the recruitment landscape continually evolving, talent acquisition leaders must be adaptable and open to new methodologies and technologies in hiring. Staying up to date with industry best practices and innovative tools for skills assessment is therefore a crucial part of the hiring process.

Although there are challenges and significant investments of time and cost with any new approach, embracing new ways of bringing people on board will no doubt lead to greater diversity and inclusivity. This will ultimately drive high performance and growth, creating highly adaptable working environments that motivate individuals to succeed.

If you would like to learn more about this topic, and how we can support your talent strategy, please feel free to get in touch with Hugo Reoch or Helen Davies on hugo.reoch@henleyresearch.com / helen.davies@henleyresearch.com for a confidential conversation.

Filling senior roles in your business is no easy challenge. Finding someone with the right skills, knowledge and cultural fit are all crucial factors to consider. How can you make sure you’re attracting the best talent? here are our top 5 tips:

1️⃣ Succession Planning – Make sure your talent strategy is future-proof to ensure a pipeline of capable leaders for the future.

2️⃣ Strong Onboarding Process – Develop a comprehensive onboarding program to integrate the new hire smoothly into the team.

3️⃣ Leverage Talent Research Experts (like ourselves) – Our extensive research expertise and sector knowledge will give you larger and higher quality talent pools.

4️⃣ Focus on Diversity, Equity, and Inclusion (DEI) – Ensure a diverse slate of candidates to bring in varied perspectives and drive innovation

5️⃣ Offer Competitive Packages – Ensure the salary and benefits package is competitive and reflective of the senior role so top talent will be attracted to your company. Henley Reward Consulting can help with this with their incredibly useful benefit reviews to help keep you ahead of the competition.

By following these best practices, you can enhance your chances of securing senior leaders who are not just skilled and experienced, but also aligned with your company’s long-term goals and culture.